Key takeaway

The company released its 2025 annual report. In 2025, revenue reached RMB30.514bn, up +23.49% YoY. Net profit attributable to shareholders of the parent company was RMB2.545bn, up +20.37% YoY. Gross margin and cash flow in 4Q25 were strong, with improved risk response capability. Gross margin in 4Q25 reached 45.92%, up +3.4pct YoY. Gross margin of smart innovation and smart audio visual segments improved significantly, mainly due to the launch and iteration of highmargin products and services. The momentum of overseas expansion of high quality products remains resilient, and the R&D foundation supports continuous iteration of product barriers. The financial and supply chain impact of the recall is expected to gradually dissipate. The company shows solid risk resistance and flexibility toward external environmental changes, and continues to increase R&D investment in high technology barrier products. Multiple strategic categories are expected to sustain high quality growth.

Event

The company released its 2025 annual report. In 2025, revenue reached RMB30.514bn, up +23.49% YoY. Net profit attributable to shareholders of the parent company was RMB2.545bn, up +20.37% YoY.

Quick Take

Strong gross margin and cash flow in 4Q25, improved risk response capability

In 4Q25 alone, the company recorded revenue of RMB9.495bn, up +14.9% YoY. Net profit attributable to shareholders of the parent company reached RMB0.612bn, down -4.8% YoY. Net profit excluding non recurring items reached RMB0.697bn, up +19.1% YoY. The growth of net profit excluding non recurring items was notable and exceeded expectations. Gross margin in 4Q25 reached 45.92%, up +3.4pct YoY.

The YoY increase was significantly better than in the first three quarters, demonstrating stronger risk resilience and product competitiveness under the external environment. The expense ratio during 4Q25 was 36.54%, up +0.8pct YoY. Net operating cash flow in 4Q25 reached RMB1.346bn, up +23.0% YoY.

By business segment in 2025, revenue from charging and energy storage business increased +21.59% YoY, accounting for 50.47% (-0.79pct). Revenue from smart innovation increased +30.53% YoY, accounting for 27.11% (+1.47pct). Revenue from smart audiovisual increased +20.05% YoY, accounting for 22.39% (-0.65pct). By region, overseas revenue growth was +23.75%, faster than domestic growth of +16.57%. Among them, revenue from the North American market accounted for 46.31%, down -1.77pct YoY. Revenue from the European market increased +43.48%, making it the fastestgrowing region. Its share reached 26.71%, up +3.72pct YoY. In 2025, the company maintained leading brand influence and market share in the North American market, while the European market achieved rapid growth by benefiting from regional development opportunities. Other potential markets advanced the penetration of advantageous categories in stages by building localized operational ecosystems aligned with regional market features. By channel, offline revenue accounted for 29.78% in 2025, up +1.01pct YoY. In online revenue, the share of other brands on third-party platforms excluding Amazon increased by +0.87pct; on the gross margin side by segment, the gross margin of charging and energy storage products was -0.21pct, still affected by recall incidents and inventory supply adjustments, which are basically fully released in 2025. The gross margins of smart innovation products and smart audio-visual products increased significantly, with smart innovation gross margin +2.37pct and smart audio-visual products gross margin +3.63%. It is estimated that this is mainly due to the iterative launch of high gross margin products and services.

The logic of high-quality products going global remains resilient, and the R&D foundation supports continuous iteration of product barriers

The company continues to advance R&D innovation and form deep barriers. In 2025, the R&D expense ratio reached 9.48%, +0.95pct YoY. R&D focuses on foundational capabilities, core technologies, and frontier technology reserves, thereby consolidating underlying capabilities into cross-category reusable R&D foundations and modules. In 2025, the share of high gross margin product series will be raised to about 15% , with a future target to further increase to about 30–40%, and the technology R&D roadmap is clear. In 2025, the company continues to promote the implementation of multiple R&D projects and products. In the mobile charging field, the company has actively aligned with and passed China’s mandatory national standard “Safety Technical Specification for Power Banks” effective April 2026. The Anker Prime series has been upgraded from the initial 2022 technology platform to Anker GaNPrime 2.0 fast-charging technology; in the consumer energy storage field, Anker SOLIX is committed to providing backup power and energy storage solutions for home and outdoor scenarios. In 2025, multiple products were launched, covering the home backup power and portable energy storage F series, the outdoor camping C series, the balcony photovoltaic energy storage E series, and the residential energy storage X series. In the balcony photovoltaic energy storage field, Anker SOLIX Solarbank 3 E2700 Pro officially went on sale in April 2025. Based on the previous two generations, the product has been further iterated and upgraded. It is the industry’s first integrated balcony photovoltaic energy storage system that integrates a microinverter, BMS, and battery into a single unit, effectively reducing installation complexity and addressing pain points of traditional residential energy storage products such as high costs, complicated installation, and long payback periods. In January 2026, Anker SOLIX officially launched the world’s first intelligent hybrid whole-home backup power solution, Anker SOLIX E10; the smart innovation segment continues to steadily increase its market share. In April 2025, eufyMake UV Printer E1 launched on the Kickstarter crowdfunding platform. With crowdfunding exceeding USD46mn, it set a new record in Kickstarter history and ranked first across all categories. During the reporting period, the eufy heated wearable breast pump S1 Pro was sold to the global market and was launched in Chinese mainland in July 2025.

It is expected that, after addressing the financial and supply chain impacts of the power bank recall within 2025, the company's current optimization measures will provide strong risk resistance and flexibility against tariffs and changes in the external environment. The current external environment is favorable for the resilience of China's cross border e commerce exports. The company continues to increase R&D investment in products with high technological barriers and benefits from the upgrade and iteration of its R&D infrastructure. Multiple strategic categories are expected to still achieve high quality growth.

Investment recommendation: We forecast net profit attributable to shareholders of the parent company at RMB 3.093 billion and RMB 3.763 billion for 2026–2027. Based on the current share price, the corresponding P/E is 20x and 17x. We maintain Buy rating.

Risks

1. Intensifying industry competition. With technological progress and scientific development, the penetration of mobile device peripherals and smart hardware products continues to increase. The consumer electronics industry has attracted many internet companies, artificial intelligence companies, and device and smart hardware manufacturers to actively participate, creating product side competition risks; and a decline in the marginal propensity to consume. There is a possibility of consumption downgrade and economic recession in major consumer markets, which may affect sales in overseas markets; and uncertainty regarding trade frictions and the rules of major platforms. The international trade situation remains unstable, and tariff expectations are still uncertain. Trade frictions and competition among major cross border e commerce platforms may lead to changes in platform related rules, bringing uncertainty; 4. Uncertainty in new product R&D and promotion. The company actively pursues R&D and innovation, which may result in new product development and promotion falling short of expectations; 5. Impact of power bank product recalls in certain markets.