Dear Registered Shareholder(s), DAHON TECH (SHENZHEN) CO., LTD. 大行科工（ 深 圳 ）股份有限公司 (A joint stock company incorporated in the People's Republic of China with limited liability) （於中華人民共和國註冊成立的股份有限公司） (Stock Code 股份代號: 2543) 22 September 2025 Arrangement of Electronic Dissemination of Corporate Communications Pursuant to Rule 2.07A of the Rules Governing The Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") under the expansion of paperless listing regime and electronic diss ...

Core Viewpoint - The listing of Dahang Kegong, a leading manufacturer of folding bicycles, on the Hong Kong Stock Exchange was marked by a record oversubscription of 7558 times, but the company faces significant challenges including reliance on OEM production, shrinking overseas markets, and an aging management team [1][2]. Group 1: Company Performance - Dahang Kegong achieved a revenue of 451 million RMB in 2024, with a profit of 52.3 million RMB, showing stable growth in both revenue and profit [2]. - The sales volume of bicycles has been increasing, with notable growth rates, including a 46.5% increase in sales volume in the first four months of 2024 compared to the same period in 2023 [2]. Group 2: Product Diversification - The company is diversifying its product offerings beyond folding bicycles to include road bikes, mountain bikes, children's bikes, and electric assist bicycles, with the latter combining folding features and electric assistance [3]. - Despite diversification efforts, folding bicycles still accounted for 96.6%, 97.7%, and 97.4% of the company's sales revenue from 2022 to 2024 [3]. Group 3: Market Share and Distribution - According to data from Zhi Shi Consulting, Dahang Kegong holds a 26.3% market share in terms of retail volume and a 36.5% market share in terms of retail value in the folding bicycle market in mainland China [5]. - The company has established a comprehensive sales network, with 69.5% of revenue coming from distribution channels, and plans to open 50 direct stores, 80 shop-in-shops, and 70 dealerships by 2025 [5]. Group 4: Production and Capacity Issues - Dahang Kegong's production capacity is under scrutiny, with its Huizhou factory showing high utilization rates, reaching 114.1% in the first four months of 2025 [6]. - The proportion of bicycles produced by OEM suppliers has been increasing, with over 60% of products coming from OEM production in the first four months of 2025 [7][8]. Group 5: Management Concerns - The management team is aging, with the chairman and CEO being 83 years old, raising concerns about the company's strategic continuity and innovation capabilities [8].

Investment Rating - The report assigns a positive investment rating to the company, highlighting its strong market position and growth potential in the folding bicycle segment [2]. Core Viewpoints - The company is the largest folding bicycle manufacturer in China, focusing on various folding bicycle products that cater to different consumer groups. The mid-range products priced between 2500-3000 RMB account for nearly 70% of sales in 2024, indicating a shift towards higher-value offerings [2][9]. - The folding bicycle market is experiencing rapid growth, with a compound annual growth rate (CAGR) of 20.8% over the past five years. The market size is projected to reach 231 billion RMB by 2024, with significant room for growth as the current penetration rate is only 5.3% [2][55]. - The company has a robust distribution network, with nearly 70% of sales coming from dealer channels. The company is also enhancing its brand image through the improvement of direct sales channels [2][103]. Company Overview - The company is recognized as the largest folding bicycle company in mainland China, leading in both retail volume and revenue as of 2024. The brand has been established since 1982 and has a strong reputation in the industry [9][12]. - The product lineup includes five main series: urban commuting, fashionable personality, outdoor exploration, superior racing, and practical utility, with a focus on continuous product iteration and innovation [2][89]. Industry Overview - The folding bicycle segment is identified as an ideal solution for urban commuting, particularly for the last mile of travel. The increasing urbanization and space constraints in cities are driving demand for folding bicycles [77][79]. - The global folding bicycle market is projected to grow significantly, with a CAGR of 12.0% expected from 2024 to 2029. The average price of folding bicycles is significantly higher than that of regular bicycles, indicating a premium market opportunity [55][68]. Financial Performance - The company has demonstrated strong financial growth, with revenues increasing by 18.1%, 50.2%, and 46.9% year-on-year from 2023 to the first four months of 2025. Net profits also saw substantial growth, with increases of 10.9%, 50.1%, and 69.1% during the same period [2][34]. - The gross margin is expected to remain stable at around 33% in 2024, with potential for improvement as the proportion of self-manufactured products increases [34][41]. Competitive Landscape - The company holds a leading position in the folding bicycle market, ranking first in both China and globally by sales volume. The market share in mainland China is 26.3%, while the global share is 6.2% [81][82].

Group 1 - The core point of the article highlights the recent stock transfer activities of Daheng Technology (02543), indicating a significant movement of shares among major shareholders [1] - On September 18, a shareholder transferred shares worth HKD 28.6347 million from China International Capital Hong Kong Securities to DBS Bank, representing 5.98% of the total shares [1] - The company has experienced frequent stock transfer activities, with transfers occurring on September 16 and 17, amounting to HKD 29.8703 million and HKD 573.359 billion respectively [1]

Group 1 - The core point of the article highlights the recent stock transfer activities of Daheng Technology (02543), indicating a significant shift in shareholder investments [1] - On September 18, a shareholder transferred shares from China International Capital Hong Kong Securities to DBS Bank, with a market value of HKD 28.6347 million, representing 5.98% of the total shares [1] - The company has experienced frequent stock transfer activities, with notable transfers occurring on September 16 and 17, amounting to HKD 29.8703 million and HKD 57.3359 billion respectively [1]

Group 1 - Allianz SE increased its stake in China National Offshore Oil Corporation (02543) by 43,800 shares at a price of HKD 58.9485 per share, totaling approximately HKD 2.5819 million [1] - Following the increase, Allianz SE's total shareholding in the company reached 873,300 shares, representing an ownership percentage of 11.03% [1]

Group 1 - The core point of the article highlights that the major shareholder of Dahang Kegong (02543) transferred shares from HSBC to China International Capital Corporation Hong Kong Securities, with a market value of HKD 57.3359 million, accounting for 11.25% of the total shares [1] Group 2 - Dahang Kegong is identified as the largest folding bicycle company in mainland China, leading in both retail volume and retail value for 2024 [1] - According to Zhi Shi Consulting, Dahang Kegong holds a market share of 26.3% in the folding bicycle industry by retail volume and 36.5% by retail value in mainland China for 2024 [1] - As of April 30, 2025, the company offers over 70 models of bicycles [1]

Group 1 - The core point of the article highlights that the major shareholder of Dahang Kegong (02543) transferred shares from HSBC to CICC Hong Kong Securities, with a market value of HKD 57.3359 million, accounting for 11.25% of the total shares [1] - Dahang Kegong is recognized as the largest folding bicycle company in mainland China, leading in both retail volume and retail value for 2024 [1] - According to Zhi Shi Consulting, Dahang Kegong holds a market share of 26.3% in the folding bicycle industry by retail volume and 36.5% by retail value in mainland China for 2024 [1] Group 2 - As of April 30, 2025, Dahang Kegong offers over 70 models of bicycles [1]

Group 1 - The core point of the article highlights that on September 16, major shareholder of Daheng Kegong (02543) transferred shares from Goldman Sachs (Asia) Securities to Yongfeng Jin Securities (Asia), with a transfer value of 29.87 million HKD, accounting for 6.02% of the total [1] - Daheng Kegong officially listed on the Hong Kong Stock Exchange on September 9 and is recognized as the largest folding bicycle company in mainland China, leading in both retail volume and retail value for folding bicycles in 2024 [1] - The company’s shareholders executed two additional transfer operations on September 11 and September 12, with transfer values of 52.35 million HKD and 183 million HKD respectively [1]

Core Viewpoint - The recent stock transfer activity of Daheng Kegong (02543) indicates significant investor interest and market movement following its listing on the Hong Kong Stock Exchange, highlighting its position as a leading player in the folding bicycle market in China [1] Group 1: Stock Transfer Activity - On September 16, Daheng Kegong's shares were transferred from Goldman Sachs (Asia) Securities to Yongfeng Jin Securities (Asia), with a transfer value of HKD 29.87 million, accounting for 6.02% of the total shares [1] - The company conducted two additional stock transfer operations on September 11 and September 12, with transfer values of HKD 52.35 million and HKD 183 million respectively [1] Group 2: Company Overview - Daheng Kegong officially listed on the Hong Kong Stock Exchange on September 9 and is recognized as the largest folding bicycle company in mainland China, leading in both retail volume and retail value for folding bicycles projected for 2024 [1]