(Yicai) Feb. 6 -- Shares in Guangdong Lvtong New Energy Electric Vehicle Technology, a Chinese manufacturer of low-speed personal transportation vehicles, advanced today even after the US government levied a 127.35 percent anti-dumping tariff on its products. This marks the second new duty imposed by the US on China-made low speed vehicles such as golf buggies and sightseeing cars in the last four months.

Lvtong’s share price [SHE:301322] closed up 1.1 percent at CNY22.14 (USD3) today. Despite the challenges, the stock has gained 18 percent in value since the US Department of Commerce started an anti-dumping and anti-subsidy investigation on low-speed personal transportation vehicles imported from China in July 2024.

A preliminary ruling from the probe led to a 22.8 percent anti-subsidy tariff being imposed on low-speed vehicles at the end of November, Lvtong said yesterday. Those vehicles that entered the US 90 days before the ruling will have the anti-dumping duty retroactively levied on their prices.

The US International Trade Commission still needs to make a final ruling on anti-dumping and countervailing duties, Lvtong said. However, if it upholds the high tax rate of the preliminary ruling, this will have a significant adverse impact on Lvtong's future development in the US market.

Lvtong will redouble its efforts to explore more opportunities at home and in other overseas markets to minimize the adverse effects of the anti-dumping and countervailing duties on the firm, the Dongguan-based company said. It will also develop new products such as cleaning vehicles and electric all-terrain autos, enhance competitiveness and explore more application scenarios.

Around 88 percent of Lvtong’s revenue came from overseas markets in 2023, according to its annual report, which did not specify the proportion of sales to the US. And 72 percent of its products were sold under the Original Design Manufacturing model.

Editor: Kim Taylor