TAILG Technology Co., Ltd. has recently filed for a listing on the Hong Kong Stock Exchange, with CITIC Securities and China Merchants Securities International serving as joint sponsors. As the pioneer of the "long-range electric two-wheeler" category in China, the company has gained a firm foothold in the global market. Per Frost & Sullivan's data, by 2024 revenue, it ranks third in the global light electric vehicle market with a 5.2% market share, and claims the same third spot in the Chinese market with a 12.7% share. This listing is more than just a financing move; it is a critical juncture for the market to test the robustness of its profit model and the sustainability of its growth amid high expansion.

I. Core Business: Building Brand Perception Through Technological Definition, Forging a Solid Foundation with Full-Link Layout

TAILG Technology's core strategy lies in successfully creating and dominating the differentiated technological category of "long-range endurance". This positioning is not merely a marketing slogan, but the technological cornerstone for its industrial competition.

Leveraging its technological accumulation, the company has been invited to participate in the formulation of a number of national and industrial standards, including the Technical Specification for Energy Efficiency Certification of Electric Bicycles (GB17761-2024, the "New National Standard"), which has strengthened its industrial influence. As of the latest practicable date, the company holds more than 1,900 patents in the Chinese mainland and 53 overseas patents, building an initial intellectual property barrier for its products.

In addition, on the basis of offering over 90 vehicle models, the company has independently developed the "TAILG Intelligent Management System" and its supporting APP, enabling functions such as vehicle status monitoring and remote diagnosis. This marks the company's attempt to evolve from a vehicle manufacturer to a smart mobility solution provider, aiming to enhance user stickiness and product premium. Its Huizhou production base has obtained China's first "zero-carbon factory" certification, aligning with the current trend of green manufacturing.

As of September 30, 2025, the company operates more than 27,000 retail stores through nearly 5,600 distributors in the Chinese mainland, covering all provincial-level administrative regions, forming a strong channel moat. Meanwhile, the company owns six production bases in the Chinese mainland and an overseas factory in Vietnam, providing production capacity support for it to cope with changes in the international trade environment and explore the Southeast Asian market.

II. Financial Analysis: Robust Growth Yet Fragile Profit Foundation, Cost Control as a Key Variable

The financial data clearly shows a "high-growth trajectory", but in-depth analysis reveals that its profit structure still features typical manufacturing characteristics and remains relatively fragile.

The company's revenue grew from RMB 11.88 billion in 2023 to RMB 13.60 billion in 2024, with a year-on-year growth rate of 38.6% in the first nine months of 2025, showing an accelerating trend. More notably, net profit has witnessed an explosive growth, reaching RMB 823 million in the first nine months of 2025, a surge of 122.4% year-on-year.

Nevertheless, the profit level behind the high growth rate requires a rational view: even at the profit peak (the first nine months of 2025), its gross profit margin stood at 14.6%, operating profit margin (pre-tax) at 7.1%, and net profit margin at 5.5%. These figures confirm that its business is essentially a manufacturing model with low gross profit margin and high operating leverage, where profits are highly vulnerable to fluctuations in raw material prices, industrial price competition or rising sales expenses.

The rapid revenue growth is partly attributed to the industrial opportunity brought by the replacement wave under the "New National Standard", as well as the company's active channel sinking and overseas expansion. However, such growth is to a certain extent accompanied by a strong reliance on expenses. Although the company currently controls its sales and distribution expense ratio at around 4.5%, demonstrating strong management capabilities, against the backdrop of intensified industrial competition and slowing growth, maintaining or increasing market share may force the sales expense ratio upward, thereby directly squeezing the already limited profit margin.

Based on its prospectus, NewTimeSpace observes that the company's R&D expenditure has remained stable at approximately 2% of total revenue (reaching RMB 275 million in the first nine months of 2025), which is a necessary investment to maintain its technological label and product iteration. Compared with sales expenses, sustained R&D investment is a "necessary cost" for the future, which exerts pressure on profits in the short term but aims to gain long-term technological barriers and product premium capabilities.

III. Equity Structure and Market Prospects: Clear Opportunities, Yet the Road to a Breakthrough Tests Strategic Resolve

The company's equity is highly concentrated in the founding team. TAILG is controlled by four co-founders: Sun Muqian, Yao Li, Sun Muchu and Sun Muchai, who together hold approximately 89.91% of the shares (members of the Sun family hold over 72%). This structure ensures decision-making efficiency and strategic consistency, but establishing a more modern corporate governance system to meet the requirements of a public company will be a challenge for the firm.

According to the Frost & Sullivan report, the market where the company operates has growth potential. The global light electric vehicle market size is expected to grow from RMB 263.2 billion in 2024 to RMB 505.9 billion in 2029 at a compound annual growth rate (CAGR) of 11.7%. As the world's largest market, China's light electric vehicle market is projected to reach RMB 227.1 billion in the same period with a CAGR of 8.1%. Overseas markets, especially Southeast Asia, are regarded as important growth regions due to policy support and substitution demand.

TAILG Technology's listing journey is a typical narrative of a manufacturing enterprise that has successfully created and led a niche category seeking a crucial leap during the industrial transformation period. The company holds a strong hand, including the definition right of "long-range endurance", a vast retail store network and the world's third-largest shipment volume. However, its true value in the capital market will depend on its ability to prove to investors that it can navigate economic cycles, break free from the manufacturing dilemma of "large scale but thin profits", and build a more resilient, sustainable high-quality profit model that can withstand competition.