On November 25, the Shenzhen Municipal Bureau of Commerce issued a notice on the "Implementation Guidelines for the Subsidy for Replacing Old Electric Bicycles in Shenzhen in 2024" to further expand the scope of the electric bicycle replacement program, making it easier for consumers to apply for subsidies. The requirements related to the replacement of old electric bicycles have been adjusted: from October 6, 2024, to December 31, 2024, individual consumers who trade in scrapped old electric bicycles within Shenzhen and purchase new electric bicycles priced above 1500 yuan will receive a one-time subsidy of 500 yuan.

In addition, the subsidy scope has been relaxed. The adjusted subsidy scope is as follows: both registered and unregistered old bicycles qualify; the sales price of new bicycles is based on the tax-inclusive price on the new bicycle invoice; each person may only apply for the subsidy once. The application process has been simplified; the adjusted application process is as follows: consumers scrap old bicycles and purchase new bicycles, then upload materials through the activity platform to apply for subsidies.

Recently, the Consumer Goods Industry Department of the Ministry of Industry and Information Technology announced the list of enterprises meeting the industry standards for electric bicycles (second batch), with a total of 25 electric bicycle manufacturers included in the notice. The deadline for public notice is October 16. Unlike the first batch, which included only 6 enterprises, the number of enterprises in this announcement has significantly increased, with 25 enterprises shortlisted, including 3 from Yadea: Tianjin Yadea Industry Co., Ltd., Anhui Yadea Motorcycle Co., Ltd., and Guangdong Yadea Motorcycle Co., Ltd.

According to previous market reports, the first batch of enterprises meeting the "Industry Standards for Electric Bicycles" was announced in late August this year. The first batch included 6 enterprises, namely Tianjin Aima Vehicle Technology Co., Ltd., Tailg Technology Co., Ltd., Yadea Technology Group Co., Ltd., Zhejiang Green Source Electric Vehicle Co., Ltd., Zhejiang Yadea Motorcycle Co., Ltd., and Chongqing Yadea Technology Co., Ltd. From the official list of the first batch and the shortlisted list of the second batch, Yadea-related enterprises have the highest number.

Changjiang Securities pointed out that sales of electric two-wheelers are showing significant growth in 2024. As of September 23, 2024, the annual sales of electric two-wheelers in China have exceeded 54 million vehicles. Changjiang Securities research predicts that sales for the entire year of 2024 may exceed 70 million vehicles.

Leading electric bicycle company:

Yadea Holdings (01585): Yadea's sales in August were about 1.8 million units, a decrease of nearly 10% compared to 2 million units last year. Nevertheless, Yadea's Crown Power series still accounts for over 45% of the total, with continued control of the proportion of models priced below 2500 yuan and the potential for a slight increase in unit price. With the implementation of the new national standard, costs will increase, and small brands will gradually be eliminated. Yadea's product unit price is expected to continue to rise. Currently, Yadea's high-end series accounts for about 40% of the total, with the goal of increasing it to 60% to 65%. Compared to competitors, Yadea's product unit price is still relatively low, and the company has made significant investment in core components, which has to some extent affected its profit performance.

Lead-acid battery related companies:

Tianjin Lishen (00819): A global leader in lead-acid batteries. The company stated that in the domestic market for lead-acid power batteries used in electric light vehicles, the company's market share remains at the forefront, with a market share exceeding 45%.