In recent years, people's interest in outdoor activities has continued to grow. Especially in North America, Europe and Australia, camping has become a major leisure tourism project. As the popularity of outdoor camping has increased, demand for camping supplies such as tents and backpacks has increased, and some wealthy people even drive motorhomes to go camping outdoors.

Since motorhomes have fully equipped living spaces such as sleeping areas, kitchens, and bathrooms, camper vans are also equipped with infrastructure such as electricity and water supply systems, air conditioning, and storage space, making them ideal for outdoor trips while driving, so motorhomes have become an ideal choice for many travelers seeking adventure and comfort.

According to Frost & Sullivan, the number of campers worldwide exceeded 0.279 billion yuan in 2023, and is expected to grow further to 0.439 billion by 2028, with a compound annual growth rate of 8.5% from 2024 to 2028.

If there is demand, there will be a market. Now some motorhome manufacturers are already impacting Hong Kong stock IPOs.

Gelonghui learned that recently, the China Securities Regulatory Commission issued a filing notice for the overseas issuance and listing of Xinjio Touring Car Co., Ltd. (hereinafter referred to as “Xinjio Touring Car”). The company plans to issue no more than 0.276 billion shares of overseas listed common shares and list them on the Hong Kong Stock Exchange. New Geo Touring Car submitted its listing to the Hong Kong Stock Exchange in May of this year. The sole sponsor is Huatai International.

Xingeo Motorhomes designs, develops, manufactures and sells custom trailer motorhomes, and provides supporting services. It is headquartered in Jiaxing, Zhejiang. Prior to this launch, Miao Xuezhong, **Hong, and their daughter Miao Wanyi held approximately 99.17% of the shares through SnowyLimited.

The founder of the company, Mr. Miao Xuezhong, is 53 years old. He has worked for various subsidiaries of Geely Automobile Group Co., Ltd., served as the president of Zhejiang Geely Automobile Co., Ltd., and is now the executive director, CEO and chairman of the board of directors of Xinjeo Touring Car.

The trailer motorhomes offered by New Geo Motorhomes include family models for family fun, compact models for adventurers, retractable models for those looking to increase their motorhome space, and multi-terrain models for the ultimate semi-off-road adventure.

By the end of 2023, Xinzio Motorhome has successfully mass-produced 39 motorhomes, all standard motorhomes, covering seven different series under the three brands of the best-selling mid-range brand Snowy River, luxury brand Regent, and semi-off-road brand NewGen.

Photo source: Prospectus

The motorhomes can be sold and delivered in Australia and New Zealand. The base price before tax ranges from 0.0509 million Australian dollars (approximately RMB 0.2428 million) to 0.085 million Australian dollars (approximately RMB 0.4054 million), with prices for different brands and models.

Looking at the revenue structure, from 2021 to 2023, more than 98% of Xingeo Motorhome's revenue came from the motorhome sales business, of which more than 70% of revenue was contributed by the Snowy River brand.

Breakdown of revenue by product, image source: Prospectus

The company's performance showed an upward trend. In 2021, 2022 and 2023, the operating income of Xinzio Touring Car was about 0.3 billion yuan, 0.499 billion yuan, and 0.72 billion yuan respectively, and the corresponding net profit was about 25.08 million yuan, 32.956 million yuan, and 78.768 million yuan, respectively, with gross margins of 16.7%, 16.5%, and 25.1% for the same period.

Looking at the motorhome industry chain, the upstream mainly procures basic raw materials and components such as metal and plastic; the midstream focuses on the assembly and manufacture of motorhomes, including standard production and customized modifications to meet the preferences of specific customers; the downstream includes sales and provision of after-sales services such as maintenance and replacement parts.

New Geo Motorhomes produces parts for motorhomes in China and is assembled in Australia. Its products are sold through third party dealers, its own direct stores and joint ventures, mainly to Australian customers, and a small number are sold to New Zealand. From 2021 to 2023, more than 90% of the company's revenue came from Australia.

North America, Europe, and Australasia are the top three motorhome markets in the world. In 2023, the total number of motorhomes owned in these three markets will account for about 97% of the world's total. Among them, Australasia is the third-largest market after North America and Europe. With the booming development of tourism, motorhome road trips have become a mature form of travel in Australasia.

The number of motorhomes owned in Australia in 2023 was 0.8954 million, with a compound annual growth rate of 3.9% from 2019 to 2023. By 2028, the total number of motorhomes in use in Australasia is expected to reach 1.175 million. The compound annual growth rate from 2024 to 2028 is expected to be 5.7%, which is faster than in North America and Europe.

Photo source: Prospectus

The motorhome market in Australia is highly concentrated. Judging from the 2023 sales data, the top five players together accounted for about 55.4% of the market share. During the same period, Singeo Motorhomes sold 2,700 motorhomes, making it the second-largest motorhome company in Australasia with a market share of about 6.8%.

With this listing application, Xinzio Motorhome plans to raise capital to establish a new production base and upgrade existing production plants; expand business operations by strengthening sales and distribution networks; continue product development work; and use it for working capital and general corporate purposes.

Overall, the Australian motorhome market, where Singeo Motorhome is located, still has a lot of room for development in the future, and the company's market share is high, and its performance is growing steadily, and it has a certain competitive advantage. If the company can be successfully listed in Hong Kong, it will not only be able to obtain a long-term financing to support the company's development, but also help increase the company's popularity and further expand the brand's influence internationally.