Serving Adidas, Hoka, Decathlon, Under Armour And Anta, This Guangdong Company’s Main Board IPO Has Been Accepted!

According to the official website of the Shanghai Stock Exchange, on May 29, Guangdong Longxing Tianxia Technology Co., Ltd. (hereinafter referred to as "Longxing Tianxia") has had its mainboard IPO accepted, with China Merchants Securities as the sponsor.

Founded in 2015, Longxing Tianxia is primarily engaged in the development, design, production, and sales of athletic footwear. Its main products include sports casual shoes, running shoes, basketball shoes, professional athletic shoes, and outdoor trail boots. The company has established long-term and stable partnerships with well-known sports brands such as Under Armour, Li-Ning, Decathlon, adidas, ANTA, HOKA, La Sportiva, and Vibram.

Source: Company website

 

The company won the Li Ning Brand Evaluation Best Supplier Award in both 2023 and 2024. In 2024, it received Under Armour’s Supplier MVP Award for four consecutive quarters. It ranked first in adidas’ supplier SPIKE scoring system in 2023, and won adidas’ Most Competitive Award and Game Changer Award in 2024. Its footwear automated production line project was honored with the “Automation Lighthouse Award” at adidas’ 2024 North Asia ME Summit. The company is one of only five global strategic partners in Decathlon’s footwear business, and has consistently ranked among the top suppliers in terms of quality and delivery in New Balance’s global supplier evaluation system.

Financial data shows that the company's revenue for the reporting period (2023 to 2025) was 4.211 billion yuan, 5.588 billion yuan, and 5.834 billion yuan, demonstrating a continuous growth trend. In 2024, revenue surged by 32.7% year-on-year, primarily due to capacity expansion and increased customer orders. The growth rate slowed to 4.4% in 2025, but it still remained above the industry average. During the same period, the company's net profit excluding non-recurring items was 199 million yuan, 272 million yuan, and 244 million yuan, with a year-on-year decline of approximately 10.3% in net profit for 2025, indicating a situation of increasing revenue but decreasing profit.

In terms of production capacity layout, Longxing Tianxia has established 26 factories in China, Vietnam, and Indonesia, with sports footwear output reaching approximately 50 million pairs in 2025. According to Frost & Sullivan, the company ranks seventh globally in the sports footwear manufacturing industry in terms of both sales value and sales volume. In the Chinese mainland market, it ranks second by sales value and first by sales volume.

According to the prospectus, Longxing Tianxia faces a relatively prominent customer concentration risk. During the reporting period, revenue from the company’s top five customers accounted for 86.74%, 88.86%, and 86.25% of total revenue, respectively, indicating an extremely high level of customer concentration. The top five customers include Li-Ning, Adidas, Under Armour, Decathlon, and Anta, all of which are globally renowned sports brands. The company acknowledges that the athletic footwear brand industry exhibits a clear Matthew effect, with a small number of brands occupying the majority of market share. If any major adverse changes occur in the operations of its principal customers, or if its cooperative relationships with them change, the company’s revenue will decline directly.

The prospectus mentions risks related to international trade and industrial chain relocation. The company has established a factory in Vietnam since 2016 and began developing its production base in Indonesia in 2023, with the proportion of overseas production capacity continuing to increase. However, in recent years, the international trade environment has become complex and volatile, with some countries adopting trade barrier measures such as imposing additional tariffs and restricting imports and exports. If the international political and economic environment or import and export policies undergo major changes, the company’s global production capacity layout and operating performance may be adversely affected.

During each reporting period, raw material costs accounted for more than 50% of the cost of principal operations. The main raw materials include mesh fabric, leather materials, soles, and others. If raw material prices fluctuate significantly in the future, it will have an adverse impact on production costs and funding arrangements.

Additionally, it should be noted that the company has both high accounts receivable and high inventory levels. At the end of each reporting period, the carrying amounts of the company’s accounts receivable were RMB 752 million, RMB 1.19 billion, and RMB 1.253 billion, accounting for 36.77%, 43.49%, and 42.20% of current assets, respectively. At the end of each reporting period, the carrying amounts of the company’s inventory were RMB 623 million, RMB 903 million, and RMB 1.021 billion, accounting for 30.43%, 32.99%, and 34.36% of current assets, respectively.

In terms of corporate governance, the prospectus discloses multiple administrative penalties faced by the company concerning foreign exchange, customs, and taxation. On May 19, 2026, the Dongguan Branch of the State Administration of Foreign Exchange issued an "Administrative Penalty Decision" to the company, with a total fine of 207,561.43 yuan. On December 15, 2025, the Tai Ping Customs imposed a warning administrative penalty on the company. In September 2023, the holding subsidiary Zhansheng Mould was fined 400 yuan for failing to declare the environmental protection tax on time. Additionally, the wholly-owned subsidiary Vietnam Zhancheng Technology was fined approximately 115,844 yuan on December 30, 2025, for errors in tax declaration. Furthermore, domestic subsidiaries such as Shicheng Longxing Tianxia and Dongguan Zhanfu, as well as Vietnamese subsidiaries such as Vietnam Zhancheng Footwear, have also faced a total of 18 administrative penalties during the reporting period.

In this IPO, Longxing Tiantang plans to raise 1.409 billion yuan for the new automated production base project of the first phase of the Indonesia No. 2 factory, the automated production line project for sports shoe soles in Hunan, the automated upgrade and transformation project for Zhongxiang Longxing Tiantang, the new automated production base project for shoe soles in Vietnam, the relocation and expansion as well as automated upgrade project for Dongguan Chengshoes, and to supplement working capital.