Luoyang Bearing Group Co., Ltd. (301699.SZ) officially opened its IPO subscription on August 25, with an offering price of RMB 15.88 per share and a maximum subscription cap of 14,500 shares per investor. The company's price-to-earnings ratio stands at 22.67 times, compared to the industry average of 38.35 times, as it lists on the ChiNext Board of the Shenzhen Stock Exchange, with China Securities Co., Ltd. acting as the lead underwriter.
According to the prospectus, Luoyang Bearing specializes in the research, development, production, and sale of bearings and related components, positioning itself as one of the largest comprehensive bearing manufacturers in China's industry. With years of deep expertise in the sector, the company boasts exceptional technological innovation capabilities and operates the only state key laboratory dedicated to bearings in the industry, placing it at the forefront of high-end bearing R&D and strategic deployment domestically.
The company's specialized bearing products for major equipment, high-end machinery, and new energy vehicles serve as critical foundational components within the national strategic emerging industries. These products play a pivotal role in enhancing China's equipment manufacturing capabilities and driving the optimization and upgrading of the manufacturing sector. Leveraging its robust R&D strength and technical innovation, Luoyang Bearing has successfully broken foreign monopolies in multiple high-end bearing segments, including major and premium equipment, achieving domestic substitution. Numerous of its technological achievements have been certified by the China Bearing Industry Association as reaching internationally leading or advanced levels.
Aligning its product development with national strategic priorities, the company has undertaken several national key scientific and technological projects. It was among the first domestic enterprises to conduct research on high-speed train bearings (or high-speed rail bearings) and has been tasked with the development and supporting production of main shaft bearings and transmission system accessory bearings for the C919 and C929 domestically produced passenger aircraft engines. Through these efforts, the company contributes to the nation's expansion of emerging industries and the advancement of new quality productive forces.
Based on certification documents from the China Bearing Industry Association, in 2024, within the major equipment bearing sector, the company's wind power main shaft bearings ranked first in the industry, wind power pitch and yaw bearings ranked second, and wind power gearbox bearings ranked in the top three. In the high-end equipment bearing sector, its rail transit bearings and aerospace bearings both secured top-three industry positions, while its new energy vehicle hub bearings also ranked in the top three within the automotive bearing sector.
The net proceeds from this public offering, after deducting issuance expenses, will be allocated in order of priority to the following projects. Financially, for the fiscal years 2023, 2024, and 2025, the company reported operating revenues of approximately RMB 4.441 billion, RMB 4.675 billion, and RMB 6.034 billion, respectively. During the same periods, net profits were approximately RMB 236 million, RMB 247 million, and RMB 544 million, respectively.
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