Core Viewpoint - Daheng Technology (Shenzhen) Co., Ltd. has successfully listed on the Hong Kong Stock Exchange, raising approximately HKD 392 million through the issuance of H-shares at a price of HKD 49.5 per share [1][3]. Company Overview - Daheng Technology, formerly known as Shenzhen Meidaheng Technology Co., Ltd., was established in December 2016 and renamed in August 2023 [3]. - The company specializes in folding bicycles under the brand Dahon and holds the leading market share of 26.3% in the folding bicycle industry in mainland China as of 2024 [4]. Financial Performance - The revenue for Daheng Technology for the years 2022, 2023, and 2024 is projected to be approximately RMB 254 million, RMB 300 million, and RMB 451 million, respectively [5][6]. - Gross profit for the same years is expected to be around RMB 77.93 million, RMB 101.49 million, and RMB 148.75 million, with net profits of RMB 31.43 million, RMB 34.85 million, and RMB 52.30 million [5][6]. - In the first four months of 2025, the company reported revenue of approximately RMB 185 million, compared to RMB 126 million in the same period of 2024 [5][6]. Market Activity - On its first trading day, Daheng Technology's stock opened at HKD 67.5 per share, reflecting a 36.36% increase from the IPO price, and closed at HKD 56.9, a 14.95% rise [3]. - The company has secured cornerstone investment agreements with several investors, allowing for the subscription of 201.38 million shares, totaling approximately USD 12.76 million [3].

Core Viewpoint - Dahong Technology (Shenzhen) Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange for the second time this year, with CITIC Securities International as its sole sponsor. The previous application submitted on January 20, 2023, became invalid on July 21, 2023 [1]. Financial Performance - Dahong Technology's projected revenues for 2022 to 2024 are RMB 254.2 million, RMB 300.2 million, and RMB 450.7 million, respectively, with a compound annual growth rate (CAGR) of 33.1%. Corresponding gross profits are RMB 77.9 million, RMB 101.5 million, and RMB 148.7 million, while net profits are RMB 31.4 million, RMB 34.9 million, and RMB 52.3 million, with a CAGR of 29.1% [2][3]. Dividend Distribution - The company has implemented multiple dividend distributions prior to its IPO, with a total dividend of RMB 23.5 million declared for the fiscal year ending December 30, 2022. Additional dividends of RMB 5 million and RMB 13 million were declared on January 18 and May 17, 2024, respectively [4][7]. Ownership Structure - The founder, Dr. Han Dewei, holds approximately 88.56% of the issued shares directly and about 1.60% through an employee stock ownership platform [5]. Production and Supply Chain - Dahong Technology relies heavily on third-party suppliers for raw materials and components, with the largest supplier accounting for 15.6% to 17.6% of total purchases from 2022 to 2025. The company produced 44,037, 76,476, and 136,690 bicycles through OEM suppliers in 2022, 2023, and 2024, respectively, indicating a growing reliance on outsourced production [7][8][9]. Customer Complaints - The company has received 1,880 complaints on the Black Cat Complaint platform, highlighting issues related to product quality, refunds, order cancellations, and alleged fraud, which may reflect challenges in its production model [9].