Taotao Vehicle Co. Ltd., a manufacturer of electric low-speed vehicles from China's Jinyun County, has launched its second attempt at capital markets, filing for a Hong Kong Stock Exchange listing two years after its successful Shenzhen debut. The company, which ranks second globally in electric low-speed vehicle sales with an 8.4% market share, generated RMB 2.95 billion yuan ($408 million) in overseas revenue in 2024, representing over 99% of total sales.

The planned H-share listing marks a strategic expansion for the 41-year-old founder Cao Matao, whose company has seen its market capitalization surge from RMB 6.4 billion yuan to over RMB 20 billion yuan since its 2023 Shenzhen listing. The company's net profit grew at a compound annual rate of 44.7% from 2022 to 2024, significantly outpacing industry averages.

The move comes as Taotao Vehicle confronts its heavy reliance on the U.S. market, which accounts for nearly 80% of revenue, and potential trade barriers. The company has responded by establishing a "China + Southeast Asia + North America" production network, with facilities in Vietnam, Thailand, and multiple U.S. states. This diversification strategy aims to strengthen supply chain resilience while maintaining its competitive position in the outdoor recreation and electric mobility sectors.

If successful, the listing would mark another milestone for Jinyun County, a small county in Zhejiang's Lishui prefecture, making Taotao Vehicle the region's first A+H dual-listed company.

Family-Backed Venture Goes Global

Cao Matao, born into a business dynasty, founded Taotao Vehicle in September 2015 with RMB 30 million yuan in registered capital. His grandfather Cao Guicheng began trading in the 1970s, while his father Cao Yuejin established what would become Taotao Group in 1985, initially focusing on hardware casting before expanding into security doors and other products.

The company's establishment reflected careful planning within the Cao family. According to disclosure documents submitted to the Shenzhen Stock Exchange, Cao Matao's initial investment of RMB 28.5 million yuan came entirely from his grandfather's gift, with RMB 900,000 in cash and RMB 27.6 million transferred from Cao Guicheng's bank account. However, regulatory scrutiny revealed these funds originated from Taotao Group's accounts, reflecting a common practice in the family enterprise where personal and corporate finances were historically intermingled.

Taotao Vehicle explicitly stated in its prospectus that "the Cao family supports the eldest son and grandson's entrepreneurship." Despite his family's successful door manufacturing business, Cao Matao chose to pursue his own path, leveraging experience gained from Taotao Group's all-terrain vehicle and motorcycle division, which dated back to 2004.

The company's September 2025 board resolution to pursue Hong Kong listing represents a carefully orchestrated strategy to build an international capital platform, enhance overseas financing capabilities, and expand global brand influence.

Electric Low-Speed Vehicles Drive Growth

Taotao Vehicle achieved RMB 2.98 billion yuan in total revenue in 2024, with overseas sales reaching RMB 2.95 billion yuan. The company's success stems from targeting niche markets overlooked by mainstream automakers, focusing on North American community transportation, farm operations, and outdoor recreation scenarios.

While the company initially relied on all-terrain vehicles and electric motorcycles after its 2015 founding, the breakthrough came in 2022 with the launch of electric low-speed vehicles—products known colloquially in China as "laotou le" or "old people's buggies." Based on 2024 revenue, the company ranked second globally in the electric low-speed vehicle industry.

Taotao Vehicle's proprietary brands DENAGO and GOTRAX have become leading consumer brands in North America's electric vehicle segment. Products are sold through extensive retail channels, including over 3,400 Walmart stores, more than 1,900 Tractor Supply Company locations, over 1,600 Target stores, more than 720 Best Buy outlets, and over 360 Academy stores. Third-party e-commerce platforms include Amazon and Sayweee.

The company's revenue grew at a compound annual rate of 29.8% from 2022 to 2024, with products now reaching over 70 countries and regions. During the seven months ended July 31, 2025, the U.S. market contributed 79.6% of revenue.

Global Manufacturing Network Addresses Trade Risks

To mitigate U.S. trade barrier risks, Taotao Vehicle has constructed a globally distributed production capacity spanning China, Southeast Asia, and North America. The company operates factories in Texas, Florida, and California, with facilities in Vietnam already covering key processes including frame forming and powertrain assembly. A Thailand plant is scheduled to begin trial production in 2026.

This multi-regional manufacturing strategy enhances supply chain stability while reducing international trade exposure. The U.S. facilities focus on complete vehicle production and core component manufacturing for the North American market, while Southeast Asian operations provide additional capacity and geographic diversification.

Beyond core business expansion, Taotao Vehicle has ventured into emerging sectors. Since 2025, the company has entered the humanoid robotics field, establishing strategic partnerships with Shanghai Kepler Robotics and Hangzhou Unitree Technology to explore sales expansion, scenario development, and product innovation. The company describes its approach as a "domestic R&D base + overseas innovation hub" collaborative model.

County-Level Industrial Ecosystem Supports Growth

Taotao Vehicle's planned Hong Kong listing carries symbolic significance for Jinyun County. The company's 2023 Shenzhen listing marked the county's first A-share IPO. A successful H-share offering would create the region's first A+H dual-listed company, representing another milestone in the county's "manufacturing-to-intelligent-manufacturing" transformation.

Jinyun County has systematically built industrial ecosystems supporting the intelligent short-distance transportation sector. The county currently hosts 27 companies in this industrial chain above designated size, with annual output approaching RMB 7 billion yuan. Local authorities are developing policies including "export brand name" awards to incentivize overseas expansion.

The industrial cluster provides strong support through supply chain proximity. New entrants like Huarui Dongneng, after establishing operations in Lishui High-tech Zone's Intelligent Short-Distance Transportation Industrial Park, can achieve "15-minute supply chain response," significantly compressing production cycles.

Jinyun County has implemented the "Green Valley Elite" entrepreneurship project comprehensive reform pilot scheme, focusing on machinery equipment, short-distance transportation, smart home appliances, and strategic emerging industries. Qualified projects receive support ranging from RMB 1 million yuan to RMB 20 million yuan through direct funding, equity investment, or combined approaches.

Local enterprises are pursuing international collaborations to enhance global competitiveness. Huarui Dongneng partnered with Sun Venture, founded by a former Volkswagen CEO, to co-develop high-speed electric motorcycles and all-terrain vehicles, integrating Chinese supply chains with European technical resources.

The county is also positioning for future industries beyond traditional manufacturing. Taotao Vehicle signed agreements with Unitree Technology to enter humanoid robotics in 2025, while county authorities have commissioned professional organizations to complete low-altitude economic airspace planning, advancing "low-altitude + logistics" and "low-altitude + tourism" scenarios.