Core Viewpoint - Dahang Kegong (Shenzhen) Co., Ltd. is set to go public on the Hong Kong Stock Exchange, having successfully passed the listing hearing, with CITIC Securities International as its sole sponsor [1] Company Overview - Dahang Kegong is a leading player in the folding bicycle market in mainland China, holding a market share of 26.3% in retail volume and 36.5% in retail value as of 2024 [1] - The company offers a diverse product lineup, including classic models like the P8, and has expanded into road bikes, mountain bikes, children's bikes, and electric assist bikes [1] Sales and Distribution - The company has established a comprehensive sales network, collaborating with 38 distributors across 30 provincial-level regions in China, covering 680 retail points [3] - Online sales have surged, with revenue increasing from 14.1 million RMB in 2022 to approximately 100 million RMB in 2024, reflecting a compound annual growth rate of 166.1% [3] - Dahang Kegong's products are exported to 28 countries and regions, including Southeast Asia, the United States, and Europe, showcasing its international influence [3] Business Growth - The company's sales volume grew from 148,956 units in 2022 to 156,877 units in 2023, and is projected to reach 229,525 units in 2024, with a compound annual growth rate of 24.1% [3] - In the first four months of 2024, sales volume increased significantly from 63,758 units to 93,398 units, marking a growth rate of 46.5% [3] Financial Performance - Dahang Kegong's revenue has shown steady growth, achieving approximately 254.2 million RMB in 2022, 300.2 million RMB in 2023, and 450.7 million RMB in 2024 [4][5] - The company's annual profit and total comprehensive income also increased, reaching 31.4 million RMB in 2022, 34.9 million RMB in 2023, and 52.3 million RMB in 2024 [4][5]

Core Viewpoint - Dahang Technology (Shenzhen) Co., Ltd. is preparing for an IPO in Hong Kong, with CICC serving as the sole sponsor [1][2]. Group 1: IPO Details - The funds raised from the IPO will be allocated for several purposes, including modernizing production systems and expanding operational scale to enhance manufacturing capacity [1]. - Additional funds will be used to strengthen the distribution network and strategic brand development to solidify market position and accelerate global expansion [1]. - The company aims to enhance its research and development capabilities to improve technology and will also allocate funds for working capital and other general corporate purposes [1]. Group 2: Company Overview - Dahang Technology was founded by Dr. Han Dewei in 1982 and has built a strong reputation over more than 40 years for its technical strength, innovative spirit, craftsmanship, and commitment to product quality [2]. - The company offers a comprehensive range of bicycles, including road bikes, mountain bikes, children's bikes, and electric assist bikes, with popular models like the P8 [2]. - Dahang Technology continues to invest in research and development, particularly in the advancement of folding bicycle technology, and holds numerous patents [2]. - The company has established an efficient sales and distribution network, covering both online and offline channels in mainland China, and exports products overseas [2].

Group 1 - The company has passed the Hong Kong Stock Exchange listing hearing, with CITIC Securities International as its sole sponsor [1] - As of 2024, the company ranks first in the folding bicycle industry in mainland China, holding a market share of 26.3% in retail volume and 36.5% in retail value [1] - The company's product line has expanded 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] Group 2 - The company has established a broad online and offline sales network, collaborating with 38 distributors and covering 680 retail points as of April 30, 2025 [1] - Online direct sales revenue increased from 14.1 million RMB in 2022 to approximately 100 million RMB in 2024, with a compound annual growth rate of 166.1% [1] - From 2022 to 2024, the company's sales volume experienced a compound annual growth rate of 24.1%, making it the fastest-growing in sales volume and revenue among the top five folding bicycle companies in mainland China during the same period [1]

Core Viewpoint - Dahang Kegong (Shenzhen) Co., Ltd. is the largest folding bicycle company in mainland China, with significant market shares in both retail volume and value as of 2024 [1] Group 1: Company Overview - Dahang Kegong ranks first in the folding bicycle industry in mainland China, holding a market share of 26.3% in retail volume and 36.5% in retail value according to data from Zhaosheng Consulting [1] - The company has expanded its product lineup from folding bicycles to include road bikes, mountain bikes, children's bikes, and electric assist bikes, reflecting its commitment to innovation and market responsiveness [1] Group 2: Sales and Distribution Network - The company has established a comprehensive and efficient sales and distribution network, collaborating with 38 distributors across 30 provincial-level regions in China, covering 680 retail points [2] - Online sales have significantly increased, with direct sales revenue soaring from 14.1 million RMB in 2022 to approximately 100 million RMB in 2024, representing a compound annual growth rate of 166.1% [2] - The company's products are also sold in 28 other countries and regions, including Southeast Asia, the United States, and Europe, although this accounts for a relatively small portion of overall sales [2] Group 3: Business Growth - Dahang Kegong has experienced strong business growth, with sales volume increasing from 148,956 units in 2022 to 156,877 units in 2023, and further to 229,525 units in 2024, reflecting a compound annual growth rate of 24.1% [2] - For the four months ending April 30, 2025, sales volume rose from 63,758 units to 93,398 units, marking a growth rate of 46.5% [2] Group 4: Financial Performance - The company's revenue for the fiscal years 2022, 2023, and 2024 was approximately 254 million RMB, 300 million RMB, and 451 million RMB, respectively [3] - The total profit and comprehensive income for the same periods were 31.43 million RMB, 34.85 million RMB, and 52.30 million RMB, respectively [3]

Core Viewpoint - Dahang Kegong (Shenzhen) Co., Ltd. is the largest folding bicycle company in mainland China, with significant market shares in both retail volume and revenue for 2024 [3]. Company Overview - Dahang Kegong ranks first in the folding bicycle industry in mainland China, holding a market share of 26.3% in retail volume and 36.5% in retail revenue for 2024 [3]. - The company offers a diverse range of bicycle models, including folding bicycles, road bikes, mountain bikes, children's bikes, and electric assist bikes, with over 70 models available as of April 30, 2025 [3]. Sales and Distribution Network - The company has established a comprehensive and efficient sales and distribution network, collaborating with 38 distributors across 30 provincial-level administrative regions in China, covering 680 retail points [4]. - Dahang Kegong has expanded its online sales channels, achieving a significant increase in online direct sales revenue from 14.1 million RMB in 2022 to approximately 100 million RMB in 2024, representing a compound annual growth rate of 166.1% [4]. Business Growth - The company experienced strong business growth, with sales volume increasing from 148,956 units in 2022 to 156,877 units in 2023, and further to 229,525 units in 2024, reflecting a compound annual growth rate of 24.1% [4]. - For the four months ending April 30, 2025, sales volume surged by 46.5% compared to the same period in the previous year [4]. Financial Performance - Dahang Kegong's revenue for the fiscal years 2022, 2023, and 2024 was approximately 254.2 million RMB, 300.2 million RMB, and 450.7 million RMB, respectively [5]. - The company's profit and total comprehensive income for the same periods were 31.4 million RMB, 34.9 million RMB, and 52.3 million RMB, respectively [5].

Investment Rating - The report maintains a rating of "Outperform the Market" for the industry [7] Core Insights - The report highlights that Dahon Technology is the leading player in the domestic folding bicycle industry, with a market share of 26.3% in sales volume and 36.5% in sales revenue for 2024, indicating strong brand influence and industry position [2][12] - The folding bicycle market is experiencing rapid growth, with a projected compound annual growth rate (CAGR) of 24% in sales volume and 33% in revenue from 2022 to 2024 for Dahon Technology [2][59] - The global bicycle market is expected to grow steadily, with a retail volume increase from 164.5 million units in 2019 to 178.8 million units in 2024, reflecting a CAGR of 1.7% [13][16] Summary by Sections Industry Overview - The demand for folding bicycles is rapidly increasing, driven by urban commuting needs and the convenience of compact storage [21][22] - The global folding bicycle market is projected to grow from 2.0 million units in 2019 to 3.7 million units in 2024, with a CAGR of 13.4% [22][30] - The market for high-end folding bicycles (priced above 2500 RMB) is expanding, accounting for approximately 44.1% of retail volume and 86.5% of retail revenue in 2024 [30][42] Company Profile: Dahon Technology - Dahon Technology, founded in 1982, has established itself as a leader in the folding bicycle sector, achieving significant growth and brand recognition [2][55] - The company’s revenue for 2024 is projected to reach 4.51 billion RMB, with a net profit of 0.52 billion RMB, both reflecting a year-on-year increase of 50% [2][59] - Dahon's product strategy focuses on the mid to high-end market, with mid-range products accounting for approximately 69.5% of revenue by 2024 [70] Market Dynamics - The domestic market for folding bicycles is highly concentrated, with Dahon Technology holding a dominant position, capturing 60.4% of the market share among the top five companies [49][46] - The report indicates that the Chinese market is the largest single market for folding bicycles, with retail volume expected to grow from 0.3 million units in 2019 to 0.8 million units in 2024, reflecting a CAGR of 19.9% [40][41] - The company is expanding its distribution network, with over 680 retail points across 30 provincial regions in China, while also gradually recovering its overseas market presence [75][76]

Group 1 - A new company, Handan Zhenxiangfu Toy Co., Ltd., has been established with a registered capital of 100,000 RMB [1] - The legal representative of the company is Cheng Yanmin [1] - The business scope includes toy sales, toy manufacturing, and sales of various related products such as wooden toys and baby products [1] Group 2 - The company is also involved in the manufacturing and retail of bicycle parts and sports equipment [1] - Additional activities include internet sales, personal internet live streaming services, and import-export operations [1] - The company operates under general project categories, indicating a broad range of business activities without requiring special licenses for most operations [1]

Group 1 - A new company, Xingtai Jimeng Toy Co., Ltd., has been established with a registered capital of 10,000 RMB [1] - The legal representative of the company is Wu Shuo [1] - The business scope includes toy manufacturing, sales of wooden toys, and various other products such as bicycles and sports equipment [1] Group 2 - The company is involved in both retail and wholesale of toys, baby products, and bicycles [1] - The operations are categorized under general projects, allowing for a wide range of activities without needing special approvals [1] - The company also engages in internet sales, excluding items that require special licenses [1]

Company Overview - Company is a technology-driven leader in the global folding bicycle industry, focusing on R&D, design, and global marketing of folding bicycles and related products [1] - The product line includes over 70 models, covering various categories such as folding bikes, road bikes, mountain bikes, children's bikes, and electric assist bikes [1] Industry Position - Company is the largest folding bicycle manufacturer globally, achieving a retail volume of 226,400 units in 2024, capturing 6.2% of the market share [2] - The company holds 26.3% of the retail volume share and 36.5% of the retail value share in the folding bicycle industry, leading the second competitor by over 10 percentage points [2] - Company possesses 130 global patents, including 113 valid patents in mainland China and 22 in Europe, the US, and Japan, enhancing its competitive edge [2] Financial Performance - Revenue growth from 2022 to 2024 was significant, with figures of 250 million, 300 million, and 450 million RMB, respectively, reflecting a compound annual growth rate (CAGR) of 33.1% [3] - Gross profit for the same period was 77.93 million, 101.49 million, and 148.75 million RMB, with a CAGR of 38.1% [3] - In the first four months of 2025, revenue reached 180 million RMB, a year-on-year increase of 46.9% [3] Sales and Revenue Dynamics - The core growth driver for revenue is the optimization of product structure, with mid-range products (priced between 2,500-5,000 RMB) becoming the main revenue engine [8] - The revenue share of mid-to-high-end models increased from 44.9% in 2022 to 69.5% in 2024, with the average product price rising from 1,593 RMB to 1,966 RMB over three years [8] Challenges - The global folding bicycle market growth rate is slowing, with a projected CAGR of 7.3% from 2024 to 2029, compared to 13.4% from 2019 to 2024 [11] - The company's reliance on the domestic market is increasing, with domestic sales accounting for 93.4% of total revenue in the first three quarters of 2024 [13] - High dependency on OEM manufacturers for production, with over 65% of production outsourced, leading to potential quality control issues and lower profit margins [14] IPO and Future Strategy - The company plans to raise 1.5 billion HKD through an IPO, with funds allocated for production system upgrades, channel optimization, and R&D enhancements [18] - The strategic focus includes increasing the revenue share of electric products from 8% to 30% and expanding the Southeast Asian distribution network [18] - The company aims to enhance its product matrix by developing new categories such as electric assist bikes and children's bikes to meet diverse consumer demands [19]

Core Viewpoint - The article emphasizes the significance of certificates of origin as a "golden key" for companies like Xiaomi to expand into international markets, particularly highlighting the benefits of zero tariffs under free trade agreements [1][2]. Group 1: Impact of Certificates of Origin - Certificates of origin serve as essential documents for foreign trade enterprises to enjoy tariff reductions in importing countries, significantly enhancing international competitiveness [1]. - In the first half of the year, Beijing Customs issued 24,042 certificates of origin, with a total value of $1.752 billion, reflecting year-on-year growth of 15.26% and 15.03% respectively [2]. - The "China-Chile" free trade agreement has notably contributed to Xiaomi's success, allowing the company to reduce customs duties from 6% to zero, which is seen as a substantial financial benefit [1]. Group 2: Growth in Exports - Exports from Beijing to Latin American countries such as Nicaragua, Ecuador, and Chile have surged, with year-on-year growth rates of 780.12%, 297.35%, and 152.14% respectively [2]. - The total value of exports under the "China-Chile" free trade agreement reached $84.2629 million, marking the highest growth in value among various agreements [2]. Group 3: Regional Trade Agreements - The total value of preferential certificates of origin issued by the national trade promotion system reached $48.197 billion in the first half of the year, with a year-on-year increase of 39.45% [3]. - The Regional Comprehensive Economic Partnership (RCEP) has facilitated trade by integrating rules and opening markets, with the value of RCEP certificates amounting to $4.415 billion, also showing significant growth [3]. Group 4: Specific Industry Examples - In Kunming, Customs issued 52,600 certificates of origin for goods exported to RCEP member countries, with a total value of $9.191 billion, resulting in a tariff reduction of $230 million [4]. - The bicycle manufacturing industry in Tianjin has leveraged free trade agreements to expand overseas, with a 147% year-on-year increase in the issuance of certificates of origin for bicycle parts [6].