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In 2025, China's electric two-wheeler market showed overall growth driven by the trade-in policy and the transition to new national standards. Data from All View Cloud showed that annual production reached 63.16 million units, up 14.8% year-on-year. However, this growth momentum did not carry into 2026.

In the first half of 2026, China's electric bicycle industry faced multiple pressures including the implementation of new national standards, elevated raw material prices, wait-and-see market demand and tightening regulation. Overall operations came under strain, with the sector showing a pattern of declining sales and shrinking profits. According to industry data, domestic sales of electric two-wheelers in the first half of 2026 totaled approximately 28.25 million units, down about 13% year-on-year.

Against this backdrop, among the six major listed companies that have disclosed interim reports, four posted negative revenue growth and five saw year-on-year declines in net profit. Traditional leaders such as Yadea and Aima generally recorded dual declines in both revenue and net profit, while Ninebot and Niu Technologies grew against the trend. Ninebot surpassed Aima to rise to second place in revenue, and Niu Technologies grew 21.27% year-on-year, but both companies' profit metrics were unimpressive. Ninebot's net profit attributable to shareholders fell 18.79% year-on-year, while Niu Technologies' losses widened further.

Traditional Leaders: Yadea, Aima, Luyuan and Xinri All Post Dual Declines

In the first half of 2026, the electric two-wheeler industry came under overall pressure during the adjustment period following the full transition to new national standards, with domestic sales falling about 13% year-on-year as demand pull-forward effects continued to manifest. YADEA (01585), Aima Technology Group Co.,Ltd. (603529), LUYUAN GP HLDG (02451) and Xinri all suffered simultaneous declines in revenue and net profit, but the underlying operational concerns differ for each. Yadea faces a cliff-like decline in its core category and weakening operational efficiency. Aima's sharp cash flow reversal exposes working capital pressure. Luyuan's structural contradiction lies in the bleeding of its electric bicycle business and unstable electric motorcycle advantage. Xinri has approached the breakeven line for its core business. Below is a detailed analysis of each company's specific difficulties.

Yadea Holdings: Core Electric Bicycle Sales Plunge 37.8%

Yadea's core electric bicycle sales plummeted from 6.6655 million units in the same period last year to 4.1481 million units, down 37.8% year-on-year. Although electric scooter sales grew 63.7%, this could not fill the revenue gap left by the electric bicycle business. Profit quality deteriorated in tandem, with gross margin falling from 19.6% to 17.7%, as declining gross profit in the battery and electric drive segments further eroded profit margins. The weakening of operational efficiency was more subtle but worth noting: inventory rose 25.9% to 1.796 billion yuan due to increased raw material stockpiling, inventory turnover days extended from 15.1 days to 19.3 days, accounts receivable surged from 470 million yuan to 1.007 billion yuan, and net cash inflow from operating activities fell sharply from 4.727 billion yuan in the same period last year to 1.626 billion yuan. The sales decline led to a breakdown in economies of scale, and the accumulated inventory and receivables pressure on the channel side means Yadea's adjustment period may be longer than expected.

Aima Technology: Net Profit Plummets 45.15%, Operating Cash Flow Turns Negative

Aima Technology recorded the largest net profit decline among the four traditional leaders, with net profit attributable to shareholders plunging 45.15% year-on-year. More concerning was the sharp reversal in cash flow: net cash flow from operating activities turned from 2.586 billion yuan in the same period last year to -601 million yuan, a year-on-year drop of 123.25%. Gross margin fell from 19.25% to 17.43%, and net margin compressed from 9.48% to 6.01%. The company attributed the cash flow deterioration to a timing mismatch caused by procurement settlement cycles during its earnings briefing, but combined with the 12.21% year-on-year revenue decline, reduced operating cash inflows and concentrated payments for peak-season procurement formed a dual squeeze, putting working capital management under substantive pressure. First-quarter performance saw the most dramatic decline, with revenue and net profit attributable to shareholders falling 18% and 68% respectively. Although the decline narrowed somewhat in the second quarter, the full-year outlook remains uncertain.

Luyuan Group: Structural Contradictions Most Prominent, Electric Bicycle Revenue Plunges 38.5%

Luyuan Group has the most prominent structural contradictions among traditional brands. Electric bicycle revenue plummeted from 1.997 billion yuan in the same period last year to 1.228 billion yuan, down 38.5% year-on-year, becoming the main reason for the overall revenue decline of 20.4%. Although electric scooter revenue grew 76.9% to 627 million yuan, the base is not yet sufficient to offset the bleeding from the electric bicycle business. The deeper concern is that Luyuan's leading position in the electric motorcycle segment is not solid—brands with motorcycle backgrounds such as Yadea, Zongshen and Jihu are accelerating their entry into this track, and Luyuan's first-mover advantage faces the risk of dilution. Meanwhile, upfront investments in new growth areas such as high-speed electric motorcycles, overseas markets and embodied intelligence are placing sustained pressure on current profits. Profit attributable to equity holders fell 31.82% year-on-year, and the difficulty of balancing short-term performance pain with long-term strategic investment has increased significantly.

Xinri: Non-Recurring Gains Mask Core Business Weakness, Breakeven Line in Sight

Xinri has the most fragile operating fundamentals among the four companies. Non-GAAP net profit attributable to shareholders was only 380,800 yuan, plunging 99.2% year-on-year, with core business profitability approaching the breakeven line. Net profit attributable to shareholders of 33.3665 million yuan was almost entirely supported by non-recurring gains and losses, including 25.06 million yuan from disposal of non-current assets and 5.12 million yuan from disposal of financial assets, totaling 32.99 million yuan. In the second quarter, non-GAAP net profit turned to a loss of 1.1659 million yuan, indicating that the deterioration in the core business is not a short-term fluctuation. Net operating cash flow fell 61.07% year-on-year, and approximately 12.52 million yuan in asset impairment provisions were recorded during the same period, adding pressure on asset quality. Xinri neither established an intelligent barrier like Ninebot nor achieved a breakthrough in the electric motorcycle category like Luyuan during the new national standard transition. Its product matrix lacks differentiated positioning, and it faces the risk of further marginalization in existing market competition.

New Forces Benefit from Intelligentization as Revenue Grows: Ninebot Overtakes Aima to Second Place but Profit Declines, Niu Technologies' Losses Widen

New national standards have narrowed the product positioning of electric bicycles, while demand for electric motorcycles and electric light motorcycles has relatively increased. Yadea's electric scooter sales grew 63.7% year-on-year; Luyuan's electric motorcycle sales reached 402,000 units, up 78.2% year-on-year. The product strength advantages of new forces in electric motorcycles and intelligentization are translating into incremental growth.

Ninebot's core barrier lies in the continuous conversion of accumulated intelligent technology into product strength. In the first half, Ninebot invested 750 million yuan in research and development, up 44% year-on-year, bringing features such as keyless unlocking, the RideyFUN smart riding system and the RideyLONG extended range system from flagship models down to a wider price range. Its product matrix covers different demographics and scenarios, with two-wheeler sales of 2.844 million units, up 19% year-on-year, far exceeding industry growth. More importantly, diversified businesses provided a hedge: in Q2, revenue from self-branded retail scooters was 1.176 billion yuan, up 27% year-on-year, and all-terrain vehicle revenue was 424 million yuan, up 31% year-on-year, together contributing over 1.6 billion yuan and effectively offsetting the drag on revenue from declining two-wheeler ASP. The structure of "stable core business plus high-growth incremental businesses" enabled Ninebot to maintain 22% revenue growth even during the industry downturn.

Niu Technologies' growth is a direct result of its volume-over-price strategy, driven by the rapid ramp-up of the electric motorcycle category. Q2 vehicle sales grew 24.2%, with domestic electric motorcycle sales accounting for approximately 60% of the total, becoming the core engine of sales growth. This strategy has a passive aspect: weakening demand in higher-tier cities directly impacted Niu's traditional strength in mid-to-high-end electric bicycles, forcing the company to shift R&D and product resources toward electric motorcycles to compensate for the loss of existing customers in higher-tier cities with incremental demand from lower-tier cities. On the channel side, Niu did not rapidly expand stores but emphasized same-store efficiency improvement—Q2 same-store sales grew 24% year-on-year, and online sales grew 50% year-on-year, with online channels now accounting for a significant portion of domestic retail sales. This strategy delivers quick results on the sales side, but the costs are equally significant.

Both new forces share the same growth logic and face the same concern: "revenue growth without profit growth" is becoming a common label. Ninebot's net profit attributable to shareholders fell 18.79% year-on-year, with the largest single drag being a foreign exchange loss of 371 million yuan, compared to a foreign exchange gain of 257 million yuan in the same period last year, creating a profit gap of approximately 628 million yuan. Niu Technologies' profit deterioration was more direct: gross margin plunged from 20.1% to 16.0%, with a net loss of 196 million yuan, as the lower average selling price and gross margin of electric motorcycle products are diluting per-unit profitability. Ninebot's two-wheeler business gross margin fell 6.5 percentage points year-on-year to 17.2%, and Niu Technologies' per-unit revenue dropped from 3,313 yuan to 3,029 yuan. The revenue growth of new forces proves their ability to capture share in the existing market competition, but the repair of growth quality—stabilizing ASP, recovering gross margin and managing foreign exchange exposure—is the key to determining whether this round of counter-trend expansion can translate into sustainable competitiveness.