Hong Kong IPO | Leading folding bicycle manufacturer Dahon's IPO is here: raising nearly HKD 400 million, priced at HKD 49.5 per share
1. Company Overview
Dahon Technology is the largest folding bicycle company in mainland China, founded by the "Father of Folding Bicycles" Dr. Han Dewei in 1982. As of 2024, the company holds a 26.3% market share in the mainland China folding bicycle market by retail volume, and a 36.5% market share by retail revenue, both ranking first in the industry. The company has a strong patent barrier, with 113 valid patents in mainland China and 22 valid patents in the United States, Europe, and Japan as of April 30, 2025. The product line has expanded from folding bicycles to road bikes, mountain bikes, children's bicycles, and electric-assisted bicycles, with more than 70 models.
2. Financial Status
Dahon Technology's financial performance shows rapid growth:
Revenue: Increased from 254 million yuan in 2022 to 451 million yuan in 2024, with a compound annual growth rate of 33.1%
Net Profit: Increased from 31.43 million yuan in 2022 to 52.30 million yuan in 2024, with a compound annual growth rate of 29.1%
First 4 months of 2025: Revenue of 185 million yuan, up 46.8% year-on-year; net profit of 21.53 million yuan, up 69.3% year-on-year
The company's profitability is stable, with a gross margin of around 33%.
Sales Channels: In 2024, online direct sales revenue was about 100 million yuan, accounting for about 22% of total revenue, while dealers remained the main channel, contributing nearly 70% of revenue. The company has 38 dealers and over 680 retail points covering 30 provinces nationwide, and has entered e-commerce platforms such as JD.com and Tmall.
Cash and Dividends: As of the end of April 2025, the company held cash and cash equivalents of about 59.02 million yuan. In addition, the dividend payout has been significant in recent years, with asset returns during the company's listing period outperforming profit accumulation.
3. Analysis and Outlook
Advantages and Opportunities: The folding bicycle market still has growth potential. Under the trend of green travel, portable models continue to be favored by urban users. Dahon Technology is recognized as a leading company in the industry, with multiple core patents and brand influence; the company plans to use IPO funds for modern production expansion, channel network strengthening, and R&D investment, providing a foundation for further expansion.
Potential Risks: Production capacity is heavily dependent on outsourcing, which may affect product quality and supply stability. If market demand cools due to the "cycling craze" or competition intensifies, sales expectations may be under pressure. High concentration of equity (controlling shareholder Han Dewei holds over 90%) may raise governance concerns.
4. IPO News
Offering Arrangement: Dahon Technology launched a global IPO on September 1, 2025, issuing a total of 7.92 million H shares (90% international offering, 10% Hong Kong public offering), with an offer price of 49.5 HKD per share, 100 shares per lot, and an entry fee of about 4,999.92 HKD. It is expected to be listed on the main board of the Hong Kong Stock Exchange on September 9, 2025, with stock code 2543.
Use of Proceeds: 30% for modernization and expansion of production systems; 30% for strengthening dealer networks and brand strategy; 30% for R&D capacity building; the remaining 10% for working capital and other corporate purposes.
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