Core Insights - Green Source Group held a successful partner conference in Xiamen on December 18, 2025, themed "Gathering Strength for New Growth" [1] - The company is transitioning from "scale growth" to "high-quality competition" and has introduced new core technologies such as liquid-cooled smart power and smart interaction systems, along with a product plan for 2026 [1][2] - Green Source aims to transform from a "traditional manufacturer" to an "ecosystem builder" through the launch of the "2026 New Wave Plan" in collaboration with key supply chain partners [1][20] Technology Upgrades - The company has developed a comprehensive self-researched core technology system that includes key areas such as core three-electric systems, ecological integration technology, and intelligent manufacturing [4] - The new liquid-cooled smart power system enhances vehicle performance by addressing common issues like range anxiety, while the battery maintenance system ensures compatibility with various battery types [6] - The smart interaction system improves user experience by integrating high-definition screens and entertainment features, aligning two-wheeled vehicles with smart automotive standards [6] Product Layout - Green Source's "All-Scenario Light Mobility" strategy focuses on precise market demand and product alignment, described as "one body and two wings" [7] - The company is launching flagship products in the two-wheeled and three-wheeled vehicle segments, including the S70Pro and over 30 new electric bicycles [10][12] - The E-Bike segment features the LYVA E-Bike C10, designed for smart health riding, incorporating lightweight materials and intelligent sensing systems [14] Growth Strategies - The first wing of growth focuses on "embodied intelligence," collaborating with Zhejiang University and other partners to develop high-performance robots and smart products [17] - The second wing targets international markets, leveraging partnerships with global leaders like BMW to create a technology ecosystem that meets local demands [17] Channel Empowerment - Green Source emphasizes "channel empowerment" through three core strategies: integrated marketing, user operation, and multi-scenario coverage [19] - The company aims to enhance brand and sales synergy, improve store efficiency through digital tools, and extend service boundaries with innovative models like "rent and sell together" [19] Supply Chain Collaboration - The launch of the "2026 New Wave Plan" involves collaboration with 135 core suppliers to enhance product quality and service experience [20] - The initiative focuses on building a transparent and trustworthy supply chain ecosystem, transitioning from product quality enhancement to supply chain ecological construction [20] Conclusion - The conference marks a milestone in Green Source's strategic transformation, showcasing confidence in the light mobility industry [22] - The company is committed to addressing industry challenges while exploring intelligent and global pathways, aiming for a more sustainable future in the light mobility ecosystem [22]

Core Viewpoint - Green Source Group has demonstrated strong financial performance in the first half of 2025, achieving significant revenue and profit growth despite a challenging electric bicycle market [1] Financial Performance - The company reported a revenue of 3.096 billion yuan, representing a year-on-year increase of 22.2% [1] - Net profit reached 110 million yuan, showing a year-on-year growth of 66.9% [1] - Gross margin improved to 13.6%, up by 1.6 percentage points compared to the previous year [1] Product Innovation and Technology - The company focuses on technology and durability, investing in R&D to maintain its leading position in liquid-cooled motors [2] - A digital battery management system was launched to address battery durability issues, ensuring safety through intelligent temperature control [2] - The braking system features high-strength ceramic brake pads, enhancing lifespan by five times compared to standard drum brakes [2] Marketing and Sales Strategy - Green Source Group has over 14,000 offline retail stores and has innovated its marketing model by establishing online stores on major e-commerce platforms [3] - This new retail model has successfully driven approximately 300,000 electric two-wheelers to stores, with customer satisfaction increasing by 20% year-on-year [3] - The company has expanded its international business, entering three new countries and achieving significant growth in Southeast Asia and Africa [3] Brand Development - In 2025, the company launched the LYVA brand targeting urban middle-class consumers seeking high-quality, tech-oriented lifestyles [3] - LYVA features an AI mid-mounted motor and smart riding algorithms, enhancing user interaction and transitioning from functional transportation to intelligent companionship [3] Strategic Vision - The company aims to provide a "full-scenario light travel solution," integrating hardware, software, and services [4] - Its product matrix covers various scenarios, including commuting, sports, and family needs, to meet diverse consumer demands [4] - The establishment of a "3-kilometer service circle" through 14,000 smart stores offers rental, on-site maintenance, and battery swapping services, creating a closed-loop business model [4]

Investment Rating - The report assigns a "Buy" rating to Luyuan Group Holdings (2451.HK) with a target price of HKD 13.41, indicating a potential upside of 61.2% from the current price of HKD 7.99 [2][4]. Core Insights - Luyuan Group is a pioneer in the electric two-wheeler industry, leveraging technological innovation to lead market development. The company has introduced significant advancements such as liquid-cooled motors and digital battery technology, enhancing product durability and range [4][7]. - The transition to new national standards is expected to stimulate demand for electric two-wheelers, with a projected recovery in sales starting in 2025 due to government incentives for trade-ins [4][25]. - The company's strategic shift towards high-end markets and the establishment of a comprehensive mobility ecosystem is anticipated to drive growth and improve profitability [4][61]. Financial Summary - Revenue projections for Luyuan Group are as follows: - 2024: CNY 50.72 billion (YoY -0.22%) - 2025: CNY 60.2 billion (YoY +18.69%) - 2026: CNY 73.2 billion (YoY +21.59%) - 2027: CNY 88.5 billion (YoY +20.90%) [3][4] - Net profit forecasts are: - 2024: CNY 1.16 billion (YoY -20.29%) - 2025: CNY 1.75 billion (YoY +50.86%) - 2026: CNY 3.23 billion (YoY +84.57%) - 2027: CNY 4.58 billion (YoY +41.80%) [3][4]. Industry Overview - The electric two-wheeler market in China is projected to experience a compound annual growth rate (CAGR) of 6.32% from 2019 to 2024, despite a decline in 2024 due to weak consumer demand and industry adjustments [4][25]. - The market is characterized by a significant shift from price competition to quality competition, with leading brands focusing on technological advancements and product differentiation [31][34]. - The introduction of new national standards in 2025 is expected to enhance product quality and safety, further driving the industry's evolution [40][41].

Core Viewpoint - Green Source Group has announced a new strategy to extend its business from product manufacturing to mobility services, aiming to create a comprehensive "all-scenario light mobility solution" in response to structural changes in the industry [1][6]. Group 1: Strategic Shift - The strategic upgrade is a proactive response to industry structural changes, driven by ongoing product update demands from the implementation of new national standards [6]. - The future competition will focus on scenario coverage capabilities, technology penetration rates, and the completeness of service ecosystems [6]. Group 2: Product and Service Integration - The "all-scenario light mobility solution" is not merely an extension of product lines but a comprehensive solution that integrates hardware, software, and services centered around user needs [7][15]. - Green Source has developed a product matrix to meet diverse user needs across various scenarios, including daily commuting, leisure, outdoor activities, and family outings [9][14]. Group 3: Product Innovations - The company has launched a new generation of liquid-cooled electric vehicles that can achieve over 100 kilometers of range on a single charge, addressing range anxiety for urban short-distance travel [14]. - The LYVA brand targets the high-end market with smart features and emphasizes a balanced lifestyle, potentially leading to significant profit growth [24]. Group 4: Service Ecosystem - Green Source has established a service ecosystem centered around a "3-kilometer service circle," with 13,000 smart stores nationwide providing battery rental and on-site repair services [14]. - The company aims to enhance user experience through efficient service management and rapid response capabilities [14]. Group 5: Market Positioning - The strategic shift includes transitioning from a single brand operation to a multi-brand structure, targeting different market segments with specific brands [16]. - The electric vehicle segment will focus on durable, cost-effective products priced between 2,000 to 5,000 yuan, while LYVA and Yuanxingzhe will cater to mid-to-high-end markets and ecological services, respectively [21][27]. Group 6: Market Opportunity - With approximately 425 million two-wheeled electric vehicles in China and annual sales of about 49.5 million units, the market for two-wheeled mobility products and services is expected to expand significantly [28]. - Green Source is well-prepared to seize this market opportunity through its strategic upgrades and technological innovations [28][29]. Group 7: Global Expansion - The company is advancing its global market strategy, exporting products to 80 countries and regions, and plans to implement localization strategies in Southeast Asia, South Asia, and Latin America [40]. - The "all-scenario light mobility solution" represents both a direction for product innovation and a shift from traditional sales models to user services [40].

Core Viewpoint - The article discusses the strategic transformation of Luyuan, a leading player in the Chinese two-wheeled electric vehicle market, as it shifts from a traditional manufacturing model to an integrated ecosystem service provider, focusing on "all-scenario light travel" solutions to adapt to new market dynamics and consumer needs [1][3][4]. Group 1: Strategic Transformation - Luyuan is transitioning from a "manufacturer" to an "ecosystem service provider," creating a comprehensive travel solution centered around user needs through a product matrix and service system [4]. - The company aims to construct a pyramid-shaped profit model, opening up growth potential and opportunities for value reassessment [5][15]. - Luyuan's business structure will evolve from a single brand operation to a multi-brand architecture, including Luyuan Electric Vehicles, LYVA (smart sports), and Yuanxing (ecosystem services), which will enhance its profit model [15][26]. Group 2: Market Position and Financial Performance - Luyuan has maintained its market leadership in the two-wheeled electric vehicle sector, with a reported total revenue of approximately 5.1 billion RMB in 2024, remaining stable year-on-year [20]. - The primary revenue source, electric bicycle sales, exceeded 3 billion RMB, reflecting a year-on-year growth of about 12% [20]. - The company is expected to benefit from the upcoming "new national standard" in 2025, which is anticipated to stimulate market demand and facilitate a new round of expansion for leading brands [20][21]. Group 3: Technological Innovation - Luyuan has established itself as a technology leader in the two-wheeled electric vehicle industry, particularly with its innovative liquid cooling technology, which enhances durability and positions the brand favorably in the market [16][21]. - The company has a robust patent portfolio, with 729 patents and 313 new applications, focusing on core technologies such as electric motors and batteries [33]. - Luyuan plans to continue investing in key systems, including liquid cooling motor systems and smart connectivity, to enhance product durability, safety, and battery life [33][34]. Group 4: Market Expansion and Ecosystem Development - Luyuan is targeting the middle-class consumer market with its LYVA brand and is actively exploring international opportunities, having added 66 new international clients and entered seven new countries in 2024 [22][23]. - The "Yuanxing" brand introduces a new model of "rent, exchange, sell, and repair," enhancing its competitive edge in the two-wheeled mobility service market [26][27]. - The company is also focusing on establishing a battery swapping network, which is seen as a critical solution to address charging safety and range anxiety in the electric vehicle sector [26][27].

Core Viewpoint - Green Source Group Holdings has officially launched a new strategy focusing on extending into the mobility service sector while maintaining its manufacturing advantages, aiming to provide a comprehensive "all-scenario light mobility solution" [1] Group 1: Strategic Overview - The "all-scenario light mobility solution" is not merely an extension of product lines but a user-centric approach that integrates "hardware + software + services" to enhance user experience across various scenarios [1] - This strategic release signifies Green Source Group Holdings' proactive response to structural changes in the industry, breaking free from traditional competitive constraints [1] Group 2: Market and Product Development - Green Source Group Holdings has developed multiple products to meet diverse user needs, including the LYVA brand for outdoor health mobility [2] - The company is transitioning from a single brand operation to a "main multi-brand composite structure" [2] - The global market expansion is progressing steadily, with products sold in 80 countries and regions, achieving full-scenario application [2] Group 3: Future Plans and Innovations - By 2025, the company plans to leverage its core technological advantages to implement localization strategies in key overseas markets such as Southeast Asia, South Asia, and Latin America, while also targeting the electric bicycle market in Europe and the U.S. [2] - The "all-scenario light mobility solution" represents both a direction for product innovation and a shift from traditional sales models to user service extensions [2] - The company is focused on product iteration and service system optimization to enhance technical accumulation and model exploration, aiming to continuously adapt to changing user demands [2]