Investment Rating - The investment rating for the report is "Buy-A" with a target price of 76.50 CNY, maintaining the rating [5]. Core Viewpoints - The report highlights that the company has shown impressive growth in revenue and net profit for Q2 2025, with a year-on-year revenue increase of 61.5% and a net profit increase of 70.8% [1][2]. - The company is focusing on expanding its product lines, particularly in electric two-wheelers and electric scooters, which are expected to drive future growth [4]. - The report emphasizes the company's strong brand recognition and technological leadership in the electric two-wheeler and scooter markets, which positions it well for future opportunities [4]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 66.3 billion CNY, with a net profit of 7.9 billion CNY, reflecting significant growth compared to the previous year [1][2]. - The gross profit margin improved by 2.3 percentage points year-on-year, driven by economies of scale and cost reductions [3]. - The net profit margin for Q2 was 11.8%, an increase of 0.6 percentage points year-on-year [3]. Business Segments - The electric two-wheeler segment generated 39.6 billion CNY in revenue, up 80.6% year-on-year, with strong sales driven by enhanced store layouts and new product development [2]. - The self-branded retail scooter revenue reached 9.3 billion CNY, a 27.6% increase year-on-year, benefiting from a recovery in the European market [2]. - The all-terrain vehicle segment saw revenue of 3.2 billion CNY, a 10.7% increase year-on-year, supported by European market demand [2]. Future Outlook - The company is expected to continue its rapid revenue growth, with projected EPS of 27.32 CNY, 36.70 CNY, and 52.61 CNY for 2025, 2026, and 2027 respectively [4][10]. - The report anticipates that the company will leverage its brand strength and channel advantages in the high-growth segments of lawn mowers and E-bikes [2][4].

Core Viewpoint - The recent pricing chaos of Ninebot electric vehicles has led to significant customer dissatisfaction, with users reporting price drops shortly after purchase and the company's refusal to honor price protection policies [1][3][5]. Pricing Issues - Users have expressed frustration over the inconsistent pricing across different platforms, with significant price drops occurring shortly after purchases, leading to feelings of being "betrayed" [3][7]. - Ninebot's official response to customer complaints has been to deny price protection, which has further fueled user anger [1][5]. Financial Performance - Ninebot reported a substantial increase in revenue for 2024, with total revenue reaching 14.2 billion yuan, a year-on-year increase of 38.9%, and a net profit of 1.08 billion yuan, up 81.3% [8]. - The company's gross margin for electric two-wheelers stands at 21.1%, significantly higher than competitors like Niu and Yadea, which have seen declines in their gross margins [12]. Competitive Landscape - Competitors such as Yadea and New Day are facing growth challenges, with Yadea's revenue declining by 18.8% to 28.236 billion yuan and New Day's revenue down 14.49% to 3.511 billion yuan [9]. - Ninebot's diversified product offerings, including electric balance bikes and robots, have contributed to its revenue growth, with electric two-wheelers accounting for over 50% of its revenue [15]. Quality Concerns - Ninebot has faced multiple incidents of pricing errors and quality issues, with several batches of its electric bicycles failing quality inspections [14][15]. - The company has been criticized for its management of pricing and channel strategies, which have led to repeated public relations crises [14].