Impression Da Hong Pao, as a small ticket, a state-owned cultural tourism service enterprise in Fujian—(02695.HK) December 2025 new stock analysis

$IMPRESSION DHP(02695.HK)

Sponsor: Xingzheng International Capital Limited Kaishun Capital Limited

Offer Price: HKD 3.47 - HKD 4.10

Fundraising Amount: HKD 125 million - HKD 148 million

Total Market Cap: HKD 500 million - HKD 591 million

H-Share Market Cap: HKD 125 million - HKD 148 million

Board Lot: 1,000 shares

Minimum Subscription: HKD 4,141.35

Subscription Period: December 12, 2025 - December 17, 2025

Grey Market Trading Date: December 19, 2025

Listing Date: December 22, 2025 (Monday)

Total Offer Size: 36.10 million H-shares

International Placement: 32.49 million H-shares (90.00%)

Public Offering: 3.61 million H-shares (10.00%)

Allocation Mechanism: Mechanism B

Interest Calculation Days: 1 day

Stabilizing Agent: Xingzheng International

Issue Ratio: 25.04%

P/E Ratio: 11.94

Company Profile

Impression Da Hong Pao is a state-owned cultural tourism service enterprise headquartered in Wuyishan, Fujian. It was listed on the New Third Board on January 20, 2017 (Stock Code: 870608) and ranked eighth in China's cultural tourism performance market by revenue in 2024.

The company's core business covers three segments: performance services centered on "Impression·Da Hong Pao," Impression Cultural Tourism Town operations, and tea-themed hotel services. The flagship performance "Impression·Da Hong Pao" is Fujian's first large-scale outdoor landscape performance, co-created by Zhang Yimou, Wang Chaoge, and Fan Yue (the "Impression Trio"). Since its premiere in 2010, it has staged over 6,700 performances, attracting more than 9.4 million visitors. In 2024, its box office ranked third in national tourism landscape performances and tenth in cultural tourism performances. It was recognized as an outstanding "Dual-Effect Unification" project in the 2023 national performance market and included in the Ministry of Culture and Tourism's National Tourism Performance Excellence Catalog.

The performance utilizes the natural scenery of Wuyishan's Dawang Peak, featuring an innovative 360-degree rotating auditorium (2,099 seats, including 578 VIP seats). It combines lighting, music, and choreography to deeply interpret Da Hong Pao tea culture, becoming Wuyishan's cultural tourism hallmark. Guided by the brand philosophy "Missing 'Impression·Da Hong Pao' means missing the essence of Wuyishan," it revitalizes traditional culture through the "performance + tourism" model. Additionally, the company launched a new performance "Moon Over Wuyishan" (May 2025) and offers customized performance services for corporate clients, building a diversified cultural tourism ecosystem.

For the three years ended December 31, 2024, and the first six months of 2024 and 2025:

Revenue: Approximately RMB 63 million, RMB 144 million, RMB 137 million, RMB 52 million, and RMB 56 million, respectively, with a YoY increase of 8.48% in H1 2025;

Gross Profit: Approximately RMB 17 million, RMB 83 million, RMB 75 million, RMB 26 million, and RMB 24 million, with a YoY decrease of 7.00% in H1 2025;

Net Profit: Approximately RMB -3 million, RMB 48 million, RMB 43 million, RMB 13 million, and RMB 7 million, with a YoY decrease of 46.57% in H1 2025;

Gross Margin: Approximately 27.25%, 57.77%, 54.59%, 49.58%, and 42.50%;

Net Margin: Approximately -4.12%, 33.01%, 31.20%, 24.61%, and 12.12%.

Source: LiveReport Big Data

As of June 30, 2025, the company had RMB 64 million in cash and RMB 16 million in operating cash flow.

Source: Prospectus

II. Cornerstone Investors

No cornerstone investors

Total 17 underwriters

Sponsor Track Record:

Xingzheng International Capital Limited

Kaishun Capital Limited

2. Lottery Rate and IPO Analysis

(From AIPO)

Current margin financing has been oversubscribed by 5.20 times.

The required capital and financing amounts for Group A tiers are as follows:

Group B requires a subscription of HKD 5.8 million. The required capital and financing amounts for Group B tiers are as follows:

Based on the median offer price of HKD 3.79, total listing expenses amount to approximately HKD 26.4 million, representing about 19.30% of the fundraising amount (HKD 137 million), which is relatively high.

Should you subscribe? Here's my analysis:

Impression Da Hong Pao Core Investment Thesis

1. Sector Tailwinds: China's cultural tourism performance market is projected to exceed RMB 1.2 trillion by 2030, with landscape performances growing at 12.4% annually. The company ranked eighth nationally in 2024 cultural tourism performance market share and third in landscape performance box office, solidifying its position in the top tier.

2. IP and Resource Moat: "Impression·Da Hong Pao," created by the "Impression Trio," has staged over 6,700 performances for 9.4 million visitors. Leveraging Wuyishan's natural scenery and tea culture, it was included in the Ministry of Culture's performance excellence catalog, establishing a "must-see in Wuyishan" brand perception.

3. Diversified Growth Drivers: The 2025 launch of "Moon Over Wuyishan" creates a second growth curve, while the "performance + cultural town + tea hotel" model forms a consumption ecosystem. Summer 2025 set a record with 170,000 monthly visitors. The Pingtan-Lan Taiwan tea tourism integration trend further expands market potential.

4. As Hong Kong's first listed landscape performance company

Riding the "tea culture + Fujian tourism" trend, this IPO seeks to raise HKD 125-148 million with a total market cap of HKD 500-591 million (H-share cap: HKD 125-148 million) - typical small-cap characteristics. Fundamentals are irrelevant; price movements will depend entirely on market makers, making this essentially a gamble.