C&U Bearings Restarts IPO Process in China

On December 19, C&U Bearings Co., Ltd. officially submitted its IPO guidance filing to the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission (CSRC), marking the formal launch of its renewed listing preparations. The guidance process will be led by CITIC Securities.

According to the report, C&U Bearings was established on April 23, 1997, with a registered capital of RMB 387.23 million. Its legal representative is Zhang Tongsheng, and the company's registered address is located in the Wenzhou Economic and Technological Development Zone in Zhejiang Province. C&U Group Co., Ltd., as the controlling shareholder, directly holds a 30.99% stake in the company.

Looking back at C&U Bearings’ IPO journey, the company submitted its initial public offering (IPO) application for the main board to the Shanghai Stock Exchange in June 2022. However, due to adjustments in its internal business strategy and future development plans, C&U Bearings and its former sponsor decided to withdraw the application. In June 2024, the Shanghai Stock Exchange terminated the review process for C&U Bearings’ IPO. Despite this setback, the company remained committed to its listing plan and continued advancing related efforts.

From a financial perspective, C&U Bearings has maintained steady growth in recent years. Between 2019 and 2021, the company achieved revenues of RMB 6.4 billion, RMB 7.3 billion, and RMB 9.1 billion, respectively, with net profits attributable to shareholders of RMB 537 million, RMB 678 million, and RMB 740 million. In the first half of 2022, the company recorded a revenue of RMB 4.6 billion and a net profit of RMB 330 million. As of June 30, 2022, the company’s total assets stood at RMB 13.981 billion, with an asset-liability ratio of 72.96% based on the parent company’s figures.

For C&U Bearings, the IPO represents an opportunity to unlock new growth potential while also posing challenges. This move is expected to inspire confidence among other bearing companies pursuing public listings.