We are mainland China’s largest folding bicycle company in terms of both retail sales volume and retail sales value of folding bicycles in 2024. Folding bicycles are compact and portable bicycles designed with mechanisms that allow them to be folded into a smaller size for easy storage and transport. Our DAHON brand was founded in 1982 by Dr. Hon Ta-Wei. With over 40 years of development, our DAHON brand has garnered strong reputation of technological capabilities, innovation, craftsmanship, dedication to better performance and product quality. According to CIC, in terms of retail sales volume in 2024, we ranked first in the mainland China folding bicycle industry, representing a market share of 26.3%, and we also ranked first in the mainland China folding bicycle industry in terms of retail sales value in 2024, representing a market share of 36.5%.
Anchored upon proven best sellers such as our P8 together with newly developed models, we have developed a comprehensive bicycle portfolio designed to meet the varied needs of different consumer segments, from urban commuters to adventure seekers and competitive racers. Throughout our history, our portfolio has grown from folding bicycles to also encompass other bicycle types including road bicycles, mountain bicycles, children’s bicycles and electric-assisted bicycles, reflecting our commitment to innovation and responsiveness towards market demand. As of April 30, 2025, we offer over 70 bicycle models.
We are dedicated to advancing folding bicycle technology through sustained research and development investments and developed innovations that span across fundamental aspects of bicycle design, from frame structure to riding dynamics. As of April 30, 2025, we hold 113 effective patents in mainland China, making us the brand with the highest number of patents in China’s folding bicycle industry according to CIC. We also hold 22 effective patents in the U.S., Europe and Japan as of the same date. As of April 30, 2025, we had licensed our patented technologies and our DAHON brand to a total of 18 and 16 industry peers through our Sharing 360 Program.
We have developed a comprehensive and efficient sales and distribution network that continuously increases the coverage and penetration of our products spanning both offline and online channels in mainland China. We partnered with 38 distributors across 30 provincial-level administrative regions in the PRC, covering 680 retail outlets, as of April 30, 2025. We have also expanded into online channels, including major e-commerce and social media platforms in mainland China, namely JD.com, Tmall, Douyin and Pinduoduo. During the Track Record Period, revenue generated from our online direct sales surged from RMB14.1 million in 2022 to RMB100.2 million in 2024, representing a CAGR of 166.1%. As of December 31, 2024, although to a substantially lesser extent, we have also sold our products in 28 other countries and regions, including Southeast Asia, the U.S. and Europe.
The folding bicycle industry is still a niche but fast-growing segment within the overall bicycle industry. In terms of retail sales value and retail sales volume, the global folding bicycle segment accounted for only 5.3% and 2.1%, respectively, in 2024. In terms of retail sales value, the folding bicycle segment is projected to reach RMB40.7 billion by 2029, representing a CAGR of 12.0% from 2024 to 2029. In terms of retail sales volume, the global folding bicycle industry is projected to reach 5.2 million units in 2029, representing a CAGR of 7.3% during the same period. With our strong brand influence, market leadership position, comprehensive product coverage and proven technological innovation capabilities, we believe we are well-positioned to capture the growth opportunities in the folding bicycle market as well as the broader bicycle market and further strengthen our industry leadership.
As a leader among folding bicycle brands in mainland China, we have achieved strong business and financial growth during the Track Record Period. Our sales volume increased from 148,956 units in 2022 to 156,877 units in 2023, and further increased to 229,525 units in 2024, representing a CAGR of 24.1%, and from 63,758 units for the four months ended April 30, 2024 to 93,398 units for the four months ended April 30, 2025, representing a growth rate of 46.5%.
Our revenue increased from RMB254.2 million in 2022 to RMB300.2 million in 2023, and further increased to RMB450.7 million in 2024, representing a CAGR of 33.1%, and from RMB125.8 million for the four months ended April 30, 2024 to RMB184.7 million for the four months ended April 30, 2025, representing a growth rate of 46.8%. In addition, our net profit increased from RMB31.4 million in 2022 to RMB34.9 million in 2023, and further increased to RMB52.3 million for the same period in 2024, representing a CAGR of 29.1%, and from RMB12.7 million for the four months ended April 30, 2024 to RMB21.5 million for the four months ended April 30, 2025, representing a growth rate of 69.3%. According to CIC, among the top five folding bicycle companies in mainland China in terms of sales volume in 2024, we achieved the fastest growth rate in sales volume and revenue from 2023 to 2024.
Source: Dahon Tech (02543) Prospectus (IPO Date : 2025/09/01) |