Cultural copper crafts giant eyes Hong Kong IPO

Xiaomi (1810) -backed company Hangzhou Tongshifu Cultural and Creative has applied to go public in Hong Kong on the back of cultural products' enduring popularity among young consumers.

The company mainly designs and develops, produces, and manufactures a wide variety of copper handicrafts. According to the prospectus, it ranked first in China’s copper-based cultural and creative crafts market in terms of total revenue, with a market share of 35 percent in 2024.

In addition, its online average transaction value per customer remained consistently above 750 yuan (HK$ 810.20) across its flagship stores on Douyin, Alibaba's (9988) Tmall and JD.com (9618).

Last year, its net profit margin increased 5.1 percentage points to 13.8 percent, while revenue rose 12.8 percent to 571.2 million yuan. Gross profit was 202.1 million yuan, an increase of 23.1 percent.

The company said the proceeds from its initial public offering will be used to invest in product development and design capabilities, strengthen sales channels and marketing capabilities, and upgrade digital and information infrastructure.

The company has launched a series of products developed from well-known intellectual property, including Game of Thrones, Kung Fu Panda, Jurassic World, and Tom and Jerry. It also acquired authorization for the Chinese animated blockbuster Ne Zha 2 this year.

CMB International Capital is the sole sponsor for the listing.

HELEN ZHONG