(Yicai) Jan. 13 -- Chinese motorhome maker New Gonow Recreational ended 23 percent lower on its first day of trading in Hong Kong.

After plunging by nearly 27 percent at one point in this morning, New Gonow [HKG: 0805] closed at 98 Hong Kong cents (13 US cents) a share, below its HKD1.27 (16 US cents) initial public offering price, giving it a market capitalization of HKD941 million (USD120.9 million).

New Gonow designs and makes customized towable recreational vehicles, with 49 models as of the middle of last year, according to its May IPO prospectus. The Jiaxing-based firm has an extensive business network in Australia and New Zealand, and bought Australian motorhome brand Regent in 2014. It also owns the Snowy River and Newgen brands. 

New Gonow has taken nearly 10 percent of the Australian motorhome market and aims to rank first in Australia and New Zealand, it previously told Yicai. Australia accounted for 94 percent of the company's overseas revenue in 2023, while New Zealand made up the rest, it said.

New Gonow had a net profit of CNY40.4 million (USD5.5 million) in the first half of last year on revenue of CNY422 million (USD57.6 million). Profit surged 139 percent to CNY78.8 million in 2023 from the prior year, while revenue jumped 44 percent to CNY720 million.

The key to New Gonow's success in Australia is that its RVs meet local needs and offer competitive pricing, founder Miao Xuezhong said to Yicai. The company has begun market research and strategic planning in Germany and the United States and plans to enter these markets over the coming years, added Miao, who is also chairman and chief executive.

When asked about a potential expansion into the passenger car market, Miao said that New Gonow will make a rigorous assessment based on market conditions and the company’s strategic development. But for now, New Gonow’s main focus is on RVs and new energy commercial vehicles, he pointed out.

Editor: Martin Kadiev