Chinese electronics maker Anker Innovations has released its 2024 semi-annual report, revealing total revenue of RMB 9.648 billion (USD 1.36 billion), a 36.55% year-on-year increase. Net profit attributable to shareholders reached RMB 872 million (USD 122.5 million), up 6.36% from the previous year.
Looking at the revenue structure, Anker’s charging and energy storage products made up half of the total, bringing in RMB 4.975 billion (USD 698.7 million). This segment also recorded the fastest growth, with a 42.81% increase compared to the previous year. Anker noted that its charging products were among its earliest offerings and remain a vital growth driver by continuing to seize market opportunities.
Interestingly, four years ago, Anker sought to shake off its close association with power bank production. As its revenue neared RMB 10 billion, it commenced efforts to transform itself into a larger-scale company through niche product diversification. Over the next two years, Anker expanded its workforce from 1,600 to 4,000 employees and established 27 product teams, covering areas such as energy storage, robotic lawn mowers, and 3D printing.
However, the difference between vision and reality proved to be stark. The expansion did not deliver the expected results, and by 2022, Anker had shut down ten product teams, refocused on its core charging products, and halted expansion into new categories.
This refocus was driven by both internal strategic adjustments and changing external market conditions.
The cross-border e-commerce industry no longer revolves solely around Amazon. With the rise of new players, companies now face more platform options, driving increased competition and investment.
Anker’s financial performance proves that its strategic shift was the right move. In the highly competitive and ever-changing e-commerce space, the company has built a robust and secure foundation.
Recalibrating the business focus
Anker recently made headlines domestically for an unexpected reason—former US president Donald Trump, who’s also a candidate for the upcoming 2024 US presidential election.
On August 13, during a live streamed conversation between Elon Musk and Trump, viewers noticed that Trump was using a power bank produced by Anker.
The product in question was from Anker’s MagGo series, which retails for RMB 399 (USD 56.0) on JD.com and USD 89.99 on Amazon.
This highlights Anker’s positioning in the mid- to high-price range, with the pricing differences between JD.com and Amazon underscoring the brand’s competitiveness in overseas markets.
In contrast, Ugreen’s charging products are priced around RMB 47 (USD 6.6), while Pisen’s products average RMB 79 (USD 11.1).
Thanks to its price positioning, Anker has maintained a leading gross margin within the industry. Unlike other 3C accessory companies, Anker continues to invest heavily in R&D and upstream industries, ensuring its products remain innovative while reducing costs through supply chain integration.
Huachuang Securities noted that, over the past two years, reductions in product costs have significantly contributed to Anker’s gross margin. Notably, during the decline in global shipping costs in 2023, Anker’s transportation costs did not fall proportionally, resulting in a limited impact on gross margin improvements—contrary to market expectations.
Instead, improvements in gross margin were driven by cost reductions in product design and components.
The application of gallium nitride (GaN) technology in charging continues to evolve. The mainstream trend is shifting from discrete GaN solutions to integrated GaN solutions, which reduce design size while optimizing costs. Navitas, a market leader that Anker has invested in, was the first to release GaNSense half-bridge GaN power chips in September 2022.
Huachuang Securities also found that Anker’s adoption of integrated GaN solutions effectively lowered product costs. In 2023, Anker launched a new all-GaN charger (67W 2C1A) that showed clear advantages in terms of component count, circuitry, and size compared to the 65W 2C1A model released in 2022. As product design continues to reduce costs, Anker’s supply chain efficiency is likely to improve further.
In the past, Anker’s wide-ranging investments across various sectors spread its resources thin, indirectly hindering overall business growth. By narrowing its focus to core categories, the company can now concentrate resources into a single track, yielding greater returns.
Adapting to changes in sales channels
In the first half of this year, Anker saw its sales expenses reach their highest level in three years. According to its semi-annual report, sales expenses reached RMB 2.115 billion (USD 297.1 million), a year-on-year increase of 40.56%.
Anker explained that this surge in sales expenses was driven by business growth, including higher promotional, platform, and personnel costs.
The sharp increase in sales expenses reflects the intense competition in cross-border e-commerce. Unlike the past when Amazon dominated, the rise of Chinese cross-border e-commerce platforms has introduced new competitors, presenting both challenges and opportunities for brands.
Anker has been proactive in joining new e-commerce platforms and has seen some success.
EchoTik data shows that Anker operates two local stores in the US. One is the AnkerUS flagship store, which sells portable power banks, outdoor power supplies, universal accessories, and projectors. The other is the Anker Innovation store, which focuses on secondary 3C products such as Bluetooth headphones. Since joining TikTok Shop in September 2023, AnkerUS has sold over 330,000 products, generating an estimated gross merchandise value (GMV) of nearly USD 10.5 million.
As of August and early September this year, Anker sold 65 items on TikTok, with universal accessories dominating sales. Products priced under USD 100 accounted for the highest sales, followed by those priced between USD 100–200. There remains significant growth potential in higher-priced markets.
However, Anker’s GMV and average product prices on TikTok are not yet comparable to those on Amazon.
Nonetheless, Anker is clearly willing to invest heavily. Several TikTok sellers told 36Kr that running e-commerce on TikTok requires significant investment, including influencer marketing fees and video promotion costs, which have become more expensive as more sellers join the platform.
This suggests that Anker’s success on TikTok Shop likely came at a high cost.
For large brands like Anker, new cross-border e-commerce platforms not only welcome them but also offer support.
Last year, when Shein launched its US site, Anker was one of the first brands to join. At that time, Anker’s prices on Shein were consistent with those on Amazon. Reports indicated that Shein waived sales commissions for the first three months, with a subsequent 10% fee, lower than Amazon’s.
In the first half of this year, online channels contributed more than 60% of Anker’s revenue, with Amazon accounting for over half of that—though its share is gradually declining. The relationship between platforms and sellers is both mutually beneficial and competitive, and overreliance on a single platform can be risky for any brand.
In the past, Anker actively expanded its independent website and offline channels to reduce dependence on Amazon. However, since last year, its pace of offline expansion has slowed.
When asked about this, Anker explained to investors that it is gradually adjusting its offline strategy to focus on long-term, high-quality growth, in view of the rising global e-commerce penetration rate. As a result, its offline gross margin increased by 6.91 percentage points in 2023 compared to the previous year.
Clearly, the rise of new cross-border e-commerce platforms has given Anker the confidence to continue growing its online channels.
As a leading seller, Anker will continue to take advantage of the rise of new platforms. Despite its long-term reliance on Amazon, the company is acutely aware of the risks of overdependence and is eager to seize new opportunities.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Leslie Zhang for 36Kr.