Shenzhen HL Corp., a manufacturer of bicycles and electric scooters, said Tuesday it expects to report that third-quarter net profit grew 20.47-fold to 27.13-fold from the same period last year, reflecting strong demand from overseas.
HL estimated that quarterly net profit would reach 29 million yuan to 38 million yuan ($4.1 million to $5.4 million). More than half of HL’s revenue over the first six months this year came from Europe and North America, the company said.
HL produces scooters for leading scooter-sharing service providers LimeBike and Bird Rides in the U.S. HL’s domestic clients include bike-sharing companies Mobike and Qingju, Didi Chuxing’s bike-sharing unit.
Despite cooling in China’s bike-sharing market, HL said rising demand for electric scooters from foreign clients boosted first-half revenue by more than 20% to 815 million yuan. Net profit in the first half increased more than three-fold to 18 million yuan.
HL said scooter-sharing services in North America achieved stable profitability. In the U.S., each shared scooter can generate $5 to $20 of revenue a day, according to HL.