Industry Analysis - The two-wheeler industry in China is expected to benefit from favorable domestic policies and a recovery in exports, with the introduction of new standards accelerating the exit of low-quality products and promoting demand for upgrades. The sales volume of electric two-wheelers in China is projected to reach 52 million units by 2025 [3][27] - The "old-for-new" policy and the new strong standards are expected to drive the demand for electric bicycles, leading to market expansion. The sales volume of electric two-wheelers in China increased from 32.2 million units in 2018 to 55 million units in 2023, with a compound annual growth rate (CAGR) of 11.3% [27][30] - Southeast Asia is anticipated to provide additional growth opportunities for electric two-wheeler exports, particularly due to policies promoting the transition from gasoline to electric vehicles. The export volume of electric two-wheelers reached 22.13 million units in 2024, with a year-on-year increase of 47.1% [38][42] Company Analysis - The company has established a comprehensive product matrix covering electric bicycles, electric motorcycles, and electric tricycles, with a focus on high-end, intelligent, and differentiated products. The electric bicycle and motorcycle products cover a price range from 1,000 to over 5,000 yuan [4][44] - The company has a strong distribution network, with over 1,900 dealers and more than 30,000 stores globally. The online and offline integration strategy has effectively promoted sales conversion [4][44] - The company has made significant investments in production capacity, with eight completed and four under construction production bases in China, and ongoing expansion in Indonesia and Vietnam. The use of digitalization is expected to enhance cost efficiency [4][44] Financial Performance - The company's revenue is projected to grow significantly, with expected revenues of 21.606 billion yuan in 2024, increasing to 37.535 billion yuan by 2027. The net profit is also expected to rise from 1.988 billion yuan in 2024 to 3.692 billion yuan in 2027 [6][14] - The gross profit margin has improved from 11.72% in 2021 to 19.63% in Q1 2025, driven by the expansion of high-end product sales and the implementation of new standards [18][20] - The company's net profit is expected to reach 6.05 billion yuan in Q1 2025, reflecting a year-on-year increase of 25.12%, indicating strong financial performance supported by policy-driven demand [20][14]

Summary of Aima Technology Conference Call Industry Overview - The Chinese electric two-wheeler market is expected to see a 9.1% year-on-year decline in sales to 50 million units in 2024, recovering to approximately 52 million units in 2025, driven by trade-in policies and the implementation of new standards in 2025 [2][3] - Exports of electric two-wheelers from China reached 22.13 million units and $5.818 billion in 2024, marking a year-on-year increase of 47.1% and 27.6% respectively, with major markets including North America, Asia, and Europe [2][4] - The new stringent standards set to be implemented in September 2025 will relax weight limits for lead-acid battery vehicles and clarify anti-tampering requirements, benefiting safer lead-acid battery products and enhancing industry standards [2][5] Company Performance - Aima Technology reported a revenue increase of 35.09% to 20.802 billion yuan in 2022, with growth slowing to 1%-2% in 2023-2024, but a recovery of 25.82% year-on-year to 6.232 billion yuan in Q1 2025 due to favorable policies [2][6] - The net profit attributable to the parent company grew from 664 million yuan in 2021 to 1.988 billion yuan in 2024, with a compound annual growth rate (CAGR) of 44.13%, outperforming competitors like Yadea and Ninebot [2][6] Market Strategy - Aima Technology is focusing on high-end smart products and targeting female consumers, launching various product lines including Q, A, F, and X series to meet diverse consumer needs [3][7] - The company has achieved full price range coverage in electric bicycles and motorcycles, enhancing product intelligence through a multi-channel smart ecosystem [8] - The female user base in the electric two-wheeler market has increased from 34.5% in 2020 to 42.7% in 2024, prompting Aima to prioritize products catering to this demographic, which are more profitable [9] Electric Three-Wheeler Business - In 2024, the domestic electric three-wheeler market saw a total sales volume of approximately 12.5 million units, with Aima's revenue from this segment reaching 1.952 billion yuan, a year-on-year increase of 36.07% [10] - Aima is targeting female and elderly consumers with leisure three-wheelers, leveraging its existing advantages to increase market share [10] Distribution and Production - Aima primarily relies on a dealer network, maintaining over 1,900 dealers and 30,000 stores globally, with significant expansion in Southeast Asia [11] - The company has established eight production bases in China and is developing capacity in Southeast Asia, focusing on improving production efficiency through smart manufacturing and supply chain integration [12] Future Outlook and Risks - Forecasts for Aima's net profit are 2.616 billion yuan, 3.136 billion yuan, and 3.692 billion yuan for 2025-2027, with corresponding earnings per share (EPS) of 3.01 yuan, 3.61 yuan, and 4.25 yuan [13] - Risks include potential market demand decline due to macroeconomic slowdown, intensified competition in the electric two-wheeler market, fluctuations in raw material prices, and challenges in technology development and dealer management [13]