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 leisure travel activity. As the popularity of outdoor camping rises, it has driven the demand for camping equipment such as tents and backpacks, and some wealthy individuals even go camping in the wilderness with RVs.

Because RVs are equipped with a complete living space that includes sleeping areas, kitchens, and bathrooms, they also have infrastructure such as electrical utilities and water supply systems, air conditioners, and storage space, making them very suitable for outdoor travel. Therefore, RVs have become 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 now RV manufacturers are already making moves to list on the Hong Kong stock exchange via IPO.

According to Gelonghui, the China Securities Regulatory Commission recently issued a filing notice for New Giao RV Co., Ltd. (hereinafter referred to as "New Giao RV"), which intends to issue no more than 0.276 billion overseas listed ordinary shares and list on the Hong Kong Stock Exchange. New Giao RV submitted its application to the Hong Kong Stock Exchange in May this year, with Huatai International as the exclusive sponsor.

New Giao RV designs, develops, manufactures, and sells customized towable RVs and provides supporting services, headquartered in Jiaxing, Zhejiang. Before this issuance, Miao Xuezhong and the Hong couple, along with their daughter Miao Wanyi, held about 99.17% of shares through Snowy Limited.

The company's founder, Mr. Miao Xuezhong, is 53 years old this year. He previously worked at different 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 Giao RV.

The trailers offered by New Ji'ao RV include family-friendly models for leisure, compact models for adventurers, expandable models for those wanting more RV space, and all-terrain models for ultimate semi-off-road adventures.

As of the end of 2023, New Ji'ao RV has successfully mass-produced 39 RV models, all of which are standard RVs covering three different brands and seven distinct series under the mid-range best-selling brand Snowy River, luxury brand Regent, and semi-off-road brand NEWGEN.

Image source: prospectus.

Their 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 prices varying by brand and model.

From the revenue structure perspective, from 2021 to 2023, over 98% of New Ji'ao RV's revenue comes from RV sales, with more than 70% of the revenue contributed by the Snowy River brand.

Revenue breakdown by product category, image source: prospectus.

The company's performance shows a growth trend, with revenues for New Ji'ao RV in 2021, 2022, and 2023 being approximately 0.3 billion yuan, 0.499 billion yuan, and 0.72 billion yuan, with corresponding Net incomes of approximately 25.08 million yuan, 32.956 million yuan, and 78.768 million yuan, with gross margins during the same period being 16.7%, 16.5%, and 25.1%.

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

New Ji'ao RV manufactures RV components in China and assembles them in Australia. Its products are sold through third-party Dealers, self-operated direct stores, and joint ventures, primarily targeting customers in Australia, with a small portion sold to New Zealand. From 2021 to 2023, over 90% of the company's revenue came from Australia.

North America, Europe, and Australasia are the top three RV markets globally, with the combined RV ownership in these three markets accounting for approximately 97% of the global total in 2023. Among them, Australasia is the third largest market, following North America and Europe, and with the booming tourism industry, RV road trips have become a mature travel mode in Australasia.

As of 2023, the RV ownership in Australasia is 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 vehicles, with a projected compound annual growth rate of 5.7% from 2024 to 2028, growing at a faster pace than North America and Europe.

Image source: prospectus.

The RV market in Australasia is characterized by a high concentration of industry participants. Based on the sales data from 2023, the top five players together occupy approximately 55.4% of the market share, while New Ji'ao RV sold 2,700 RVs during the same period, becoming the second largest RV company in Australasia with about 6.8% market share.

In this IPO application, New Ji'ao RV intends to raise funds for establishing a new production base and upgrading existing production facilities; to expand business operations through strengthening sales and dealership networks; to 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 growth potential in the future. The company holds a leading market share, and its performance is steadily growing, demonstrating a certain 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 its visibility and further expand its brand's influence internationally.