We are a recreational vehicle (RV) enterprise with an extensive presence in Australasia that designs, develops, manufactures and sells bespoke towable RVs, commanding the second-largest market share in Australasia’s RV industry in terms of both revenue and sales volume in 2023, according to Frost & Sullivan. With our capabilities in product research and development, manufacturing and sales and distribution, we design every aspect of our RV owners’ user experience from conceptualization to ownership. We design and manufacture our RVs with emphasis on comfortability, safety and functionality, creating mobile homes that can address RV owners’ needs for both extra physical and mental space. Our capabilities span the entire RV industry value chain, encompassing visionary design, refined manufacturing, localized sales and distribution, and auxiliary after-sales services. We pride ourselves on our commitment to customization, offering a made-to-order service for our owners to personalize various aspects of their RV, from exterior esthetics to interior layout and features. This enables us to create RVs that reflect individualized demands of different RV owners and deliver superior end-to-end owner experiences from conceptualization, design selection, customization, delivery to various after-sales services.
According to Frost & Sullivan, the Australasia RV market exhibits a relatively concentrated structure. According to the 2023 sales volume data, the top five participants in Australasia RV market collectively hold approximately 55.4% of the market share, with our Group capturing about 6.8% of the market share. In addition, in terms of revenue in 2023, the top five participants in Australasia RV market collectively hold approximately 52.0% of the market share, with our Group capturing about 7.8% of the market share.
We have expertise spanning the entire RV industry value chain, empowering our growth trajectory:
‧Brand management and RV collection rejuvenation. Since our acquisition in 2014 of Regent, a renowned Australian RV brand with a long heritage of over 30 years, we have become a notable company in the RV industry in Australasia, operating three distinctive brands, namely the mid-end and top-selling brand, Snowy River, the luxury brand, Regent, and the semi-off-road brand, NEWGEN. Envisioning our RV owners who seek to live, holiday or travel in the RVs, we offer towable RVs ranging from family-friendly models for family’s recreational use, compact models for adventurers, slide-out models for those who crave additional space in their RVs, to multi-terrain models for the ultimate semi-off-road adventure. From value-conscious newcomers to seasoned enthusiasts craving upscale luxury and personalized RVs, we cater to every type of RV owners.
‧Product research and development. We have been continuously rejuvenizing and broadening our collection of RVs to fulfill customers’ demands and drive sales. We periodically launch new models and continuously incorporate upgrades to our existing RV collection, to attract new customers with different needs, generate repurchase from existing customers and expand our product collection. During the Track Record Period, we developed and launched nine new models under Regent, six new models under Snowy River, upgraded 21 models under Snowy River, and developed and launched five new models under NEWGEN. In addition, we aspire to creating a sustainable and eco-friendly path for our owners to embrace RV electrification and are currently developing a trailblazing model of towable ERV (electric recreational vehicle). We are among the first batch of RV experts that bring ERV options to commercialization, according to Frost & Sullivan.
‧Manufacturing. We optimize our manufacturing workflows through strategic rationalization and continual upgrades of our production processes. Our production facilities in Zhejiang, China cover a sprawling area of approximately 47,567 square meters, consisting of five specialized workshops: welding, painting, lamination, tailoring and furniture, alongside two cutting-edge assembly lines. Furthermore, our two final assembly lines in Australia complement our primary manufacturing capabilities in China by undertaking final assembly of our RVs. Their proximity to end customers in the local market also enables us to swiftly address their needs for finishing touches and customization requests. From the integration of the latest machinery sourced from the United States and Australia to the development of a comprehensive technology system to execute and harmonize with high degrees of customization of our RVs, every element of our production process is engineered to uphold rigorous standards of quality and meet customer expectations. Wedding our proprietary knowledge with our refined techniques in production from all aspects, our manufacturing excellence allows us to craft RVs with strong flexibility, advanced automation, and superior operating efficiency.
‧Sales and distribution. We market our RVs and interact with customers through a dynamic, multifaceted sales and distribution network and a myriad of marketing initiatives across Australasia. As of June 30, 2024, we had built a robust sales and distribution network consisting of 13 third-party dealer stores, two self-owned stores alongside online official websites, and four JV stores with our JV partners in Australasia. Our geographic footprint spans across major cities in Australasia, including Melbourne, Sydney, Brisbane, Adelaide, Perth, Canberra, Auckland and Christchurch, with a strategic presence of one to three dealer stores, JV stores, and/or self-owned stores covering each location. Notably, our market share in Queensland’s vibrant RV market surpassed our performance in the broader Australian RV market in terms of sales volumes in 2023, according to Frost & Sullivan. Additionally, we actively engage in targeted marketing through online promotions and offline events to further enhance our brand recognition and acquire customers.
Owing to our end-to-end management capabilities from RV conceptualization to manufacturing and eventual sales and distribution, we have become a RV precursor, ranking second among Australasia’s standard caravans in terms of sales volumes in 2023. Leveraging our demonstrated proficiency in the RV industry value chain and our solid and growing customer base in Australasia, we have achieved robust sales growth over the Track Record Period. In 2021, 2022 and 2023 and for the six months ended June 30, 2024, we delivered an aggregate of 1,330, 2,127, 2,694 and 1,427 RVs to our customers, respectively, representing an increase of 59.9% from 2021 to 2022 and 26.7% from 2022 to 2023.
Our revenues continued to soar during the Track Record Period. We achieved revenues of RMB299.7 million in 2021, RMB498.8 million in 2022, and RMB720.3 million in 2023, with corresponding gross profit margins of 16.7%, 16.5% and 25.1% for those years. Our revenues were RMB422.0 million for the six months ended June 30, 2024, with corresponding gross profit margin of 32.0% for the same period. Our net profit grew significantly from RMB25.1 million in 2021 to RMB33.0 million in 2022, and further to RMB78.8 million in 2023. Our net profit was RMB40.4 million for the six months ended June 30, 2024. Our adjusted net profit (non-HKFRS measure) was RMB25.1 million, RMB33.0 million, RMB78.8 million and RMB55.7 million in 2021, 2022 and 2023 and for the six months ended June 30, 2024, respectively.
Source: New Gonow RV (00805) Prospectus (IPO Date : 2024/12/31) |