Last year, there was a shortage of bicycles in the market, but bicycle companies were unable to take advantage of it. According to the 2022 financial reports of Shanghai Phoenix, Zhonglu Co., Ltd., and Yong'an Bank, the company's net profit attributable to the parent company has shifted from profit to loss. However, the demand for high-end products in the bicycle industry has increased, and Yong'anxing stated that hydrogen energy products will be the main source of revenue in the next 2-3 years.

The bicycle industry is under pressure, but the performance of the electric bicycle industry is still good. Yadi Group and Emma Technology achieved new highs in 2022, and New Japan Group is gradually recovering. The growth rate of New Power No. 9 electric bicycles is also impressive. At the same time, the popularity of power assisted bicycles has increased overseas, and capital is gradually turning its attention to the power assisted bicycle industry. Tencent, Midea, and others are intensifying their layout.

The bicycle industry is under pressure, with Shanghai Fenghuang, Zhonglu Group, and Yong'an Bank turning from profit to loss

According to data released by the China Bicycle Industry Association, in 2022, the operating revenue of Chinese bicycle and electric bicycle enterprises above designated size reached 210 billion yuan, a year-on-year increase of 3%; Achieved a profit of over 10 billion yuan, a year-on-year increase of over 20%. Among them, the production of bicycle enterprises above designated size decreased by 32% year-on-year.

Veteran Shanghai Phoenix's revenue in 2022 was 1.61 billion yuan, a year-on-year decrease of 21.77%; The net profit attributable to shareholders of the listed company was -312 million yuan, a year-on-year decrease of 400.15%. The company stated that the decline in operating revenue was mainly due to a decrease in sales revenue from shared bicycles and bicycle exports.

Zhonglu Group, which owns a permanent brand, achieved a revenue of 927 million yuan in 2022, a year-on-year increase of 28.44%. The net profit attributable to the shareholders of the listed company was -76.33 million yuan, compared to 37.12 million yuan in the previous year.

In terms of sales, Zhonglu Group sold a total of 4.9348 million bicycles, electric vehicles, and children's bicycles, of which 4.72 million were sold, a year-on-year increase of 18.13%. The sales volume of Shanghai Phoenix bicycles reached 9.03 million units, a year-on-year increase of 12.75%. Sales growth, but net profit decline, inseparable from cost and industry competition.

Shanghai Phoenix believes that the current development of the bicycle industry still faces multiple challenges, and the rising domestic raw material and labor costs have brought significant cost pressures; The restructuring of the global bicycle manufacturing industry chain caused by international trade protectionism and the relocation and redistribution of the industrial chain poses challenges to the development of the industry. Affected by factors such as insufficient export orders, internal competition within the industry will be further highlighted.

In 2022, due to the impact of hydrogen powered bicycles on the market, Yong'an Bank's performance report is not easy. Yong'an Bank achieved a revenue of 678 million yuan in 2022, a year-on-year decrease of 22.40%; The net profit attributable to the shareholders of the listed company was -67.82 million yuan, a year-on-year decrease of 254.69%. The company explained that it was mainly due to the delayed payment of customer accounts payable and the increase in bad debt provision.

Among them, the operating service revenue of the company's public bicycles is 423 million yuan, the system sales revenue is 35.96 million yuan, the Yong'anxing travel platform revenue is 163 million yuan, the smart life revenue is 52.36 million yuan, and the sales and service revenue of hydrogen products is 3.14 million yuan. From the perspective of the company's revenue composition, the proportion of revenue from hydrogen products is still small.

Yong'anxing stated that there are currently few competitive enterprises in the hydrogen powered two wheeled vehicle (hydrogen powered bicycle) industry both domestically and internationally. The company aims to manufacture more environmentally friendly and cheaper hydrogen, establish a green hydrogen energy ecosystem from production, filling to use, and accelerate energy transformation. In the next 2-3 years, the business revenue from hydrogen products will become the main business revenue of the company.

For the sluggish and sluggish bicycle industry, the 2022 China Bicycle Industry Survey Report believes that in 2022, the global economic situation is more severe due to multiple unexpected factors such as international geopolitical conflicts, recurrent epidemics, and high inflation rates. China's two rounds of industries have been affected to some extent, and the export growth rate has significantly decreased.

The two wheeled electric vehicle industry is improving, helping the overseas bicycle market to be hot

For a long time, China's two round travel market has been large in scale and the industry competition has been fierce. In recent years, the demands of bicycle end consumers for the functionality of bicycle products have been increasing, and the demand for mid to high end bicycle products has increased. As domestic bicycle companies gradually shift their focus from low-end product markets to mid to high end markets in research and development and production.

Bicycles are hard to describe, but the electric bicycle industry has performed well. Yadi Holdings, a Hong Kong listed company, achieved a revenue of 31.059 billion yuan in 2022, a year-on-year increase of 15.2%; The owner of the company should account for a profit of 2.161 billion yuan, an increase of 57.8% year-on-year.

In recent years, Emma has shown good momentum. Emma Technology's operating revenue in 2022 was 20.802 billion yuan, a year-on-year increase of 35.09%; The net profit attributable to shareholders of the listed company was RMB 1.873 billion, a year-on-year increase of 182.14%.

After years of pressure, Xinri Group gradually regained its vitality. In 2022, Xinri Group achieved a revenue of 4.904 billion yuan, a year-on-year increase of 14.55%; Realized a net profit attributable to shareholders of the listed company of 162 million yuan, a year-on-year increase of 1326.25%.

In the new forces, the electric bike business of Company 9 has made rapid progress. According to the 2022 financial report of Company 9, the revenue of electric two wheelers and electric scooters was 2.663 billion yuan, a year-on-year increase of 99.58%.

However, Xiaoniu Electric has been weak and sluggish in recent years. In 2022, Xiaoniu Electric achieved a revenue of 3.169 billion yuan, a synchronous decline of 14.5%; The net profit was -49.46 million yuan, a year-on-year decrease of 121.9%. The adjusted net profit is not in accordance with non GAAP accounting standards in the United States, which is 8.76 million yuan.

The transformation of the bicycle industry towards high-end has helped the bicycle category to be well received overseas. Bicycle export enterprise Jiuqi Co., Ltd. achieved a revenue of 2.376 billion yuan, a year-on-year decrease of 35.95%; The net profit attributable to the shareholders of the listed company was 168 million yuan, a year-on-year decrease of 18.20%. The main reason for the decrease in operating revenue is weak demand in overseas markets.

By product, the company's revenue from adult bicycles reached 570 million yuan in 2022, a year-on-year decrease of 53.3%; The revenue of children's bicycles was 410 million yuan, a year-on-year decrease of 44.4%; Assisted the revenue of electric bicycles to reach 460 million yuan, a year-on-year increase of 29.7%; The revenue from accessories reached 810 million yuan, a year-on-year decrease of 35%.

Southwest Securities analysts believe that the company's revenue from traditional adult and children's cars has declined due to the impact of European inflation this year and the situation in Russia and Ukraine. The demand for downstream orders of electric bicycles is strong, and it still maintains a rapid growth rate under overseas inflationary pressure. With the gradual depletion of overseas channel inventory, Europe and South America have entered a replenishment cycle, and traditional bicycle orders are expected to improve marginally throughout the year. The demand for electric bicycles is expected to remain high.

In recent years, the electrification process of the European bicycle market has continued to accelerate, helping to increase the popularity of electric bicycles and continuously increase sales. This depends on the progress of related technologies such as motors and batteries, as well as government subsidy plans. In the future, with the continuous improvement of the performance and quality of assisted electric bicycles, their applicability will continue to expand, and they can become a good substitute for traditional bicycles in some application scenarios. The consumption of assisted electric bicycles in the European market is expected to continue to maintain a high growth trend.

In recent years, the epidemic has changed people's travel. In order to solve the problems of traffic congestion and parking difficulties in commuting, some European and American countries have introduced assisted bicycles as a commuting tool, encouraging people to choose cycling. Assisted bicycles have not decreased in popularity in Europe and America, but have not yet been launched in China. Apart from their high prices, they are also related to speed limit policies. In the long run, power assisted bicycles as lightweight transportation are the preferred choice for green travel Yang Xinmiao, Deputy Director of the Institute of Transportation at Tsinghua University, said.

Chen Weicheng, reporter from New Beijing News and Shell Finance

Editor Chen Li

Proofreading by Liu Baoqing