The Ministry of Industry and Information Technology is soliciting public opinions on the "Management Measures for the Recycling and Comprehensive Utilization of Lithium-Ion Batteries for Electric Bicycles."

Electric bicycle manufacturers should strengthen green design in the product R&D stage with lithium battery manufacturers, improving the product's disassembly, recyclability, and maintainability.

Electric bicycle manufacturers should take primary responsibility for the recycling of used lithium batteries, effectively utilizing existing recycling channels to build a recycling network and provide recycling services.

Recently, Peking, Shenzhen, Shanghai, Xi'an, Dezhou, Fuzhou, Jinan, Heze, and other places have successively introduced detailed rules for the trade-in of old electric bicycles.

On November 25, the Shenzhen municipal government announced significant adjustments to the subsidy policy for the trade-in of old electric bicycles, aimed at expanding the coverage of the program and simplifying the consumer application process.

HAITONG SEC pointed out that since 2024, relevant departments have introduced a series of management measures and technical specifications, proposing higher safety requirements for production standards in the electric two-wheeler industry and the usage standards for Lithium Batteries. There are safety hazards associated with electric two-wheelers, making them more urgent compared to other consumer goods. Currently, YADEA, AIMA, and many other manufacturers have entered the whitelist of electric bicycle companies, which is significantly backed by regulation. Additionally, leading brands have higher recognition and stronger financial advantages, making the trade-in program likely to benefit significantly.

Leading companies in the electric bicycle industry:

YADEA (01585): Institutions are Bullish on the company's sales growth potential supported by the trend of Lithium Battery replacements and trade-in subsidies, raising the revenue forecast for YADEA from 2024 to 2026, and increasing the gross margin forecast by 1%, as the self-supply of major components may increase.

TIANNENG POWER (00819): HTSC has released Research Reports stating that in the domestic two-wheel vehicle market, the draft of the new national standard for two-wheel vehicles published in September 2024 proposes to relax the weight limit of complete vehicles using lead-acid Rechargeable Batteries from 55kg to 63kg, which can increase the single-vehicle charge capacity of lead-acid battery models and improve the endurance range, Bullish for the application of lead-acid batteries. With the new national standard officially implemented by the end of this year or early next year, coupled with the national trade-in subsidy policy, demand for lead-acid batteries will increase, and TIANNENG STOCK, as a leading company, is expected to benefit significantly.