Core Viewpoint - Following the National Day holiday, a significant drop in temperature in northern regions has led to an increase in demand for winter clothing, coinciding with major e-commerce promotions, which is boosting the consumer market [2] Group 1: Company Overview - Tambor Group, a veteran down jacket manufacturer, has submitted an IPO application to the Hong Kong Stock Exchange, aiming to transition into the outdoor products sector [2][4] - The company previously listed on the New Third Board in February 2015 and delisted in December 2017, focusing primarily on down jackets at that time [2] Group 2: Market Potential - The outdoor apparel market in China is projected to grow from 68.8 billion yuan in 2019 to 131.9 billion yuan by 2024, with a compound annual growth rate (CAGR) of 13.9% [3] - The down jacket market is expected to reach 162 billion yuan by 2024, with a CAGR of 8.5%-10% from 2025 to 2030, which is lower than the growth rate of the outdoor apparel market [3] Group 3: Financial Performance - Tambor's revenue has shown steady growth from 732 million yuan in 2022 to 1.302 billion yuan in 2024, with a significant increase of 85.03% in the first half of 2025 [4][5] - The gross profit for the same periods has also increased, maintaining a gross margin above 50% [5] - However, net profit has declined from 139 million yuan in 2024 to 107 million yuan, with a net margin dropping from 13.6% to 8.2% [5] Group 4: Product Line and Sales Channels - Tambor has positioned itself as a "professional outdoor apparel brand," offering three main product lines: top outdoor series, sports outdoor series, and urban light outdoor series [4] - The urban light outdoor series has been the primary revenue driver, contributing 82.7% of total revenue in 2022, though this percentage has decreased over the years [6] - Online sales have increased significantly, with revenue rising from 226 million yuan in 2022 to 626 million yuan in 2024, accounting for 52.7% of total sales in the first half of 2025 [7][8] Group 5: Challenges and Strategic Adjustments - The offline sales channel has seen a decline in revenue contribution, dropping from 62.7% in 2022 to 43.3% in the first half of 2025, despite an increase in the number of physical stores [8][9] - The company has faced rising management costs for offline stores, which increased from 57 million yuan in 2022 to 127 million yuan in 2024 [9] - In response, Tambor has begun closing underperforming stores and optimizing its operational strategy [10][11] Group 6: Brand Recognition and Marketing - Despite significant marketing expenditures, which rose from 31.8 million yuan in 2022 to 113 million yuan in 2024, brand recognition remains low compared to competitors [12][17] - The average selling price of Tambor's products is significantly lower than the suggested retail prices, indicating potential issues with pricing strategy [15] - Customer complaints regarding product quality have been prevalent, indicating challenges in brand perception [19] Group 7: Financial Strategy and IPO Justification - Tambor's cash flow from operating activities has decreased from 250 million yuan in 2024 to a net outflow of 89 million yuan in the first half of 2025, raising concerns about liquidity [22] - The company has distributed substantial dividends, totaling 325 million yuan, which is close to its net profit over the same period, raising questions about the rationale behind its IPO fundraising [22][25]

Core Insights - The outdoor apparel industry in China has evolved through three distinct phases: the nascent stage, rapid development stage, and transformation and upgrading stage, driven by the increasing popularity of outdoor activities such as skiing, hiking, and climbing [1][4]. Industry Overview - The market size of China's professional outdoor apparel industry is projected to grow from 71.2 billion yuan in 2020 to 131.9 billion yuan in 2024, with expectations to exceed 160 billion yuan by 2025 [1][4]. - Professional outdoor apparel is categorized into sportswear, functional apparel, and fashion apparel, with functional apparel further divided into high-performance outdoor apparel and other functional apparel [2]. Industry Development Status - The demand for outdoor apparel continues to rise, leading to an expanding industry scale [4]. - The industry is supported by a comprehensive supply chain, including raw materials (such as polyester and nylon), production and brand operation, and various sales channels including both offline and online platforms [5]. Competitive Landscape - The Chinese outdoor apparel market features a competitive landscape comprising international brands, leading domestic brands, and emerging brands, with significant growth in domestic brands due to technological innovations [5][6]. - Major companies in the market include Beijing Sanfu Outdoor Products Co., Ltd., Guangzhou Kailas Sports Technology Co., Ltd., and Toread Holdings Group Co., Ltd., among others [5][6]. Key Companies - Beijing Sanfu Outdoor Products Co., Ltd. focuses on outdoor product development and retail, reporting a revenue of 455 million yuan in 2024, accounting for 56.81% of total revenue [6]. - Toread Holdings Group Co., Ltd. achieved sales of 5.5479 million outdoor apparel items in 2024, generating a revenue of 1.059 billion yuan [7]. - MobiGarden, known for its high-performance outdoor gear, produced 734,700 outdoor apparel items in 2024, with sales of 669,100 items [8]. Industry Development Trends - The outdoor apparel market is experiencing rapid growth driven by young consumer power and significant market potential, with a shift towards high-quality development characterized by fashionable and intelligent products [8].

Core Viewpoint - The outdoor lifestyle and winter sports are increasingly popular in China, leading to the expansion of the professional outdoor apparel market, which has prompted Tanboer Group Co., Ltd. to pursue an IPO in Hong Kong. The prospectus reveals significant growth in revenue and net profit, but also highlights various risk factors that warrant investor attention [1]. Business and Model - Tanboer is a leading professional outdoor apparel brand in China, with a product system divided into three main series: top outdoor, sports outdoor, and urban light outdoor, totaling 687 SKUs by June 30, 2025, covering various activities and urban scenarios [2]. - The company employs an omnichannel sales model, combining offline advantages with online operations. Online revenue is projected to grow significantly, with a 168.5% increase in the first half of 2025 compared to the same period in 2024 [2]. - Tanboer maintains long-term partnerships with leading raw material suppliers and qualified contract manufacturers to ensure product quality, supported by a regional warehousing network and smart logistics centers for efficient delivery [2]. Financial Data - Revenue has shown significant growth, with figures of 732 million, 1.021 billion, 1.302 billion, and 658 million yuan for the years 2022 to the first half of 2025, respectively. The online channel has become a key driver of this growth [3]. - Net profit figures for the same period are 86 million, 139 million, 107 million, and 36 million yuan, indicating fluctuations influenced by market conditions and cost control [4][3]. - Gross margins have remained high, with rates of 50.2%, 56.5%, 54.9%, and 54.2% from 2022 to the first half of 2025, affected by raw material and manufacturing costs [5]. - Net profit margins have shown volatility, with rates of 11.7%, 13.6%, 8.2%, and 5.5% over the same period, reflecting challenges in cost control and profitability [6]. Revenue Composition Changes - The urban light outdoor series has the highest revenue share but is declining from 82.7% in 2022 to 68.2% in the first half of 2025, while the top outdoor series is gradually increasing from 0.4% to 4.6% [7]. - Online revenue share has been increasing, rising from 30.9% in 2022 to 52.7% in the first half of 2025, while offline revenue share has decreased correspondingly [7]. Risk Factors - The professional outdoor apparel industry in China is highly competitive, with the top ten brands holding only 24.3% of the market share by 2024, posing a challenge for Tanboer against both domestic and international competitors [8]. - Rapid changes in consumer preferences regarding styles, functions, and materials may adversely affect the company's business if it fails to adjust its product mix in a timely manner [8]. - The strength and expansion of the "TANBOER" brand are crucial for success, as brand reputation can be damaged by product defects or consumer complaints, impacting sales and financial performance [9]. - Continuous R&D investment is essential for attracting and retaining consumers, but challenges in execution and design consistency may negatively impact operational performance [10]. - The company relies heavily on third-party e-commerce platforms for sales, and the expansion of offline stores may not yield expected profitability, posing operational risks [11].