Core Viewpoint - The folding bicycle company, Daxing Kegong, has achieved a record 6688 times oversubscription in its IPO, becoming the new "super subscription king" in the Hong Kong stock market, amidst rising outdoor sports trends and significant market share in the folding bicycle sector [2][3]. Financial Performance - Daxing Kegong's revenue is projected to grow from 254 million RMB in 2022 to 451 million RMB in 2024, with a compound annual growth rate (CAGR) of 33.1%. Net profit is expected to increase from 31 million RMB to 52 million RMB during the same period [3]. - The company plans to allocate approximately 30% of its IPO proceeds (around 103 million HKD) for modernizing production systems and expanding operational scale, including a new production facility in Huizhou with an initial capacity of 200,000 units per year [3][4]. Dividend Strategy - Prior to the IPO, Daxing Kegong distributed significant dividends, totaling around 60 million RMB from 2022 to the first four months of 2025, raising questions about the rationale behind its IPO fundraising strategy [4]. - The founder, Han Dewei, holds a concentrated ownership of 90.16%, making him the primary beneficiary of these dividends, which has led to market skepticism regarding the company's intentions [4]. Market Position and Competition - Daxing Kegong holds a 26.3% market share in terms of retail volume and a 36.5% share in retail value within the Chinese folding bicycle market [6]. - The global bicycle market is projected to grow from 165 million units in 2019 to 179 million units by 2024, with the folding bicycle segment representing a small niche, accounting for only 5.3% of the market by retail value [6]. Growth Challenges - The folding bicycle market is characterized by limited growth potential, increased competition, and changing consumer preferences, which may restrict Daxing Kegong's expansion opportunities [7]. - The company is encouraged to enhance product differentiation, explore international markets, and develop related products such as electric folding bicycles to capture emerging trends [7].

Core Viewpoint - Daheng Technology (Shenzhen) Co., Ltd. is preparing for its IPO on September 9, 2025, with a share price of HKD 49.5 and a total fundraising amount of HKD 392 million [3]. Financial Performance - Daheng Technology reported revenues of RMB 254.19 million, RMB 300.16 million, and RMB 450.72 million for the years 2022, 2023, and 2024 respectively, with corresponding gross profits of RMB 77.93 million, RMB 101.49 million, and RMB 148.75 million [10][11]. - For the first four months of 2025, the company achieved revenues of RMB 184.74 million, up from RMB 125.75 million in the same period of 2024, with a profit of RMB 21.53 million compared to RMB 12.73 million in the previous year [11][12]. Shareholder Structure - Prior to the IPO, Dr. Han Dewei controlled 90.16% of the shares, while post-IPO, his ownership will decrease to 67.61% [15][23]. - Key cornerstone investors include Allianz Global Investors Asia Pacific, Greater Bay Area Fund Management, Harvest, and Weico Hong Kong, with a total subscription amount of USD 12.76 million [4][5]. Product and Market Strategy - Daheng Technology specializes in folding bicycles and has expanded its product range to include road bikes, mountain bikes, children's bikes, and electric assist bikes [6][10]. - The company’s online sales reached RMB 100.16 million in 2024, accounting for 22.2% of total revenue, indicating a strong digital sales strategy [12][13]. Management Team - The executive directors include Dr. Han Dewei, Ms. Li Guiyu, Ms. Liu Guocun, and Ms. Li Xiufen, with independent non-executive directors including Dr. Li Lisheng, Mr. Liu Xuequan, and Mr. Zhao Gensheng [17][18].

Core Viewpoint - The article discusses the upcoming IPO of Dahong Technology, a leading manufacturer of folding bicycles, led by 84-year-old physicist Han Dewei, who is recognized as the "father of modern folding bicycles" [2][5]. Company Overview - Dahong Technology plans to list on the Hong Kong Stock Exchange, having recently received IPO approval from the China Securities Regulatory Commission [2]. - The company has achieved annual sales exceeding 200,000 units, with a product lineup that includes over 70 models of folding bicycles and related accessories [6][7]. Historical Background - Han Dewei, the founder, was born in 1941 and moved to Hong Kong at a young age. He later earned a PhD in physics and worked on tactical laser development before founding Dahong in 1982 [4][5]. - The first prototype of the folding bicycle was developed after seven years of research, leading to the establishment of the Dahong brand in California [5]. Financial Performance - Dahong's sales figures from 2022 to 2024 show a compound annual growth rate (CAGR) of 24.1%, with projected sales of 149,000 units in 2022, 156,900 units in 2023, and 229,500 units in 2024 [7][8]. - Revenue for the same period is expected to grow from 254.2 million RMB in 2022 to 450.7 million RMB in 2024, with net profit increasing from 31.4 million RMB to 52.3 million RMB [8]. Market Position - Dahong holds a significant market share in the folding bicycle industry in mainland China, with 26.3% of retail volume and 36.5% of retail revenue projected for 2024 [8]. - The company has a strong patent portfolio, being the brand with the most patents in the folding bicycle sector in China [8]. Sales Channels - Over 90% of Dahong's revenue comes from bicycle sales, with a significant portion generated through offline distribution channels, which account for nearly 70% of total sales [9]. - The company's online direct sales have seen substantial growth, increasing from 14.1 million RMB in 2022 to 100 million RMB in 2024, reflecting a CAGR of 166.1% [10]. Industry Context - The bicycle industry in China is characterized by a high concentration of production for export, with domestic consumption primarily focused on lower-end markets [12]. - The industry faces challenges such as low profit margins and intense competition, particularly from international brands dominating the high-end market [12]. - The rise of electric bicycles (E-bikes) has attracted investment, but the market has also seen significant volatility, with some companies facing financial difficulties [14].