For stock investors, research reports from analysts are the go-to source for authoritative, professional, timely and comprehensive insights that help uncover potential thematic opportunities. In the first half of 2026, YADEA (01585), the long-standing leader in electric bicycles, delivered a report card showing declines in both revenue and profit: revenue of RMB 18.236 billion in H1 2026, down 5% year on year; net profit attributable to shareholders of RMB 1.201 billion, down 27.2% year on year.

Even more notable is that sales of Yadea's core category—electric bicycles—plummeted from 6.6655 million units to 4.1481 million units, a drop of 37.8%. Meanwhile, Segway-Ninebot saw smart electric two-wheeler sales rise 19% year on year, and Niu Technologies sold a cumulative 696,300 units in the first half, up 25.82% year on year, the fastest growth among mainstream brands.

Behind Yadea's sales decline and the counter-trend growth of new players lies the difference in product competitiveness amid the new national standard transition, and more importantly, the collective anxiety of traditional brands on the smart-feature track as the electric two-wheeler industry shifts from competing on motors to competing on computing power. On the channel side, a 114% surge in accounts receivable, an overly dense network of more than 40,000 stores, razor-thin dealer profits and strained manufacturer-dealer relations are pushing this "Mixue Bingcheng of electric bicycles" deeper into trouble.

Former Dominator Struggles to Sell

Dual decline in revenue and profit! Can't Yadea's electric bikes sell anymore? E-bike sales fell 37.8% in the first half, and its smart features are questioned as far behind Segway-Ninebot and Niu. In 2025, the domestic electric two-wheeler market showed overall growth, driven by both the trade-in policy and the transition to the new national standard. Data from AVC showed that annual production reached 63.16 million units, up 14.8% year on year.

Against this industry backdrop, some rejoiced while others worried. Rising stars Niu Technologies and Segway-Ninebot grew against the trend, while veteran leader YADEA saw both revenue and profit fall. In the first half, it posted revenue of RMB 18.236 billion, down 5% from RMB 19.186 billion a year earlier; net profit attributable to shareholders was RMB 1.201 billion, down 27.2% year on year.

Yadea's total electric two-wheeler sales in H1 2026 were 7.6323 million units, down 1.1612 million units, or about 13.2%, from 8.7935 million units a year earlier. By category, electric bicycle sales plunged from 6.6655 million units to 4.1481 million units, a decrease of 2.5174 million units, or 37.8%, with revenue contribution falling from 48.5% to 34.3%. Electric scooter sales, meanwhile, rose from 2.1280 million units to 3.4842 million units, up 63.7% year on year. The passive migration between categories failed to fully offset the overall volume gap.

At the same time, revenue from batteries and chargers fell from RMB 5.713 billion to RMB 4.730 billion, down 17.2%. Within that, charger sales dropped from 9.0293 million units to 7.4948 million units, while battery sales slipped slightly from 9.3835 million units to 9.0324 million units. (Source: company prospectus)

By comparison, Segway-Ninebot sold 2.844 million smart electric two-wheelers in the first half, up 19% year on year; Niu Technologies sold a cumulative 696,300 units in the first half, up 25.82% year on year, the fastest growth among mainstream brands.

The root cause of Yadea's sales decline versus the counter-trend growth of Segway-Ninebot and Niu lies in differences in product competitiveness against the backdrop of the new national standard transition. After the switch between the old and new national standards in September 2025, requirements for electric bicycles in terms of vehicle weight, safety performance and smart configuration were substantially raised. Traditional brands needed to adjust products and production lines, and compliance costs rose. At the same time, the earlier trade-in policy pulled forward some replacement demand, and demand weakened after entering 2026.

At a time when the electric two-wheeler industry is shifting from competing on motors to competing on computing power, the gap in smart capabilities has become the hardest chasm to bridge between Yadea and new forces such as Segway-Ninebot and Niu. Yadea is not unaware of this trend—in March 2026 it launched the Yadea OS operating system, integrating features such as iSmart intelligent interaction and iRide convenient vehicle control. However, judging from actual product strength, market feedback and third-party reviews, a substantial gap remains between Yadea's smart capabilities and those of Segway-Ninebot and Niu.

According to Ludashi smart-feature evaluation data, Yadea's shortcomings are concentrated in active safety and smart interaction. Segway-Ninebot continues to lead the smart-feature rankings, with its RideyFUN intelligent driving system centered on a 4.3-inch smart driving screen as the core entry point, integrating navigation, communication and entertainment functions, and adding designs such as dynamic wallpapers and emotional blind boxes to enhance the sense of companionship while riding. Niu, meanwhile, released the world's first AI smart two-wheeler cockpit system, "Lingxi AIOS," equipped with the Qwen3.5 large model, standardizing L2 autonomous-driving-derived technology across its lineup and introducing lidar and AI riding navigation.

Receivables Surge, Yadea Suspected of Loosening Terms for Dealers

Are overly dense offline stores intensifying internal competition, leaving dealers with meager profits and straining manufacturer-dealer relations? In the first half of 2026, YADEA's accounts receivable surged from RMB 470 million at the end of 2025 to RMB 1.007 billion, an increase of more than 114%. The core reason for this surge may be that, against the backdrop of overall pressure on the domestic market after the industry fully transitioned to the new national standard, Yadea's electric bicycle sales plunged 37.8% year on year, prompting the company to relax credit terms for dealers in order to maintain channel shipment scale.

But it is worth noting that, over the years, Yadea dealers have not had it easy either. The implementation of the new national standard for electric two-wheelers in 2019 spurred huge market potential through replacement demand, and Yadea quickly began staking out territory, rapidly seizing market share through relatively aggressive offline channel expansion. According to relevant media materials, Yadea's sales outlets from 2019 to 2023 were 12,000, 17,000, 28,000, 32,000 and more than 40,000, respectively. However, we found that since 2023 the number of outlets has remained above 40,000, and store count growth has slowed significantly.

Among all electric vehicle brands, Yadea has the largest number of offline physical stores, currently more than 40,000 nationwide, making it worthy of the title "Mixue Bingcheng of electric bicycles." But the dense channel layout is now exposing problems. At present, Yadea's sales outlets have penetrated into lower-tier markets. There are several Yadea stores on one street, and even less prosperous townships have several. Channel excess directly intensifies internal competition among dealers. To fulfill manufacturers' inventory-pushing tasks, dealers compete to cut prices and throw in gifts or services. Falling profits have driven dealer confidence to freezing point, weakening their willingness to hold and replenish inventory.

Yadea's high-density store strategy was originally intended to maximize market coverage and build competitive barriers. However, as the industry shifts from an incremental market to stock competition, the drawbacks of this strategy have gradually emerged. After the national subsidy and price-cut wave receded, YADEA's electric bicycle sales suffered a relatively large decline.

In addition, Yadea's enormous terminal sales network also poses great management difficulties, mainly in after-sales service and compliance. On the after-sales side, complaints containing the search term Yadea on the Black Cat Complaint platform exceed 6,000, with most complaints directed at Yadea electric vehicles, and many complaint contents pointing to Yadea's after-sales service problems. For example, some consumers said Yadea's after-sales service was poor and that stores misled consumers before purchase by cutting features. (Source: Black Cat Complaint)