The soaring TailG, hidden worries beyond the prospectus
Zebra Consumer Shen Tuo
Three brothers surnamed Sun from Chaoshan spent over 20 years transforming TailG, which started as a small workshop, into the world's third-largest electric two-wheeler company.
Recently, TailG disclosed its prospectus, officially launching an IPO attempt on the Hong Kong stock market.
Judging solely from the financial data in the prospectus, TailG's sales have shown continuous growth in recent years, with impressive performance. However, beyond the prospectus, TailG harbors certain hidden concerns.
The Surging "Third-Ranked E-Bike"
TailG, which is now pushing for a Hong Kong IPO, is firmly controlled by the three Sun brothers (Sun Muqian, Sun Muchai, Sun Muchu) from Chaoshan.
None of the three Sun brothers had high education or impressive backgrounds; they rose from the grassroots.
In their early years, they worked as motorcycle repairmen in their hometown. In 2003, Shenzhen implemented a "motorcycle ban," which dealt a significant blow to the motorcycle industry. However, the Sun brothers saw a huge business opportunity in this. They keenly realized that electric two-wheelers, which at the time required neither registration nor a driver's license, would quickly fill the market gap left by the motorcycle ban.
They immediately decided to move to Shenzhen, renting a small workshop of a few dozen square meters in Longgang. Leveraging their experience in motorcycle repair, they welded frames, installed motors and batteries by hand, and manually assembled TailG's first electric bike.
After over 20 years of hard work in the industry, the small workshop has grown into a group company offering full industrial chain services, including R&D, production, sales, and sharing of electric two-wheelers and three-wheelers.
According to institutional reports, by 2024 revenue, TailG ranked third in the global electric light vehicle market, with a market share of about 5.2%. By 2024 revenue from electric two-wheelers, the company ranked third in the Chinese mainland market, with a market share of about 12.7%.
As of September 30, 2025, TailG offered 50 models of electric bicycles, 38 models of electric motorcycles, and 3 models of electric tricycles, covering urban commuting, delivery, and freight scenarios.
Through nearly 6,000 distributors and over 27,000 retail stores worldwide, TailG's product sales have grown year by year, driving overall company performance.
From 2023 to 2024, the company achieved revenues of RMB 11.88 billion and RMB 13.6 billion, respectively. Net profits for the same periods were RMB 287 million and RMB 472 million, respectively.
In 2025, the company's growth accelerated further. In the first three quarters, revenue reached RMB 14.84 billion, already exceeding the full-year figure for the previous year. Net profit was RMB 823 million, up 112.4% year-on-year.
Rushing to Create a Billion-Dollar Valuation
The three Sun brothers are also TailG's top three shareholders. The largest shareholder, Sun Muchu, holds about 24.65%, while Sun Muqian and Sun Muchai hold 23.77% and 22.01%, respectively. Their co-founder and partner, Yao Li, is the fourth-largest shareholder with a 17.61% stake. These four individuals directly and indirectly control 89.91% of the voting rights before the IPO.
As the eldest brother, Sun Muqian serves as executive director and chairman, overseeing production facility management and corporate culture development.
Sun Muchu, as executive director, general manager, and CEO, is responsible for the company's overall operations.
Sun Muchai, their cousin, is executive director and senior vice president, mainly responsible for overseas development strategies and business plans.
Yao Li serves as executive director and president, overseeing corporate strategy, brand management, legal and compliance matters.
For the first 20 years in the electric vehicle industry, TailG's shares were entirely held by its four founders. It wasn't until 2023, when implementing an employee stock incentive plan, that the founders transferred a small portion of shares to an employee 持股 platform and a few key executives.
Only in November and December 2025, just before the IPO, did the company secure its first real financing. Institutions and individuals such as Jiaokong Investment, Saifutian Industry, Herun Venture, Xishan Yingtai, Shenqilina, and Luwei Cangqiong rushed to invest, completing share transfers and capital injections by January this year, catching the last train of the capital feast.
Through these two rushed rounds of share transfers and capital injections, TailG finally set its valuation at RMB 9.463 billion post-investment.
Quality and Compliance Concerns
In 1995, Tsinghua University developed China's first two-wheeled light electric vehicle with a columnar brushless DC motor, marking the beginning of China's electric two-wheeler era.
As major cities across China successively banned motorcycles, the electric two-wheeler market experienced rapid growth. At its peak, around 2,000 manufacturers participated, leading to a mixed and uneven market.
In 2019, the new national standard was introduced, creating a turning point for the industry. Mandatory 3C certification and strict technical parameters accelerated the 淘汰 of 中小 enterprises lacking R&D capabilities and production qualifications. Currently, only about 100 players remain in the industry.
In the fiercely competitive Chinese electric two-wheeler market, TailG has established itself with "long-range" as its core advantage, pioneering the definition of "long-range electric two-wheelers" in mainland China. According to its 官网， through its 独创的 "Cloud Power System" and "Jindouyun Platform," its products have set six Guinness World Records for range, earning strong market appeal among delivery riders and in 下沉 markets.
Founder Sun Muchu even personally rode a TailG bike 3,833 kilometers through 无人区 and tested the vehicle on ice in Northeast China at -30°C to demonstrate its quality.
However, on the Black Cat 投诉 platform, users paint a 截然 different picture. TailG has over 2,000 complaints 集中 on issues like battery quality, failure to meet range claims, and poor after-sales service.
Additionally, in recent years, due to illegal modifications by dealers, TailG has 多次 appeared on "blacklists" issued by local 市场监管 departments. In a Chinese electric vehicle market increasingly emphasizing compliance, if TailG fails to effectively manage its dealers' behavior, it will remain a ticking time bomb.
Although TailG has submitted a prospectus with impressive growth figures, beyond the financial data, whether the company can ensure product quality and manage its nearly 30,000 sales outlets may be more 值得关注. These seemingly minor issues will ultimately determine whether the company can walk steadily and go far.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
