Company Overview - Lexin Outdoor International Co., Ltd. is seeking to list on the Hong Kong Stock Exchange, aiming to become the "first fishing stock" in the market [2] - The company specializes in fishing equipment, including rods, reels, lines, baits, and various fishing accessories [2] - Lexin Outdoor is based in Hangzhou and is a subsidiary of Zhejiang Taipusen Holdings, the largest leisure manufacturing and export enterprise in China [2] Market Position - Lexin Outdoor is the largest fishing equipment manufacturer in China with a market share of 25.4% and the largest globally with a market share of 20.4% [3] - The company's revenue model is primarily based on OEM (Original Equipment Manufacturer), with over 90% of its revenue coming from clients like Decathlon and Pure Fishing [3][12] Financial Performance - Revenue figures for Lexin Outdoor from 2022 to the first four months of 2025 are as follows: RMB 818 million, RMB 463 million, RMB 573 million, and RMB 223 million, with a compound annual growth rate (CAGR) of -16.29% [3] - Gross profit for the same periods was approximately RMB 190 million, RMB 123 million, RMB 153 million, and RMB 47 million, with a CAGR of -10.39% [3] - Net profit figures were RMB 114 million, RMB 49 million, RMB 59 million, and RMB 20 million, with a CAGR of -27.77% [4] Industry Trends - The global fishing tackle market is projected to grow from RMB 137.8 billion in 2023 to RMB 181.9 billion by 2028, with a CAGR of 5.7% [9] - The number of fishing participants globally exceeds 200 million, with approximately 140 million in China [9] - The North American fishing tackle market is the largest, with an estimated sales figure of USD 8.78 billion in 2023 [9][10] Competitive Landscape - Shimano is the largest fishing tackle brand globally, with a market capitalization of JPY 1.8 trillion (approximately RMB 895 billion) and a revenue of JPY 105 billion (approximately RMB 52.2 billion) in 2024 [5] - Other notable competitors include Guangwei Composite Materials, which is recognized for its carbon fiber fishing rods and had a revenue of RMB 2.45 billion in 2024 [8]

Core Insights - The fishing tackle industry in Weihai, known as the "Fishing Tackle Capital of China," has over 1,000 production and supporting enterprises, employing nearly 50,000 people, with an annual output value exceeding 10 billion yuan [1][3] - Weihai's fishing tackle industry has established a complete industrial chain covering raw materials, manufacturing equipment, components, and finished products, making it a global hub for fishing tackle research and manufacturing [1][3] - Continuous innovation is a key factor driving the industry, with companies like Weihai Guangwei Outdoor Equipment Co., Ltd. focusing on personalized customization and allocating 5% of sales revenue to R&D annually [1][2] Industry Transformation - The Weihai fishing tackle industry is undergoing a "smart manufacturing revolution," transitioning from labor-intensive production to automated processes, significantly improving efficiency and product quality [2] - Automation in production has led to a 20% improvement in product quality and a reduction of labor costs by two-thirds, as demonstrated by companies like Shandong Handing Sports Goods Co., Ltd. [2] - The use of advanced technology in components, such as high-precision digital printing for fishing lures, has resulted in a 50% increase in sales volume in the first quarter compared to the same period in 2024 [2] Global Market Position - Weihai Guangwei Outdoor Equipment Co., Ltd. holds an 1/8 share of the global fishing tackle market, exporting 8.6 million fishing rods last year, with an export value growth of 18.7% [3] - The city produces 40 million fishing rods annually, accounting for over 60% of the global market share, with more than 700 local companies exporting products worldwide [3] - Weihai Customs has implemented policies to facilitate exports, resulting in a 16.9% year-on-year increase in product exports, reaching 3.54 billion yuan last year, with a 21.2% increase in the first quarter of this year [3]