DAHON TECH (SHENZHEN) CO., LTD. (02543) commenced its initial public offering from September 1 to September 4, 2025. The company plans to globally offer 7.92 million H shares, with 792,000 shares available for Hong Kong public offering and 7.128 million shares for international placement (subject to reallocation and over-allotment option exercise). The offering price is set at HK$49.5 per share, with a board lot of 100 shares. Assuming the Hong Kong public offering becomes unconditional by 8:00 a.m. on Tuesday, September 9, 2025, the H shares are expected to commence trading on the Stock Exchange at 9:00 a.m. on Tuesday, September 9, 2025.

The company has entered into cornerstone investment agreements with Allianz Global Investors Asia Pacific, Greater Bay Area Fund Management, Harvest, and WAICO Hong Kong. The cornerstone investors will subscribe for a total of 2.0138 million shares, representing approximately US$12.7598 million. Based on the offering price of HK$49.5 per H share and assuming the over-allotment option is not exercised, the global offering will raise net proceeds of approximately HK$342 million.

The company plans to allocate approximately 30.0% of proceeds for production system modernization and operational expansion to enhance manufacturing capabilities, 30.0% for strengthening distribution networks and strategic brand development to consolidate market position and accelerate global expansion, 30.0% for enhancing research and development capabilities to improve technology, and 10.0% for working capital and other general corporate purposes.

DAHON TECH is China's largest folding bicycle company, ranking first by both retail volume and retail value of folding bicycles in 2024. According to CIC data, the company ranked first in China's folding bicycle industry by retail volume in 2024 with a market share of 26.3%, and also led by retail value with a 36.5% market share. As of April 30, 2025, the company offered over 70 bicycle models.

According to CIC, the company holds the most patents among Chinese folding bicycle brands, with 113 valid patents in mainland China as of April 30, 2025. The company also holds 22 valid patents in the United States, Europe, and Japan as of the same date. Through its Share360 project, the company has licensed 18 industry peers to use its patented technology and authorized 16 peers to use the DAHON brand as of April 30, 2025.

The company has established a comprehensive and efficient sales and distribution network, continuously improving product coverage and penetration in both offline and online channels in mainland China. As of April 30, 2025, the company collaborated with 38 distributors across 30 provincial-level administrative regions in China, covering 680 retail points. The company has also expanded to online channels, including major e-commerce and social media platforms in mainland China such as JD.com, Tmall, Douyin, and Pinduoduo.

During the track record period, the company achieved strong business and financial growth. Sales volume increased from 148,956 units in 2022 to 156,877 units in 2023, and further to 229,525 units in 2024, representing a compound annual growth rate of 24.1%. Sales volume increased from 63,758 units in the four months ended April 30, 2024, to 93,398 units in the four months ended April 30, 2025, representing a growth rate of 46.5%.

Revenue increased from RMB254 million in 2022 to RMB300 million in 2023, and further to RMB451 million in 2024, representing a compound annual growth rate of 33.1%. Revenue increased from RMB126 million in the four months ended April 30, 2024, to RMB185 million in the four months ended April 30, 2025, representing a growth rate of 46.8%.

Net profit increased from RMB31.4 million in 2022 to RMB34.9 million in 2023, and further to RMB52.3 million in 2024, representing a compound annual growth rate of 29.1%. Net profit increased from RMB12.7 million in the four months ended April 30, 2024, to RMB21.5 million in the four months ended April 30, 2025, representing a growth rate of 69.3%.

According to CIC data, among the top five folding bicycle companies in mainland China by sales volume in 2024, the company achieved the fastest growth in both sales volume and revenue from 2023 to 2024.