DAHON TECH (02543) reported solid topline and bottom-line growth for the financial year ended 31 December 2025, supported by robust domestic demand, rapid online expansion and firm export recovery following its September listing on the Hong Kong Main Board.
Revenue climbed 42.30% year on year (YoY) to RMB 641.50 million, driven mainly by higher bicycle sales and stronger online direct-to-consumer performance. Profit attributable to equity shareholders increased 21.40% to RMB 63.50 million, while adjusted net profit (excluding listing and share-based payment expenses) rose 45.60% to RMB 76.20 million.
Gross profit expanded 44.0% to RMB 214.30 million, lifting the gross margin by 0.4 percentage point to 33.4%. Basic earnings per share improved to RMB 2.67 (2024: RMB 2.49). The Board recommended a final cash dividend of RMB 1.118 per share, subject to shareholder approval at the May 2026 AGM.
Business mix remained concentrated in core bicycles, which contributed 98.4% of total revenue and grew 42.7% to RMB 631.10 million. Accessories and related products added RMB 4.30 million (+26.1%), and licensing & royalty income reached RMB 6.10 million (+19.9%).
From a channel perspective, domestic sales accounted for 93.1% of turnover, advancing 41.9% to RMB 597.40 million. Within China, distributor sales grew 34.7% to RMB 413.60 million, while online direct sales surged 67.7% to RMB 167.90 million, underscoring effective e-commerce and social-media initiatives. Offshore revenue increased 47.9% to RMB 44.10 million as international demand recovered.
Operating cost trends reflected expansion initiatives: selling & distribution expenses jumped 59.8% to RMB 75.80 million on heightened marketing and staffing, administrative expenses rose 65.0% to RMB 38.40 million mainly on post-listing compliance costs, and R&D investment advanced 37.5% to RMB 24.10 million amid continued focus on the “DAHON-V” technology suite and electric-assist products.
The September 2025 IPO materially strengthened liquidity and equity. Cash and cash equivalents closed the year at RMB 419.30 million (2024: RMB 101.79 million), while shareholders’ equity quadrupled to RMB 530.60 million, reflecting IPO proceeds of approximately RMB 407.90 million. Capital expenditure totalled RMB 10.00 million, earmarked for new Huizhou production facilities and IT upgrades.
Management highlighted key growth drivers: accelerating urban demand for compact, eco-friendly mobility; expansion of the “Sharing 360” licensing ecosystem (9 technology licensees and 17 brand partners); and deeper penetration of global e-commerce platforms. The company plans further capacity upgrades, enhanced R&D into lightweight and intelligent riding technologies, and accelerated rollout of electric-assist models to capture a market that industry consultant CIC projects will grow from RMB 23.10 billion in 2024 to RMB 40.70 billion by 2029 (12% CAGR).
Identified challenges include raw-material price volatility, global destocking cycles and intensifying competition, which DAHON TECH aims to mitigate through product premiumisation, supply-chain optimisation and continued technological differentiation.
Subject to shareholder approval, the RMB 1.118 per share final dividend is scheduled for payment on or around 18 June 2026, with the record date set for 29 May 2026. The company confirms it has maintained the required public float since listing and reports no significant post-balance-sheet events.
Comments