Anker's annual cash dividend is 800 million!

As the leading cross-border company, Anker Innovations' ability to attract money cannot be underestimated, and its shareholders' returns are also quite optimistic.

Cash dividends increase year by year

This month, Anker Innovations disclosed some data, which mentioned the dividend situation in the past three years. The dividends have increased year by year to 800 million yuan.

In 2021, 2022 and 2023, Anker Innovations' net profit attributable to the parent company was RMB 982 million, RMB 1.143 billion and RMB 1.615 billion, respectively, with an average of RMB 1.247 billion.

This year, Anker Innovations implemented the 2023 shareholder profit distribution. In 2023, the company achieved revenue of 17.507 billion yuan, net profit of 1.615 billion yuan, and cash dividends of 813 million yuan to shareholders.

Specifically, in 2024, Anker Innovations held its 2023 Annual General Meeting of Shareholders, reviewed and approved the 2023 profit distribution plan, and distributed a cash dividend of RMB 20.00 (including tax) per 10 shares to all shareholders based on the company's total share capital of 406,427,207 shares before equity distribution, totaling RMB 813 million in cash dividends. The profit distribution method has been implemented.

In 2023, Anker Innovations distributed shareholders' profits for 2022. Based on the company's total share capital of 406,427,207 shares before equity distribution, it paid a cash dividend of RMB 12.00 (tax included) per 10 shares to all shareholders, for a total cash dividend of RMB 488 million.

In 2022, Anker Innovations implemented the 2021 shareholder profit distribution. Based on the company's total share capital of 406,427,207 shares before equity distribution, a cash dividend of RMB 8.00 (including tax) per 10 shares was paid to all shareholders, with a total cash dividend of RMB 325 million.

According to Anker Innovations' current profit distribution policy, the company guarantees that the current and future profit distribution policy is that if the company is profitable in the current year and meets the conditions for cash dividends, dividends should be distributed in cash, and the profits distributed in cash shall not be less than 20% of the profits distributed at that time.

The company also mentioned that profit distribution should focus on reasonable investment returns to investors, but should not exceed the scope of accumulated distributable profits and should not damage the company's ability to continue operating.

Anker Innovations' shareholders have made considerable profits. It is worth mentioning that the company has also authorized employees to hold certain shares and actively implemented equity incentive measures. In June this year, the company reviewed and approved the 2024 restricted stock incentive plan, and the first grant of incentives will not exceed 305 people, including company directors, senior management, core technology and business personnel.

Dividends will continue to rise in the next six years

Anker Innovations' strength is obvious to all in the industry. The company is mainly engaged in the research and development, design and sales of its own brand of smart hardware products. It is a world-renowned consumer electronics brand enterprise, covering online and offline sales channels, with a relatively high proportion of online Amazon platforms. Since 2018, Anker Innovations has been ranked high on the Amazon platform and has remained at the forefront.

Anker Innovations, which is strong enough, is rich. From 2021 to the first half of 2024, the net cash flow generated by the company's operating activities was 449 million, 1.424 billion, 1.430 billion and 841 million, respectively.

From 2020 to 2023, the proportion of the company's net cash flow to operating income was 2.01%, 3.57%, 9.99% and 8.17% respectively. Combined with the future business development trend, it is expected that the proportion of cash flow to revenue will remain at the average of 5.93% in the past four years. It is estimated that the total cash flow generated by operating activities from 2024 to 2029 will be 13.79521 billion yuan.

Based on the situation from 2020 to 2023, Anker Innovations' cash dividends were 325 million, 488 million and 813 million yuan, and the total cash dividends accounted for 42.45% of the total net profit in the three-year consolidated financial statements. Assuming that 30% is used as the basis for calculating the cash dividend ratio in future periods;

From 2020 to 2023, the proportion of the company's net profit attributable to shareholders of the parent company to operating income was 9.15%, 7.81%, 8.02% and 9.22% respectively. The average of the past four years was 8.55%. Assuming that the proportion of net profit attributable to shareholders of the parent company to operating income will be 8.55% each year during the term of the convertible bonds from 2024 to 2029.

Referring to the above, the expected operating income and net profit margin in future periods, it is estimated that the cash dividends from 2024 to 2029 will reach 1.845 billion, 2.274 billion, 2.803 billion, 3.454 billion, 4.257 billion and 5.246 billion yuan respectively.

Amazon sellers rank second, with high profits

According to Marketplace Pulse, as of August 21, 2024, Anker Innovations ranked second among Amazon's third-party sellers in the United States, fourth in Japan, sixth in Australia and Canada, and seventh in Germany. The company's core product categories include charging and energy storage, smart innovation , and smart audio and video.

Take Meiya as an example. As of August 21, 2024, among charging and energy storage products, the company's USB charging cable products account for 5 of the top 10 best-selling products on the platform, and mobile power bank products and adapter products account for 3 of the top 10 best-selling products on the platform;

In the category of intelligent and innovative products, the company’s intelligent door lock products are among the top 10 best-selling products on the platform;

In the category of smart audio and video products, the company's telephone audio conferencing products accounted for 4 of the top 10 best-selling products on the platform. In the rankings of over-ear headphones and portable Bluetooth speakers, the company's products ranked second and sixth respectively.

While its products are selling well, Anker Innovations and its brands have also won many awards and honors in the industry. From 2020 to 2023, it has been selected as one of the "Top 500 New Economy Enterprises in China"; the brand Anker has been included in the "BrandZ China Global Brands" list released by Kantar BrandZ, a global well-known brand ranking, for eight consecutive years.

In the same industry, major companies with single or multiple product categories similar to Anker Innovations include UGREEN Technology, Huabao New Energy, etc.

There is a high degree of overlap between UGREEN Technology's business and Anker Innovations. It is mainly engaged in the research and development, design, production and sales of transmission, audio and video, charging, storage and mobile peripheral products. It was listed on the Shenzhen Stock Exchange's Growth Enterprise Market in July 2024. In 2023, UGREEN Technology's revenue was 4.803 billion yuan and its net profit was approximately 394 million yuan.

Huabao New Energy was listed on the Shenzhen Stock Exchange's ChiNext in September 2022. It is a leading brand enterprise in the vertical field of portable energy storage. It mainly sells online in China, the United States, Japan, the United Kingdom and other countries around the world. In 2023, it achieved revenue of 2.314 billion yuan and a net profit of approximately -174 million yuan.

Ruilian Technology is engaged in the research and development, production and sales of home video surveillance product hardware and software, with online platforms as its main sales channels, focusing on overseas consumer markets. In 2023, it achieved revenue of 2.08 billion yuan and net profit of approximately 436 million yuan.

Ecovacs' main business is the research and development, design, production and sales of various home service robots, cleaning appliances and other smart home devices and related parts. It was listed on the main board of the Shanghai Stock Exchange in May 2018. In 2023, Ecovacs achieved operating income of 15.502 billion yuan and a net profit of approximately 611 million yuan.

In general, compared with companies in the same industry, Anker Innovations is at a relatively leading level in terms of revenue and net profit. From 2021 to the first half of 2024, the company's comprehensive gross profit margin was 35.72%, 38.73%, 43.54% and 45.18% respectively, showing an upward trend year by year. The continuous increase in gross profit has driven the company's profits to grow simultaneously.

Only when a company can make money can shareholders receive dividends. In the future, whether Anker Innovations' cash dividends to shareholders can reach the estimated value remains to be seen.

Anker Innovations

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