Core Viewpoint - The revised mandatory national standard "Safety Technical Specification for Electric Bicycles" will be implemented on September 1, 2025, leading to significant changes in the electric bicycle market, including the phasing out of old models and the introduction of new regulations regarding speed and material usage [1][7]. Group 1: New National Standard Implementation - The new standard specifies that the maximum design speed of electric bicycles must not exceed 25 km/h, with automatic power cut-off for speeds above this limit, addressing safety concerns related to speeding [7]. - A three-month sales transition period is established, allowing sales of old standard products until November 30, 2025 [7]. Group 2: Market Response and Product Changes - Many electric bicycle brands have removed their products from online platforms, advising customers to purchase from physical stores due to the upcoming standard changes [3][5]. - Dealers report that old standard models will cease production after August 15, 2025, and new models compliant with the new standard are not yet available [8][9]. Group 3: Material Regulations - The new standard limits the total mass of plastic used in electric bicycles to no more than 5.5% of the total vehicle weight, aiming to reduce fire hazards associated with plastic materials [10]. - Experts recommend that manufacturers minimize plastic use and consider alternative non-combustible materials in product design [10]. Group 4: Consumer Behavior and Sales Trends - The sales of electric bicycles through trade-in programs have seen a significant increase, with a month-on-month growth of 113.5% from January to June this year [12]. - Consumers are actively inquiring about trade-in options for old models, indicating a proactive approach to adapting to the new standards [12]. Group 5: Impact on Existing Consumers - Existing consumers who have purchased electric bicycles that do not meet the new standards will not be forced to replace them, as the new regulations primarily target manufacturers and sellers [13].

Core Viewpoint - The new national standard for electric bicycles (GB17761—2024) aims to enhance safety and control illegal modifications, set to be implemented on September 1, 2024, amid ongoing issues with unauthorized modifications in the industry [1][21]. Group 1: New National Standard - The new standard includes stricter requirements for battery packs, controllers, and speed limiters to prevent tampering [1]. - The standard is expected to address the ongoing problem of illegal modifications, which have been prevalent despite regulatory challenges [1][21]. Group 2: Illegal Modification Industry - There are reports of numerous illegal modification shops in Nanning, where electric bicycles can be altered to reach speeds of up to 80 km/h and extended ranges of 200 km [1][11]. - Merchants are actively promoting modification kits and services on social media platforms, showcasing how to increase speed and performance [2][5]. - Some shops offer complete modification services, including high-power batteries and controllers that exceed the new standard's limits [6][18]. Group 3: Market Dynamics - The modification market is characterized by a competitive environment where businesses cater to consumer demand for higher speeds and performance, often leading to unsafe practices [18][21]. - Merchants claim that modified electric bicycles can perform similarly to electric motorcycles, creating a loophole in regulatory compliance [18][21]. - The proliferation of modification services has led to a situation where even legitimate electric bicycle retailers are engaging in or facilitating illegal modifications to meet consumer expectations [18][21].

Core Viewpoint - The company participated in the 2024 Shanghai Stock Exchange Low Carbon New Energy Collective Performance Briefing, discussing its operational results, financial status, and ESG performance for 2024 and Q1 2025 [1][2]. Group 1: Performance Briefing Overview - The performance briefing was held on May 28, 2025, with key executives present to engage with investors [2]. - The company disclosed its participation in the briefing on May 21, 2025, through the Shanghai Stock Exchange website [1]. Group 2: Key Issues Raised by Investors - Investors inquired about the impact of the new national standards for electric bicycles and the progress of the trade-in subsidy policy [3]. - The company responded that the 2024 national standard includes significant optimizations in safety, smart features, and quality assurance, which will drive technological advancements in the industry [3][4][8]. Group 3: Industry Impact of New Standards - The new standards set a maximum speed of 25 km/h for electric bicycles and include anti-tampering requirements to enhance safety [4][6]. - Fire safety measures have been strengthened, limiting the use of plastic materials in electric bicycles to reduce fire hazards [7]. - The standards also require manufacturers to ensure production consistency and quality assurance, raising the entry barriers for the industry [8]. Group 4: Trade-in Subsidy Policy - The trade-in subsidy policy for electric bicycles has been officially implemented, with significant subsidies available in various regions, reducing the cost for consumers [15]. - The policy aims to stimulate consumer demand and promote the replacement of old electric bicycles with compliant new models [15]. Group 5: Capital Expenditure Plans - The company plans to maintain significant capital expenditures in 2025-2026 for the construction of new production bases and facilities [15]. Group 6: ESG Disclosure and Compliance - The company intends to integrate the new sustainable disclosure guidelines into its overall strategy and improve ESG reporting based on governance, strategy, risk management, and indicators [16]. Group 7: Financial Management Strategies - In response to declining financial interest income, the company is adjusting its fund structure to focus on low-risk financial products [17][18]. Group 8: International Market Expansion - The company has established branches in Vietnam, Indonesia, and the United States, with plans for localized supply capabilities and channel development [19]. - A tiered strategy for international expansion is being implemented, focusing on different market characteristics and regulatory environments [20]. Group 9: Product Upgrade Strategy - The company is advancing product upgrades through technological innovation, aesthetic design, and platform-based manufacturing [21][22]. - Emphasis is placed on creating a smart ecosystem for electric bicycles, enhancing user experience and product performance [21]. Group 10: Dividend Policy - The company plans to distribute a cash dividend of 0.592 yuan per share for the 2024 fiscal year, with a total payout of approximately 510 million yuan [23]. - The management is authorized to consider mid-term dividends based on financial conditions and future plans [23]. Group 11: Q1 2025 Performance Drivers - The growth in Q1 2025 is attributed to the ongoing trade-in policy and the company's strategic efforts in channel development, product innovation, and operational efficiency [24].