Pelliot files IPO for Hong Kong listing

Pelliot, a manufacturer of outdoor sports apparel and equipment, is aiming to become the first listed company among its peers in China, after it recently filed for an initial public offering on the Hong Kong stock exchange.

The move is believed to be part of the company's efforts to further capitalize on China's surging outdoor sports trend.

Pelliot has recorded rapid revenue growth over the past two years. According to the filing, its revenue grossed 1.77 billion yuan ($245.1 million) in 2024, with a profitability higher than many big names globally.

The company also reported that its revenue rose from 378.5 million yuan in 2022 to 908.1 million yuan in 2023, representing a compound annual growth rate (CAGR) of 122 percent over the past two years.

The company's direct-to-consumer (DTC) strategy has been a key growth driver. Its online DTC revenue grew from 331.1 million yuan in 2022 to 1.35 billion yuan in 2024, accounting for 87.5 percent and 76.5 percent of total revenue over the past three years, respectively.

Profitability metrics have also steadily improved. The group's cost of sales ratio declined from 45.7 percent in 2022 to 40.4 percent in 2024, while net profit surged from 24.3 million yuan in 2022 to 283.1 million yuan in 2024.

If successful, the IPO will mark a milestone in China's outdoor gear industry and could set the stage for further capital market activity among domestic sportswear and lifestyle brands.

The company, as of Dec 31, operated 14 directly owned stores and 132 partner stores, primarily located in first- and second-tier cities in China. It strategically places stores in prime retail locations such as shopping malls, department stores and specialty shops.

The Chinese outdoor apparel market is undergoing structural growth, driven by shifting consumer preferences, supportive policies and product innovation. According to consultancy Frost & Sullivan, the high-performance outdoor apparel segment reached 102.7 billion yuan in 2024, with a CAGR of 13.8 percent. It is projected to more than double, reaching 215.8 billion yuan by 2029.

This expansion is fueled by rising domestic consumption, policy support and technological advancement, it added.