Core Viewpoint - Dahon Technology (Shenzhen) Co., Ltd. is set to become the first publicly listed folding bicycle company in China, having submitted its IPO application to the Hong Kong Stock Exchange and received approval from the China Securities Regulatory Commission [2][3]. Company Overview - Dahon, founded by Dr. David Hon in California in 1982, has become a leading player in the folding bicycle market, with a market share of 26.3% in retail volume and 36.5% in retail value in mainland China as of 2024 [2][4]. - The company has achieved significant sales growth, with projected sales volumes of 149,000 units in 2022, 156,900 units in 2023, and 229,500 units in 2024, alongside revenue growth from 254 million RMB in 2022 to 450 million RMB in 2024 [5][6]. Market Position - Dahon holds a 6.2% share of the global folding bicycle market, ranking first with projected sales of 226,400 units in 2024 [4][5]. - The company has expanded its product range to over 70 models, focusing on mid-range bicycles priced between 2,500 and 5,000 RMB, which accounted for 62.83% of total sales in 2024 [7]. Financial Performance - Dahon's revenue for 2022-2024 is expected to grow from 254 million RMB to 450 million RMB, with net profits increasing from 31.4 million RMB to 52.3 million RMB [5][6]. - In the first four months of 2023, the company reported a 46.5% increase in sales volume and a 46.91% increase in revenue compared to the previous year [7]. Industry Trends - The folding bicycle market is projected to grow at a compound annual growth rate (CAGR) of 7.3% from 2024 to 2029, with an expected market size of 5.2 million units by 2029 [8]. - Dahon plans to expand its presence in Southeast Asia, the U.S., and Europe, currently selling products in 28 countries and regions [8]. Competitive Landscape - The folding bicycle market is witnessing increased competition from both domestic and international brands, with companies like Xilinx Health and Jiuzhi Co. entering the market [10]. - Despite challenges faced by high-end international brands, the demand for affordable and technologically advanced domestic brands presents opportunities for growth [9]. Future Outlook - Dahon aims to enhance its R&D capabilities and product offerings, focusing on electric assist bicycles and other categories to meet diverse consumer needs [11]. - The company is addressing production capacity challenges by planning to establish a new facility in Huizhou, which is expected to have an annual capacity of approximately 200,000 units [11].

Core Viewpoint - The article discusses the rise of Dahon Technology Co., Ltd. (大行科工) as a leading player in the global folding bicycle market, highlighting its upcoming IPO and the challenges it faces, including management aging, reliance on distributors, and increasing inventory levels [1][26]. Company Overview - Dahon Technology, founded by 83-year-old Han Dewei, is a prominent manufacturer of folding bicycles, with a significant market share in both China and globally [2][6]. - The company plans to go public after submitting its updated IPO prospectus in July 2023, following an initial submission in January that became invalid [1][6]. Market Position - By 2024, Dahon is projected to hold a 6.2% share of the global folding bicycle market, ranking second after the UK brand BROMPTON, which has a higher average retail price of 18,000 RMB per unit compared to Dahon's 3,000 RMB [6][7]. - In China, Dahon leads the market with a 36.5% share in retail revenue, amounting to approximately 639 million RMB [7][10]. Financial Performance - Dahon's revenue has shown consistent growth, with figures of 254.2 million RMB in 2022, 300.2 million RMB in 2023, and projected 450.7 million RMB in 2024 [12][13]. - Net profits also increased from 31.4 million RMB in 2022 to 52.3 million RMB in 2024 [12][13]. Sales Channels - Over 60% of Dahon's revenue comes from sales to distributors, indicating a heavy reliance on this channel [15][19]. - The company is attempting to increase its direct sales, with online sales growing from 5.6% in 2022 to 22.2% in 2024, while offline direct sales have decreased [19][15]. Production and Supply Chain - Dahon faces challenges with over 60% of its products being produced by OEM suppliers, which has led to rising production costs [21][22]. - The company has seen a significant increase in inventory, with levels rising from 57.7 million RMB in 2022 to 150 million RMB by May 2025, indicating potential production and sales imbalances [24][26]. Management and Governance - The average age of Dahon's management team exceeds 61 years, raising concerns about strategic continuity [10][26]. - The company has distributed substantial dividends in recent years while also facing issues with unpaid employee social security contributions [10][26].