On September 19, the Guangdong Electric Vehicle Association held a training session to interpret the 'trade-in' policy for electric bicycles in Guangdong, introducing subsidy standards, implementation processes, etc., to help production and sales enterprises in the electric bicycle industry understand the 'trade-in' policy and related implementation requirements, grasp the operation procedures of the 'trade-in' system, actively respond to national policies, boost consumption, and promote industry development.

The relevant person in charge of the Guangdong Electric Vehicle Association stated that the implementation period of the Guangdong electric bicycle 'trade-in' policy is from September 1 to December 31, 2024. Consumers participating in the program can receive a one-time subsidy of 500 yuan by scrapping old electric bicycles already registered and licensed in Guangdong, purchasing qualified new vehicles meeting relevant requirements with a selling price of 1500 yuan or more.

Previously, the General Office of the People's Government of Guangdong Province issued the 'Implementation Plan for Making Good Use of Funds from Ultra-long-term Special National Bonds to Support the Trade-in of Consumer Goods,' which also proposed the target of the province's electric bicycle 'trade-in' work: the province aims to achieve a trade-in of 0.4 million electric bicycles.

On August 30, the Ministry of Commerce and 5 other departments issued the 'Implementation Plan for Promoting the Replacement of Electric Bicycles with New Ones', organizing qualified products from compliant electric bicycle manufacturers to participate in the consumer product replacement program. This is also the first time the country has introduced a policy for replacing old electric bicycles with new ones.

Encouraging the exchange of lithium electric vehicles for lead-acid vehicles: "For consumers who replace old lithium-ion rechargeable battery electric bicycles with lead-acid battery bicycles, the subsidy will be appropriately increased", clearly supporting lead-acid battery vehicles.

Opensource Securities stated in a previous report that, according to Deloitte's data forecast, 62.1% of the consumption demand in the electric two-wheeler industry in 2024 comes from replacement demand.

Leading electric bicycle company:

Yadea Holdings (01585): Yadea's sales in August were about 1.8 million units, a decrease of nearly 10% compared to 2 million units last year. Nevertheless, Yadea's Crown Power series still accounts for over 45% of the total, with continued control of the proportion of models priced below 2500 yuan and the potential for a slight increase in unit price. With the implementation of the new national standard, costs will increase, and small brands will gradually be eliminated. Yadea's product unit price is expected to continue to rise. Currently, Yadea's high-end series accounts for about 40% of the total, with the goal of increasing it to 60% to 65%. Compared to competitors, Yadea's product unit price is still relatively low, and the company has made significant investment in core components, which has to some extent affected its profit performance.

Lead-acid battery related companies:

Tianjin Lishen (00819): A global leader in lead-acid batteries. The company stated that in the domestic market for lead-acid power batteries used in electric light vehicles, the company's market share remains at the forefront, with a market share exceeding 45%.