IPO News | 'Copper Crafts Cultural Brand' Tong Master launches its IPO prospectus, scheduled to go public on March 31, with a minimum subscription amount of HKD 6,868.57

Futu Information, March 23rd update, $TONGSHIFU (00664.HK)$ An announcement was made stating that the offering will take place from March 23 to March 26. The company plans to offer approximately 7,406,800 shares globally and is expected to list on March 31.

Company Overview

Since its establishment, Tong Master has focused on combining traditional craftsmanship with modern design and usage scenarios to develop copper cultural products. According to the Frost & Sullivan report, for the fiscal year ended December 31, 2024, the company ranked first in China's copper crafts cultural product market by total revenue, capturing a 35.0% market share. The Tong Master brand originated from a workshop that inherited traditional Chinese craftsmanship and has now become a leading national cultural brand. Through continuous investment in original design, research, and development, the company has expanded its material scope to include gold, silver, and plastic to reach a broader audience.

The company adopts a product and pricing strategy aimed at providing high-quality cultural products to a wide consumer base. It carefully balances material quality, production complexity, and design sophistication to ensure each product reflects a high perceived value. The company’s pricing takes into account material selection, production complexity, and design characteristics. Products made from copper, silver, and other materials are developed according to consistent production standards. Through a multi-tiered pricing structure, the company successfully caters to a broad range of consumers, including first-time buyers, repeat customers, and long-term collectors.

Financial Overview

For the fiscal years ended December 31, 2022, 2023, and 2024, as well as for the nine months ended September 30, 2024, and 2025, Tong Master reported revenues of RMB 503.2 million, RMB 506.4 million, RMB 571.2 million, RMB 402.4 million, and RMB 447.7 million, respectively.

The company’s gross profit increased by 1.2%, from RMB 162.2 million for the fiscal year ended December 31, 2022, to RMB 164.2 million for the fiscal year ended December 31, 2023, while the gross margin remained stable at 32.2% and 32.4%, respectively. From RMB 164.2 million for the fiscal year ended December 31, 2023, it increased by 23.1% to RMB 202.1 million for the fiscal year ended December 31, 2024, and the gross margin rose from 32.4% in 2023 to 35.4% in 2024.

Use of Proceeds

In terms of use of proceeds, Copper Craftsman is expected to receive net proceeds of approximately HKD 418 million from the global offering (assuming the over-allotment option is not exercised and based on the mid-range offer price of HKD 64). According to the prospectus, Copper Craftsman intends to allocate the proceeds from the global offering for the following purposes in the specified amounts:

Approximately 38% will be used to enhance the company’s product development and design capabilities, which are fundamental to its growth strategy; around 24% will be allocated to boost internal production capacity and improve alignment between demand forecasting and manufacturing output, thereby enhancing fulfillment flexibility and supporting long-term product supply; about 24% will go towards expanding and strengthening the company’s retail and marketing infrastructure, with a focus on solidifying its network of directly operated stores in China, accelerating international expansion, and enhancing its digital marketing and content development capabilities; roughly 4% will be dedicated to reinforcing the company’s digital and information infrastructure; and approximately 10% will be reserved for general working capital and operational flexibility.