In the first half of 2026, Aima Technology Group Co.,Ltd. (SHA: 603529) presented an interim report marked by a dual decline in performance, a sharp contraction in non-recurring profit, simultaneous declines in gross margin and net margin, and a swing to negative operating cash flow.

The company's revenue and net profit attributable to shareholders fell in tandem year over year, with non-recurring net profit attributable to shareholders dropping 49.45% year over year; net cash flow from operating activities shifted from 2.586 billion yuan in the same period last year to negative 601 million yuan.

As a leading player in the electric two-wheeler industry, this report card reflects the dual squeeze of a phase of demand contraction and rigid cost increases after the full implementation of the new national standard.

On the sales side, according to estimates by Zhongtai Securities, Aima's electric two-wheeler sales fell about 21% year over year in the first half, with electric bicycle sales down about 47% year over year, a decline significantly steeper than the industry's -12.6% level in the same period.

The new national standard took mandatory effect in September 2025, and together with trade-in policies across various regions that drove concentrated replacement purchases, it front-loaded part of replacement demand; entering 2026, local subsidies gradually tapered off, electric bicycles were removed from trade-in subsidy lists in many places, and combined with higher compliance costs and rising retail prices brought by the new national standard, consumer willingness to buy weakened.

Dealers simultaneously faced the dual operating pressure of clearing old inventory at a discount and educating the market about new models.

Profitability and the industry competitive landscape came under pressure at the same time. Aima's consolidated gross margin in the first half was 17.43%, down 1.82 percentage points year over year; the gross margin of its core business (electric two-wheelers, tricycles, bicycles and accessories) was 17.21%, down 1.94 percentage points year over year; the net margin attributable to shareholders fell to 5.8%, contracting 3.5 percentage points year over year. Data from AVC showed that in the first half of 2026, Yadea and Aima together held a 44.8% market share, with both leading brands' shares declining 0.8 percentage points in tandem; new forces such as Segway-Ninebot and Niu Technologies continued to seize share in the stock market by relying on intelligence and product differentiation. Aima's current product matrix remains mainly traditional commuting models, and its brand premium is facing multiple tests from demand contraction, rising costs and customer diversion by competitors.

Broad pressure in the interim report: dual decline in performance, sharp contraction in non-recurring profit, weakening earnings quality, negative operating cash flow

In the first half of 2026, Aima Technology achieved operating revenue of 11.440 billion yuan, down 12.21% year over year; net profit attributable to shareholders of 665 million yuan, down 45.15% year over year; and non-recurring net profit attributable to shareholders of 598 million yuan, down 49.45% year over year.

After excluding the distortion of non-recurring gains and losses, the nearly 50% decline reflected a clear contraction in the company's core business profitability.

By quarter, first-quarter revenue fell 18.45% year over year, while net profit attributable to shareholders plunged 67.57% year over year; in the second quarter, the revenue decline narrowed to 6.49% and the net profit decline narrowed to 22.86%, showing some sequential repair, but the first half as a whole remained in a downward range.

Although the electric two-wheel motorcycle and electric tricycle businesses grew rapidly, their scale was not yet enough to offset the sales gap in the core electric bicycle business.

At the profit margin level, earnings quality declined in tandem. Aima's consolidated gross margin in the first half was 17.43%, down 1.82 percentage points year over year. Gross margin pressure came from multiple factors: the new national standard raised per-unit compliance manufacturing costs, upstream raw material prices rose, and industry price competition persisted, leaving companies squeezed on both sides by higher costs and terminal promotional price cuts, with industry per-unit compliance costs generally increasing by 300 to 600 yuan.

Profit pressure further transmitted to cash flow. During the reporting period, Aima's net cash flow from operating activities was negative 601 million yuan, compared with 2.586 billion yuan in the same period last year, shifting from a large net inflow to a net outflow.

At the earnings briefing, the company attributed the negative cash flow to two main reasons: first, lower revenue reduced operating cash inflows; second, affected by procurement settlement cycles, cash payments for procurement increased in the first half, including some supplier payments from the previous peak season, with procurement and payment falling in different accounting periods and creating a timing mismatch.

The company also said it would subsequently strengthen inventory turnover and supplier settlement management to improve working capital efficiency.

Electric bicycle sales decline significantly steeper than the industry average; intensifying stock competition and a visible intelligence gap versus Niu and Segway-Ninebot

According to AVC PSI production and sales data, domestic electric two-wheeler sales totaled 28.252 million units in the first half of 2026, down 12.6% year over year. According to estimates by Zhongtai Securities, Aima Technology's electric bicycle sales fell about 47% year over year, significantly underperforming the broader market.

Structural contraction on the demand side is the core backdrop. The new national standard officially took effect in September 2025, and together with trade-in policies in various regions, it spurred a wave of concentrated replacement purchases that front-loaded replacement demand. In 2026, subsidies tapered off, and combined with higher retail prices caused by rising compliance costs, terminal willingness to buy was suppressed. Since the fourth quarter of last year, dealers have had to both clear old-standard inventory at a discount and bear the market education costs of new models, pressuring channel profitability.

The industry competitive landscape is undergoing profound changes. AVC data showed that in the first half, Yadea and Aima together held a 44.8% market share, with both shares falling 0.8 percentage points in tandem. By contrast, Segway-Ninebot's smart electric two-wheeler sales in the first half reached 2.844 million units, up 18.87% year over year; Niu Technologies' sales were 696,300 units, up 25.82% year over year. New-force brands, with intelligent and personalized positioning, continued to carve up the stock market.

Intelligence has become a core variable in industry competition, as young users' demand for smart functions such as navigation, riding data and anti-theft continues to rise, and companies such as Segway-Ninebot hold prominent advantages in the mid-to-high-end market above 4,000 yuan.

Compared with third-party testing platform Ludashi's May 2026 electric two-wheeler intelligence scores, Aima's Lieqi S1z scored 458 points; Segway-Ninebot's Mz130 scored 856 points, Niu's Y芝士 One scored 748 points, and Luyuan's Tangdou scored 352 points.

From the test scores, this Aima model's intelligence rating was in the lower range of the list, and the company's overall products still mainly feature basic smart configurations, with a gap versus leading new forces in the layout of advanced smart functions.

Aima's main products are still mainly traditional commuting models. How to make up for shortcomings in intelligence, open up room for brand upgrading, and at the same time cope with demand contraction and rising costs is a practical issue it will need to face next.