New stock news | Taillight Technology submits application to Hong Kong Stock Exchange, being the pioneer in defining "long-lasting electric two-wheeled vehicles" for Mainland China.

According to the disclosure by the Hong Kong Stock Exchange on January 30th, Tailing Technology Co., Ltd. (referred to as "Tailing Technology") has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CITIC SEC and CMSC International as its joint sponsors. As the pioneer of defining "long-endurance electric two-wheeled vehicles" in mainland China, Tailing Technology is focused on this strategic market position and has established a comprehensive product portfolio covering electric bicycles, electric motorcycles, and electric tricycles. Company Overview The prospectus shows that Tailing Technology is a leading brand of electric light transportation vehicles that advocates for a green, low-carbon, and smart travel experience concept. As the pioneer of defining "long-endurance electric two-wheeled vehicles" in mainland China, the company is focused on this strategic market position and has established a comprehensive product portfolio covering electric bicycles, electric motorcycles, and electric tricycles. In addition, the company also provides batteries as accessories, which are sold together with the company's vehicles. According to data from Frost & Sullivan, based on revenue in 2024, Tailing Technology ranks third in the global market for electric light transportation vehicles, with a market share of about 5.2%. Based on revenue from electric two-wheeled vehicles in 2024, the company ranks third in mainland China with a market share of approximately 12.7%. Furthermore, Tailing Technology is committed to promoting low-carbon travel solutions by continuously improving product energy efficiency through research and development and developing advanced software systems to maximize the performance of the company's vehicles. Especially with the Tailing Intelligent Management System, users can not only easily manage and adjust the performance of different components, customize travel and maintenance plans, and check vehicle usage records but also promote energy consumption optimization and value-added services, while enjoying an exciting driving experience. During the reporting period, the company has developed a comprehensive product portfolio to cover various travel scenarios. Tailing Technology's products feature innovative and aesthetic design, attracting target audiences from around the world. As of September 30, 2025, the company offers 50 models of electric bicycles, 38 models of electric motorcycles, and three models of electric tricycles, including commuter models for daily urban transportation, utility models mainly used for delivery, freight, and other commercial purposes, as well as leisure and sports models for consumers seeking higher performance and riding experience. With its strong brand awareness, Tailing Technology has established a broad sales network covering mainland China and the world at large. During the reporting period, the company mainly sells its products through distributors and sales companies in mainland China and overseas, leveraging their insights into local and regional markets and relationships with local customers. As of September 30, 2025, the company's sales network includes (i) 5,597 distributors and over 27,000 retail stores across mainland China; and (ii) 412 distributors and over 300 retail stores overseas. As of the same date, the company's sales network covers 31 provinces in mainland China and extends to multiple countries and regions globally. Financial Information Revenue In the fiscal year 2023, 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, the company achieved revenues of approximately RMB 11.88 billion, RMB 13.60 billion, RMB 10.707 billion, and RMB 14.84 billion, respectively. Gross Profit and Gross Profit Margin In the fiscal year 2023, 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, the company recorded gross profits of approximately RMB 1.345 billion, RMB 1.762 billion, RMB 1.331 billion, and RMB 2.163 billion, respectively, with corresponding gross profit margins of 11.3%, 13.0%, 12.4%, and 14.6%. Annual/Periodic Profits In the fiscal year 2023, 2024, the nine months ended September 30, 2024, and the nine months ended September 30, 2025, the company recorded annual/periodic profits of approximately RMB 286 million, RMB 472 million, RMB 370 million, and RMB 823 million, respectively. Industry Overview According to data from Frost & Sullivan, in 2024, the total revenue of global manufacturers of electric light transportation vehicles reached RMB 263.2 billion, with a compound annual growth rate of about 18.3% from 2020 to 2024. Supported by policy measures, the electrification penetration rate of personal and commercial mobile vehicles continues to increase as travel preferences evolve, and real-time retail and local living services continue to develop. By 2029, the total revenue of global manufacturers of electric light transportation vehicles is expected to reach RMB 505.9 billion, implying a projected compound annual growth rate of about 11.7% from 2025 to 2029. The Chinese market for electric light transportation vehicles began with electric two-wheeled vehicles in the 1990s and rapidly expanded in the 2000s and 2010s with the growth of urban commuting demand and on-demand delivery. As the product range expands to electric tricycles and other categories, China has become the largest production and consumption base for such vehicles. The market has shifted from growth driven by scale (often characterized by uneven research and manufacturing capabilities, inconsistent quality control, and weak after-sales support) to a more standards-driven stage emphasizing safety, reliability, and compliance. According to data from Frost & Sullivan, in 2024, China's total revenue from electric light transportation vehicles reached RMB 142.8 billion, with a compound annual growth rate of about 9.6% from 2020. Driven by the trends of commuter electrification, growing demand for on-demand delivery, and the continued expansion of urban transportation, this market is experiencing rapid expansion. Its structural characteristics include: electric two-wheeled vehicles remain the core category, the penetration rate of electric tricycles continues to increase, and other categories of electric light transportation vehicles maintain steady growth. By 2029, the total revenue of manufacturers of electric light transportation vehicles in China is expected to reach RMB 227.1 billion, implying a projected compound annual growth rate of about 8.1% from 2025 to 2029. Measured by sales volume, China's market for electric two-wheeled vehicles reached 57.3 million units in 2024, with a compound annual growth rate of about 4.2% since 2020. This growth is mainly attributed to replacement demand for compliance, the increasing popularity of graphene and lithium batteries (which improve range and reliability), the high-frequency usage driven by on-demand delivery and local living services, and the continued optimization of channel coverage and after-sales support. During the forecast period, supported by green travel policy initiatives and basic needs for personal travel, this market is expected to reach 82.8 million units by 2029, implying a projected compound annual growth rate of about 6.2% from 2025 to 2029. In terms of shipments, the high-end configuration market in China reached 7.2 million units in 2024, with a compound annual growth rate of 72.1% since 2020. This growth is mainly due to the increasing adoption of high-performance components and intelligent connectivity technology. This segment is expected to reach 15.5 million units by 2029, with a projected compound annual growth rate of 14.8% from 2025 to 2029. The basic configuration segment in China recorded a shipment volume of 50.1 million units in 2024, with a compound annual growth rate of 1.2% since 2020. Despite a temporary contraction in demand in 2024, stable replacement demand and demand for more economical travel methods continue to drive growth in this market. This segment is expected to reach 67.3 million units by 2029, with a projected compound annual growth rate of 4.7% from 2025 to 2029. From 2025 to 2029, driven by the deepening implementation of green travel policies, the expansion of e-commerce delivery networks, and accelerated electrification of energy systems, electric two-wheeled vehicles and other electric light transportation vehicles are expected to achieve compound annual growth rates of approximately 19.2% and 12.7%, respectively. Therefore, it is expected that by 2029, the total market size for overseas sales by manufacturers (including exports from China) will reach approximately RMB 337.4 billion. Board of Directors Information The board of directors consists of nine directors, including six executive directors and three independent non-executive directors. The board's term is three years and can be re-elected and re-appointed continuously, responsible for managing and conducting the company's business and having general authority over the management and operation of the company's business. Shareholding Structure Mr. Sun Muchu holds 24.65% of the shares, Mr. Sun Muqian holds 23.77% of the shares, Mr. Sun Muchai holds 22.01% of the shares, Mr. Yao Li holds 17.61% of the shares, Wuxi Chuirui holds 1.87% of the shares, Shenqilina holds 1.61% of the shares, Herun Chuangye holds 1.59% of the shares, Mr. Changyao holds 1.08% of the shares, Jingkong Zhaoshang holds 1.08% of the shares, Mr. Linzhuying holds 1.08% of the shares, Lu Weicangqiong holds 1.08% of the shares, Mr. Chenyingsheng holds 0.99% of the shares, Mr. Changjie holds 0.90% of the shares, Xishan Yingtai holds 0.53% of the shares, Jiangsu Safety Wire Rope Industry holds 0.16% of the shares. As of the last practicable date, Mr. Sun Muchu is a general partner of Wuxi Chuirui. Therefore, under the Securities and Futures Ordinance, Mr. Sun Muchu is deemed to have an interest in the shares held by Wuxi Chuirui. Intermediary Team Joint Sponsors: CITIC SEC (Hong Kong) Limited, CMSC (Hong Kong) Limited Company Legal Advisor: Regarding Hong Kong and U.S. law: Mayer Brown LLP; Regarding Chinese law: King & Wood Mallesons; Regarding international sanctions law: Hogan Lovells International LLP Joint Sponsors' Legal Advisors: Regarding Hong Kong and U.S. law: Davis Polk & Wardwell LLP; Regarding Chinese law: Jingtian & Gongcheng Law Firm Auditors and Reporting Accountants: Ernst & Young LLP Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch Compliance Consultant: Lehigh Corporate Finance Limited