Tailin Technology's Hong Kong IPO: Sustainability of Performance to Be Examined

Recently, domestic electric two-wheeler companies, Taillin Technology Co., Ltd. (abbreviated as “Taillin Technology”), filed a listing application with the Main Board of the Hong Kong Stock Exchange. The prospectus shows that in recent years, Taillin Technology has achieved steady growth in both revenue and net profit. However, behind the impressive performance figures, the company’s high level of liabilities, controversy over the reasonableness of its fundraising and capacity expansion, and changes in the industry regulatory environment as the new national standard for electric vehicles is rolled out have jointly become the core questions on Taillin Technology’s “IPO exam” journey this time.

Performance rises steadily　Liabilities remain elevated

Public information shows that Taillin Technology is a leading brand of two-wheel electric battery vehicles in China. Currently, the company offers 50 models of electric bicycles, 38 models of electric motorcycles, and 3 models of electric three-wheelers, covering usage scenarios such as daily urban commuting and delivery, freight, and other applications.

In terms of performance, Taillin Technology recorded relatively rapid growth during the reporting period. The prospectus shows that in 2023, 2024, and the first three quarters of 2025, the company respectively achieved operating revenue of RMB 11.88 billion, RMB 13.60 billion, and RMB 14.84 billion; the corresponding net profits were RMB 287 million, RMB 472 million, and RMB 823 million, respectively. In the first three quarters of 2025, net profit growth year over year was as high as 122.4%.

From the revenue structure, electric bicycles and electric motorcycles are Taillin Technology’s core sources of revenue. In the first three quarters of 2023, 2024, and 2025, electric bicycles respectively contributed operating revenue of RMB 6.67 billion, RMB 7.06B, and RMB 8.35B, accounting for 56.1%, 51.9%, and 56.3% respectively; electric motorcycles respectively contributed operating revenue of RMB 2.87B, RMB 3.18B, and RMB 2.91B, accounting for 24.2%, 23.4%, and 19.6% respectively. Meanwhile, Taillin Technology’s battery business has been growing relatively fast in recent years. In the first three quarters of 2025, the revenue share of batteries already reached 20.4%, forming the company’s second growth curve in addition to finished vehicles.

In terms of gross margin, in 2023, 2024, and the first three quarters of 2025, Taillin Technology’s overall gross margin was 11.3%, 13.0%, and 14.6% respectively, showing a steady upward trend. However, compared with peers, there is still a noticeable gap. According to annual reports disclosed by various companies, in 2024, Yadea Holding’s gross margin was 15.2%, Emar Technology’s was 17.8%, and Ninebot’s同期 gross margin was as high as 28.2%. In addition, in the first three quarters of 2025, the gross margin of Taillin Technology’s battery business was only 1.0%, indicating a “low-price volume-driven” state, contributing relatively little to the company’s profitability.

It is worth noting that Taillin Technology’s performance growth has also come with the pressure of continuously high liabilities. As of the end of 2023, the end of 2024, and the end of September 2025, Taillin Technology’s current liabilities were respectively RMB 7.39B, RMB 9.4B, and RMB 12.62B; net current liabilities were respectively RMB 2.08B, RMB 2.44B, and RMB 2.05B. In the prospectus, Taillin Technology also stated that it may face liquidity risk. If it fails to obtain external financing in a timely manner, it would have a major adverse impact on business expansion, financial condition, and operating performance.

Intensifying competition　Market share declines

For this IPO in Hong Kong, Taillin Technology clearly specified the intended use of proceeds in its prospectus, focusing primarily on directions such as capacity expansion, channel development, and R&D upgrades. Among them, capacity expansion is a key area of market attention.

The prospectus discloses that Taillin Technology plans to use IPO proceeds to build, purchase, and install equipment for its Vietnam base, Huizhou three-wheel vehicle base (Phase III), Chongqing base (Phase II), and Guigang base (Phase II), thereby achieving a substantial expansion in production capacity. In addition, the proceeds will also be used to expand channels, with a plan to open more than 500 new retail stores over the next five years; the remaining funds will be allocated to R&D activities and upgrades to the product matrix, as well as brand promotion and marketing activities.

However, with the domestic two-wheel electric vehicle market becoming increasingly saturated, the characteristics of competition in an existing stock market are gradually emerging. An in-depth report by Northeast Securities on the two-wheel electric vehicle industry shows that in 2024, China’s two-wheel electric vehicle ownership had reached 420 million units, equivalent to about one vehicle for every three people. Against the backdrop of competition in existing stock, the reasonableness and feasibility of Taillin Technology’s capacity expansion plans disclosed in this prospectus have become the core focus of market attention.

Besides overall demand pressure on the industry, Taillin Technology’s market share has also declined. Data for 2025 domestic sales of electric two-wheel vehicles released by OWEI Yunwang shows that in 2025, domestic sales of electric two-wheel vehicles reached 58.77M units, up 16.6% year over year, and the industry as a whole maintained a growth trend, but the pattern among leading brands showed clear differentiation. Among them, Yadea Holding ranked first with a market share of 25.5%, up 1.0 percentage point from the previous year; Emar Technology ranked second with a market share of 19.4%, up 0.6 percentage point year over year; Taillin Technology ranked third with a market share of 11.7%, down 2.4 percentage points year over year, being the only company among the top three brands whose market share shrank. By January 2026, Taillin Technology was further pushed out of the top three by Ninebot with a market share of 12.7%. Against a backdrop of intensifying competition, Taillin Technology’s industry position faces serious challenges.

While facing pressure in the domestic market, Taillin Technology’s overseas expansion is still at an early stage, and growth expectations remain highly uncertain. The prospectus shows that in the first three quarters of 2025, the proportion of the company’s overseas revenue in total revenue was only 2.7%, and its contribution to performance remained relatively limited.

New national standard implemented　Industry reshuffled deeply

Taillin Technology’s IPO in Hong Kong is taking place at a critical juncture in changes to the regulatory environment for the electric two-wheel vehicle industry. The “Safety Technical Specifications for Electric Bicycles” (GB17761-2024) (referred to below as the “new national standard”) has been fully implemented. The new national standard strengthens safety requirements in multiple areas, including flame-retardant non-metal materials, motor power, plastic proportion, tamper resistance, and more, aiming to improve the intrinsic safety of electric bicycles from the source.

Meanwhile, the CCTV 3·15 gala in 2026, which exposed irregularities and chaos in the electric bicycle industry, may accelerate the tightening of industry regulation. This gala highlighted three major violations involving brands such as Hello (ha-lo) rental electric scooters. First, offline stores openly violated regulations by decoding and disabling speed limits, converting compliant vehicles into “overspeed vehicles” with a maximum speed of up to 75 km/h, and also tampering with the instrument panel to show a false 25 km/h in order to evade regulation. Second, through methods such as “obtaining licenses before production” and “producing using certificates,” companies used old certificates to apply for licenses in advance, bypassing the new national standard’s regulatory system of “one vehicle, one code; one vehicle, one pool; and one vehicle, one charge.” Third, a full-chain set of illegal operations occurred—from license handling to vehicle production and deployment—allowing large numbers of non-compliant vehicles to enter the market under the name of compliant vehicles, seriously threatening road traffic safety.

After the 3·15 gala exposed these issues, market regulators and public security traffic management departments in various parts of the country quickly acted, focusing on cracking down on illegal modifications to disable speed limits, license plate and certificate fraud, false advertising, and unqualified product quality, among other violations. The “shortcuts” that had previously allowed illegal modifications and parameter inflation to grab market share may be continuously targeted for crackdown.

In addition, reporters noted that Taillin Technology’s “long-range” label, which it markets as a key feature, has repeatedly crossed regulatory red lines due to false advertising and inflated specifications. In 2024, Taillin Technology was already administratively penalized by market regulators for violating relevant provisions of the Advertising Law, because the content of electric vehicle ads it published included statements that could not be verified or were untrue. As of March 2026, the number of complaints about Taillin Technology’s electric vehicles on the Black Cat Complaint platform has exceeded 1,400. Among them, “range not matching,” “battery degradation is fast,” “false advertising,” and “stalling on after-sales service” have become high-frequency complaint issues. Many consumers stated that the advertised range of Taillin Technology’s electric vehicles differs too greatly from the actual usage range.

Industry insiders believe that, currently, with the full implementation of the new national standard and continued tightening of full-chain regulation after the 3·15 gala, China’s electric two-wheel vehicle industry has already entered a deep reshuffling period. The once-extensive low-price competition and scale expansion through violations can no longer meet the requirements for high-quality development in the industry. Whether it is Taillin Technology or other companies in the industry, they need to abandon short-sighted development thinking, uphold the compliance baseline, deepen technological innovation, and truly safeguard consumers’ lawful rights and interests while fulfilling companies’ social responsibilities. Only by doing so can they stand firm in the fierce competition in the industry, and only then can they genuinely推动 China’s electric two-wheel vehicle industry from a “manufacturing giant” to a “manufacturing powerhouse” in a steady manner.