Green Source Group Passes Hong Kong Stock Exchange Hearing

Founded in 2009, Green Source Group is a leading company in the technological development of China's electric two-wheeled vehicle industry, specializing in the design, research and development, manufacturing and sales of electric two-wheeled vehicles and promoting technological upgrades in the industry. According to Frost & Sullivan, Green Source Group is the fifth largest manufacturer of electric two-wheelers in the Chinese mainland market by total revenue in 2022, with a market share of 4.2%.

Data on Green Source Group's official website shows that the company has three major intelligent manufacturing bases, Zhejiang Intelligent Manufacturing Base, Guangxi Intelligent Manufacturing Base, and Shandong Manufacturing Base. As of April 30, 2023, Green Source Group had 1,314 dealers and over 11,400 points of sales in mainland China, covering 319 cities in 30 provincial administrative regions. In addition, through cooperation with overseas distributors, Green Source Group has exported its products to 37 countries and regions, including Thailand, Indonesia and the Philippines, etc. Revenue generated by overseas distributors will account for 1.7%, 1.9% and 2.4% of Green Source Group's product sales revenue from 2020 to 2022, respectively.

EqualOcean reviewed data from Global Market insights and found that the electric two-wheeler market was valued at $70.1 billion in 2022 and is expected to grow at a CAGR of more than 6% from 2023 to 2031. According to Sullivan's estimation, the annual sales volume of overseas two-wheelers is expected to reach 46.3 million units in 2026, leaving plenty of room for products to go overseas. In the future, as consumers seek more cost-effective and environmentally friendly means of travel, rising fuel prices and policy subsidies are expected to be the main engine of sales growth.

In addition, electric two-wheeled vehicle domestic manufacturers layout actively, technology and cost advantages are significant, is expected to replicate the WTO accession after the bicycle industry's journey to the sea, to create a new growth driver.

Green source electric car attracted a very large number of companies to enter, China's representative two-wheeled electric car brands including Yadea(雅迪), Xdebike(小刀), AIMA(艾玛), Segway(赛格威), etc.; Internationally, Zero(零点), Hero(英雄) and so on.

Green Source Group said in the prospectus that the proceeds raised from the IPO will be used primarily for research and development efforts to maintain technological superiority; to strengthen sales and distribution channels, as well as for branding and marketing activities to enhance brand awareness; to strengthen production capacity; and for working capital and other general corporate purposes.