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SCMP Reporter

Jiangsu Xinri E-Vehicle, the world's largest maker of electric bicycles, expects to launch an initial public offering on the SME board at the Shenzhen Stock Exchange early next year, a move likely to raise about 2 billion yuan (HK$2.36 billion) to fund its expansion.
The company plans to more than double its capacity to five million units in the coming 12 months to meet the increasing demand for energy-efficient means of transport.
'We are on the right track,' said deputy general manager Gavin Hu. 'The company is fine-tuning production now to hugely boost capacity.'
Xinri, based in Wuxi, Jiangsu province, would become the first maker of battery-powered bicycles to list on the mainland.
On the SME board, a company can float IPO shares with volume of no more than 100 million shares.
Hu said the shares would be priced at about 25 yuan each. Ping An Securities has been hired to manage Xinri's IPO.
'It's just a preliminary figure,' he said. 'Xinri wants to take a leap forward following the IPO.'
Xinri, a high-profile sponsor for the 2008 Beijing Olympics and World Expo 2010 in Shanghai - events at which its products were widely used - now has a 10 per cent market share on the mainland, where about 1,000 companies are making electric bicycles, a popular product among  increasingly affluent buyers.
The company has yet to unveil its sales figure for last year, but Hu said the sponsorship deal was worth the money Xinri had invested. 
A battery-powered bike can sell for more than 3,000 yuan, nearly 30 times the price of a regular  bicycle.
'IPOs related to clean energy prove easy sales on the mainland market,' said Dazhong Insurance  fund manager Wu Kan. 'A first publicly traded manufacturer of electric bicycles will attract a lot of buyers.'
Xinri owns plants in Wuxi and Tianjin.  Its new plant in Xiangyang, Hubei province, and the expanded facilities in Wuxi, would soon be operational  as the company eyed a larger share of the mainland market, Hu said.
Xinri sells more than 90 per cent of its bicycles in the domestic market and exports a small portion to Western countries, with plans to expand into India and Africa, Hu said.




Xinri plans electric bike industry's first IPO