Fishing boss backs up! Lexin Outdoor's Hong Kong stock soars over 104% on its first day, second-generation entrepreneur with Canadian nationality

“Sing Tao” Reporter Cao Anxun, Guangzhou Report

On February 10th, fishing gear manufacturer Le Xin Outdoor (02720.HK) listed on the Hong Kong Stock Exchange, becoming the “First Fishery Equipment Stock.”

According to the prospectus, Le Xin Outdoor is a typical “small-cap hot stock” in the Hong Kong IPO market. The global offering consisted of 28.205 million shares at an issue price of HKD 12.25, raising a total of HKD 346 million; after deducting HKD 60.4 million in listing expenses, the net proceeds were HKD 285 million.

Le Xin Outdoor’s public offering was oversubscribed by 3,654.23 times, with international subscription at 2.94 times. As of the close on February 10th, Le Xin Outdoor traded at HKD 24.8 per share, up over 102%, with a turnover rate of 4.84%, and a total market capitalization of HKD 3.179 billion.

Regarding the reason for the sharp increase in Le Xin Outdoor’s first-day stock price, some investors said, there are currently no pure fishing gear comparable targets in the Hong Kong stock market, so Le Xin Outdoor enjoys a scarcity premium. Plus, with no green shoe mechanism and a small float, a small amount of capital can significantly boost the stock price.

Le Xin Outdoor’s Chairman Yang Baoqing stated that fishing is becoming popular worldwide, with particularly notable growth in the Chinese market. Meanwhile, consumer demand for fishing gear is becoming more diversified, professional, and refined, which provides sustained growth momentum for the fishing tackle industry and opens broad development space for Le Xin Outdoor. The company looks forward to using this listing as a new starting point, seizing industry opportunities, strengthening its own brand business comprehensively, and further expanding into global markets.

This fishing gear manufacturing company is controlled by Hangzhou native Yang Baoqing, who holds a 94.77% stake. Yang Baoqing, born in 1995, has a daughter named Lei Yang who studied in the UK and returned to assist in the family business. He currently serves as Executive Director and General Manager, overseeing overall strategy and business development. Lei Yang holds Canadian nationality.

Le Xin Outdoor’s Hong Kong IPO has attracted two cornerstone investors, including Horizon Venture Capital Management Limited and Huangshan Dejun Enterprise Management Limited, with a combined subscription of HKD 130 million. Horizon Venture subscribed HKD 80 million, and Huangshan Dejun HKD 50 million.

Public information shows that Le Xin Outdoor, as a leading global outdoor fishing gear company, has established a comprehensive and diversified product portfolio suitable for carp fishing, tournament fishing, lure fishing, fly fishing, ice fishing, and other scenarios.

Le Xin Outdoor’s performance has shown periodic fluctuations in recent years but overall demonstrates strong profitability resilience, especially with significant recovery growth in early 2024 and 2025.

The prospectus indicates that Le Xin Outdoor’s revenue from 2022 to 2024 was HKD 818 million, HKD 463 million, and HKD 573 million, respectively; operating profit was HKD 153 million, HKD 65 million, and HKD 79.83 million; net profit was HKD 114 million, HKD 49 million, and HKD 59.41 million.

Notably, 2023 saw a sharp decline in performance. Le Xin Outdoor explained that this was mainly due to the easing of public health events, leading consumers to resume other entertainment activities, which slowed demand for fishing gear.

It is important to note that Le Xin Outdoor heavily relies on OEM/ODM manufacturing. Its revenue mainly comes from OEM/ODM business, which contributed 94.1%, 90.2%, 92.3%, and 93.1% of total revenue during the three-year period ending August 31, 2025.

The prospectus shows that Le Xin Outdoor was founded in the late 20th century, headquartered in Ningbo, Zhejiang Province, China. It started with OEM/ODM business, producing fishing reels, rods, and other products for internationally renowned outdoor brands, gradually accumulating technological and supply chain advantages. Major clients include Decathlon and other outdoor brands, as well as well-known fishing brands like Rapala VMC, Fox, Nash, Trakker, and Preston. The top five customers’ revenue share remains stable at around 55%.

Frost & Sullivan pointed out that, based on 2024 revenue, Le Xin Outdoor is the world’s largest fishing gear manufacturer, with a market share of 23.1%. As of the IPO disclosure date, Le Xin Outdoor’s products are sold to over 40 countries, including mature markets with rich fishing traditions like the UK and the US, as well as rapidly growing markets such as China and Southeast Asia.

Editor: Liang Jingqin