In recent years, people's interest in outdoor activities has been continuously increasing, especially in regions such as North America, Europe, and Australia, where camping has become a major part of Leisure travel. As outdoor camping has gained popularity, it has driven the growth in demand for camping supplies like tents and backpacks, with some wealthy individuals even driving RVs for camping in the wild.

Since RVs come equipped with living spaces that include sleeping areas, kitchens, and bathrooms, as well as electrical utilities, water supply systems, Air Conditioners, and storage space, they are very suitable for outdoor traveling, making RVs an ideal choice for many travelers seeking adventure and comfort.

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

Where there is demand, there is a market, and RV manufacturers are now pushing for an IPO listing in the Hong Kong Stock Exchange.

Gelonghui learned that recently, the China Securities Regulatory Commission issued a filing notice for the overseas issuance and listing of New Geely RV Co., Ltd. (hereinafter referred to as "New Geely RV"). The company plans to issue no more than 0.276 billion overseas listed common shares and list on the Hong Kong Stock Exchange. New Geely RV submitted its application to the Hong Kong Stock Exchange in May this year, with Huatai International as the exclusive sponsor.

New Geely RV designs, develops, manufactures, and sells custom trailer RVs and provides supporting services, with its headquarters located in Jiaxing, Zhejiang. Before this issuance, Miao Xuezhong, the **Hong couple**, and their daughter Miao Wanyi held approximately 99.17% of the shares through SnowyLimited.

Mr. Miao Xuezhong, the company's founder, is 53 years old this year. He has worked in 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 New Geely RV.

The towed RVs offered by New Jiao include family-friendly models suitable for home entertainment, compact models for adventurers, expandable models for those looking to increase RV space, and multi-terrain models for ultimate semi-off-road adventures.

By the end of 2023, New Jiao has successfully mass-produced 39 models of RVs, all of which are standard RVs, covering seven different series under the mid-range best-selling brand Snowy River, the luxury brand Regent, and the semi-off-road brand NEWGEN.

Image source: prospectus.

The RVs can be sold and delivered in Australia and New Zealand, with pre-tax base prices ranging from 0.0509 million Australian Dollars (approximately 0.2428 million RMB) to 0.085 million Australian Dollars (approximately 0.4054 million RMB), with varying prices depending on the brand and model.

In terms of revenue structure, from 2021 to 2023, over 98% of New Jiao's revenue came from the RV sales business, with more than 70% of revenue contributed by the Snowy River brand.

Revenue details by product category, image source: prospectus.

The company's performance shows a growth trend, with operating revenue of approximately 0.3 billion yuan, 0.499 billion yuan, and 0.72 billion yuan in 2021, 2022, and 2023 respectively, with corresponding net income of approximately 25.08 million yuan, 32.956 million yuan, and 78.768 million yuan, and a gross margin of 16.7%, 16.5%, and 25.1% during the same period.

From the RV Industry Chain perspective, the upstream mainly involves procurement of basic raw materials and components like Metal, Plastics; the midstream focuses on assembly and manufacturing of RVs, including standard production and custom modifications to meet specific client preferences; the downstream includes sales and after-sales services such as maintenance and replacement of parts.

New Ji'ao RV manufactures RV components in China and assembles them in Australia. Its products are sold through third-party Dealers, self-operated stores, and joint venture stores, primarily to customers in Australia, with a small portion also 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 RV markets in the world, with a combined RV ownership in 2023 accounting for about 97% of the global total. Among them, Australasia is the third-largest market, following North America and Europe, where RV road trips have become a mature form of travel with the booming tourism industry.

In 2023, the RV ownership in Australasia was 0.8954 million vehicles, with a compound annual growth rate of 3.9% from 2019 to 2023. It is expected that by 2028, the total number of RVs in use in Australasia will reach 1.175 million units, with a projected compound annual growth rate of 5.7% from 2024 to 2028, surpassing the growth rates of North America and Europe.

Image source: prospectus.

The RV market in Australasia is highly concentrated. According to the 2023 sales data, the top five participants collectively hold about 55.4% of the market share. During the same period, New Ji'ao RV sold 2,700 RVs, securing approximately 6.8% market share and becoming the second-largest RV company in Australasia.

In this listing application, New Ji'ao RV plans to raise funds to establish a new production base and upgrade existing production facilities; expand business operations by strengthening sales and distribution networks; continue product research and development; and for working capital and general corporate purposes.

Overall, the RV market in Australasia where New Ji'ao RV operates still has considerable room for growth. The company's market share is high, and its performance has been steadily increasing, giving it a competitive advantage. If the company can successfully list in Hong Kong, it will not only secure long-term financing to support its development but also enhance corporate visibility and further expand its brand's international influence.