Core Insights - The article highlights the success of Dahan Technology (Shenzhen) Co., Ltd., which has become the largest folding bike brand in China, driven by a growing cycling trend and significant revenue growth [1][4]. Company Overview - Dahan Technology has 326 employees and sold 229,500 bicycles in 2024, generating revenue of 450 million yuan [1]. - The company has experienced a compound annual growth rate (CAGR) of 24% in revenue over the past three years [1][8]. - The average net profit per bicycle sold is 228 yuan, with a total net profit of 52.3 million yuan in 2024 [1]. Product Pricing and Market Position - 70% of Dahan's folding bikes are priced between 2,500 and 5,000 yuan, while 10% are priced above 5,000 yuan [1]. - Dahan holds a 36.5% market share in the folding bike industry in mainland China as of 2024 [8]. Production and Supply Chain - The proportion of bicycles produced by OEM suppliers increased from 29.5% in 2022 to 65.5% in the first four months of 2025 [9]. - The internal production gross margin is 34.9%, compared to 27.3% for OEM-produced bikes, leading to an average gross margin of 32.1% [10]. Sales and Distribution - Dahan collaborates with 38 distributors covering 680 retail points, with 70% of sales coming from these distributors [13]. - The company has also started selling customized folding bikes through Sam's Club [13]. Future Growth and Revenue Streams - Dahan plans to establish new production facilities in Huizhou and invest in existing facilities in Tianjin and Jiangsu to increase capacity [11]. - The company has begun exploring additional revenue streams through brand and patent technology licensing, which currently accounts for about 1.2% of total revenue [14].

Core Viewpoint - The company is undergoing scrutiny regarding its research and development capabilities, operational model, and revenue margins, with a focus on its future performance stability and information disclosure improvements [1][2]. Investment Projects - The company has planned three major investment projects with a total expected investment of 643.47 million yuan and anticipated fundraising of 420 million yuan [1]. R&D and Patent Utilization - The company claims that 95% of its main business revenue is derived from products utilizing its patents, with a focus on core products such as pull baskets, hinges, and beds [2][3]. - The revenue from patent-utilized products has shown significant growth, increasing from 138.41 million yuan in 2021 to 211.32 million yuan in 2023 [3]. - The company has 1,116 patents, with a majority being utility models and design patents, raising concerns about the longevity and strength of its technological barriers [5]. Financial Performance - For the first half of 2024, the company reported revenue of 1.185 billion yuan and a net profit of 189 million yuan, with year-on-year growth rates of 28.57% and 58.11%, respectively [6]. - The company anticipates a strong second half of 2024 due to seasonal demand in home renovations, projecting that nearly 60% of its annual revenue will occur in this period [7]. - The gross profit margin for 2024 is expected to increase to 35.62%, driven by a rise in self-produced basic hardware and a decrease in raw material costs [8][9]. Cost Management - The company has successfully reduced its expense ratio by 2.48 percentage points in 2024, primarily due to lower employee compensation and advertising costs [9][10]. - The proportion of self-produced basic hardware has increased by 10.12 percentage points, contributing positively to the gross margin [8]. Order Backlog and Market Outlook - The company's order backlog has increased by 7.54% from the end of 2023, indicating a positive outlook based on customer expectations [11]. - The company is closely monitoring raw material prices to mitigate risks associated with price fluctuations, ensuring a stable cost structure [11][12].