There is no technical barrier, no brand value, and no platform value. It is difficult to impress investors who need to look at future stories.

Editor’s note: This article is from WeChat public account “East 40 Capital”(ID: DsstCapital), author Tao Huidong.

In this earnings season, the electric two-wheeler industry handed over the worst performance list in history. The industry’s absolute leading Yadi Holdings’ core indicators showed a general decline, and A-share listed Xinri shares fell 2.46%. The only bright spot is the Nasdaq-listed Mavericks Electric, a high-end electric car rookie that just turned around in 2018 and maintained a good sales growth in 2019.

250 million users, one company IPO is reporting, why can't this industry attract capital interest?

Each first-half performance of listed electric two-wheeler companies 2019

This performance list means that the traditional, low-end industry of electric two-wheelers needs a round of reincarnation. It can be related to many popular concepts, “lithium revolution”, “sinking market”, “consumption upgrade” and so on.

The electric two-wheeler is a unique blue ocean market in China. In May 2019, a report released by the International Energy Agency (IEA) stated that by the end of 2018, the global inventory of two-wheeled electric vehicles was about 260 million, most of which were in China. “China’s two-wheel electric vehicle market has tens of millions of vehicles a year, which is hundreds of times larger than any other market in the world.” Nevertheless, the electric two-wheeler, which is the main driving tool for low-line cities, has never caused Enough interest in capital. Yadi Holdings, which has an annual revenue of nearly 10 billion yuan, currently has a market capitalization of only HK$4.5 billion, and its price-earnings ratio is only 9 times. The only electric two-wheeled car startup, Mavericks Electric, which has been favored by VCs, landed on Nasdaq in 2018 and broke on the day of listing.

An investor who has studied two-wheeled electric vehicles in depth and finally did not invest in one of the companies said to the investment network that there are opportunities in the two-wheeled electric vehicle industry, but it must be “Yadi + Mavericks”. No company has been able to do this yet. The so-called “Yadi + Mavericks” refers to the car that can make high-end grades, but also enough grounding gas to penetrate the sinking market.

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