The dominant player in the North American market for low-speed electric vehicles, often dubbed the 'senior scooter king,' is gearing up for another initial public offering. According to the Hong Kong Stock Exchange, Zhejiang Taotao Vehicles Co.,Ltd. (SZ301345, referred to as Taotao Vehicles) has recently passed its listing hearing, with CITIC Securities acting as the sole sponsor.
Taotao Vehicles has emerged as a standout stock on the A-share market in recent years. While numerous new energy vehicle brands are locked in fierce competition, this automaker, registered in a small county in Lishui, Zhejiang Province, has carved out a different path. By exporting low-speed electric vehicles, colloquially known as 'senior scooters,' it has forged a route to high profitability and rapid growth in North America. Since the start of 2025, the company's A-share price has surged from around RMB 60 per share to over RMB 200 per share.
However, data from the post-hearing information pack disclosed by Taotao Vehicles to the Hong Kong Stock Exchange reveals that during the reporting period (2023 to 2025, plus the first four months of 2026), the company has shown a relatively low R&D expense ratio, a significant increase in its debt-to-asset ratio, and continuously climbing inventory levels. Whether Taotao Vehicles can sustain its revenue and net profit growth amid escalating trade conflicts and intensifying market competition remains to be seen.
Where the journey began
Founded by a third-generation Zhejiang entrepreneur, Taotao Vehicles' core financials are noteworthy. From 2023 to 2025, the company's revenue grew from RMB 2.144 billion to RMB 3.941 billion, representing a compound annual growth rate of 35.6%. Net profit increased from RMB 280 million to RMB 816 million, a CAGR of 70.6%. The interim results published by Taotao Vehicles in August show that in the first half of this year, revenue reached RMB 2.751 billion, a year-on-year increase of 60.56%, while net profit attributable to shareholders was RMB 540 million, up 57.94%. For the manufacturing sector, this represents a remarkably strong growth track record.
The core engine behind this growth is a category often underestimated or overlooked by the mainstream market: low-speed electric vehicles, commonly known as 'senior scooters.' In 2023, Taotao Vehicles' revenue from these vehicles was only RMB 78.5 million. By 2025, it had skyrocketed to RMB 1.957 billion, a nearly 24-fold increase in just two years. Its share of total revenue jumped from 3.7% to 49.8%. According to Frost & Sullivan data, based on 2025 revenue, Taotao Vehicles holds the top position globally in the low-speed electric vehicle industry with a 10.9% market share.
Behind this growth curve stands Cao Matao, a 'post-80s' third-generation entrepreneur from Zhejiang. There's a saying that wealth rarely survives three generations, implying that those born into affluence may lose their drive. However, Cao Matao has not only defied this expectation but has also elevated the family business to new heights.
Born in 1984, public records show that his grandfather, Cao Guicheng, began his business career in the 1970s, accumulating wealth through poultry trading and stove manufacturing. His father, Cao Yuejin, founded the Taotao Group in 2004, expanding into security doors and auto-motorcycle parts. As the only son, Cao Matao chose to strike out on his own, citing the group's diverse operations as misaligned with his future vision. During a business trip to the US with his father in 2006, he keenly observed the transformative opportunity of new energy vehicles replacing fuel-powered ones. Yet, he also realistically assessed that he and his family lacked the capacity to compete head-on with established automakers. This led him to focus on low-speed electric vehicles, seeing American golf courses and farms as natural use cases. Combined with the US's energy-saving policies at the time, this niche, ignored by mainstream automakers, presented a significant opportunity.
His family backed his vision. Reports indicate that his grandfather, Cao Guicheng, believing his grandson's dream deserved support, gifted him RMB 28.5 million as startup capital. His father, Cao Yuejin, transferred 25 patents, multiple automated production lines, and his technical team to the company. In September 2015, Taotao Vehicles was officially established, with Cao Matao at the age of just 31.
Localized production to bypass tariff hurdles
With his family's backing, Cao Matao has demonstrated a distinct business acumen compared to his predecessors. Leveraging his pre-existing relationships with US supermarket chains, he successfully placed the company's 'senior scooters' onto the shelves of retail giant Walmart and other American chains. Additionally, he foresaw the risk of trade barriers early on and proactively planned for local US operations and factory establishment in Southeast Asia.
In March 2023, Taotao Vehicles officially listed on the Shenzhen Stock Exchange's ChiNext board, accelerating its capitalization. Subsequently, as mentioned, the company's revenue and net profit continued to climb, and Cao Matao's personal wealth grew accordingly. On the 2025 Hurun Rich List, he made his debut at rank 504 with a personal fortune of RMB 13.5 billion.
However, challenges have emerged. In June 2025, the US, in its anti-dumping and countervailing duty rulings on low-speed personal transport vehicles originating from China, imposed a 291.04% anti-dumping duty and a 41.14% countervailing duty on companies like Taotao Vehicles that qualified for a separate rate. The company's performance is heavily dependent on the US market. In 2025, over 97% of its revenue came from overseas, with the US being the largest market, contributing 82.8% of total revenue.
Recognizing the impending tariff threat, Cao Matao had already been proactive in his response. Since August 2024, the company has shifted to having its North American base assemble most components produced at its Vietnam facility. Monthly production capacity for low-speed electric vehicles at the North American base has subsequently grown, surpassing 8,000 units in June 2026. As a result, the proportion of revenue from products subject to US tariffs and originating from China dropped from 76.4% in 2024 to 24.5% in the first four months of 2026.
By the end of April 2026, Taotao Vehicles held approximately RMB 940 million in cash and cash equivalents. However, given the need for continued investment in localized production, some media outlets have described the funds raised from this Hong Kong share offering as 'moving expenses.' According to the post-hearing information pack, the proceeds are earmarked for five main areas: expanding production facilities in China and overseas to enhance automation, efficiency, and localized support, including upgrades in China and a new facility in Thailand; enriching and diversifying the product and service portfolio; expanding the global sales and service network; repaying some bank borrowings; and supplementing working capital.
It's also worth noting that Taotao Vehicles has been active in external expansion. In July 2025, the company announced via its WeChat account strategic cooperation agreements with Shanghai Kepler Robotics Co., Ltd. and Unitree Robotics. These agreements cover potential equity investment, ODM partnerships, joint R&D for robotics products, and global market development with Kepler, as well as collaboration with Unitree on exploring overseas markets like North America, developing consumer applications, and commercializing products.
Concerns over R&D and rising debt
Taotao Vehicles is not without its concerns, particularly regarding its financial statements and relatively low R&D investment. Its R&D expense ratio was 4.1% in 2023, which declined to 3.1% in 2025, and further to 1.8% in the first four months of 2026. This indicates that the company is prioritizing profit retention over investing in long-term technological capabilities.
Facing cost pressures from rising raw material prices and exchange rate fluctuations, Taotao Vehicles implemented two rounds of price increases for its low-speed electric vehicles in March and April 2026. Despite this, its year-on-year growth in the second quarter may have slowed compared to the first quarter. Furthermore, the company's quick ratio has fallen from 3.16 at the end of 2023 to 0.99 at the end of April 2026. Concurrently, its debt-to-asset ratio has risen from 10.2% at the end of 2023 to 27.6% at the end of April 2026, signaling a significant increase in leverage and greater financial and debt repayment risks. More notably, inventory has surged from RMB 715 million at the end of 2023 to RMB 1.817 billion at the end of April 2026, with inventory turnover days lengthening from 199 to 229 days. If sales underperform, the pressure from inventory write-downs could directly impact the income statement.
Taotao Vehicles also retains a strong family-business character. As of the latest practicable date, Cao Matao held approximately 67.41% of the total issued share capital, and his sister, Cao Xiashu, held about 5.6%, with the siblings controlling around 73% of the company collectively. While this absolute control allows for swift decision-making, it also centralizes governance, leaving minority shareholders with limited checks and balances. According to reports from the time Taotao Vehicles initiated its Hong Kong IPO, the company's frequent related-party transactions with the Taotao Group had raised market concerns. Additionally, the company has been penalized by authorities for discrepancies between its declared export licenses and actual exported goods, as well as for concealing dangerous goods within ordinary shipments or misdeclaring them for transport.