Anker spent nearly 300 million yuan to acquire equity

Last week, Anker announced that it would acquire the equity of its holding subsidiary.

Acquired equity of subsidiary for RMB 285 million

Specifically, Anker will acquire 6.6557% of the equity of its holding subsidiary Shenzhen Haiyi Zhixin Technology Co., Ltd. ( hereinafter referred to as " Haiyi Zhixin " ) from Nanjing Haiyi Yuanzhi Management Consulting Partnership (Limited Partnership) (hereinafter referred to as " Haiyi Yuanzhi " ) and others in cash .

It is understood that Haiyi Yuanzhi is Haiyi Zhixin’s employee shareholding platform and is also a partnership controlled by Anker .

This is not the first time that Anker has acquired shares in Haiyi Zhixin. As early as August 2022 , Anker's board of directors passed a relevant proposal to acquire the 5.14% stake in Haiyi Zhixin held by Haiyi Yuanzhi .

Anker stated that the most recent acquisition was made in order to further enhance the business and management collaboration between the two parties and promote the sustained and stable development of its holding subsidiary Haiyi Zhixin .

Before the acquisition, the three largest shareholders of Haiyi Zhixin were Anker (holding 75.3411 %), Haiyi Yuanzhi (holding 22.6589 %) and company employee Liu Wenbing ( holding 2 % ).

In this acquisition, Anker will use its own funds of RMB 285 million to purchase a total of 6.6557% of the equity of Haiyi Zhixin held by Haiyi Yuanzhi and Liu Wenbing . After the transaction is completed, Anker will hold 81.9968% of the shares in Haiyi Zhixin .

Haiyi Zhixin was established in Shenzhen in 2014. According to Qichacha, its legal representative is Yang Meng, the founder of Anker, with a registered capital of RMB 1 million. Its business scope includes the research and development and sales of electronic products, import and export of goods and technologies, etc.

The announcement shows that after auditing for the past year, Haiyi Zhixin's annual revenue and net profit reached 861 million yuan and 364 million yuan respectively; although it has not yet been audited, in the first half of this year, its revenue and net profit were 444 million yuan and 175 million yuan respectively, which shows that Haiyi Zhixin's performance growth ability is still good.

Judging from other financial data, as of the end of 2023, Haiyi Zhixin's total assets were 894 million yuan and its liabilities were 151 million yuan, but as of the first half of this year, these two figures have increased to 1.107 billion yuan and 172 million yuan, respectively.

Based on future operating conditions and profitability , and after evaluating the value of assets and liabilities as of the end of 2023, Anker offered a final acquisition price of more than 285 million yuan.

It is worth noting that if Haiyi Zhixin 's average annual non-net profit in the next three years (i.e. 2024-2026) decreases by 30% or more compared with 2023, the transferor shall return the corresponding transfer price to Anker in cash .

Smart innovation category revenue exceeded 2.3 billion yuan in half a year

As Anker further strengthens its control over Haiyi Zhixin, the two parties are expected to achieve deeper collaboration and complementarity in product research and development, market expansion, brand building and other aspects, jointly respond to market challenges and seize development opportunities.

Anker entered the global market with its charging products, but in recent years, it has continuously expanded its business from the shallow 3C field to seek new growth anchors, such as continuously deepening its presence in the smart hardware field, including smart security, smart projectors, 3D printing and other products.

As the operating entity of Anker's smart innovation business , Haiyi Zhixin has been "fighting in battle" for it in recent years , and the revenue of this part of Anker's business has also been rising steadily.

Today, Anker's smart innovative products, including "eufy" which focuses on smart home products and "Nebula" which focuses on home projector products, are exported to major developed markets around the world such as North America, Europe, Japan and the Middle East, and occupy a leading market position. They have also achieved rapid development in emerging markets such as Latin America, Australia and New Zealand, and Asia-Pacific.

According to Amazon's real-time ranking data on December 31, 2020, many eufy brand sweeping robot products ranked first in sales in the Amazon Japan category, and ranked second and third in sales in the Amazon United States category respectively.

From 2019 to 2022, Anker Smart's revenue from innovative products was RMB 1.51 billion, RMB 3.059 billion, RMB 4.104 billion and RMB 4.392 billion, respectively, accounting for 22.69%, 32.71%, 32.63% and 30.82% of the total revenue, respectively .

By 2023, Anker will reorganize and plan its various brands. The smart innovation category will still include the smart home brand eufy, 3D printing and other product series will belong to the new brand AnkerMake, and the smart projector brand "Nebula" will be adjusted to the smart audio and video product lineup .

Because of the redivision, Anker's smart innovation category revenue last year was "only" 4.541 billion yuan (5.048 billion yuan if divided according to the original classification), and the recalculation in 2022 (excluding the revenue of the Nebula brand) was 3.825 billion yuan.

In the first half of this year, Anker's smart innovation products achieved revenue of 2.36 billion yuan, a year-on-year increase of 35.33%, accounting for 24.46% of total revenue .

Currently, the eufy brand is performing more prominently in this business segment . Its two core product lines, eufy Security for smart home security and eufy Clean for smart home cleaning, have launched new products many times this year and received good market response.

Continuous investment, Ankeli seeks new growth points

In the first half of this year, Anker achieved revenue of 9.648 billion yuan, a year-on-year increase of 36.55%; net profit attributable to shareholders reached 872 million yuan, a year-on-year increase of 6.36%; non-net profit was 766 million yuan, a year-on-year increase of 40.53%.

Among them, Anker's three major categories all achieved steady growth : the charging and energy storage category had revenue of 4.975 billion yuan, a year-on-year increase of 42.81%; the smart innovation category had revenue of 2.360 billion yuan, a year-on-year increase of 35.33% ; the smart audio and video category had revenue of 2.309 billion yuan, a year-on-year increase of 30.84% ; the three accounted for 51.56% , 24.46% and 23.93% of the total revenue respectively .

The charging and energy storage category is Anker's starting category. After years of hard work overseas, it has firmly occupied the top of the market. In the smart audio and video category, many products of the acoustic brand soundcore are listed on Amazon's BS list. As early as 2022, it was shortlisted in the TOP10 of TWS brand shipments, and its revenue in the first half of 2023 was 1.5 billion yuan, accounting for 22.12% of the total revenue.

But what we can see is that smart homes have been reaping the benefits in recent years, with new and old brands constantly rushing into this product market; and as a slightly niche product, 3D printing's future market potential should not be underestimated.

Therefore, compared with the above categories, Anker currently seems to be putting more effort into the field of intelligent innovation.

In May this year , Anker established a new company in Shenzhen - Shenzhen Anker Zhigao Technology Co., Ltd.

From the perspective of business categories, the company is involved in intelligent robot sales, intelligent robot research and development, software development, domestic trade agency, home appliance sales, electronic product sales, cargo import and export , etc. Therefore, it is speculated that the company may mainly serve the smart home brand eufy . At present, its latest development is that it completed the commercial change registration (filing) on ​​August 6 .

In addition, in August last year , Anker intended to issue convertible bonds to the market to raise no more than 1.105 billion yuan in funds.

In terms of the purpose of the funds raised, 206 million yuan was used for the research and development of a new generation of smart hardware products and industrialization projects. However, the fundraising application was later questioned and no final conclusion was reached.

The investment in R&D and the acquisition of patents also show that Anker attaches great importance to the field of intelligent innovation.

According to Qichacha data, Haiyi Zhixin has 340 patents (excluding trademark patents, the same below), including projectors, cameras, infrared detectors, etc.; and among Anker's 1,966 patents, there are also many patents for smart innovation categories such as cameras and locks .

As of the first half of 2024 , Anker has 2,117 R&D personnel , accounting for 48.21% of the total number of employees. At the same time, in a recent investor relations event, Anker stated that continuous R&D innovation is an important guarantee for the long-term vitality of product companies.

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