A Shenzhen-based electric bicycle company is preparing for a Hong Kong initial public offering. TENWAYS, which specializes in electric-assist bicycles, was founded just five years ago and aims to become the first publicly traded E-bike company on the Hong Kong Stock Exchange. According to its prospectus, TENWAYS generated revenue of 54.19 million euros in the first nine months of 2025 while reporting a net loss of 30 million euros. However, on an adjusted basis, the company achieved a net profit of 1.24 million euros.

The company’s investor roster includes prominent institutions such as Hillhouse Capital, Tencent, and Alibaba, as well as leading manufacturing firms like Luxshare Precision. The participation of these diverse investors suggests strong confidence in TENWAYS’ business model. Notably, 97.7% of the company’s revenue comes from Europe. According to Frost & Sullivan, TENWAYS ranked among the top five brands in the urban commuting segment in the Benelux region by sales volume in 2024, capturing approximately 5.9% of the market. It is also the fastest-growing E-bike brand in the region, though it remains relatively unknown in China.

What opportunities exist in the European E-bike market? An electric-assist bicycle is essentially a conventional bicycle equipped with a motor and battery. The motor provides assistance based on pedaling effort, making it easier to climb hills and travel longer distances. Unlike electric scooters, E-bikes require pedaling, though the effort is significantly reduced compared to traditional bicycles. TENWAYS chose Europe as its primary market due to several favorable conditions. The European E-bike market has grown from approximately 10.6 billion euros in 2020 to around 15 billion euros in 2024, with projections suggesting it will reach 21.2 billion euros by 2029. Government policies have played a key role in this growth. In cities like Berlin, restrictions on fossil-fuel vehicles are increasing. According to EY research, Germany’s E-bike sales reached nearly 5.4 billion euros in 2024, accounting for nearly half of Europe’s total E-bike revenue. Additionally, E-bikes are increasingly integrated into low-carbon transportation systems. Paris offers subsidies of up to 400 euros for residents purchasing E-bikes, and Italy has implemented similar incentive programs. Despite the presence of numerous local brands, the European E-bike market remains fragmented. The top five companies held a combined market share of only 33.9% in 2024, leaving room for new entrants. TENWAYS has focused its efforts on the Benelux region, where cycling culture is strong and consumer acceptance is high. Over half of its revenue comes from Belgium, the Netherlands, and Luxembourg. Establishing a foothold in this mature market provides a clear path for expansion into neighboring countries.

How has TENWAYS achieved its growth in Europe? The company’s expansion strategy offers insights into how a Chinese startup can succeed in a mature, unfamiliar market. A common challenge for overseas-focused companies is managing the supply chain. Many struggle with logistics or quality control when building a supply chain from scratch. TENWAYS has avoided this pitfall. Founder Liang Xiaoling, born in the 1980s, previously served as marketing director at Trinx Bicycles. His uncle, Liang Jianxiong, is the chairman of Trinx, a bicycle manufacturer established in 1990 with a strong presence in overseas markets. This connection has allowed TENWAYS to leverage existing manufacturing expertise, supplier relationships, and quality control processes. By focusing on product design and brand management, the company has accelerated its market entry—a critical advantage in a rapidly growing industry. In terms of product strategy, TENWAYS has targeted the urban commuting segment, emphasizing a riding experience that feels natural yet requires less effort. Its technical approach combines torque sensors, hub motors, and belt drives, resulting in low-maintenance, user-friendly E-bikes. The company currently offers three product lines: urban, hybrid, and cargo E-bikes, along with accessories such as child seats, helmets, and locks. Urban models account for over 70% of revenue. In the first three quarters of 2025, the average selling prices for these categories were 1,144 euros, 1,414 euros, and 2,255 euros, respectively. This pricing strategy positions TENWAYS between premium professional brands and budget alternatives. However, a mid-to-high-end positioning demands stronger brand recognition and after-sales support, which require ongoing investment. In terms of sales volume, TENWAYS sold 38,876 units in 2023, 47,561 units in 2024, and 43,694 units in the first nine months of 2025. The Benelux region has been its fastest-growing market. The company employs a hybrid sales model, combining online channels such as its official website and social media with offline retail partnerships. By the end of September 2025, TENWAYS products were available in over 1,400 retail stores across 29 countries. Approximately 70% of revenue comes from its dealer network, reflecting European consumers’ preference for in-store purchases. Financially, TENWAYS has shown improving gross margins, rising from 25.8% in 2023 to 30.4% in 2024 and 31.8% in the first three quarters of 2025. This trend indicates both pricing power and economies of scale. On an adjusted basis, the company reported a net profit of 1.24 million euros in the first nine months of 2025, with an adjusted net margin of 2.3%. However, excluding non-cash items such as share-based compensation and fair value changes of preferred shares, the company’s net loss widened to 30 million euros during the same period, up 6% year-on-year. Significant spending on branding, channel development, research and development, and localization has contributed to these losses. R&D expenses increased by 41.7% in 2024, while sales and marketing costs have remained at around 20% of revenue. This strategy of prioritizing market share over short-term profitability is common among growth-stage companies, but its long-term success depends on building lasting brand loyalty.

Even if TENWAYS succeeds in its IPO, several challenges remain. First, competition is intensifying. The company’s prospectus highlights “increasingly fierce market competition” as a key risk. Competitors include established European brands like Gazelle (founded in 1892) and Cube (founded in 1993), which benefit from deep market knowledge and strong customer loyalty. Chinese competitors, such as DYU, also pose a threat. Founded in Shenzhen in 2014, DYU focuses on foldable E-bikes and has gained market share through competitive pricing and differentiated design. While TENWAYS targets the mid-to-high-end segment, DYU appeals to budget-conscious consumers. Global giants like Trek represent another competitive threat. As a major sponsor of the Tour de France, Trek enjoys strong brand recognition among cycling enthusiasts. If Trek expands into urban commuting, it could leverage its brand strength to capture market share. Second, TENWAYS’ heavy reliance on Europe exposes it to geopolitical, trade, and currency risks. The European Union’s anti-dumping duties on Chinese-made E-bikes, implemented in 2019, have prompted TENWAYS to shift some production to Portugal. While this move mitigates tariff risks, it also increases costs and introduces operational complexities. Moreover, Europe is not a homogeneous market. Variations in regulations, languages, and consumer preferences across 29 countries require tailored approaches to pricing, after-sales service, and inventory management. Managing a widespread retail network of over 1,400 stores demands sophisticated logistics and coordination to avoid channel conflicts or excess inventory. In summary, while TENWAYS has demonstrated strong growth in Europe, its path forward is fraught with challenges. Competition from local incumbents, Chinese peers, and global giants is escalating. Additionally, the company’s high dependence on the European market makes it vulnerable to external shocks. An IPO may provide capital and visibility, but long-term success will depend on TENWAYS’ ability to build a sustainable global brand.