In-Depth Analysis Report on Anker Innovations (300866.SZ) Liquidity Crisis

Based on Anker Innovations’ 2025 Q3 report and the latest market data [0][1]:

Indicator Item	First Three Quarters of 2025	YoY Change	Key Judgment
Net Cash Flow from Operating Activities	-RMB 865 million	Turned from +RMB 1.651 billion to negative, -152.38%	⚠️ Core Crisis Indicator
Operating Revenue	RMB 21.019 billion	+27.79%	Growth Remains Strong
Net Profit Attributable to Shareholders	RMB 1.933 billion	+31.34%	Profitability Remains Sound
Inventory Balance	+90.11% from the start of the year	Surged by RMB 3.08 billion	Primary Cash Drain

Current stock price is USD 105.81, market capitalization is RMB 56.73 billion, P/E ratio is 21.94x [0].

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To cope with peak sales seasons and potential changes in tariff policies (especially uncertainties from the Trump 2.0 era), Anker Innovations carried out an unconventional “rush customs clearance” inventory stocking strategy [1][2]. As of the end of Q3 2025, inventory balance

, tying up approximately in capital, which is the primary factor causing cash flow to turn negative.

Continuous expansion of R&D and sales teams has pushed up salary expenses, with R&D expenses in the first three quarters reaching

[1][2]. While high R&D investment is a source of the company’s competitiveness, this rigid expenditure has exacerbated capital pressure during the cash flow crunch.

2025 has become Anker’s “year of recalls”:

• June
  : Recalled 1.15 million power banks in the U.S. market
• September
  : Additional recall of 480,000 power banks in the U.S. market
• October
  : Recalled over 410,000 power banks and over 110,000 Bluetooth speakers in the Japanese market
• Total products involved exceed 2.38 million units
  , with estimated direct recall costs ranging from
  RMB 432 million to RMB 557 million
  [2][3]

Recalls have not only caused direct financial losses, but also led to:

• Temporary removal of some product listings on the Amazon platform
• Damage to brand reputation and user trust
• Substantial impact on terminal sales

Cash Flow Item	Status	Assessment
Cash Flow from Operating Activities	-RMB 865 million	Severe Cash Drain
Cash Flow from Investing Activities	Data to be supplemented	To be monitored
Cash Flow from Financing Activities	Data to be supplemented	To be monitored
Free Cash Flow (Latest Quarter)	RMB 327 million	Marginal Improvement

Although the first three quarters were overall under pressure, free cash flow in the latest quarter has recovered to

[0], indicating that the company is actively adjusting.

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Liquidity Indicator	Value	Industry Reference	Risk Assessment
Current Ratio	2.17	1.5-2.0 is healthy	✅ Relatively Abundant
Quick Ratio	1.34	>1.0 is healthy	✅ No Short-Term Concerns
Cash Ratio	Data to be supplemented	-	To be assessed
Asset-Liability Ratio	Data to be supplemented	-	To be assessed

From liquidity indicators, Anker Innovations’

, with both current ratio and quick ratio within safe ranges [0]. This means:

“The ‘liquidity crisis’ is more of a ‘periodic cash flow crunch’ rather than a ‘loss of solvency’.”

• Stock price dropped from the August 2025 high of
  RMB 148 per share
  to the current
  RMB 105.81 per share
  , with a cumulative decline of approximately
  28.5%
  [3]
• 11.30% decline in the past 6 months, 7.82% YTD decline [0]
• Current P/E is 21.94x, P/B is 5.71x, ROE is 27.58% [0]
• EV/OCF is as high as 129.76x, reflecting market concerns over cash flow deterioration [0]

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, launching its “A+H” dual-platform layout [2][3]. This is a core strategic measure to address the crisis:

Motivation Type	Specific Considerations
Financing for Capital Replenishment	Open up new financing channels to supplement working capital
Risk Hedging	Hong Kong listing can hedge against A-share liquidity risks and geopolitical risks
Brand Endorsement	High proportion of institutional investors in Hong Kong can enhance corporate governance image
International Layout	Align with globalization strategy to enhance reach to overseas investors

• Overall liquidity in Hong Kong is weaker than in A-shares, potentially facing valuation discounts
• The company is still in the “quality control recovery period”, and there is uncertainty about whether it will gain investor recognition
• The Hong Kong listing process usually takes 4-6 months, which cannot solve the immediate problem in the short term

According to the Q3 report disclosure, the surge in inventory is the

of cash flow deterioration. The company’s possible response directions include:

1. Optimize stocking strategy
   : Shift from “aggressive rush customs clearance” to “precision forecasting”, use AI to improve demand prediction accuracy
2. Accelerate inventory turnover
   : Launch promotional activities for high-inventory categories to speed up cash recovery
3. Supplier negotiations
   : Renegotiate payment terms with core suppliers to ease capital occupation pressure
4. Proactive customs management
   : Establish overseas warehouses in major export markets to shorten supply chain response time

1. Supplier management reconstruction
   : Establish a
   second supplier mechanism
   for core components such as battery cells to reduce single-supplier dependency risks
2. Upgrade quality control standards
   : Introduce stricter ex-factory inspection processes to eliminate quality risks at the source
3. Recall response mechanism
   : Establish a more efficient product traceability and recall response system to minimize losses
4. Brand restoration plan
   : Rebuild consumer trust through product innovation and user experience remodeling

Channel	Feasibility	Fund Scale	Time Frame
Hong Kong IPO	Medium-term	Medium to Large	4-6 months
Bank Credit Lines	Short-term	Medium	1-2 months
Bond Issuance	Medium-term	Medium	2-3 months
Asset Sale	Medium-term	Small to Medium	Uncertain
Equity Financing	Medium-term	Medium to Large	Market-dependent

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Risk Type	Specific Manifestations	Potential Impacts
Cash Flow Risk	If inventory remains high and receivables collection is poor	May affect normal operations
Brand Risk	Recall incidents continue to escalate	Market share decline
Policy Risk	Changes in tariff policies	Stocking strategy becomes ineffective
Competition Risk	Weak demand for consumer electronics	Growth slowdown

Catalyst	Trigger Conditions	Potential Benefits
Successful Hong Kong Listing	Successfully complete IPO	Capital pressure eased
Improved Inventory Turnover	Inventory reduction + cash return	Cash flow turns positive
New Category Breakthrough	Energy storage/AI products exceed expectations	Open up a second growth curve
Quality Crisis Subsides	Quality control system reconstruction completed	Brand restoration

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1. Liquidity Crisis Qualification
   : The crisis Anker Innovations is currently facing is
   “growth-related cash flow crunch”
   rather than a “survival-level solvency crisis”. Judging from the current ratio of 2.17 and quick ratio of 1.34, the company’s short-term solvency remains sound [0].

2. Primary Causes of Cash Flow Deterioration
   : The “triple pressure” from aggressive stocking strategies (inventories +90.11%), rising labor costs, and recall impacts caused operating cash flow to plummet from +RMB 1.651 billion in the same period of the year before last to -RMB 865 million [1][2].

3. Crisis Resolution Paths
   :
   • Short-term (1-3 months)
     : Optimize inventory management, accelerate inventory turnover
   • Medium-term (3-6 months)
     : Raise funds through Hong Kong listing, establish “A+H” dual platforms
   • Long-term (6-12 months)
     : Reconstruct quality control system, restore brand trust

4. Fundamentals Remain Sound
   : Revenue growth of 27.79%, net profit growth of 31.34%, gross profit margin at a historical high of 45.2%, ROE of 27.58% [0][1], indicating that the company’s core competitiveness has not been fundamentally damaged.

• Inventory de-stocking progress falls short of expectations
• Uncertainty in Hong Kong listing timeline and valuation
• Recall incidents may escalate further
• Weak macro economy and consumer electronics demand

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[0] Jinling API Financial Database - Anker Innovations (300866.SZ) Real-Time Quotes and Financial Analysis (Data as of January 14, 2026)

[1] AMZ520 - “Anker Innovations Rakes in RMB 21 Billion in Revenue, But Bleeds RMB 870 Million in Cash Flow!” (October 31, 2025) https://www.amz520.com/articles/52160.html

[2] Caifuhao/Eastmoney - “Anker Innovations’ ‘Two-Front Battle’: On the Brink of the Abyss, Breaking Through with a Hong Kong Listing” (January 13, 2026) https://caifuhao.eastmoney.com/news/20260113191523028232140

[3] Phoenix Finance - “Recall Crisis Coupled with Cash Flow Pressure: Why Anker Innovations is Seeking a Hong Kong Listing” (December 4, 2025) https://finance.ifeng.com/c/8oo3m4W9uCg