Australasia is the third largest RV market in the world after North America and Europe, and is one of the fastest-growing RV markets. New Gonow Recreational Vehicles, founded by the former "Geely Marshal " Miao Xuezhong, occupies a leading position in the market, with its performance, popularity and brand reputation continuing to improve. It is reported that after submitting its application for main board listing to the Hong Kong Stock Exchange in the first half of the year, the Company received a notice of record-filing from the China Securities Regulatory Commission on 9 September, and its IPO plan is proceeding smoothly.
The global RV market is thriving, with a diverse landscape
RVs, with the dual functions of "home" and "vehicle", are movable homes that combine "clothing, food, housing, and transportation" in one, which can fully satisfy people's demand for personalized and free travel. Its history can be traced back to the popularity of camping in the United States in the 1920s, and since then, RVs have rapidly become popular all over the world. With its high degree of freedom and flexibility, RV travel has become the choice of more and more travelers.
Overall, the global RV market is characterized by fierce competition and a large number of players, with the North American and European RV markets being relatively mature, while the Chinese RV market is still in its early stages. Among the well-known RV companies, Thor Industries, Forest River, Winnebago, and others in the United States have gained widespread recognition from consumers for their excellent design and high-quality manufacturing processes, and have dominant positions in the market.
Several well-known brands are distinctive, with Thor Industries known for its innovative product design and global market presence, Winnebago Industries for its high-end RVs and innovative technology, especially in its exploration of the electric RV segment, and Forest River for its reliability and diverse product line. Through continuous technological innovation and market expansion strategies, these brands have steadily maintained their positions at the forefront of the industry. Some well-known local manufacturers in the European RV market include Hymer in Germany, Dethleffs in the Netherlands, and Auto-Trail in the UK. In the Australasian market, well-known RV brands include Jayco, Snowy River, and Regent.
In terms of category, RVs can be mainly categorized into two types: towable RVs and motorized RVs. Towable RVs can be further categorized into standard caravans, pop-tops, and camper trailers. According to Frost & Sullivan (the same below), in 2023, the standard caravan was the major segment in the Australasian market, capturing a substantial 72.1% share, up from 67.1% in 2019. New Gonow Recreational Vehicles, which owns well-known brands such as Snowy River and Regent, is the top RV company in the Australasian market and ranked second in terms of sales in the Australasian market in 2023.
By accurately positioning itself, New Gonow Recreational Vehicles is able to break through and stand out in the market
Driven by a booming tourism industry and a high number of international visitors, road trips through RVs have become a mature travel method in Australasia. Measured by RV household penetration, Australasia had a remarkable ownership rate of 78.8 RVs per thousand households in 2023, significantly surpassing Europe’s rate of 21.7 and ranking second globally. Tourists traveling in RVs also inject vitality into the economy. It is expected that the total RV in use in Australasia will reach 1,175.0 thousand units in 2028, representing a CAGR of 5.7% from 2024, outpacing the growth in North America and Europe.
The Australasia RV market exhibits a relatively concentrated structure, with the top five participants holding approximately 55.4% of the market share in 2023. New Gonow Recreational Vehicles, which primarily manufactures and sells standard caravans, has a significant competitive advantage. As a high-end product in the towable RV market, standard caravans have a higher barrier to entry in terms of technology, and companies that excel in this field tend to have strong manufacturing capabilities, allowing them to innovate and produce high-quality, durable RVs equipped with advanced features and technology, and have a greater chance of competing for market pricing power and increasing brand premiums. New Gonow Recreational Vehicles is undoubtedly a top participant in this market.
According to A1 prospectus, the development journey of New Gonow Recreational Vehicles began in 2014. The Company's founder and CEO, Miao Xuezhong, previously served as a senior executive at Geely Automobile, with over 25 years of experience in the automotive industry and extensive management experience. In September 2014, he led the Company to acquire Regent, an Australian RV brand with a history of more than 30 years, thus enabling New Gonow Recreational Vehicles to gradually expand its presence in the RV market and continue to broaden its product portfolio and stand out from the competition.
Products are the foundation of survival for RV companies, and New Gonow Recreational Vehicles offers a full spectrum of functionalities and an expansive range of auxiliary services through the design, development, manufacturing, and sales of various bespoke towable RVs. As of 31 December 2023, the Company has successfully mass-produced 39 RV models, which are all standard caravans, spanning seven distinct series under three characteristic brands: the mid-range best-selling brand Snowy River, luxury brand Regent, and semi-off-road brand NEWGEN. With a comprehensive product lineup, New Gonow Recreational Vehicles can meet the full range of demands from entry-level to high-end luxury models.
Despite the overall growth of the RV market, competition has become increasingly fierce with more and more brands entering the Australasian market. American brand Jayco has the highest market share, reaching 31.5% in 2023 and holding a leading position. The world's largest RV manufacturers such as Thor Industries and Forest River are also continuously competing for market share. To stay ahead of the competition and achieve further development, it is essential for New Gonow Recreational Vehicles to continuously introduce new products, technologies, and services to improve its competitiveness and market share.
Overall, New Gonow Recreational Vehicles' competitive advantages lie in its highly customizable and continuously upgraded range of RV products, strong product development capabilities, excellent manufacturing capabilities, diverse distribution channels, and high brand awareness. After about a decade of development, the Company has launched nine new models under Regent and four new models under Snowy River, as well as upgraded 13 models under Snowy River. At the same time, the Company is gradually improving its dealership network consisting of third-party dealer stores, self-owned stores, official online websites and JV stores.
Through its continuous efforts in the value chain of the RV industry, New Gonow Recreational Vehicles has been expanding its customer base in the Australasian market. In 2021, 2022 and 2023, the Company delivered a total of 1,330, 2,127, and 2,694 RVs to customers respectively, with a year-on-year increase of 59.9% and 26.7% in 2022 and 2023 respectively. In early October, at the Melbourne Leisurefest, the largest exhibition in the second half of 2024 in Melbourne, the Company launched its latest Snowy River model, PopTop and concept RV, Vancave, and received a large number of orders.
It is also worth mentioning that the Company has also followed the trend of electrification and digitalization development and actively built a sustainable and environmentally friendly path for RV electrification, becoming one of the first RV enterprises to commercialize electric RV solutions and taking the lead in the intelligent transformation of the industry. Currently, the Company is developing a trailblazing model of towable ERV equipped with intelligent technology and autonomous driving system, which is expected to be delivered in Australia by the first quarter of 2025.
In terms of financial performance, New Gonow Recreational Vehicles achieved revenues of approximately RMB300 million, RMB499 million and RMB720 million in 2021, 2022, and 2023, respectively, representing a CAGR of 55.0%, with revenues in 2023 being 2.4 times higher than those in 2021. During the same period, the CAGRs of gross profit, net profit and net cash generated from operating activities were approximately 90.1%, 77.2%, and 148.4%, respectively. The impressive profit performance and rapid improvement in liquidity not only demonstrate the Company's successful business model, but also highlight its high-growth performance.
New Gonow Recreational Vehicles has already secured a place in the emerging Australasian RV market, which is still relatively small, but its potential is being fully demonstrated. With the huge market opportunity and its attempt to become the "first stock of Chinese RVs", the Company is expected to become a new star in the capital market, attracting more attention from investors.
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