The Zhitong Finance App learned that on March 29, the Shanghai Municipal Market Supervision Bureau's Enforcement Corps and the Jiangsu and Zhejiang Market Supervision Bureaus carried out joint enforcement in the Yangtze River Delta. Law enforcement officers carried out law enforcement inspections on “Luyuan” brand electric vehicle manufacturers (Luyuan Group Holdings (02451)), general dealers and terminal sales stores in Shanghai, and concentrated on “full-chain” industry rectification. More than 260 electric bicycles were seized on suspicion of poor quality.
According to reports, earlier, the Shanghai Municipal Market Supervision Bureau's Enforcement Corps sampled and inspected two “Luyuan” electric bicycles, TDT23075Z (S90) and TDT23070Z (S70), from the “Luyuan” car company on the old Humin Road in Xuhui District. After testing by a third party inspection agency, the two models did not meet the relevant national standards for speed limits, vehicle quality, size limits, and battery tampering prevention. The vehicle battery did not use the 48-volt lithium battery included in the certificate, but instead was equipped with a 72-volt lead-acid battery and charger, which was determined to be unqualified.
On March 28, law enforcement officials opened a case investigation against the “Luyuan” car dealership on the old Humin Road due to suspected sales of electric bicycles with quality problems. The general dealer was also investigated.
On March 29, law enforcement officers from Shanghai and Jiangsu simultaneously carried out on-site inspections of the company's three warehouses in Jinshan and Kunshan. The three warehouses investigated a total of more than 260 electric bicycles of suspected substandard quality, worth more than 900,000 yuan. Law enforcement officials have taken administrative seizure and coercive measures against the products involved.
Recently, Luyuan Group Holdings (02451) announced its annual results for the year ended December 31, 2023, with revenue of 5.083 billion yuan (RMB, same below), up about 6.3% year on year; profit during the year was 145.6 million yuan, up about 23.4% year on year. Basic earnings per share were 0.43 points. According to financial reports, the Group's revenue in 2023 increased by about 6.3% year-on-year, mainly due to increased sales of electric two-wheelers and batteries, which can be attributed to the successful application of the Group's core technology, which enhanced the Group's product competitiveness and further expansion of the Group's retail store network.