Core Viewpoint - The lead-acid battery industry is facing a structural contradiction between outdated service standards and increasing user demands, prompting Yadi Huayu Battery to launch a new service standard and a 13-month full replacement product to reshape the service ecosystem [1] Group 1: Service Innovation - The traditional "repair turnaround" model in the lead-acid battery industry has been inefficient, leading to long service cycles and disputes due to inconsistent standards [3] - Yadi Huayu Battery's new service standard emphasizes "immediate inspection and replacement," creating an efficient and transparent service loop that eliminates user concerns about battery failures and after-sales disputes [3][5] Group 2: Quality Foundation - The commitment to "no maintenance, only replacement" is supported by Yadi Huayu Battery's strong R&D capabilities, product quality, and rigorous quality control systems [6] - The company operates eight production bases globally, with over 20 production lines and a research team of more than 300, investing nearly 150 million yuan annually in R&D [6][9] - The newly launched King Kong series battery boasts approximately 600 charge-discharge cycles, double the lifespan of ordinary lead-acid batteries, and excellent low-temperature performance [6][9] Group 3: Quality Control - Core processes have been fully automated, ensuring high consistency across batteries, while a comprehensive Total Quality Management (TQM) system covers the entire product lifecycle [8][9] - A quality traceability system is in place, with 100% failure analysis on returned defective products, forming a closed-loop quality control process [9] Group 4: Strategic Transformation - Yadi Huayu Battery has transitioned from merely "selling products" to "protecting user value," marking a significant upgrade in service strategy and a redefinition of value based on quality [11] - The depth of service defines the industry's value height, with the company aiming to lead the industry towards a new era of user assurance, channel trust, and healthy industry development [11]

Core Viewpoint - The launch of the "Huayu Battery Quality Service New Standard" by Yadea Huayu Battery aims to revolutionize the lead-acid battery industry by addressing existing service challenges and establishing a new service ecosystem [1][3][8] Group 1: Industry Challenges - The lead-acid battery industry faces three main pain points: ambiguous standards, short replacement cycles, and fragmented service experiences [3] - The traditional "6+6" service rule is no longer sufficient to meet user demands for reliability and peace of mind [3] Group 2: New Service Standard - The new service standard focuses on four key aspects: high product quality standardization, clear commitments, long-term guarantees, and integrated services [3][6] - The core promise of "13-month full replacement" is designed to fill industry gaps and reshape service rules, fundamentally overturning traditional after-sales models [3][6] Group 3: Quality Control and Automation - The commitment to "no maintenance, only replacement" is supported by strict quality control from the material source, ensuring high consistency in battery production through fully automated processes [5][6] - This quality foundation aims to provide users with long-term assurance and reduce after-sales risks [6] Group 4: Brand Confidence and User-Centric Approach - The extended service cycle reflects the brand's confidence in its product quality and addresses user concerns about battery reliability [8] - The initiative aligns with the user-centric philosophy of Yadea Huayu Battery, enhancing user trust and safety [8] Group 5: Technological Support - The introduction of the Huayu Battery IoT Smart Detection Device combines IoT and AI technology, offering rapid testing and real-time data sharing among stakeholders [10] - This system addresses long-standing issues of detection transparency and standardization, providing robust technical support for service upgrades [10] Group 6: Industry Leadership and Future Direction - Yadea Huayu Battery's commitment to "no maintenance, only replacement" positions it as a leader in the industry, establishing a replicable standardized service system [13] - This move signifies a shift from price competition to value co-creation, marking the beginning of a new development phase focused on service and experience [13]

Industry Outlook - The industry is expected to return to rapid growth due to the old-for-new policy and the implementation of new national standards, with projected sales of 56 million and 61.75 million units in 2025 and 2026, respectively, representing year-on-year growth of 12% and 10% [1] - The old-for-new policy has shown significant effects, with 3.341 million electric bicycles sold for old-for-new exchanges nationwide as of April 8, 2025, and an average subsidy of 688 yuan per unit [1] - The new national standards set to be implemented in September 2024 will raise industry entry barriers, which is expected to maintain strong demand for older models in Q2 and Q3 [1] Market Structure - Leading companies like Yadea and Aima have significant advantages in product pricing and distribution channels, with projected sales of 13.02 million and 10.7 million units in 2024, corresponding to market shares of 26% and 21%, respectively, totaling 47% [1] - The commuting segment, which accounts for about 50% of the market, is driven by essential needs, while the entertainment segment (30%) focuses on brand appeal and design [2] - New brands like Ninebot have a first-mover advantage in the entertainment segment, but traditional companies are quickly adapting to close the gap [2] Company Performance - The company is expected to recover quickly in terms of sales and profitability following a period of aggressive expansion and deep adjustments in 2024 [2] - The company anticipates a healthy recovery in terminal channels starting from 2025, aided by the new national standards and the old-for-new policy [2] - The subsidiary Huayu Battery is expected to see rapid sales growth due to strong external demand for its "24-month true replacement" technology [2] Profit Forecast and Valuation - The company’s projected net profits for 2025, 2026, and 2027 are 2.93 billion, 3.55 billion, and 4.11 billion yuan, respectively, with corresponding price-to-earnings ratios of 12.1, 10.0, and 8.6 [3]