New “Super subscription king”: DAHON Hong Kong IPO over 7558 Times Oversubscribed

Global leading brand of folding bicycles, DAHON Tech, was officially listed on the main board of the Hong Kong Stock Exchange on September 9, 2025. DAHON Tech finalized its offer price at HK$49.5 per share, with a board lot of 100 shares. The Hong Kong public offering was oversubscribed by approximately 7,558.4 times. The public offering constituted 10% of the global offering. The final raised amount reached HK$392 million. China Securities (International) Finance Holding Co. Ltd. acted as the sole sponsor.

DAHON Tech: Cornerstone Investors

For this global offering, DAHON Tech introduced four cornerstone investors, including Allianz Global Investors Asia Pacific, Greater Bay Area Fund Management, Harvest, and Vico Hong Kong (a subsidiary of VEKEN Tech), with a total investment of approximately HK$99.65 million.

DAHON Tech: Product Portfolio and Sales & Distribution Network

After over four decades of dedicated development, DAHON is the largest folding bicycle company in Mainland China. Based on 2024 retail sales value and retail sales volume, DAHON ranked first in the Mainland China folding bicycle industry with market shares of 36.5% and 26.3%, respectively. As of April 30, 2025, DAHON’s product portfolio comprised over 70 bicycle models, including folding bicycles, road bicycles, mountain bicycles, and e-bikes, catering to the diverse needs of various consumer segments. Concurrently, DAHON is the brand with the most patents in the industry in China, holding 113 valid patents in Mainland China and 22 valid patents in the US, Europe, and Japan.

Regarding its sales and distribution network, in addition to major online e-commerce and social media platforms, DAHON collaborates with 38 distributors spanning 30 provincial-level administrative regions in China, covering 680 offline retail points. Overseas, DAHON also sells in 28 countries and regions, including the US, Europe, and Southeast Asia, although overseas sales accounted for only 5.6% of the brand’s total sales.

DAHON Tech: Financial Performance before Hong Kong IPO

During the track record period, DAHON achieved robust 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%. Revenue increased from RMB 254 million in 2022 to RMB 300 million in 2023, and further to RMB 451 million in 2024, representing a compound annual growth rate of 33.1%. Net profit increased from RMB 31.43 million in 2022 to RMB 34.85 million in 2023, reaching RMB 52.30 million in 2024, representing a compound annual growth rate of 29.1%. In the 2023-2024 period, among the top five folding bicycle enterprises in Mainland China, DAHON was the brand with the fastest growth rate in both sales volume and revenue.

DAHON’s strengths lie in its position as a leader in China’s folding bicycle industry, enabling it to continuously drive industry development and seize market opportunities by leveraging its strong brand influence, technological innovation capabilities, diversified product matrix, extensive distribution network, and professional international management team.

DAHON Tech: Controlling Shareholders and Potential Risks

As of the latest practicable date, founder Dr. David T. Hon directly held approximately 88.56% of the total issued shares and indirectly held a 1.60% interest through the employee holding platform, Dahon Tech Enterprise LP . Upon completion of the global offering, Dr. Hon and Dahon Tech Enterprise LP will remain the controlling shareholders of DAHON. Furthermore, due to shareholding interests held by Taiwanese shareholders in DAHON, and pursuant to investment approval regulations, investments by Taiwanese shareholders in Mainland China require approval from the Investment Commission, Ministry of Economic Affairs of Taiwan and are subject to an annual investment limit of US$5 million. Consequently, this may potentially impact DAHON’s expansion plans and business operations in Mainland China.

Other market challenges may also pose operational risks for DAHON, including but not limited to: brand and reputation risks potentially harmed by trademark infringement or failure of partners to meet quality standards; sales channel risks arising from insufficient control over third-party distributors and inventory backlog issues; supply chain risks resulting from reliance on third-party suppliers potentially leading to production disruptions or cost increases; and product liability risks.

DAHON Tech: Future Plans and Use of Proceeds

The net proceeds from DAHON Tech’s listing are approximately HK$342 million. These will be allocated as follows: 30.0% will be used for modernizing the production system and expanding operational scale to enhance manufacturing capabilities; 30.0% will be used to strengthen the distribution network and for strategic brand development to consolidate market position and accelerate global expansion; 30.0% will be used to enhance R&D capabilities to advance technology; and 10.0% will be used as working capital and for general corporate purposes.

Driven by strong market performance, DAHON Tech’s listing received significant capital recognition. The raised funds will be primarily directed towards three key areas: capacity expansion, channel development, and technological R&D, injecting new momentum for its future growth. It is noteworthy that the company needs to adeptly manage the policy constraints associated with its shareholder structure and effectively mitigate various operational risks inherent in market competition.