On March 31, Anker Innovation announced its first financial report after going public. Its revenue in 2020 was 9.353 billion, a year-on-year increase of 40.54%, bucking the trend and rising to a new high.
The financial report shows that Anke deducted non-net profit of 727 million yuan in 2020, a year-on-year increase of 26.28%, a steady growth. Anker's three major business pillars have made breakthroughs. Driven by favorable factors such as the stay-at-home economy in Europe and the United States, the intelligent innovation business grew by 85.73%, accounting for 55.4% of total revenue. The company's diversified development trend is clear.
Several major markets also received good news. Revenue in key markets such as China, the United States, Europe and Japan all increased by more than 30%. The number of global users has exceeded 80 million, and the popularity and reputation have been further improved.
In 2020, Anker Innovation was selected as one of the "Hurun China's Top 500 Private Enterprises", with a current market value of over 60 billion yuan. It is often described by brokers and media as a "hidden champion, cross-border e-commerce leader, and overseas brand" "Leader", let's follow Charging Head Network to take a look at the highlights of the financial report of the cross-border e-commerce company.
Steady revenue growth
Revenue indicators can be said to be the most important financial indicators of a company, or even one of them. Anker Innovation's revenue in 2020 was 9.353 billion. For a company that started with cross-border e-commerce and charging products, this revenue level of close to 10 billion is very rare.
Charging Head Network has compiled Anker’s revenue data from 2016 to 2020. Anker’s revenue in 2016 was 2.505 billion yuan, and by 2018 it was 5.232 billion yuan, doubling its revenue in two years; By 2020, it will reach 9.353 billion yuan, and revenue will nearly double in two years.
Such stable and sustained substantial growth is due to many factors, including the right time for enterprises to enter the market, company direction planning, product research and development, category expansion and other factors.
It is worth noting that the revenue in the fourth quarter of 2020 was 33.34, a year-on-year increase of 45.47, accounting for more than one-third of the entire year's revenue, far exceeding the first three quarters. Looking at it from another perspective, Anker’s revenue level in the fourth quarter of 2020 is close to Anker’s full-year revenue level in 2017.
From a time point of view, the outbreak in Q4 is close to the time when Anker went public. Anker has accumulated many years of experience and is driven by the capital market, giving investors firm confidence. From the perspective of business details, many favorable factors such as the stay-at-home economy in Europe and the United States, the explosion of the fast charging industry, and the booming TWS headset market are conducive to revenue growth.
New business surges
Serving 80 million users around the world, Anker Innovation currently mainly relies on three major series of products: charging, wireless audio, and smart innovation, which can be called a troika. And actively explore new categories.
Anker’s innovation troika corresponds to the three brands Anker, Soundcore and eufy. From a brand perspective, Anker Innovation Group's brand positioning is very clear. Each brand has its own independent operations and R&D teams, which are dedicated to their respective fields and markets.
Anker Innovation is already familiar with this brand operation model, and after verification, it will incubate more vertical brands with annual sales of more than 1 billion in the future, injecting new revenue into the company's overall revenue. contribute.
Anke’s steady revenue growth in 2020 is inseparable from the explosion of new businesses. We have made a histogram of the revenue of Anker's three pillar businesses in the past five years. We can clearly see that the three major businesses have shown a growth trend and are gradually moving forward in parallel.
Among them, Anker's charging products mainly include "Anker" brand mobile power supplies, chargers, charging cables, docking stations, multi-position sockets with cords and other products. Due to the significant drop in travel demand due to the epidemic, the revenue from the mobile power supply business has declined.
However, benefiting from the rapid increase in demand for fast charging products, according to the statistics of "Charging Head Network", at the end of 2020, Anker brand's 20W charger ranked second only to Apple's official single product sales on Amazon in the United States. Second, it has become a hot product in sales channels in many countries.
It is worth mentioning that Anker pioneered 18W fast charging and 20W fast charging in a mini size.
Anker’s charging product revenue still showed year-on-year growth, achieving operating income of 4.144 billion yuan, accounting for 44.31% of total operating income, a year-on-year increase of 8.74%. Compared with 2.172 billion yuan in 2016, the mature and stable business has doubled.
Anker’s smart innovative products mainly include “Eufy” brand smart home products (intelligent sweeping robots, wireless vacuum cleaners, etc.) and smart home security products, as well as “Nebula” brand home projector products and Other new categories of products. Intelligent innovation product revenue was 3.059 billion yuan, an increase of 10.263% compared with 1.51 billion yuan in 2019; doubling growth was achieved in 2019, 2018, and 2017. Such results prove that Anker's diversified development strategy is very correct. .
Anker's wireless audio products mainly include wireless speakers and Bluetooth headsets under the "Soundcore" brand. Currently, this brand has also landed in the domestic market, and its Chinese name is Shengkuo.
The revenue of wireless audio products in 2020 was 2.121 billion yuan, an increase of 65.78% compared with 2019, and doubled compared with 2018.
Under the leadership of Apple and other manufacturers, acoustic technology continues to develop and mature in consumer-grade headphones, speakers and other fields. Various new forms of products such as TWS headphones continue to emerge, and are gradually accepted and recognized by consumers. .
Anker launches high-quality innovative products in a timely manner, builds benchmark brands with multiple flagship models, and quickly captures a certain market share. As product categories continue to be enriched, revenue and proportion continue to show an upward trend, and wireless audio products have become one of Anke's important sources of income.
Going overseas to conquer the world
Anker’s success is the success of Chinese brands “going overseas”. Yang Meng used to be a senior software engineer at Google. Later, she discovered business opportunities at Amazon and founded Anker, starting her journey to conquer the world.
Today, Anker is often called the leader in cross-border e-commerce and the leader in overseas brands. Its brand Anker has been selected into the BrandZ "Top 50 Chinese Global Brands" list for four consecutive years, including in 2020. No. 11 on the list. In the same consumer electronics industry, Huawei ranks first, Lenovo and Xiaomi rank second and fifth respectively, OnePlus ranks eighth, and DJI ranks 14th. The list is full of gold.
Anker’s 2020 financial report can also see its position in overseas markets. North America accounts for 54% of all revenue, which can be said to be the focus; Europe and Japan account for 19 and 15 respectively, and their scale is not large. Small.
In addition to the vast market, all major markets have a steady growth rate, obvious trends, and huge space. And the main markets are in developed areas, with stable operation and considerable profits.
Anker can be said to be developing both online and offline in the global market, with localized operations being the focus. In major developed countries and regions such as North America, Europe, and Japan, Anker relies on Amazon and other mainstream third-party e-commerce platform channels to provide in-depth coverage. On the other hand, Anker actively expands offline sales channels, including chain stores and supermarkets, and regional trade. merchants and telecom operators, etc.
In terms of localization, Anker has branches or subsidiaries overseas in Japan, the United States, the Middle East and other places. These provide a strong guarantee for stable performance growth.
In the North American market, Anker’s growth rate has doubled from 1.201 billion yuan in 2016 to 5.019 billion yuan in 2020. Representatively, many Anker products rank among the best-selling products (Best Seller) and Amazon’s Choice (Amazon’s Choice) on the Amazon platform.
The European market is both unified and fragmented, and the popularity of online sales is relatively low. Anker focuses on localized operations in Europe. Its revenue in 2016 was 588 million, which has grown to 1.823 billion in 2020. The pace is stable and the prospects are broad.
The Japanese market is relatively unique, with a strong electronic and digital atmosphere and a relatively rich range of local accessories brands. Anker's revenue in Japan in 2016 was 422 million yuan, and in 2017 it was 445 million yuan. It will be in a stage of continuous growth thereafter, and its revenue will reach 1.373 billion yuan in 2020. The development situation is gratifying.
Moreover, Anke’s operation in Japan is not only to sell products, but also to co-brand with many well-known IPs - including Pokémon, Pikachu, and Nintendo - to launch series of products and sell them globally. This move has a significant effect, not only promoting the growth of sales data, but also improving the company's visibility and reputation.
The market size in the Middle East is limited. Anker's revenue reached 226 million in 2016, of which it was close to 500 million in 2018, and is currently in a stable state.
my country's economy is in a stage of rapid growth, and the accessories industry is developing rapidly. In 2020, Anker's revenue growth in mainland China was 37.5%, which can be said to be a good result. In the future, Anker will focus on the Chinese market and put its huge imagination space into practice.
Continued investment in R&D
The rapid growth of performance is inseparable from R&D investment. The electronic and digital industry pays more attention to R&D. The industry is often shocked by the R&D investment of Apple and Huawei. Anker Innovation's investment in R&D is obvious. The R&D expense ratios from 2017 to 2019 were 5.14, 5.48 and 5.92 respectively, showing an upward trend.
In 2020, Anker's R&D investment reached 567 million, an increase of 4.413% from 394 million in 2019, accounting for approximately 6.06% of revenue.
From 2016 to 2017, Anker’s R&D investment increased from about 100 million to 200 million, which is consistent with Anker’s expansion of smart innovation and wireless audio products. The current contribution of these two types of projects to Anker's revenue proves the importance of R&D investment.
Anker’s R&D investment focuses on R&D technicians and patents. As of the end of 2020, the company had 1,010 R&D personnel, accounting for 47.11 of the total number. They have strong professional capabilities and are young in nature, providing an important foundation and core source of power for the sustainable development of Anker's business.
Anker has always focused on the construction of core teams and the cultivation of various professional talent echelons. At present, it has formed a technology research and development team led by core technical personnel and constantly expanding fresh and innovative forces. The team includes professional talents such as electronic engineers, structural engineers, design engineers, packaging engineers, system development and testing engineers, and senior audio engineers. It has accumulated rich consumer electronic product technologies such as charging product technology, audio product technology, and intelligent innovative product technology.
In terms of patents, as of the end of June 2019, Anker had a total of 478 domestic and foreign patents, including 300 domestic patents and 178 overseas patents. The patent reserves are sufficient and consistent with the corporate layout. In 2020, Anker applied for 263 new patents and authorized 780 patents, which is full of momentum.
Summary of Charging Head Network
Yang Meng summarized the past 10 years of Anker, which can be roughly divided into two and a half stages.
From the earliest "channel brand" to the later "improved brand" to the current "leading brand", Anker has been working hard to pursue some long-term and accumulated Values ??that can exist for a long time are long-termism.
Between making short-term money and making longer-term money, Anke made the long-term choice, and this is a difficult thing.
Anker went public in 2020, and its performance and financial reports show Anker’s ambitions, not just charging, not just hardware, but a good brand that represents China to the world. And this is just the beginning, the beginning of a new decade, the beginning of long-termism.
The above information is for reference only. Investment is risky, so be cautious when entering the market.