NewTimeSpace | IPO Watch: Leading Copper Cultural & Creative Enterprise Tongshifu Launches Hong Kong IPO, IP Portfolio Builds Growth Moat

HANGZHOU TONGSHIFU CULTURAL AND CREATIVE (GROUP) CO., LTD. (00664.HK) officially kicked off its H-share IPO on March 23, 2026. The offer price ranges from HK$60 to HK$68 per share, with 100 shares per lot and an admission fee of HK$6,868.57. Listing on the Main Board of the Hong Kong Stock Exchange is scheduled for March 31, 2026. The company plans to offer 7,406,800 shares globally, with an estimated offering proceeds of approximately HK$474 million at the midpoint offer price of HK$64.

As the undisputed leader in China's copper cultural and creative craft products market, Tongshifu has established a solid brand moat in the cultural and creative industry by integrating traditional craftsmanship with modern design. CCI International has been introduced as a cornerstone investor, subscribing HK$30 million for 468,700 shares, accounting for 5.87% of the global offering, providing stable anchor support for the listing.

Key Highlights: Hidden Champion in Copper Cultural & Creative Products, IP Matrix Drives Growth

Tongshifu’s core strength lies in its dominant position in the niche segment of copper cultural and creative products. According to Frost & Sullivan, for the year ended December 31, 2024, the company ranked first in China's copper cultural and creative craft products market by total revenue, with a market share of 35.0%; by online revenue, its market share reached 44.1%.

Amid a concentrated industry landscape (the top three players accounting for 71.9% of total market share), Tongshifu has secured an unshakable leading position through brand accumulation and craftsmanship advantages.

Copper cultural and creative products remain the core of its product portfolio. From 2022 to the first nine months of 2025, revenue from copper products accounted for 95.4%, 96.3%, 96.6% and 94.8% of total revenue, respectively. On this basis, the company has expanded into plastic figurines & toys, silver cultural and creative products, gold cultural and creative products and other material categories.

Notably, revenue from gold cultural and creative products surged from RMB 1.274 million in 2024 to RMB 9.496 million in the first nine months of 2025, showing strong growth potential. The company markets 999 pure gold products under its sub-brand "Xijiang Gold Shop", demonstrating its ability to upgrade from copper to precious metals.

In terms of IP layout, the company has built a comprehensive IP portfolio covering proprietary and licensed IPs, supported by a robust system of design patents, copyrights and proprietary technologies.

As of September 30, 2025, the company owned 1,776 artistic copyrights, 171 design patents and 12 utility model patents. In the first nine months of 2025, SKUs based on proprietary IP contributed 88.3% of total revenue, while licensed IP-based SKUs accounted for 11.7%.

Strong IP development and operation capabilities enable the company to continuously launch best-selling products in line with market trends, forming a positive cycle of "IP–Products–Consumption".

The company adopts online channels as its primary sales platform. In the first nine months of 2025, online revenue accounted for 81.2% of total revenue, among which online direct sales represented 70.9%, serving as the core revenue source. Online flagship stores serve individual consumers with small-volume purchases, forming a stable business foundation.

Meanwhile, the company is accelerating offline expansion: the number of directly-operated stores increased from 18 at the end of September 2025 to 36 as of the Latest Practicable Date, covering 18 cities in China. It is also developing new channels including high-end retail chains, museum and cultural tourism cooperation projects.

Financial Performance: Steadily Improving Profitability, Online Direct Sales as Core Gross Profit Driver

During the Track Record Period (2022 to September 2025), Tongshifu achieved steady growth with mild fluctuations. Its core copper products demonstrated strong growth resilience, while diversified product lines gradually gained momentum.

Total revenue rose from RMB 503 million in 2022 to RMB 571 million in 2024, representing a CAGR of approximately 6.7%. Revenue reached RMB 448 million in the first nine months of 2025, maintaining stable performance. Copper cultural and creative products remained the absolute core, with revenue climbing from RMB 480 million in 2022 to RMB 551 million in 2024, accounting for over 95% of total revenue, among which copper ornaments accounted for more than 85%.

Gold cultural and creative products became a new growth driver, with revenue surging to RMB 9.496 million in 9M 2025, accounting for 2.1% of total revenue. Based on unaudited preliminary financial data, full-year 2025 revenue is expected to reach RMB 617 million, up 8.1% year-on-year.

The company’s overall gross margin stayed between 32% and 36%, reaching 35.4% in 2024, an increase of 3.2 percentage points from 2022, mainly driven by improved production efficiency and optimized product mix.

Gross margin of copper cultural and creative products stood at 31.9%–35.3%; plastic figurines and toys posted the highest margin (43.6%–51.2%); silver products maintained 36.8%–42.9%; gold products recorded a relatively low margin (16.1%–18.3%), which is expected to improve with scale expansion.

The full-year 2025 gross margin was 33.7%, down slightly from 35.4% in 2024, mainly affected by rising copper prices and listing-related expenses.

Net profit declined first and then rebounded from 2022 to 2024. Net profit dropped to RMB 44.131 million in 2023 from RMB 56.938 million in 2022 due to increased investment in technology upgrading, marketing and R&D. It rebounded sharply to RMB 78.982 million in 2024, up 79.0% year-on-year.

Net profit for 9M 2025 was RMB 41.553 million, down 22.0% year-on-year, mainly due to IPO-related expenses. Full-year 2025 net profit is estimated at RMB 47.80 million, down 39.5% year-on-year, mainly due to listing expenses and higher raw material costs.

IPO Details: Proceeds for Capacity Expansion & Channel Upgrade

The IPO offer price ranges from HK$60 to HK$68 per share, 100 shares per lot, with an entry fee of HK$6,868.57. The subscription period runs from March 23 to March 26, 2026, with listing scheduled for March 31, 2026.

The company plans to issue 7,406,800 shares globally, raising approximately HK$474 million at the midpoint price of HK$64.

CCI International subscribed HK$30 million as a cornerstone investor, representing 5.87% of the global offering.

Risk Factors

Raw material price volatility: Copper is the key raw material, with direct material costs accounting for 47%–52% of total operating costs. Copper prices rose at a CAGR of 10.7% from 2020 to 2025. Since the company cannot fully pass on cost increases, persistent copper price rises will pressure gross margins.

IP dependency and innovation risks: The top five IPs contributed 23.4% of total revenue in 9M 2025. Failure of proprietary IPs or termination of licensed IP cooperation may hurt product launches and sales.

Inventory risks: As of September 30, 2025, inventory amounted to RMB 153 million, with an average inventory turnover period of 133 days. Seasonal and handmade products face obsolescence and impairment risks.

Offline expansion uncertainty: Rapid offline store expansion involves high capital expenditure and operating costs, which may weigh on profitability if sales underperform.

Conclusion

As the absolute leader in China's copper cultural and creative craft products market, Tongshifu’s Hong Kong IPO has attracted wide market attention. Its core investment value lies in its leading niche market position, strong IP development and operation capabilities, stable financial performance, and growth potential from expanding into precious metal categories such as gold.

Investors should note risks including cost pressure from rising copper prices, IP iteration and talent dependency, inventory management, and uncertainties in offline channel expansion.

Going forward, the market will focus on whether the company can consolidate its competitive edge, manage raw material cost fluctuations, advance IP innovation and product diversification, and balance online-offline channel development.

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