Taotao Vehicles, with 240% Stock Surge This Year, Files for Hong Kong IPO After Conquering North America with Low-Speed EVs

Deep News11-12

While Chinese NEV brands battle fiercely in domestic markets, Zhejiang Taotao Vehicles Co., Ltd. (SZ:301345, ¥214.11/share, ¥23.35B market cap) has carved a high-margin growth path by exporting low-speed electric vehicles ("neighborhood EVs") to North America. Despite being virtually unknown among Chinese consumers, its A-share price has soared over 240% this year. As of latest data, shares traded at ¥215.79 (¥23.53B market cap). On October 31, the company submitted its Hong Kong IPO application, aiming to establish a dual A+H financing platform.

Behind the impressive figures, Taotao Vehicles faces scrutiny over multiple regulatory penalties, low R&D spending (2.8% of revenue in 2025's first seven months), and founder Cao Matao's controversial ¥163M dividend payout pre-IPO. The company's entangled relationship with parent TaoTao Group—founded by Cao's father—has drawn media criticism since its Shenzhen listing attempt.

This year, Taotao Vehicles pivoted to humanoid robotics through July partnerships with Shanghai Kepler Robotics and Unitree Tech, signaling new growth ambitions.

The company's origin story traces to third-generation entrepreneur Cao Matao (b.1984), who rejected family safety door manufacturing to pursue EV opportunities after a 2006 U.S. trip. His grandfather provided ¥28.5M startup capital in 2015 to target overlooked niches like golf course and farm vehicles.

Financials show consistent growth: revenue climbed from ¥1.77B (2022) to ¥2.97B (2024), with net profit doubling to ¥433M in 2025's first seven months. 99% of revenue comes overseas, primarily the U.S. (80% of 2025 H1 sales). Frost & Sullivan ranks it second globally in low-speed EVs (8.4% market share).

Controversies persist: historical asset transfers from TaoTao Group boosted early growth, while recent penalties include a ¥19.8K customs fine for export license violations (September) and a ¥60.1K maritime penalty for hazardous goods misdeclaration (May 2024).

The Hong Kong listing marks Taotao's globalization push, demonstrating Chinese firms can dominate niche markets—provided they strengthen compliance and governance for sustainable growth.

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