Core Viewpoint - The article discusses the upcoming IPO of Shenzhen Dahon Technology Co., Ltd. (Dahon), a leading player in the Chinese folding bicycle market, highlighting its growth trajectory, market challenges, and future strategies as it aims to become the "first stock" in this sector [3][10][28]. Group 1: Company Overview - Dahon has a market share of 36.5% in the Chinese folding bicycle retail market, positioning it as the industry leader [8][27]. - The company was founded by Dr. Han Dewei, an 83-year-old entrepreneur who transitioned from academia to manufacturing, establishing Dahon in Hong Kong in 1982 [5][6][11]. - Dahon's innovative "one-second folding" technology has significantly enhanced its product appeal, allowing for a folding time reduction of 200% and a weight reduction of 25% compared to competitors [12][13][15]. Group 2: Financial Performance - Dahon's revenue is projected to grow from 254 million RMB in 2022 to 451 million RMB in 2024, reflecting a compound annual growth rate (CAGR) of 33.1% [23]. - In the first four months of 2025, Dahon reported a revenue of 185 million RMB, a year-on-year increase of 46.8%, with net profit soaring by 69.3% [24]. - The company's online sales have seen a remarkable CAGR of 166.1% from 2021 to 2023, contributing 38% of total revenue in early 2025 [8][20]. Group 3: Market Challenges - Dahon faces increasing reliance on OEM production, with its outsourcing ratio rising from 29.5% in 2022 to 55.5% currently, and a significant decline in revenue from North American and European markets [10][25]. - The competitive landscape is intensifying, with high-end markets dominated by brands like Brompton and low-end markets being flooded with low-cost products from e-commerce platforms [29][31]. - The overall growth rate of the folding bicycle market in China is projected at 28% for 2024, while Dahon's revenue growth is expected to lag at 6.8% [29]. Group 4: Future Strategies - Dahon plans to raise approximately 1.5 billion HKD through its IPO, with funds allocated for electric vehicle transformation, overseas factory establishment, and digital upgrades [30]. - The company aims to increase the revenue share of its electric folding bicycles from 8% to 30% within two years, necessitating significant R&D investment [30]. - Dahon is also focusing on enhancing its online platform and user engagement through AI and AR technologies to improve customer loyalty and repeat purchases [30].