Gionee

Gionee — the Chinese smartphone manufacturer founded in 2002. The company placed emphasis on emerging markets, such as India, Nigeria, Vietnam, Thailand, Philippines and Algeria. Gionee devices were on sale also in Russia, but under other brands. So, Prestigio bought smartphones from the Chinese company and sold under own brand. Gionee had similar partnership with such brands as Blu (USA), Himax (Indonesia), Condor (Algeria), Evertek (Tunisia), Allview (Romania), QMobile (Pakistan), Fly (Britain) and General Mobille (Turkey).

History

2018: Bankruptcy

In December, 2018 it became known of bankruptcy of Gionee. The founder, the chairman of the board of directors and the CEO of the company Liu Lorang could bring to such status of smartphone manufacturer.

In an interview to the Securities Times edition he was recognized in the game dependence and told that he lost about $144 million in the Hong Kong casino Imperial Pacific media report that in in fact amount of loss was in 10 times more — $1.4 billion according to Liu Lorangga, he could trade on company funds from foundation of Gionee in 2002.

The smartphone manufacturer for Prestigio — Gionee company — went bankrupt

By the end of 2018 at the company debts in the amount of 17 billion yuans (about $2.4 billion) to suppliers component parts, advertizing agencies and creditors accumulated (the last there are 648). In Gionee about a half of number of staff, including all department of public relations was reduced because of a difficult financial position.

In December, 2018 the court officially declared Gionee bankrupt, and the liquidation procedure began. At the same time carrying out restructuring which will take three years is allowed. It is possible that there will be an investor who will agree to revive once successful brand. In 2016 Gionee sold about 40 million smartphones, and its share in the Chinese market was measured in the 2018th by 6%.^[1]

In addition to game dependence of Loranga, Gionee knocked down heavy expenses on advertizing. The company actively promoted the brand on television to be more popular than other largest Chinese producers, like Xiaomi.

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