Information on the target
Tianjin Fujida Bicycle Industry Co., Ltd. (hereinafter referred to as "Fujida") has recently submitted its IPO application to the Shanghai Stock Exchange. With over 30 years of experience in bicycle manufacturing, Fujida is a leading manufacturer that produces for top global brands such as Decathlon, Lightning, and Panasonic. The company aims to raise a total of 773 million yuan through this IPO, with 478 million yuan allocated for electric bicycle and high-end bicycle smart manufacturing projects, 211 million yuan for the construction of a research and development center, and the remaining 83 million yuan for brand and marketing network development. The construction period for these three projects is expected to be between 2 to 3 years.
However, financial data reveals a stark contrast between Fujida's current reality and its aspirations. The company has experienced a continuous decline in capacity utilization across several key product lines, with the gross margins of shared bicycles and traditional bicycles decreasing year by year. Despite facing multiple operational pressures, Fujida has chosen to pursue an IPO and expand production against the prevailing market trends.
Industry overview in the target’s specific country
The global bicycle industry is currently undergoing significant challenges, particularly in the context of rising production costs and shifting market dynamics. In 2024, a price reduction trend across all bicycle categories is expected, with major brands like Giant and Merida reducing prices by 20% to 50%. This price pressure is being passed upstream to manufacturers like Fujida, which is experiencing a direct squeeze on its gross margins.
Fujida's financial reports indicate a concerning trend, with a 6.33% year-on-year decline in net profit for 2025, despite a slight increase in revenue of 3.7%. The company's revenue structure shows that its core business remains heavily reliant on OEM production, with complete bicycles accounting for 81.86% of total revenue. The gross margin for traditional bicycles has dropped from 12.59% in 2023 to 10.79% in 2025, while the shared bicycle segment has seen an even steeper decline.
Furthermore, the company's overseas sales, which constitute over 70% of its total revenue, are increasingly vulnerable to fluctuations in international trade policies and tariffs. In 2025, changes in U.S. tariff policies resulted in a significant drop in sales to the U.S. market, highlighting the risks associated with Fujida's heavy reliance on foreign clients. The ongoing trend of global trade protectionism is prompting many countries to raise import tariffs on bicycles, further complicating Fujida's operational landscape.
As the shared bicycle market matures, the revenue growth from this segment is also waning, with gross margins shrinking to a mere 3.04% in 2025. Domestic clients …