Core Viewpoint - The rise in global health awareness and environmental consciousness is driving a new wave of consumption and investment in cycling, particularly in folding bicycles, which are favored by urban commuters and outdoor enthusiasts. Dahon Technology (Shenzhen) Co., Ltd. is accelerating its IPO process in Hong Kong, aiming to capitalize on this trend [1]. Market Position - Dahon Technology holds a significant position in the folding bicycle market in mainland China, with a market share of 26.3% in retail volume and 36.5% in retail value as of 2024 [1]. - The company sold 156,877 units in 2023, up from 148,956 units in 2022, and is projected to sell 229,525 units in 2024, reflecting a compound annual growth rate (CAGR) of 24.1% [2]. Financial Performance - Revenue for Dahon Technology was approximately RMB 254.2 million in 2022, RMB 300.2 million in 2023, and is expected to reach RMB 450.7 million in 2024. The profit for the same periods was RMB 31.4 million, RMB 34.9 million, and RMB 52.3 million respectively [3][2]. - The company’s revenue from domestic sales reached RMB 3.29 billion in the first nine months of 2024, accounting for 93.4% of total revenue, a significant increase from 77.9% in 2022 [10]. Production and Supply Chain - Dahon Technology's production capacity is limited, with its factory in Huizhou having an annual capacity of only 90,000 units. The company relies heavily on OEM production, with 56.8% of its 2024 sales depending on outsourcing [4]. - The cost of outsourced production accounts for 47.1% of the total sales cost, indicating a potential vulnerability in its supply chain [4]. Market Challenges - The company faces challenges in expanding its overseas market, with international sales dropping from 22.1% in 2022 to 5.6% in the first four months of 2025 [4]. - The folding bicycle segment is relatively small, representing only 5.3% of the global bicycle market, with the Chinese market size at RMB 1.4 billion in 2023 [4][11]. IPO and Future Plans - The IPO proceeds are intended for capacity expansion (adding 200,000 units by 2027), strengthening the distribution network, and enhancing R&D. However, there are concerns regarding the company's cash position, which decreased from RMB 108 million at the end of 2024 to RMB 59 million by April 2025 [5]. - The company is shifting towards high-end products, increasing the proportion of high-end bicycles from 44.9% in 2022 to 60.9% in 2023, in response to consumer trends [11][14]. Competitive Landscape - Dahon Technology is the leading player in the folding bicycle market, with a market share of 21.1% in 2023, significantly ahead of its closest competitor [16]. - Despite its strong domestic position, the company faces competition in international markets, where it lacks a significant advantage compared to other leading brands [16][17].