1、 Disclosures&Disclaimer This report must be read with the disclosures and the analyst certifications in the Disclosure appendix,and with the Disclaimer,which forms part of it.Issuer of report:HSBC Qianhai Securities Limited View HSBC Qianhai Securities Research at:https:/ Equity Research Report Find

2、 out moreHSBC12th Annual China ConferenceShenzhen|1-2 September 2025 Largest e2W maker globally with domestic market share of c25%thats set to rise on trade-in subsidy and consolidation Has strong brand recognition,operational capability and overseas expansion as sells in over 100 markets Initiate a

3、t Buy,with a target price of HKD18.00 e2Ws are starting to be more popular than the metro.We believe the market for electric two-wheelers(e2Ws)in China will keep expanding as more switch over to these electric bikes and scooters for their convenience and low cost.Already,some 400m units are running

4、in China(source:China Bicycle Association).Riders dont need to worry much about parking,traffic jams,or crowded subway cars.In Guangzhou,more people use e2Ws than the metro in 2024,an impressive feat as the city is home to the third-biggest metro in mainland China.We expect the national trade-in sub

5、sidy and new national standards(to be implemented in September 2025)to continue to boost short-term demand and lead to an acceleration in industry consolidation.Already,there has been a c3ppt increase in the top five players market share in 1H25(Ex.2),benefiting the current leaders.An industry leade

6、r with ability to scale and channel advantages.Yadea had c40,000 stores nationwide as of end-2024,which is c30%more than No.2 player Aima with c30,000 stores(source:annual report).In our view,this should help Yadea achieve above-industry growth as national subsidies are fully rolled out and market c