With a profit of 1.2 billion, Anker’s profits surpassed those of its peers!

At the end of October, the financial reports of the best-selling companies were released one after another, which made some people happy and some sad. The report card handed in by Anker Innovations , the leader in cross-border e-commerce, in the first three quarters was still impressive, beating out a number of peers , but in comparison, the performance of Cross-border Communication seemed a little embarrassing, as if it handed in a blank paper.

Anker Innovations made a profit of 1.2 billion yuan in 9 months

As the big brother in the industry, Anker Innovations' performance still makes many of its peers jealous.

In the financial report for the first three quarters released recently by Anker Innovations, both revenue and profit increased. Among them, revenue was 11.786 billion yuan, up 23.59% from the same period last year; net profit attributable to the parent company was 1.213 billion yuan, up 46.09% year-on-year.

Looking at the performance breakdown, Anker Innovations' single-quarter performance also beat many of its peers, with revenue of 4.721 billion yuan in the third quarter and net profit attributable to the parent company of 393 million yuan, which is much higher than the annual performance of many big-name companies.

Take Huakai Yibai, which has exceeded its bet this year and has achieved good results. Its revenue in the first three quarters was 4.7 billion yuan and its net profit was 350 million yuan. Among them, the revenue in the third quarter was 1.74 billion yuan and the net profit was 100 million yuan. Anker Innovations' net profit is nearly 4 times that of Huakai Yibai. Another home furnishing giant Zhiou had a revenue of 4.136 billion yuan and a net profit of 286 million yuan in the first three quarters, which is not as good as Anker Innovations' single-quarter performance.

Whether in terms of revenue or net profit, Anker Innovations is far ahead.

The surge in performance is undoubtedly a big boon to the company's stock price. On the evening of October 29, Anker Innovations announced its performance, with a market value of 38.2 billion yuan on that day. On October 30, Anker Innovations rose 5.31% during the day. As of 09:30 in the morning, it was reported at 98.89 yuan per share, with a turnover of 5.8294 million yuan, a turnover rate of 0.03%, and a total market value of 40.192 billion yuan.

Behind Anker's record high profits, perhaps it has many trump cards in hand.

Super high product launch rate. In the third quarter of 2023, Anker Innovations launched new products in multiple categories such as charging, smart innovation, and wireless audio. Taking the charging category as an example, the Anker Prime multi-port fast charging series released at the end of July can be used by consumers on multiple devices in different scenarios. Once it was launched, it became a hot topic and was continuously recommended by technology bloggers. Even the SEO inclusion ranking was pulled to the front. The AnkerSOLIX C1000 outdoor power supply launched in September also won media awards such as "Best of Power Stations".

Increase R&D spending. As we all know, Anker Innovations has always been a benchmark for R&D companies in the industry, and this year's R&D investment is still one of Anker Innovations' major expenditures. In the first three quarters of 2023, Anker Innovations invested 930 million yuan in R&D, an increase of 33.02% over the same period last year, accounting for 7.89% of its revenue, which is at a relatively high level in the industry.

Practicing long-termism, increasing R&D spending, and continuously launching new products may also be the excellent genes engraved in Anker Innovations' bones.

At the same time, Anker Innovations has not relaxed its efforts in cultivating talents. In July this year, it launched the 2023 restricted stock incentive plan, continuing to adopt the second type of restricted stock incentive method and improving the implementation model to enrich the company's incentive mechanism, gather like-minded talents, and help the company's long-term development.

In terms of channels, Amazon is still the main battlefield for Anker Innovations, with revenue of 3.948 billion yuan in the first half of the year, accounting for 55.87%. Although the proportion of independent station business is not high, only 6.46%, it has been in a state of rapid growth in the first half of 2023. The six independent stations have formed a linkage system and created 456 million yuan in revenue in the first half of this year, an increase of 112.59% compared with the same period last year.

Offline, Anker Innovations also performed well. Not only has it successfully entered Walmart, Best Buy, Target and other world-renowned supermarket chains in North America, but it has also made some progress in offline expansion in Europe, Australia, Southeast Asia and other regions. In Japan, Anker Innovations has made a breakthrough, with revenue reaching 1.064 billion yuan, a year-on-year increase of 36.39%, the highest growth among all regions.

Compared with Anker Innovations' impressive report card, Cross-Border Communications' performance seems to be a blank sheet of paper.

With a net loss of 14.61 million yuan, will Cross-Border Link’s work be in vain this year?

In the first three quarters of this year, Cross-border Link's revenue decreased and its net profit also showed negative growth. Among them, the revenue was 5.026 billion yuan, a decrease of 1.66% compared with the same period last year; the net profit was about -14.606 million yuan, a decrease of 241.54% compared with the same period last year. It is equivalent to turning from profit to loss.

Taken together, Cross-border Communication's losses are relatively small, but if we look at the third quarter's performance alone, some industry insiders have called it horrible. Cross-border Communication's revenue in the third quarter was only 1.546 billion yuan, and its net profit was a loss of -20.7929 million yuan, a decrease of 1122.65% compared with the same period last year.

In terms of Cross-border Link's current assets, the company's total assets at the end of the reporting period totaled 4.253 billion yuan, an increase of 6.63% from the end of the previous year. The increase in accounts receivable was as high as 42.30%, reaching 753 million yuan, which means that Cross-border Link's credit risk has increased, which may also lead to insufficient cash flow for the company.

At that time, the cash flow data of Cross-Border Link was not optimistic. Its net cash flow from operating activities was -427 million yuan, and the cash received from the sale of goods and provision of services was 5.043 billion yuan.

However, it is worth mentioning that Cross-Border Link's operating indicators are quite impressive, with an average total asset turnover rate of 1.67 (times/year). It can be said that the company's operating efficiency is quite outstanding.

However, KEK has risks in terms of yield, growth, income, goodwill, etc. The industry's comprehensive score for KEK in terms of debt repayment ability, growth ability, profitability, etc. is not high, only 1.70 points, ranking low among the 22 companies in the Internet e-commerce industry.

In the third quarter, another major event happened to Cross-border E-commerce, that is, its subsidiary Global Easy Shopping was declared bankrupt. After more than two years, the event was finally declared over, and a leading cross-border e-commerce company came to an end.

Looking at the development history of Cross-border Communication, it is not difficult to find that Global Easybuy, Paton and Youyi E-commerce were the three carriages that drove the substantial growth of Global Easybuy's performance, driving the growth of Cross-border Communication's performance, and the stock price soared. The market value was close to 40 billion. However, dragged down by its subsidiaries, Cross-border Communication's performance began to plummet in 2020, and even if it gradually sold off its pillar industry Paton, it could not continue.

Its stocks have also been subject to special treatment of "delisting risk warning" and "other risk warning" since May 2021, and have been labeled as "*ST Cross-border". On the one hand, there are the drawbacks of crazy money-burning and distribution mode, and on the other hand, there is self-help through optimizing inventory and strategic transformation. Cross-border has also successfully taken off the "hat" of delisting risk.

However, the lawsuit and debts have not been properly handled. Relevant data shows that the risk rating of Cross-border Tongbao E-commerce Co., Ltd. is R3+, which means that the company is in a high-risk state. In detail, the company currently has 1,230 internal risks, 280 court notices, 1,995 peripheral risks, and 6 bankruptcy cases.

At the same time, Cross-Border Link has been involved in as many as 999+ legal proceedings, mainly involving sales contract disputes, transportation contract disputes, and labor contract disputes. Cross-Border Link was the defendant in 395 cases, with the amount exceeding 100 million yuan.

With constant lawsuits and increasing risks, when will Cross-Border Link see the light of day on its road to transformation?

Anker

Cross-border communication

Third quarter report