"The first stock of folding bicycles in mainland China" DAHON TECH rose over 20%, and yesterday in the dark market, it once surged 200%

"The first stock of folding bicycles in mainland China," DAHON TECH officially listed on the Hong Kong Stock Exchange today, receiving a warm market response.

On Tuesday, September 9, DAHON TECH's stock opened over 36% higher on its first day of trading. The company's stock issuance price was HKD 49.5, raising a total of approximately HKD 392 million.

Prior to this, the stock had shown remarkable enthusiasm in the dark market trading. Its price surged 203% to HKD 150 on the evening of the 8th, ultimately closing up 58.99% at HKD 78.7. Based on the issuance price, successful investors could earn a maximum paper profit of HKD 10,050 per lot.

Previously, the company received a subscription rate of 7,558.4 times during the public offering phase, with the final number of shares offered in the public offering being 792,000 shares, accounting for about 10% of the total shares offered, with an oversubscription rate as high as 6,688 times. This broke records to become the new "oversubscription king" of Hong Kong stocks.

As of the time of writing, DAHON TECH's increase narrowed to 23%, trading at HKD 61.25 per share.

The Largest Folding Bicycle Company in Mainland China

DAHON TECH holds a leading position in the rapidly growing niche market of folding bicycles.

According to data cited by the company from ZhiShi Consulting, based on retail volume and retail value in 2024, DAHON TECH's market share in the mainland China's folding bicycle industry reached 26.3% and 36.5%, making it the largest folding bicycle company in mainland China.

The company's founder and chairman, Han Dewei, obtained a Ph.D. in physics from the University of Southern California and focused on laser research. Now 83 years old, Han Dewei has continued to manage DAHON TECH since founding the "DAHON" brand in 1982, and is referred to as the "father of modern folding bicycles" in the industry.

Although folding bicycles still represent a small overall share of the global bicycle market, their growth momentum is continuously increasing.

Previously, DAHON TECH stated in an interview with the Daily Economic News that the public's demand for convenience and urban mobility, as well as applications in multiple scenarios such as "commuting + leisure," have jointly expanded the market space.

The prospectus shows that as of April 30, 2025, DAHON TECH will offer over 70 models of bicycles, covering the mass market below 2,500 yuan to the high-end market above 5,000 yuan, with mid-range products being the main sales force, accounting for 68.4% of revenue in the first four months of 2025.

Financial data indicates that DAHON TECH achieved operating revenue of 451 million yuan in 2024, with a profit of 52.3 million yuan during the period.

Clear Fundraising Purpose, Aimed at Expanding Production Capacity and Strengthening Sales Channels

With this listing, DAHON TECH expects to raise a net amount of HKD 342 million, one of its core goals is to address production capacity bottlenecks.

In recent years, the company's reliance on original equipment manufacturing (OEM) has continued to rise, with the proportion of bicycles produced by OEM suppliers increasing significantly from 29.5% of total production in 2022 to 65.5% in the first four months of 2025 According to the plan, the company intends to use approximately 30% of the raised funds (about HKD 103 million) for the modernization of production systems and expansion of operational scale. Specifically, the company expects to use about HKD 65 million to establish new production facilities in Huizhou, which are expected to commence production in the first quarter of 2027, with an initial annual production capacity of approximately 200,000 vehicles.

In addition to expanding production capacity, strengthening sales channels and brand influence is another major focus of this fundraising.

The company plans to allocate approximately 30% of the funds (about HKD 103 million) to strengthen the distribution network and strategic brand development.

The company plans to open 50 directly-operated stores, 80 shop-in-shops, and 70 dealerships in mainland China by 2025. Currently, dealer sales remain the company's main source of revenue, accounting for 69.5% of revenue in the first four months of 2025