LUYUAN Group: Pioneering Active Mobility Through Innovation and Global Ambition

In an era where sustainable transportation is no longer optional but essential, LUYUAN Group has positioned itself as a vanguard in the global active mobility sector. By blending cutting-edge technology with aggressive market expansion, the company is transforming the narrative of electric two-wheelers from disposable "consumables" to durable, intelligent assets. This shift not only redefines the industry but also presents a compelling investment thesis for those eyeing growth in green mobility.

Technological Differentiation: The Heart of LUYUAN's Edge

LUYUAN's rise is anchored in its relentless pursuit of technological superiority. The company's liquid-cooled motor technology, validated by a Guinness World Record for 624 hours of continuous operation, exemplifies its engineering prowess. This innovation reduces motor temperatures by 38°C compared to traditional designs, extending lifespan to over a decade—critical for positioning products as "durables." Paired with IPX8 waterproofing and graphene-reinforced components, LUYUAN's vehicles offer unmatched reliability in harsh environments.

The Battery Digital Care System, featuring smart temperature control chips, addresses a key pain point: battery degradation. By optimizing charging cycles and preventing swelling, LUYUAN ensures longevity, a feature competitors like Yamaha or Giant Manufacturing have yet to fully replicate. Meanwhile, its premium LYVA series integrates AI-driven controls and carbon-fiber frames, signaling a play for the high-margin premium segment.

Market Expansion: From Asia to the Global Stage

While LUYUAN's domestic Chinese market remains robust, its true potential lies in global penetration. Recent moves highlight a strategic playbook:
- Bangladesh & Malaysia: Local assembly partnerships (e.g., S-series scooters in Bangladesh, CKD production in Malaysia) reduce costs and boost local adoption.
- ASEAN Dominance: The Guigang production base, targeting 1.5 million units annually, underscores its aim to become the region's go-to supplier.
- Europe & Beyond: With plans to establish an operational hub in Europe by mid-2025 and evaluations of the $20 billion European e-bike market, LUYUAN is primed to capitalize on rising urbanization and green policies.

The company's 3.5 million unit sales in 2024 and inclusion in China's "500 Most Valuable Brands" (ranked 473rd at 10.635 billion RMB valuation) reflect this momentum. By targeting 16 new countries—including Indonesia, Thailand, and Latin America—LUYUAN is diversifying revenue streams while competitors remain focused on saturated markets like Europe and North America.

Why This Matters for Investors

LUYUAN's strategy addresses two megatrends: the $150 billion global e-bike market's 20% CAGR and the shift toward sustainable urban mobility. Its technological moats—liquid cooling, AI integration, and battery care—create barriers to entry, while its geographic spread mitigates regional risks.

Key Catalysts for Growth:
1. Premiumization: The LYVA series targets affluent markets, offering higher margins.
2. Scalability: Its 7 manufacturing bases (including Vietnam) and ASEAN-focused production ensure cost efficiency.
3. Policy Winds: Governments globally incentivizing electric vehicles (e.g., China's subsidies, EU's emissions targets) favor LUYUAN's eco-friendly offerings.

Risks and Considerations

• Competition: Established players like Yamaha and Accell Group could ramp up innovation spending.
• Supply Chain: Dependence on lithium battery prices and geopolitical tensions (e.g., China-Vietnam trade dynamics) pose risks.
• Regulatory Hurdles: Export barriers in Europe or Asia could delay expansion timelines.

Investment Thesis: A Buy with Long-Term Vision

LUYUAN's combination of technological leadership and strategic market entry positions it as a rare pure-play growth stock in active mobility. With a brand value exceeding 11 billion RMB and a pipeline of innovative products, the company is well-equipped to capture 20%+ annual growth in emerging markets.

Recommendation: Investors seeking exposure to Asia's green mobility boom should consider LUYUAN. While near-term volatility is possible, its long-term trajectory—driven by global urbanization and sustainability mandates—supports a hold-to-buy stance. Monitor progress in European market entry and premium series adoption as key milestones.

In a world racing to decarbonize transportation, LUYUAN is not just keeping pace—it's setting the pace.