NewTimeSpace | IPO Watch: Ridge Outdoor, the First HKEX-listed Fishing Gear Player, Files for IPO – Global No.1 Market Share Yet Plagued by Industry Cycles and Tariff Policies

Ridge Outdoor International Limited (02720.HK) launched its H-share offering on January 31, 2026, with an offer price range of HK$11.25 to HK$12.25 per share. Each trading lot consists of 500 shares, with an entry cost of approximately HK$6,186.78, and the company is scheduled to list on the Main Board of the Hong Kong Exchanges and Clearing Limited (HKEX) on February 10, 2026. As the world’s largest fishing gear manufacturer, it held a 23.1% global market share in 2024. However, its performance has seen significant fluctuations in the post-pandemic era, with its business highly reliant on the OEM/ODM model, a concentrated customer base, and exposure to potential US tariff policy risks. This makes its listing journey characterized by the distinct strengths of an industry leader alongside uncertainties in the external environment.

Core Highlights: Global Leadership and Dual Business Model

Leading global market share: According to a Frost & Sullivan report, Ridge Outdoor ranks as the world’s largest fishing gear manufacturer by 2024 revenue, boasting a whopping 23.1% global market share. It is also China’s largest fishing gear manufacturer with a 28.4% domestic market share. Its product portfolio covers three major categories–bed chairs & accessories, bags and tents–with over 10,000 SKUs, serving diverse outdoor scenarios such as fishing and camping.

Dual-drive model of OEM/ODM + proprietary brands: The company’s core revenue comes from integrated design and manufacturing OEM/ODM services for world-renowned outdoor brands, a model that has accounted for over 90% of its annual revenue for years. Its customer network includes industry giants such as Decathlon, Pure Fishing and Rapala VMC. In 2017, the company acquired Solar, a well-known British carp fishing brand, making a strategic foray into the proprietary brand business and laying the foundation for future growth through brand acquisitions or incubation.

Global production and sales network: The company operates three specialized manufacturing facilities in Deqing, Zhejiang, with a total annual production capacity of 6.2 million units and an 80.2% capacity utilization rate in 2024. Its products are sold to more than 40 countries and regions worldwide, with Europe as its largest market. The company plans to use the IPO proceeds to further expand production facilities in Europe and its global sales and service network.

Financial Performance: Post-Pandemic Performance Fluctuations with Improved Profitability

Ridge Outdoor’s financial data clearly reflects its sensitivity to macroeconomic conditions and industry cycles: revenue retreated as pandemic-driven dividends faded, yet its gross profit margin has improved steadily through product mix optimization and efficiency enhancement.

"Roller-coaster" revenue trend: The company’s revenue hit a peak of RMB 818 million in 2022, mainly benefiting from the surging demand for outdoor activities during the pandemic. As the pandemic’s impact subsided, revenue fell 43.4% year-on-year to RMB 463 million in 2023. In 2024, driven by market recovery and customer expansion, revenue rebounded 23.8% year-on-year to RMB 573 million. In the first eight months of 2025, revenue reached RMB 460 million, a 17.7% year-on-year increase, indicating a continued recovery trend.

Gross profit margin rising against the trend: Despite revenue volatility, the company’s gross profit margin has risen steadily from 23.2% in 2022 to 26.6% in 2024, and further climbed to 27.7% in the first eight months of 2025. The improvement is attributable to higher production efficiency, favorable exchange rate fluctuations, lower raw material costs and an increased sales proportion of high-margin products (e.g., electric luggage carts, high-end fishing chairs).

Basically healthy cash flow and operating metrics: The company’s operating cash flow has remained positive, though its scale fluctuates with profits. Trade receivable turnover days have stayed in the range of 48 to 68 days, and inventory turnover days between 85 and 115 days, indicating relatively robust working capital management.

IPO Details: Fundraising for Global Layout and Capacity Upgrading

Ridge Outdoor’s offering period runs from January 31 to February 5, 2026, with an offer price range of HK$11.25 to HK$12.25 per share, 500 shares per trading lot and an entry cost of approximately HK$6,186.78. A total of 28.2 million shares are offered globally, including 2.82 million shares in the public offering, and the company is set to list on the HKEX Main Board on February 10, 2026. Based on the maximum offer price, the expected net IPO proceeds are approximately HK$272 million.

The offering has successfully attracted two cornerstone investors–Horizon Ventures and Huangshan Dejun. Assuming the mid-point offer price of HK$11.75 per share, they have subscribed for shares worth HK$80 million and HK$50 million respectively, accounting for approximately 39.23% of the globally offered shares in total. Notably, Huangshan Dejun has a state-owned background, demonstrating the support of local industrial capital for the company’s development.

Fundraising focused on core business expansion: The IPO proceeds will be mainly used for the following purposes: approximately 50% for expanding and upgrading production facilities in Europe and China, and establishing overseas service centers; approximately 30% for product R&D, brand building and general working capital; and approximately 20% for potential strategic investments or acquisitions to expand the product portfolio and market share.

Risk Focus: High Customer Concentration, Tariff Policies and Industry Cycles

Elevated customer concentration risk: The company’s revenue is heavily dependent on key customers. In the first eight months of 2025, the top five customers contributed 54.9% of total revenue, with the largest customer accounting for 17.7%. Any deterioration in relationships with major customers or loss of orders could deal a significant blow to its performance.

Uncertainties in US tariff policies: The company’s products exported to the US are subject to high tariffs (tax rates for some tent products reach 34.5%-36.3%), and the revenue share of the North American market has dropped from 18.8% in 2022 to 6.5% in the first eight months of 2025. Although customers currently bear the tariffs and orders remain stable, any further tightening of US trade policies in the future may undermine the company’s competitiveness in the US market and customers’willingness to cooperate.

Cyclical fluctuations in industry demand: The company’s performance has proven to be highly sensitive to macroeconomic conditions (e.g., the pandemic) and changes in consumption trends. As a discretionary consumer good, fishing gear demand is susceptible to economic cycles, shifts in consumers’leisure preferences and seasonal factors, which may lead to significant revenue fluctuations.

Conclusion

Ridge Outdoor’s IPO represents a case of a manufacturing enterprise with global leading status in a niche segment, yet featuring a traditional business model and exposure to multiple external factors. Its core values lie in its solid market share, extensive customer network and continuously improving profitability, while it inevitably faces structural challenges such as high customer concentration, geopolitical policy risks and cyclical industry fluctuations. The company’s business and financial performance provide a concrete sample for observing the outdoor gear manufacturing industry, analyzing cyclical consumer industries and evaluating global supply chain enterprises. Its market valuation will comprehensively reflect the overall judgment on its industry position, profit resilience and external risk exposure.

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