China Two-Wheeler Sector "Signs of recovery – time to revisit?" Shen

研报英文原文证据摘录

China Two-Wheeler Sector "Signs of recovery – time to revisit?" Shen

Zeeho losses to narrow in 2026, although breakeven is not as likely as was signalled in

prior estimates.

Zongshen Power (001696.SZ, NR)

Relationship with Loncin: According to public information, Zongshen Power holds a

48.29% equity interest in Zongshen Xinzhizao, which has 24.55% of Loncin

(603766.SH) total share capital. The relationship creates competition between the two

companies under the same ultimate controller, Zongshen Group. As such, Loncin and

Zongshen are planning an asset swap with Loncin transferring its general motor

business to Zongshen in exchange for the motorcycle engine business of Zongshen.

General Motor business: According to Zongshen, it manufactures many kinds of

general motor whole products including ride-on mowers and home power generators.

Currently, it is a pure OEM selling to many well-known US brands ,including Generac

and Westinghouse. In emerging markets, such as South America, the company plans to

establish its own brand to improve profit margins. With the acquisition of Loncin's

general motor business, the company targets to become a worldwide leader in the

general motor sector in the medium to long term. In 2025, the company sold c5m units

of general power engines with an ASP of around Rmb9,000. The company also plans to

expand its manufacturing footprint globally. It now has four factories in Vietnam and

has benefitted when US tariff blocked other Chinese suppliers in 2025.

Aerospace engine: Zongshen's aerospace engine business contributed about

Rmb200m revenue in 2025. The business has been under development for more than

10 years, since 2014, and is on a fast growth track.

NEV business: The company also engages in the NEV business, including ESS and