Airless two-wheel tyremaker Risingsun lists on stock market

On May 16, Risingsun, a Chinese manufacturer of air-free tyres, was listed on the National Equities Exchange and Quotations (NEEQ). The move means the company’s shares can be publicly traded.

Risingsun’s main products are electric vehicle tyres (for electric bicycles, electric tricycles and electric elderly vehicles), bicycle tyres (for public bicycles, sports bicycles and wheelchairs), self-balancing vehicle tyres (for balance bikes, scooters and unicycles), and electric scooter tyres (for golf carts and sightseeing cars). The company’s main competitors in the industry include Nedong and Kenda.

It is worth noting that Risingsun’s revenue fluctuates wildly and shows a trend of decreasing year after year. In 2020 and 2021, Risingsun earned 374 million yuan and 140 million yuan in revenue through tyres and related products. From January to August 2022, the relevant data was 75.1266 million yuan. Risingsun did not disclose full-year revenue for 2022. However, the data for the first eight months indicates that the company’s revenue in 2022 may hardly exceed 140 million yuan (2021 revenue).

At the same time, Risingsun relies heavily on large customers. For example, the data for the first eight months of 2022 shows that about 55 per cent of the company’s revenue comes from four significant customers. The largest customer provides nearly 20 per cent of Risingsun’s revenue. The situation in 2020 and 2021 is similar to that in 2022. Although the names of the top five sales customers have changed, a few companies account for most of Risingsun’s revenue.

At present, more than 50 per cent of Risingsun’s equity is in the hands of the founder, Wang Mingjiang’s family. Wang Mingjiang himself holds a 33.48 per cent stake in Risingsun. And his two daughters-in-law and son-in-law all have shares in this company. According to statistics, the four members of Wang Mingjiang’s family hold 55.17 per cent of Risingsun’s shares.