Shenzhen Manufacturing, Europe Sales Explode, 85-Born Entrepreneur Heading to IPO

Ask AI · Why is TENWAYS’s mid-to-high-end positioning able to stand out in the European commuting market?

Text: Zhu Ming, Editor: Xiang Qing, Production: Growth Factory

Another outbound company has gone public in Hong Kong.

This time it’s Shenzhen’s TENWAYS, mainly producing electric assist bicycles. The company was founded just five years ago and is now aiming to become the “first E-bike stock” on Hong Kong’s stock market.

According to the prospectus, TENWAYS’s revenue for the first nine months of 2025 was 54.19 million euros, with a net loss of 30 million euros. Adjusted net profit was 1.24 million euros.

The shareholder list is quite prestigious, including top investment firms and internet giants like Hillhouse, Tencent, Alibaba, as well as star manufacturing company Luxshare Precision. These firms have different investment approaches, but their simultaneous interest indicates this company has potential.

Notably, 97.7% of TENWAYS’s revenue comes from Europe. According to Frost & Sullivan, in 2024, TENWAYS ranked in the top five brands by sales volume in the urban commuting segment in the Benelux region (Belgium, Netherlands, Luxembourg), with about 5.9% market share. It is also the fastest-growing electric assist bicycle brand in the Benelux, though not widely known domestically.

What opportunities does the European electric assist bicycle market hold? As a Chinese startup, how has TENWAYS managed to establish its business on European turf? What hurdles remain?

1. What opportunities exist in the European electric assist bicycle market?

First, what is an electric assist bicycle?

Simply put, it’s a regular bicycle equipped with a motor and battery. When riding, the motor provides assistance based on pedaling effort, making uphill climbs easier and long-distance riding less tiring. It’s not the same as an electric vehicle; you still need to pedal, but riding feels lighter and less strenuous.

TENWAYS chose Europe because there are real opportunities there.

Looking at market size:

According to Frost & Sullivan, the European electric assist bicycle market grew from about 10.6 billion euros in 2020 to approximately 15 billion euros in 2024, with projections reaching around 21.2 billion euros by 2029.

The sustained growth is driven by supportive policies.

In central Berlin, restrictions on fuel vehicles entering city centers are increasing. According to EY, in 2024, sales of electric assist bicycles in Germany approached 5.4 billion euros, nearly half of all European e-bike sales.

Additionally, electric assist bicycles are integrated into low-carbon transportation systems and continue to benefit from policy support. Paris offers subsidies up to 400 euros for residents purchasing e-bikes, and Italy has similar policies.

Moreover, although there are many local brands in Europe, market concentration remains low.

Frost & Sullivan data shows that in 2024, the top five companies by sales volume held only 33.9% of the market. No single company dominates, leaving room for new entrants.

In Europe, TENWAYS focuses on the Benelux region. The prospectus shows over half of its revenue comes from Belgium, the Netherlands, and Luxembourg. These areas have strong cycling cultures, high consumer acceptance, and mature markets. Establishing a foothold here provides a clear path to expand into neighboring markets.

Putting these clues together, TENWAYS’s logic for choosing Europe is clear: the market is steadily growing, policies are supportive, and the competitive landscape is still evolving. But whether it can seize these opportunities depends on how the company executes.

2. Insights from the prospectus: TENWAYS’s approach

TENWAYS’s expansion in Europe answers a core question for outbound companies: how to succeed in a mature, unfamiliar market. The prospectus reveals many clues.

Supply chain issues are a common pitfall for outbound companies—many struggle with product delivery and quality control because they start from scratch.

From the disclosed information, TENWAYS avoided this trap. Founder Liang Xiaoling, born in the 1980s, previously served as Marketing Director at Qianlida Group. His uncle, Liang Jianxiong, is the head of Qianlida, a bicycle manufacturer founded in 1990, with over 30 years of experience in parts and complete bikes, known as a “mountain bike national brand” overseas.

This means TENWAYS benefits from existing factory relationships, suppliers, and quality control processes, allowing it to focus on product definition and brand management—speeding up market entry. During the rapid growth of the European e-bike market in recent years, being early or late could make a big difference.

With a solid supply chain foundation, the next question is what kind of products to develop.

In Europe, professional sports bikes have a strong user base, and high-end leisure models also have stable customers. But these segments are crowded with established local and international giants, making it hard for newcomers to break in. Urban commuting is the largest mass market, with a large user base but also serious product homogeneity.

The prospectus shows TENWAYS targets urban commuting, with a focus on “riding like a regular bike but easier.” Its technical approach combines torque sensors, hub motors, and belt drives, offering a natural riding feel and simple maintenance.

Currently, TENWAYS offers three main series: city, hybrid, and cargo e-bikes, plus accessories like child seats, helmets, and locks. The city models are the best-sellers, accounting for over 70% of revenue. In the first three quarters of 2025, the average selling prices for these categories were €1,144, €1,414, and €2,255, roughly RMB 9,300, 11,495, and 18,333.

This pricing strategy hits a sweet spot: it’s above budget brands but below high-end professional models. The mid-to-high-end positioning also demands higher brand recognition and after-sales service, requiring ongoing investment.

In terms of sales volume, from 2023 to the first three quarters of 2025, TENWAYS sold 38,876, 47,561, and 43,694 units respectively. The fastest growth came from the Benelux region, making it the fastest-growing e-bike brand there.

Product development is only part of the story—how to sell is equally important, which involves channels.

Most established European brands rely on offline dealerships, which involve multiple markups and lower efficiency.

According to the prospectus, TENWAYS adopts a hybrid approach: online and offline. It maintains a website and social media presence to connect directly with consumers; offline, it has entered over 1,400 retail stores across 29 countries as of late September 2025. Dealerships contribute about 70% of revenue, indicating that in Europe, pure online sales are insufficient—consumers still prefer to see bikes in person before buying. Online channels mainly serve for brand exposure and customer engagement.

After building supply chain, product, and channel networks, the final measure is financial performance.

The prospectus shows gross margins increased from 25.8% in 2023 to 30.4% in 2024, reaching 31.8% in the first three quarters of 2025. This upward trend indicates products are profitable and scale effects are kicking in.

In the first three quarters of 2025, adjusted net profit was €124,400, with an adjusted net profit margin of 2.3%, turning the company from loss to profit operationally. However, this mainly excludes non-cash items like fair value changes of preferred shares and share-based compensation.

In reality, the company’s net loss is still growing—the first three quarters of 2025 saw a net loss of €30 million, up €1.72 million from €28.28 million in the same period of 2024, an increase of about 6%.

The main expenses go toward brand promotion, channel development, R&D, and local teams. R&D spending in 2024 grew by 41.7% year-over-year, and sales expenses remain around 20% of revenue. At this stage, sacrificing profit for market share is common; the key is whether these investments can translate into long-term brand recognition and customer loyalty.

TENWAYS’s current approach seems effective, but whether it can sustain this growth on a larger scale depends on how it overcomes future challenges.

3. Even after a successful IPO, tough battles remain

Even if the listing succeeds, TENWAYS faces several hurdles.

First is competition. The prospectus lists “intensifying market competition” as a key risk. European market players can be grouped into three categories, each with formidable rivals.

One is established local brands, like Gazelle in the Netherlands. Founded in 1892, Gazelle is a national icon. It deeply understands European consumer preferences—what models suit the flat terrain of the Netherlands, what works in German rural areas—drawing on over a century of experience.

Another is German brands like Cube, founded in 1993, offering a full range from entry-level to high-end bikes. Their advantages include rich experience and deep distribution channels. Many German consumers’ first choice is Cube, both in terms of bikes and brand loyalty.

As a newcomer, TENWAYS’s success depends on precise product design and pricing, but competing head-on with these veterans will be challenging.

Another competitor group is Chinese peers, such as DYU and Dajiang. Founded in Shenzhen in 2014, DYU specializes in foldable e-bikes, leveraging cost advantage and differentiated design to capture a significant share in Europe, with annual shipments in the tens of thousands. DYU’s approach is similar—relying on Chinese supply chain advantages and product differentiation.

However, DYU focuses on foldable bikes at more affordable prices. TENWAYS targets the mid-to-high-end segment, aiming to compete with local brands rather than Chinese low-cost options. This positioning demands higher brand and service standards, increasing difficulty.

The third group includes global giants like Trek. Trek is a top player in the bicycle industry, sponsoring major events like the Tour de France in 2024. Its strength lies in global brand recognition and marketing power, with dedicated cycling enthusiasts. While TENWAYS is unlikely to reach Trek’s level in the short term, it must be wary of Trek entering the urban commuting market and leveraging its brand influence downward.

The second challenge is regional concentration. Most of TENWAYS’s revenue comes from Europe. Any geopolitical, trade policy, or exchange rate fluctuation could directly impact earnings.

EU anti-dumping tariffs on Chinese e-bikes have been in place since 2019. TENWAYS has shifted some production to Portugal to hedge this risk, but this increases costs. The Portuguese factory’s capacity ramp-up takes time, and cost control remains to be tested. In the short term, this move may pressure margins.

Deeper still, the internal European market is not uniform. Different countries have different regulations—Germany’s return policies differ from France’s; language barriers exist—Belgium has Dutch and French regions; payment habits vary—Dutch prefer iDEAL, Germans prefer invoices.

TENWAYS’s 1,400+ retail stores span 29 countries, requiring management of diverse dealer relationships, pricing, after-sales, and inventory issues. Managing this complex system is challenging; missteps could lead to channel conflicts or stockpile problems.

For TENWAYS, even after a successful IPO, the road ahead remains tough. Local brands, bicycle giants, and Chinese competitors are all accelerating their European strategies, intensifying competition. The company’s revenue heavily depends on Europe; policy shifts, exchange rates, and trade conditions introduce uncertainties. An IPO is just the beginning; the real test is whether it can turn short-term growth into a sustainable global brand.

Author’s note: Personal opinions only, for reference.