Due to an over 50% rise in raw material and freight costs, Anker's stock price reached an all-time low, and its market value shrunk by three times
Chinese charger firm Anker Innovations (Chinese: 安可创新) (300866) reported on April 11 a revenue of CNY 12.574 billion (USD 1.973 billion) in 2021, up 34.45% year on year. The company also posted a net profit attributable to shareholders of the listed company of CNY 982 million, registering a year-on-year increase of 14.7%.
While the company's revenue increased, its growth rate declined. From 2019 to 2021, the company's operating income growth rates were 27.19%, 40.54%, and 34.45%, respectively, and the growth rates for the net profit attributable to shareholders of the listed company stood at 68.85%, 18.7%, and 14.7%, respectively.
On the same day the firm unveiled its financial results, shares fell 3.54%, hitting a record low at CNY 60.05 apiece. The stock closed with a market cap of CNY 24.406 billion.
The plunge in shares is the result of multiple factors. Notably, the shock of Amazon's industry, the shortage of chips, and the rising costs of raw materials, promotion, and logistics have severely restricted Anker's profit growth.
Founded in 2011, Anker focuses on charging, intelligent innovation (floor sweepers, smart door locks, conference machines, etc.), and wireless audio (headphones, speakers, etc.).
In 2021, Anker's gross profit declined by 6% to 11% for all types of products and 8.12% for the overall gross profit of overseas products due to heavily elevated foreign trade transportation costs, which were up 40%, and raw material prices, which were up 50%.