In-Depth Analysis Report on Yadea's Channel Advantages: Opportunities and Challenges of Over 42,000 Stores

Based on the above in-depth analysis, I now present to you the

:

---

As the absolute leader in China’s electric two-wheeler industry, Yadea has built the largest channel network in the industry

:

Indicator	Data	Industry Position
Sales Outlets	42,000	Ranked 1st in the industry
Number of Distributors	4,200+	Ranked 1st in the industry
Store Coverage	Covers nearly all administrative regions across China	Absolute Leadership
Overseas Sales Points	90+ countries/regions	Leading Layout

The channel expansion history shows a typical “stepwise growth” pattern:

• 2018
  : 20,700 stores, initial channel development stage
• 2019
  : Implementation of the new national standard, stores expanded rapidly to 25,000
• 2021
  : Exceeded 28,000 stores, channel deepening
• 2023
  : Exceeded 40,000 stores, channel network basically took shape
• 2024
  : 42,000 stores, channel scale tends to stabilize
  [3]

However, scale expansion has not brought corresponding efficiency improvement; instead, a significant decline has occurred:

:

Indicator	2021	2023	2024	Change
Sales per Store (units)	433	413	310	-25%
Net Profit per Unit (CNY)	-	Approx. 150	98	-35%
Inventory Turnover Days	-	15 days	17 days	+13%
Inventory Value (CND 100 million)	-	9.55	12.79	+34%

“Against the backdrop of stock competition and industry involution, dense sales outlets have not driven brand sales growth; instead, they have diluted per-store sales, increased store inventory, and reduced inventory turnover rate”

[1]

---

2024 marked Yadea’s first net profit decline in nearly five years, with an alarming magnitude

:

Financial Indicator	2023	2024	YoY Change
Operating Revenue	CND 34.76 billion	CND 28.24 billion	-18.8%
Net Profit	CND 2.64 billion	CND 1.27 billion	-51.8%
Gross Profit Margin	16.9%	15.2%	-1.7pct
Net Profit Margin	7.6%	4.5%	-3.1pct
Electric Two-Wheeler Sales Volume	16.52 million units	13.02 million units	-21.2%

• Online channels frequently run promotions to boost sales, causing price conflicts with offline stores
  [2]
• Dealers’ interests are harmed, shaking channel confidence
• Multi-store competition in the same region dilutes per-store profits

• Net profit per unit of Yadea’s promotional models is
  less than CNY 100
  (some less than CNY 50)
• Comparison: Emma’s net profit per unit is
  CNY 189
  , Ninebot’s is
  CNY 363
  [1]
• Dealers admit: “We mainly make money from post-sales maintenance services”

• Inventory rose from CND 955 million at the end of 2023 to CND 1.279 billion at the end of 2024
• Dealers cannot directly return goods and bear inventory pressure
• De-stocking requires price-cut promotions, further eroding profits

---

Enterprise	Number of Stores (10,000)	Market Share	Average Sales per Store	Net Profit per Unit
Yadea	4.2	25%	310	CNY 98
Emma	3.5	20%	300	CNY 189
Ninebot	0.5	6%	600	CNY 363
Niu Technologies	0.3	2%	367	CNY 50
Tailg	2.0	12%	300	CNY 80

:

• Yadea’s number of stores is
  8.4 times that of Ninebot
  , but its per-store efficiency is only
  52% of Ninebot’s
• More stores ≠ more profits, highlighting efficiency issues
• Ninebot and Niu Technologies adopt the “online direct sales + offline experience store” model, which effectively resolves channel issues
  [1][2]

:

• Ninebot’s electric two-wheeler revenue in 2025 Q1 reached CND 2.862 billion,
  up 141% YoY
  [1]
• Ninebot’s share in the high-end market (≥CNY 5,000) reaches
  51.7%
  , far exceeding Niu Technologies’ 43.8%
  [2]
• Intelligence has become a core competitiveness, weakening Yadea’s “long battery life” advantage

:

• Emma’s 2024 sales volume was 10.5 million units, only 2.52 million units less than Yadea’s
• Emma’s net profit per unit is CNY 91 higher than Yadea’s, with stronger profitability
  [1]

---

In the first half of 2025, Yadea delivered an over-expected performance report

:

Indicator	2024 H1	2025 H1	YoY Change
Operating Revenue	CND 14.43 billion	CND 19.19 billion	+33.1%
Net Profit	CND 1.03 billion	CND 1.65 billion	+59.5%
Gross Profit Margin	-	19.6%	+4.4pct
Net Profit Margin	-	8.6%	+4.1pct
Sales Volume	-	8.7935 million units	Significant Recovery

:

• Yadea expects full-year 2025 net profit to be
  no less than CND 2.9 billion
  , with a YoY growth of
  approx. 128%
  [5]
• This will set a new record for the highest profit in the company’s history

• The proportion of products priced above CNY 3,000 increased from 48.4% to
  56.5%
  [5]
• Launched the Modern Series (CNY 2,999 - 4,299), targeting female users precisely
• The Crown Series and Feiyue Series form a three-brand matrix

• Held a global retail summit in December 2024 to boost dealer confidence
  [4]
• Strengthened channel management to ease online-offline conflicts
• Promoted the per-store efficiency improvement plan

• Actively embraced the “trade-in” policy
• Cooperated with the transition to the new national standard to accelerate the layout of compliant products

---

Advantage Dimension	Assessment
Scale Barrier	42,000 sales outlets cover the whole country, which is difficult to replicate in the short term
Sinking Market Advantage	High penetration in rural markets, matching consumer demand in third- and fourth-tier cities
Overseas Layout	Factories in Vietnam and Indonesia have been put into operation, with obvious first-mover advantages in overseas channels [3][4]

Challenge Category	Specific Performance
Efficiency Bottleneck	Continuous decline in per-store sales, rigid channel costs
Profit Pressure	Price wars continue, limiting dealers’ profit margins
Intensified Competition	Intelligent impact from Ninebot, high-end recovery of Niu Technologies
Inventory Risk	Inventory digestion pressure during the transition to the new national standard
Model Transformation	Traditional distribution model vs. new retail model

Institution	Rating	Target Price	Core Logic
Guosen Securities	Outperform	HKD 16.62	Channel recovery + product improvement + overseas expansion [4]
GF Securities	Add	HKD 17.14	Low base + efficiency improvement from channel adjustments [3]
Huaan Securities	Buy	-	Recovery elasticity exceeds expectations [6]

---

1. Seize Policy Window
   : Trade-in policy + transition to new national standard to centrally release replacement demand
2. Optimize Channel Structure
   : Improve per-store efficiency and control the pace of store expansion
3. Product Upgrading
   : Increase the proportion of products priced above CNY 3,000 to improve profit structure

1. Overseas Market Breakthrough
   : Release production capacity in Southeast Asia to build a second growth curve
2. Make Up for Intelligence Shortcomings
   : Increase R&D investment to narrow the technological gap with Ninebot
3. Channel Model Innovation
   : Explore the “direct sales + distribution” hybrid model to improve channel efficiency

---

[1] OFweek - “Bloated” Yadea: The World’s Largest But Not Strongest (https://mp.ofweek.com/ce/a256714594537)

[2] Guancha.cn - Yadea Stalls, Niu Surges, Electric Two-Wheeler Industry Fiercely Competes (https://user.guancha.cn/main/content?id=1467102&s=fwtjgzwz)

[3] Dongfang Wealth Securities Research Report - In-Depth Research on Yadea Holdings (https://pdf.dfcfw.com/pdf/H3_AP202411071640765466_1.pdf)

[4] Guosen Securities Research Report - Yadea Holdings 2024 Financial Report Commentary (https://pdf.dfcfw.com/pdf/H3_AP202504031650825145_1.pdf)

[5] Sina Finance - 2025 Financial Report Insight: Yadea Breaks Through the Industry Profit Ceiling (https://cj.sina.cn/articles/view/6697701948/18f36d23c00102aof0)

[6] Huaan Securities Research Report - Consensus and Divergence Outlook for the Two-Wheeler Market (https://pdf.dfcfw.com/pdf/H3_AP202502061642827240_1.pdf)

---

: Yadea’s channel scale advantage formed by 42,000 stores is still difficult to replicate in the short term, but issues such as declining channel efficiency, worsening dealer profitability, and intelligence shortcomings are eroding its competitive moat. The 2025 trade-in policy and transition to the new national standard provide a rare recovery window for Yadea, but in the mid-to-long term, the transformation of the channel model and efficiency improvement will be the key to determining whether it can maintain its leading position.