E-Bike Brand TENWAYS Files for Hong Kong IPO, with 98% of Revenue Coming from the European Market

[Ebrun Original] On February 27, electric bicycle (E-Bike) overseas brand TENWAYS formally submitted its prospectus to the Hong Kong Stock Exchange, planning for a main board listing, with GF Securities (Hong Kong) acting as the sole sponsor.

Founded in 2021, TENWAYS positions itself as an innovation-driven electric mobility company centered in Europe, focusing on the design, development, and sale of E-Bike products.

Unlike many Chinese two-wheel vehicle exporters that enter the market based on manufacturing or cost-effectiveness, TENWAYS chose to enter the market as a "European brand" from its inception. It established a European operational center in the Netherlands, defined its products around local cycling culture, targeted urban commuting as its core application scenario, and gradually expanded to meet needs such as leisure cycling and family transport.

In terms of products, TENWAYS has now established a complete product portfolio covering urban, hybrid, and cargo models, making it one of the few brands in the European market with a full range of electric bicycle product lines.

Within its product structure, urban electric bicycles have consistently dominated, serving as the core engine for TENWAYS' growth. Its CGO800S model sold over 50,000 units within four years of its launch in the Benelux market and received awards including the German Design Award. According to Cision Media Share of Voice data, based on social media mentions in the first three quarters of 2025, TENWAYS ranked second among European electric bicycle brands.

From a regional perspective, TENWAYS shows a highly concentrated focus on the European market. In the first nine months of 2025, 97.7% of TENWAYS' revenue came from Europe, the US market contributed about 2.2%, and other regions accounted for less than 0.1%. The Benelux region (Belgium, the Netherlands, and Luxembourg) was the largest revenue source, accounting for over half of TENWAYS' total revenue.

Regarding its sales system, TENWAYS has established a combined online and offline model. The online Direct-to-Consumer (DTC) channel handles product display, personalized recommendations, and direct sales, while also providing after-sales support and accessory services via a mobile app and official website. Offline, it relies on a distributor network for delivery and service. As of September 2025, TENWAYS' sales network covered 29 European countries and was present in over 1,400 retail stores operated by distributors. Following the typical channel structure of the bicycle industry, TENWAYS' distributor system contributes approximately 70% of revenue and is the primary driver of its current scale expansion.

Frost & Sullivan data shows that since its founding, TENWAYS has become one of the fastest-scaling companies in the European electric bicycle industry. By sales volume, TENWAYS was the fastest-growing electric bicycle brand in the Benelux region between 2022 and 2024, and entered the top five in the urban commuting segment market in 2024. TENWAYS is also one of the early European brands to integrate torque sensors, hub motors, and belt drives into a unified system.

On the production side, TENWAYS adopts a light-asset model of "global sourcing with localized production in Europe." During the track record period, most electric bicycles were produced by OEM partners. Starting in 2024, TENWAYS gradually shifted its production focus to Portugal and ceased placing new orders with OEM partners in Germany and Lithuania. Through localized production, TENWAYS avoids the anti-dumping and countervailing duties imposed by the EU on E-Bikes manufactured in China. The relevant Portuguese production capacity is currently included in the EU's exemption list, thereby balancing compliance and cost competitiveness.

As of September 2025, TENWAYS had three major OEM partners, with the Portuguese partner supplying the European market, and partners in China Taiwan and Yinsanhuan responsible for production for the US and other regions. Concurrently, TENWAYS established a joint venture factory in Portugal and arranged backup capacity in Vietnam.

Financially, TENWAYS has maintained a growth trajectory over the past three years. In 2023 and 2024, TENWAYS' revenue was ?48 million and ?60.6 million, respectively, representing a year-on-year increase of 26.2%. Revenue for the first nine months of 2025 grew to ?54.2 million from ?52.6 million in the same period the previous year. During the same period, TENWAYS' gross profit margin continued to improve, rising from 25.8% in 2023 to 30.4% in 2024, and further increasing to 31.8% in the first nine months of 2025.

The improvement in gross margin primarily stemmed from product mix upgrades and supply chain optimization. On one hand, the increased proportion of the Smart series, hybrid models, and cargo models enhanced the overall product value-added. On the other hand, as TENWAYS progressively shifted production localization to Portugal, the growth rate of cost of sales in 2024 was significantly lower than the revenue growth rate, benefiting from economies of scale and increased supplier concentration. Additionally, enhanced brand recognition improved product pricing power, while the integrated technology solution reduced production and maintenance complexity.

Despite continuous improvement in profitability, TENWAYS' reported losses widened. The prospectus indicates that the increased loss primarily resulted from strategic expansion investments, rather than deterioration in core operations. Over recent years, TENWAYS consistently increased investment in brand promotion and channel development in the European market, with selling expenses consistently maintained at around 20% of revenue. R&D investment also grew significantly, with R&D expenses increasing by 41.7% year-on-year in 2024. Simultaneously, to support global operations, TENWAYS expanded its localized teams and advanced the construction of its joint venture factory in Portugal, leading to a temporary increase in costs.

Notably, TENWAYS achieved profitability on an adjusted basis in the first nine months of 2025, with an adjusted net profit of ?1.24 million and an adjusted net profit margin of 2.3%.

According to the prospectus, IPO proceeds will be primarily used for product innovation and portfolio expansion, global brand building, deepening the sales and distribution network, strengthening the supply chain and production capacity, multi-brand strategy and potential mergers and acquisitions, as well as upgrading digital and AI systems to promote data-driven operational decisions, and for working capital supplementation.