Core Viewpoint - Dahon Technology, a leading manufacturer of folding bicycles, is conducting an IPO from September 1 to September 4, aiming to raise approximately HKD 390 million with a share price of HKD 49.5 per share [1][3]. Company Overview - Dahon Technology is the largest folding bicycle company in China, with a market share of 26.3% in retail volume and 36.5% in retail value as of 2024 [4]. - The company offers over 70 bicycle models, targeting different market segments: high-end (above RMB 5,000), mid-range (RMB 2,500 to 5,000), and budget (below RMB 2,500) [4]. Financial Performance - In the previous year, Dahon Technology reported revenue of RMB 450 million, representing a year-on-year growth of 50.2% [5]. - The total profit and comprehensive income amounted to RMB 52.3 million, also reflecting a growth of 50.1% year-on-year [5]. Investment and Subscription Details - As of September 2, Dahon Technology has received at least HKD 61.1 billion in margin subscriptions, with the public offering being oversubscribed by 1,557.7 times [3]. - The company has secured cornerstone investors, including Allianz Global Investors Asia Pacific and others, with a total investment of USD 12.76 million [6]. Use of Proceeds - The net proceeds from the IPO will be allocated as follows: approximately 30% for modernizing production systems and expanding operations, 30% for enhancing the distribution network and brand development, 30% for increasing R&D capabilities, and 10% for working capital and other general corporate purposes [7].

Core Viewpoint - The article discusses the rising trend of cycling, particularly folding bicycles, driven by increased health awareness and environmental consciousness. It highlights the ongoing IPO process of Dahon Technology (Shenzhen) Co., Ltd. and raises concerns about its high dividend payouts amidst production capacity challenges and reliance on outsourcing [1][3][4]. Group 1: Company Overview - Dahon Technology is accelerating its IPO process in Hong Kong, having submitted its application to the China Securities Regulatory Commission and updated its prospectus [1]. - The company has a highly concentrated ownership structure, with founder Han Dewei controlling 90.16% of the shares, raising concerns about potential asset transfer through high dividend payouts [3][4]. Group 2: Financial Performance - Dahon Technology has distributed over 61.5 million yuan in dividends from December 2022 to April 2025, including a recent 20 million yuan payout [3]. - The company's cash and cash equivalents decreased from approximately 102 million yuan at the end of 2024 to about 59.02 million yuan by April 2025, indicating cash flow pressure due to high dividend payments [7]. Group 3: Production Capacity and Outsourcing - Dahon Technology's production capacity is heavily reliant on outsourcing, with only 90,000 units produced at its factory in Huizhou, while actual sales reached 175,200 units in the first three quarters of 2024 [4][14]. - The company plans to expand its production capacity by 200,000 units through IPO fundraising, but the new factory is not expected to be operational until 2027 [10][11]. Group 4: Market Dynamics - The global folding bicycle market has seen significant growth, with a market size increasing from 8.3 billion yuan in 2018 to 16.8 billion yuan in 2023, reflecting a compound annual growth rate of 15.2% [11]. - Dahon Technology holds a 26.3% market share in the highly concentrated Chinese folding bicycle market, which is dominated by five major companies [14]. Group 5: Challenges and Risks - The company faces challenges in maintaining quality control due to its reliance on five independent OEM suppliers, leading to increased outsourcing costs and quality complaints [13][16]. - Dahon Technology's R&D spending has been significantly lower than its dividend payouts, raising concerns about its long-term competitiveness [6][7].

Core Viewpoint - The company, Dahan Technology (Shenzhen) Co., Ltd., has submitted its second listing application to the Hong Kong Stock Exchange, with CITIC Securities as the sole sponsor, indicating its ambition for growth in the folding bicycle market [1] Group 1: Company Overview - Dahan Technology specializes in folding bicycles, a compact and portable bicycle type that can be easily stored and carried [1] - Founded by Dr. Han Dewei in 1982, the Dahan brand has gained a reputation for technological strength, innovation, craftsmanship, and a commitment to performance and product quality over 40 years [1] - As of 2024, Dahan Technology holds a significant market share of 26.3% in China's folding bicycle industry, which is a rapidly growing but still niche market within the overall bicycle sector [1] Group 2: Product Range and Innovation - The company has expanded its product lineup from folding bicycles to include road bikes, mountain bikes, children's bikes, and electric assist bikes, offering over 70 models by April 30, 2025 [1] - Dahan Technology is the brand with the most patents in China's folding bicycle industry, holding 113 valid patents domestically and 22 in the US, Europe, and Japan as of April 30, 2025 [2] - The company has shared a total of 360 patents, granting usage rights to 18 and 16 industry peers for its patented technology and brand [2] Group 3: Sales and Distribution - Dahan Technology has established a comprehensive and efficient sales and distribution network across both offline and online channels in mainland China, collaborating with 38 distributors covering 680 retail points [2] - The company has expanded its online sales, with direct sales revenue soaring from RMB 14.1 million in 2022 to RMB 100.2 million in 2024, reflecting a compound annual growth rate of 166.1% [2] - As of December 31, 2024, Dahan's products are also sold in 28 other countries and regions, including Southeast Asia, the US, and Europe, although this accounts for a relatively small portion of overall sales [2] Group 4: Financial Performance - The company's revenue for the fiscal years 2022, 2023, 2024, and the four months ending April 30, 2025, were approximately RMB 250 million, RMB 300 million, RMB 450 million, and RMB 180 million, respectively [3] - Corresponding annual profit and total comprehensive income figures were RMB 31.4 million, RMB 34.9 million, RMB 52.3 million, and RMB 21.5 million for the same periods [3]