Awesome! Anker's annual revenue exceeds 14 billion

The season for cross-border IPO financial report disclosures is here!

Recently, cross-border listed sellers have disclosed their revenue in the past year. Anker Innovations, a cross-border "model student", also disclosed its 2022 annual report today. The data showed that Anker Innovations' revenue and profit both increased, with Amazon channels accounting for half of Anker Innovations' revenue. In the context of domestic and foreign difficulties in 2022, it is not easy to achieve such comprehensive growth!

While disclosing its financial report, Anker recently stated that it plans to use no more than RMB 4.5 billion of idle funds for financial management. It is worth noting that Anker Innovations is currently embroiled in a dispute over the delayed redemption of its wealth management products.

Anker Innovations' total operating revenue in 2022 reached 14.251 billion yuan

When it comes to Anker Innovations, I believe that the majority of cross-border sellers are familiar with it. It is a well-known global consumer electronics brand company. It has successfully built a global brand matrix consisting of six major brands including Anker, soundcore, eufy, Nebula, Ankerwork, and AnkerMake, covering multiple product categories such as charging, smart innovation, and wireless audio.

In 2022, according to the 6th "BrandZ China Global Brands" research report released by Kantar BrandZ, a world-renowned brand ranking, at Google's annual event Think with Google 2022, Anker has been on the list for six consecutive years, ranking 12th; at the 15th "Golden Investment Awards" International Creativity Festival, Anker won the Grand Prize, which symbolizes the highest honor in the marketing field, and new brands AnkerMake and AnkerWork also won silver and bronze awards respectively.

In 2022, Anker Innovations achieved total operating revenue of 14.251 billion yuan, an increase of 13.33% over the same period last year; and achieved net profit attributable to shareholders of listed companies of 1.143 billion yuan, an increase of 16.43% over the same period last year. Let's take a look at the revenue of Anker's main categories:

(1) Charging products

Charging products are the earliest product category launched by Anker, mainly including "Anker" brand digital charging and peripheral products, household photovoltaic and energy storage products, etc. In 2022, the company achieved revenue of 6.876 billion yuan, a year-on-year increase of 23.84%, accounting for 48.25% of total revenue.

In the field of digital charging , through in-depth insights into users' various charging scenarios and various habits, Anker continued to launch a number of high-quality new products with leading technology and strong adaptability in 2022, such as the 7 multi-port fast charging products of the GaNPrime full gallium nitride fast charging family, and the Anker Nano Pro charger equipped with exclusive charging safety technology and continuously upgraded in appearance and performance.

In the field of household photovoltaics and energy storage , the company's current products are mainly outdoor energy storage. In May 2022, the company launched the Anker PowerHouse 757, an outdoor energy storage flagship product that uses lithium iron phosphate batteries and is equipped with self-developed bidirectional inverter technology. This product is the company's first outdoor energy storage product with a power of more than 1500W. It uses lithium iron phosphate batteries with more stable performance and longer life. On the first day of listing, it became the first in the same category on Amazon and received good feedback from consumers. In December of the same year, the company launched an upgraded version of the outdoor energy storage product with a power of 2400W, continuing to enrich the product matrix.

In the field of household energy storage , we are currently actively stockpiling relevant technologies and investing heavily in research and development, and it is expected that product forms will be gradually launched in the second half of 2023.

(2) Intelligent and innovative products

Anker Smart's innovative products include eufy smart home, Nebula laser smart projection products and other innovative product series , with revenue of 4.391 billion yuan, a year-on-year increase of 7.02%, accounting for 30.82% of total revenue.  

eufy has two major product lines. eufy Clean focuses on smart home cleaning solutions, using smart technology to serve home cleaning and protect family health; eufy Security focuses on smart home security systems, including smart video doorbells, smart door locks, smart wireless security cameras and other products .

Nebula's laser smart projection products currently include three main series: the Cosmos flagship series focuses on home theater, the Mars series focuses on outdoor audio and video, and the Capsule series focuses on extreme portability.

In addition, Anker continues to explore new product areas under the category of smart innovation. In April 2022, the company launched a new consumer-grade 3D printing equipment brand AnkerMake overseas . The first desktop product M5 raised $8.88 million on the overseas crowdfunding platform Kickstarter, breaking the historical crowdfunding record of the platform's 3D printing category . AnkerMake M5 focuses on intelligent high-speed printing, greatly improving the speed and accuracy of 3D printing through technological innovation, and has now been officially launched on the market.

(3) Wireless audio products

Wireless audio products mainly include "soundcore" brand wireless Bluetooth headsets, wireless Bluetooth speakers, audio glasses and other series of products, with revenue of 2.822 billion yuan in 2022 , accounting for 19.80% of total revenue; affected by market demand, wireless audio revenue decreased by 1.06% year-on-year.

It can be seen that this is the only category among Anker Innovations' main categories where revenue has declined. However, Anker's investment in this field cannot be underestimated. As one of the earliest smart hardware manufacturers to deploy Bluetooth speaker products and true wireless headset products, Anker has accumulated hundreds of patents in the field of wireless audio and has a number of invention patents that fill gaps in the industry. Among them , the "soundcore" brand was named "China's Top Ten Headphone Brands" in 2022 at the "8th China (Guangzhou) International Headphone Exhibition". Multiple audio product series have been launched based on different usage scenarios, such as the Liberty series, the benchmark for in-ear headphones, the Sport series, the sweat-proof sports headphones, the Sleep series, the party speakers, the Flare and Rave series, and the Motion outdoor series.

Amazon accounts for half of Anker Innovations ' revenue, and independent station channel sales also surged

In 2022, affected by the downward global macroeconomic environment, the slowdown in some economies, exchange rate fluctuations, etc. , Anker's development in various global markets showed different growth rates.

As can be seen from the figure, Anker's revenue in all its main markets is in a state of positive growth. Among them, the revenue of the North American market is as high as 725,317.65 million yuan, the revenue of the European market is as high as 282,898.40 million yuan, and the revenue of the Middle East market increased by 35.71% year-on-year to 76,182.29 million yuan. In the Japanese market, it still achieved positive growth when the average exchange rate of the yen to the RMB fell by 12.61% , which is not an easy task.

Anker Innovations is not just a cross-border e-commerce company, but an omni-channel sales company based on the "online + offline" sales structure, with multi-channel and multi-level sales.

In the online market , the company continues to expand its sales share in the existing market based on the refined management and operation of online sales platforms, and enters more emerging markets with the help of online sales platforms such as Amazon. On this basis, it deepens its cooperation with well-known e-commerce platforms such as AliExpress and eBay. In the Chinese mainland market, the company's online sales are mainly carried out through Tmall, JD.com, Douyin and other platforms.

Amazon is still Anker Innovations' largest source of revenue, with operating income of 797,334.59 million yuan in 2022, accounting for 55.95% of total operating income, a year-on-year increase of 16.01%. The operating income of other third-party platforms was 80,351.28 million yuan, accounting for 5.64% of total operating income, a year-on-year increase of 9.66%.

At the same time, with the continuous strengthening of the construction of independent sites and the increase in the proportion of complex categories of the company's products, during the reporting period, Anker's six independent sites ( Anker/eufy/soundcore/Nebula/AnkerMake/AnkerWork) achieved a total revenue of RMB 676 million, a year-on-year increase of 71.75% ; the proportion of independent site channel revenue increased to 4.75%, an increase of 1.62% over last year.

In the offline market , Anker mainly sells its products through cooperation with global retail stores, regional large retail stores, independent 3C stores and professional channel sellers. It has entered global well-known chain supermarkets such as Walmart, Best Buy, Target, Costco, and Japanese retail giant 7-11 convenience store group in North America, and has made some progress in offline expansion in countries and regions such as Europe, Australia, Southeast Asia, and South America.

In 2022, the impact of adverse factors such as rising shipping costs and rising raw material prices has weakened compared with the same period last year. However, affected by multiple factors such as escalating international geopolitical disputes and energy shortages, the global macroeconomic situation has become increasingly complex and severe, and downward pressure has continued to increase. Many countries and regions have fallen into an "inflation wave", and residents' purchasing power has been affected to varying degrees. Export-oriented enterprises are facing many challenges.

In the face of a difficult external environment, Anker Innovations' revenue and profits can still reach new highs, which undoubtedly injects some hope into the sluggish cross-border e-commerce industry. This also allows Anker Innovations' reputation in the industry to continue to rise.

An Anker supplier said that during the cooperation process, he deeply felt that Anker Innovations is a good company with perfect product strength. Its energy not only empowers C-end customers, but also allows suppliers to learn a lot.

Coincidentally, another supplier also praised that in 2022, the epidemic, chip shortage, rising logistics and raw material costs, trade disputes, etc. continued to occur. It is remarkable that Anker has achieved comprehensive growth in such an environment of internal and external difficulties.

Facing 2023, industry insiders also have higher expectations for Anker Innovations. "We expect Anker to achieve multi-brand synergy this year, hold its existing positions, and continue to attack, achieving a balance between strategic focus and multi-point breakthroughs!" said one of them.

Judging from Anker Innovations' 2023 development plan, creating new products and exploring new markets are prominently listed. This is also what the majority of cross-border sellers are doing. Let's take a look at Anker's specific plans.

In terms of products , on the basis of consolidating the existing product technology, we will continue to promote the technological innovation of small charging products, wireless audio products, etc. in the charging category by continuously strengthening the construction of new R&D centers; and increase the R&D and innovation efforts in the field of consumer electronic products such as medium and large charging products, smart innovative products, etc.

As product categories become more diverse and design structures become more complex, we will continue to add more comprehensive testing items to continuously improve the efficiency and accuracy of product quality testing. We will deeply integrate the concept of sustainable development, deeply improve energy conversion efficiency in our main business, and promote the application of portable and household energy storage power supplies and management equipment based on photovoltaic new energy technology.

In terms of the market , we will continue to deepen our presence in developed country markets and expand into emerging economic markets. On the one hand, we will expand our product market share in countries and regions such as North America, Europe, Japan, the Middle East and Australia, and continue to increase our market expansion efforts through sales channels such as Amazon and its local large supermarkets and stores.

On the other hand, the company will continue to expand into emerging markets and increase brand awareness and market share in such markets by expanding sales coverage and strengthening channel competitiveness. Among them, the Chinese market, Southeast Asian market and Latin American regional market will continue to be the key areas for future layout.

Anker plans to use no more than RMB 4.5 billion of idle funds for financial management

Anker's position in the cross-border e-commerce industry is unquestionable, but it is also actively exploring other ways to make money, such as financial management. According to Anker Innovation's latest announcement, it plans to use idle self-owned funds of no more than RMB 4.5 billion (inclusive) to purchase financial products. Investment products include but are not limited to bank financial products, trust products and other financial objects and financial methods approved according to the company's internal decision-making procedures. It is worth noting that funds within the above amount can be used in a circular manner .

Anker Innovations believes that the company's use of idle self-owned funds to purchase financial products will help improve the efficiency of the use of its own funds, increase the company's financial returns, and will not have an adverse impact on the company's business activities, and there is no situation that harms the interests of the company and all shareholders, provided that the normal operation of the main business is not affected and the risks are controllable.

Although financial products are strictly evaluated, the financial market is greatly affected by the macro-economy, and it is not ruled out that the investment is affected by market fluctuations , and there will be disputes over delayed redemption of financial products. Anker Innovations filed a lawsuit with the Nanchang Intermediate People's Court of Jiangxi Province because of the latter.

It is reported that Anker Innovations bought the AVIC No. 651 trust wealth management product in June 2021, with a subscription amount of 100 million yuan and invested in real estate. Currently, there is a delay in redemption.

After the trial, Anker Innovations recently received a "Civil Judgment" from the Nanchang Intermediate People's Court of Jiangxi Province. The Nanchang Intermediate People's Court made the following judgment on the company's lawsuit against AVIC Trust Co., Ltd. for delaying the repayment of the principal and interest of AVIC No. 651 Trust Financial Product:

The lawsuit filed by the plaintiff Anker Innovations Technology Co., Ltd. is dismissed. If you are dissatisfied with this judgment, you may submit an appeal to this court within 15 days from the date of delivery of the judgment, and submit a copy according to the number of the other party, and appeal to the Higher People's Court of Jiangxi Province.

As of the date of disclosure of this announcement, Anker Innovations has appealed and prepaid the case acceptance fee, waiting for the second-instance court to accept the case.

Having said that, although Anker Financial Management has encountered setbacks, Anker Innovations has not only been able to keep up with cross-border development and "not fall behind", but has even led the industry development. Its business approach is undoubtedly of reference significance to the majority of cross-border sellers. Looking at Anker's business experience, it can be found that the branding strategy is carried through all stages of the company's development. At the same time, Anker Innovations is also continuing to deepen its main categories. Of course, Anker's strong "vitality" is also inseparable from its investment in the R&D department.

Data shows that Anker's R&D investment reached 1.08 billion yuan in 2022 , a year-on-year increase of 38.80%. The proportion of R&D investment to total operating income was 7.58%, ranking at the forefront of the industry. As of the end of the reporting period, the company has obtained 103 invention patents, 636 utility model patents and 462 appearance patents worldwide, and has a number of patents pending.

At the same time, based on the goal of the common growth of organizational and corporate talents, Anker actively promotes various talent development plans internally, launches the first restricted stock incentive plan after listing, adopts the second type of restricted stock incentive method to enrich the company's incentive mechanism, and explores and practices shareholding plans that are in line with the company's organizational development and talent innovation. As of December 31, 2022, the company has a total of 3,615 employees, including 1,820 R&D personnel, accounting for 50.35% of the total number of employees.

Development opportunities in the digital device charging industry, household photovoltaic and energy storage fields, and consumer-grade smart hardware industry

The development of Anker Innovations is closely related to the industry it is in. Whether it is the digital device charging industry, home photovoltaic and energy storage field, or consumer-grade smart hardware industry, there are unlimited prospects.

Digital device charging industry: In the era of mobile Internet, the growth of smartphone shipments and technological leadership are one of the core driving forces of the consumer electronics industry. However, with the downward economic cycle and the increasing popularity of smartphones and mobile Internet, smartphone shipments have continued to slow down in recent years. According to statistics from IDC, a world-renowned consulting firm, global smartphone shipments will be approximately 1.21 billion units in 2022, a year-on-year decline of 11.3%. While global consumer electronics-related industry participants are adopting more pragmatic and stable strategies, they are also actively creating differentiated, high-end, and competitive products, actively looking for new application scenarios and laying out new increments for future business development.

As far as the charging market is concerned, with the popularization of fast charging products and the continuous improvement of charging product performance, the use scope of products that were originally mainly used for charging smartphones has continued to expand. High-power fast charging products can be used in a variety of charging scenarios such as tablets and laptops to meet the diverse charging needs of consumers, thereby increasing the capacity of the digital device charging market.

Household photovoltaic and energy storage fields: With the rise of the "camping economy" at home and abroad in recent years, outdoor activities that seek freedom and closeness to nature have become an emerging trend, and the market demand for outdoor electricity is increasing. At the same time, due to factors such as global climate change and turbulent international geopolitical structure, the power supply stability of some economies in the world has been seriously affected, and the demand for emergency backup power supply in residents' families has gradually increased. Outdoor energy storage power supplies have gradually entered the field of vision of consumers, providing stable power support for camping activities, outdoor shooting, family emergencies, etc., and the use scenarios are constantly enriched.

At the same time, against the backdrop of global energy shortages and dual carbon goals, the energy structure is accelerating its transformation toward renewable energy. Currently, more than 130 countries and regions around the world have proposed "zero carbon" or "carbon neutrality" climate goals. Achieving green and sustainable development has become a broad consensus around the world, and the market space for household energy storage covering residents' green electricity use is correspondingly extremely broad.

Consumer-grade smart hardware industry: According to different user types, the global smart hardware industry can be divided into consumer-grade smart hardware, commercial-grade smart hardware and industrial-grade smart hardware.

The consumer-grade smart hardware electronic product market is vast, covering all kinds of intelligent consumer electronic products such as smart security equipment, smart cleaning, wearable devices, smart Bluetooth speakers, etc. Under the guidance of cutting-edge industry technologies such as mobile Internet, artificial intelligence and big data, the global smart hardware market is booming and has become one of the main driving factors for the sustainable development of the global consumer electronics industry.