Chunhou Xiner A Fund Outperforms Peers with Improved Risk Management and Strong Returns

Chunhou Xinrui A (008186) has demonstrated a maximum drawdown that is better than the average level of similar mixed funds. Chunhou Fund has conducted research on Anker Innovations in relation to energy storage and photovoltaics.

Chunhou Xinrui A (Fund Code: 008186) is a mixed fund managed by Chunhou Fund, established on February 12, 2020. The current fund managers, <b>Xue Lili</b> and <b>Chen Wen</b>, have led the fund since its inception, which has a total management scale of <b>2.398 billion RMB</b>. This fund focuses on in-depth research of company fundamentals to continuously identify publicly listed companies with long-term growth potential and valuation advantages, aiming for long-term stable growth of fund assets.

As of April 15, 2025, Chunhou Xinrui A has achieved a one-year return of <b>12.55%</b>, outperforming the fund benchmark growth rate of <b>10.29%</b> and the China Securities Mixed Fund Index return of <b>5.19%</b>, exceeding the average yield of similar mixed funds during the same period. Over the long term, the fund has performed exceptionally well, ranking in the top 5 among similar mixed funds for nearly five years, with a five-year return of <b>109.23%</b>, significantly better than its performance benchmark of <b>4.88%</b> and the China Securities Mixed Fund Index return of <b>9.62%</b>.

In terms of risk control, as of April 15, 2025, the fund's maximum drawdown over the past three years stood at <b>29.80%</b>, which is better than the average level for similar mixed funds. The maximum drawdown recovery time was <b>246 days</b>, ranking in the top 15 of similar mixed funds. Regarding fund size, as of December 31, 2024, the fund's scale reached <b>946 million RMB</b>. The latest announcement indicates that as of December 31, 2024, the fund had <b>468 million</b> shares outstanding. According to the annual report for 2024, institutional investors hold <b>39.60%</b> of the fund.

Data from the 2024 annual report shows that there are currently six fund holders with a total holding size of <b>35.24 million RMB</b>, representing <b>3.72%</b> of the total. Additionally, the third-quarter report for 2024 indicates one fund holder with a holding size of <b>16.90 million RMB</b>, or <b>1.15%</b> of the total.

On April 7, 2025, Chunhou Fund conducted research on the publicly listed company Anker Innovations. The research included an overview and a Q&A session.

<h2>Overview</h2>
The recent changes in the <b>U.S.-China tariff policy</b> have drawn significant attention, with implementation details and enforcement still in flux. As a smart hardware company focused on excellent products and user experience, Anker has recognized that most leading global consumer electronics brands rely on supply chains primarily based in China and Southeast Asia. The company is facing similar challenges in today’s globalized era.

Currently, Anker has fully activated its response mechanisms, actively embracing challenges, striving to navigate through cycles, and aiming to turn obstacles into opportunities for enhancing operational resilience and optimizing future strategic layouts.

Looking back, even the most turbulent external crises cannot hinder a company from achieving greatness. From the 2008 financial crisis to the 2024 consumer downgrade, each period has seen truly outstanding companies emerge. Anker Innovations has weathered several global storms, continually evolving and growing into a business with over <b>5,000 employees</b>, <b>200 million users</b>, operations in <b>146 regions and countries</b>, and an annual revenue nearing <b>20 billion RMB</b>.

The changes in the external environment have further solidified the company’s commitment to prioritizing research and development, enhancing user experience, and innovating products.

In 2025, Anker plans to increase investments in product innovation, brand awareness, and flexible global supply chains, focusing on technological innovation and global brand capability construction while adhering to long-term principles. The goal is to build a true global enterprise that achieves sustainable growth by continuously creating value and meeting user needs, even in complex environments.

Furthermore, while ensuring normal operations and long-term development, the company is committed to sharing operational achievements with shareholders, contributing to market stability and enhancing investor confidence.

<h2>Q&A Session</h2>
<b>Q1:</b> What impact will the new round of tariff increases have on the company's operations?
<b>A:</b> The tariff increases primarily affect the cost side; however, the company maintains a good gross margin and strong brand loyalty, keeping a close connection with users. Therefore, the internal outlook for the future is not overly pessimistic. In fact, since 2022, the company has considered potential extreme scenarios and begun formulating contingency plans.

Thus, when these adverse factors materialize, the company is well-prepared to proceed steadily according to established plans.

<b>Q2:</b> Besides capacity transfer and price adjustments, what other measures does the company have to respond to tariffs?
<b>A:</b> First and foremost, enhancing core competitiveness is crucial. The company will focus on extreme innovation, continuous R&D investment, and increasing brand influence to strengthen product innovation, enhance consumer connections, and improve pricing power and premium capabilities, ensuring its sustained competitive advantage.

Additionally, the company will continue to pursue cost reduction and efficiency improvement across the entire supply chain. By optimizing product design and process control and improving supply chain management and economies of scale, the company aims to lower production costs without compromising quality.

Lastly, exploring new market growth and diversifying regional policy risks are key. In recent years, the company has aggressively expanded into non-U.S. markets, including Europe, Southeast Asia, Australia, and Latin America, with mainland China also remaining a focus for continued investment.

<b>Q3:</b> Will the expansion of new product lines in energy storage and markets like Australia and New Zealand slow down due to tariffs?
<b>A:</b> There are currently no plans to slow progress in new categories. In fact, consumer-grade energy storage remains a key strategic focus this year, covering portable energy storage, balcony photovoltaics, and residential energy storage. The residential energy storage segment has already expanded to Australia and Canada, with plans to continue exploring new markets. Portable energy storage and balcony photovoltaics are performing excellently in European and American markets, with the company emerging as a leader in the global balcony energy storage market.

Regarding new markets, the company continues to increase its efforts in non-U.S. markets. For instance, Europe has entered an economic recovery phase in the past two years, and the company's prior positioning in this region was relatively preliminary. Currently, there is significant growth potential in terms of regional and channel coverage. The company is actively exploring potential areas in Northeast and Central Europe and is working to improve penetration in the European market through more refined operations, including adjusting product portfolios to meet the differentiated needs of regional consumers. Additionally, the company will continue its push in Southeast Asia, Latin America, Australia, and mainland China.

<b>Q4:</b> As a multi-category enterprise, with portable energy storage and robotic vacuum cleaners being examples, does the competitive nature of these markets limit your pricing power and profitability?
<b>A:</b> As a multi-category enterprise, the company has not experienced significant limitations in pricing power and profitability in the portable energy storage and robotic vacuum cleaner segments, based on several key reasons and factual evidence. Both areas are primarily dominated by Chinese companies facing similar challenges; therefore, the tariff issue impacts all players similarly on the cost side.

Regarding pricing power, the company expects its energy storage business revenue to exceed <b>3 billion RMB</b> in 2024, with strong growth projected, demonstrating robust product competitiveness and pricing power. The company focuses on mid-to-high-end market positioning, providing room for premium pricing, and will continue to leverage its strong technological and product innovation capabilities to expand its consumer base, meeting diverse needs in different countries and regions and enhancing its value creation capabilities.

In the robotic vacuum field, the company's newly launched product, the <b>eufy X10Pro</b>, priced at <b>$799</b>, has shown good sales performance, and subsequent higher-priced products have also gained market recognition. By continuously improving product performance and functionality, the company has strengthened its market competitiveness. Furthermore, <b>eufy</b> has become a well-known smart home brand in North America, with a comprehensive product matrix covering cleaning, security, and baby care segments. Leveraging its smart home ecosystem and membership system, the company aims to increase household users, enhance user experience, and strengthen consumer loyalty, which is a significant advantage over other market participants.

<b>Q5:</b> Among the three product lines under the Anker SOLIX brand—portable energy storage, balcony photovoltaics, and residential energy storage—which will be the company's focus in the future?
<b>A:</b> The three product lines of the Anker SOLIX brand—portable energy storage, balcony photovoltaics, and residential energy storage—are strategically constructed based on the demand characteristics of different market scenarios within the context of global energy transformation.

Portable energy storage is the company’s earliest venture in the energy storage field, continuously breaking through product performance boundaries through technological iterations. For example, the <b>FX3800 model</b>, launched in 2023, achieves household emergency power supply capabilities with <b>6000W</b> power and integration with home grids, showcasing the potential for technological extension in this category.

The balcony energy storage business is thriving due to strong demand for clean energy driven by energy transformation in the European market, coupled with policy incentives for plug-and-play balcony photovoltaics. The company has pioneered the balcony energy storage category with its innovative Solarbank series and continues to expand its product boundaries as this field experiences a surge in market demand.

Residential energy storage products are precisely targeting the single-family home markets in Europe, America, and Australia, benefiting from strong backup power demands (North America) and high electricity prices with policy subsidies (Europe/Australia). This category plays a vital role in the process of household energy autonomy.

From a market-driven perspective, balcony photovoltaics have substantial room for increased penetration in the European market, residential energy storage is benefiting from policy incentives in the U.S. and Australia, and portable energy storage is aligned with strong backup power demands and the global outdoor economy trend, all of which provide ongoing growth momentum. This strategic layout maintains market adaptability in the product mix while achieving synergistic effects through differentiated positioning across categories.

<b>Q6:</b> Currently, what percentage of the company's overall supply chain is represented by Southeast Asia?
<b>A:</b> According to the company’s public disclosures in the prospectus, the proportion of overseas supply chain capacity was approximately <b>15%</b> in 2021, stabilizing around <b>12%</b> from 2022 to the first half of 2024. Beginning in July 2024, the company has accelerated its supply chain diversification efforts, achieving nearly half of its products exported to the U.S. being produced overseas; however, this figure is subject to dynamic adjustments influenced by cost structures, logistics efficiency, and geopolitical conditions. The company will regularly optimize its configuration according to the resilience-building goals of its supply chain.

In 2025, the company plans to further invest in flexible global supply chains and enhance supply chain risk resilience and responsiveness.

<b>Q7:</b> Has the issuance time and price for convertible bonds been determined?
<b>A:</b> The company's convertible bond proposal was released in June 2022, based on its future development strategy and assessments of extreme changes in the international trade environment, marking a proactive strategic capital reserve measure. In February 2025, the company received formal approval from regulatory authorities for the issuance of convertible bonds, which must be completed within 12 months post-approval according to regulations.

The company will carefully consider the capital market environment and its own situation to scientifically select the timing for issuance, with specific implementation details to be disclosed in accordance with information disclosure regulations. The issuance pricing will be determined based on market conditions, investor demand, and terms, and further details will be provided in the issuance announcement. The company adheres strictly to capital market information disclosure norms, and all related matters will be based on official announcements.

<b>Q8:</b> Did last year's revenue growth partly benefit from high discount frequency? If the discount frequency is reduced now, will growth rates decline?
<b>A:</b> The company's revenue growth does not primarily rely on high discount frequencies. As reflected in the disclosed 2024 semi-annual and third-quarter reports, both gross margin and net profit margin have shown significant year-on-year improvements, clearly indicating that the core drivers of revenue growth stem from product technological iterations, service quality enhancements, and increased brand value, rather than reliance on price competition strategies.

The company consistently prioritizes "user value" as its operational principle, continuously enhancing product technological content and service response quality to establish a differentiated competitive advantage. This value-driven growth model equips the company with the ability to maintain growth resilience under various market conditions, while short-term strategic adjustments serve as dynamic responses to market changes, effectively counterbalancing impacts through product pricing power and user value creation.