Luoyang Bearing Group
China’s largest comprehensive state-owned bearing manufacturer — listed on the Shenzhen Stock Exchange ChiNext board in September 2026, and the sole holder of a national key laboratory in the domestic bearing industry
Luoyang Bearing Group Co., Ltd. (“Luoyang Bearing” or “the Company”) traces its lineage to Luoyang Bearing Factory, established in 1954 as one of 156 key national construction projects under China’s First Five-Year Plan. The Company was restructured into a joint-stock corporation in 2004, with registered capital of RMB 600 million. Given that this is a 70-year-old state-owned enterprise rather than a founder-led venture, we substitute the conventional “founder background” framework with a governance-and-management lens, which we view as the more analytically relevant frame for this issuer.
Exercises ultimate control over the Company through a three-tier chain — Luoyang Industrial Holding Group → Luoyang Guohong Investment Holding Group → Luoyang Bearing. A municipal state-asset regulator sitting at the top of the control chain is, in our view, generally favorable for credit access and policy support, but warrants an offsetting governance-risk premium relative to privately controlled peers given slower decision cycles typical of SOE structures.
Held 38.0% (228 million shares) of the Company directly prior to listing; per disclosure, this stake was diluted to 31.49% following the issuance of new shares in the IPO. It functions as a municipal state-asset investment platform based in Luoyang and, per available information, manages additional affiliated industrial assets beyond the Company.
Born 1965, holds the title of Senior Engineer and a postgraduate degree. Began his career as an engineer at Zhengzhou Coal Mining Machinery Factory in 1985, later serving as director and deputy general manager (2005–2015) and then director (through 2023) of Zhengzhou Coal Mining Machinery Group. He was appointed Party Secretary and Chairman of Luoyang Bearing’s predecessor entity in 2016, and has held the same roles at the listed entity since January 2024. His 2025 compensation was disclosed at RMB 1.785 million. As a career SOE executive on a rotational appointment rather than a founder, we assess his role primarily through a governance-and-policy-alignment lens rather than as a source of leadership premium.
Per state media coverage (Xinhua), Yu has led investment decisions in new test infrastructure — including offshore wind bearing test rigs — and has publicly framed the Company’s technology direction around incremental precision gains translating directly into product quality improvements. We read this as evidence of an R&D-oriented management posture that is broadly consistent with the Company’s disclosed capital allocation priorities.
On balance, the leadership structure reflects a “municipal state-asset oversight body plus rotational professional management” model rather than a conventional founder-driven narrative. We view this structure as advantageous for securing policy support — strategic-industry designations, national laboratory allocations, and similar state resources — but as a variable that warrants ongoing monitoring from a governance-reform and incentive-alignment standpoint.
The Company’s core business is the R&D, manufacturing, and sale of bearings and related components, and it ranks among the largest comprehensive bearing manufacturers in China. Per China Bearing Industry Association data, it ranked fourth nationally by comprehensive revenue among domestic bearing manufacturers in 2024. Its product range spans roughly 30,000 variants with bore diameters from 6mm to outer diameters of 15 meters, and its “LYC” brand is registered as a China Well-Known Trademark.
Revenue is organized around three strategic end-markets. Each is tied to a distinct downstream policy cycle — wind base construction, high-speed rail localization, and new-energy vehicle penetration — which we view as operationally diversified but similarly exposed to broader industrial policy beta rather than genuinely uncorrelated demand drivers.
Holds the #1 domestic market share in wind turbine main-shaft bearings, disclosed at above 40%, with an expanding footprint in pitch, yaw, and gearbox bearings. Key customers include Goldwind and Envision Energy. We view this segment as a direct beneficiary of continued build-out of large-scale wind power bases in China.
Centered on bogie bearings for high-speed and urban rail, with CRRC identified as a core customer. The Company has built a proprietary 500km/h-class test platform under a national “863 Program” research initiative; however, its high-speed rail bearings have to date only cleared bench testing, and we flag full-scale commercial and mass-production validation as still pending — a meaningful variable for this sub-segment’s growth timeline.
Centered on drive-motor hub bearing units, with disclosed supply relationships to BYD, Xiaomi Auto, and Chery. The Company pivoted into this segment following a 2021 decline in traditional internal-combustion-engine bearing orders; as one of its more recently established revenue streams, we note it carries a comparatively short operating track record relative to the wind and rail segments.
Additional Applications — Aerospace, Defense & Heavy Equipment: The Company has supplied bearings for national strategic programs, including the Shenzhou crewed spacecraft series, the azimuth and elevation mechanisms of the 40-meter-aperture radio telescope in Changbai Mountain, and shield tunnel-boring machine main bearings that reportedly displaced full reliance on imports. We have not identified any disclosure quantifying this segment’s revenue contribution and therefore treat it as qualitative evidence of engineering capability rather than a financially material line item, pending further disclosure.
R&D infrastructure: The Company operates the bearing industry’s only national key laboratory (focused on aviation precision bearings), a state-recognized enterprise technology center, and a CNAS-accredited testing facility. It maintains an industry-university-research consortium with Henan University of Science and Technology — the only Chinese university offering an undergraduate bearing-engineering major — its own affiliated research institute, and the Institute of Metal Research at the Chinese Academy of Sciences.
Disclosed patent counts differ across sources: one reports “583 authorized patents, including 110 invention patents,” while another reports “595 authorized patents, including 114 invention patents.” We believe this discrepancy most likely reflects different reporting dates rather than a material inconsistency, but we present both figures without reconciling them pending cross-verification against the original prospectus or exchange filings.
We also flag a naming disambiguation issue: a separate, similarly named listed company — Luoyang Bearing Science and Technology Co., Ltd. (002046.SZ, brand “ZYS”) — traces its origins to the Luoyang Bearing Research Institute, founded in 1958, and is a distinct legal entity from Luoyang Bearing Group Co., Ltd. (301699.SZ, “LYC”), the subject of this report, with a separate governance structure, listing history, and business scope. We observed these two entities conflated across several third-party databases during our research and recommend that investors independently confirm ticker and legal-entity identity before acting on any secondary-source data.
Unlike a venture-backed startup, the Company did not raise capital through VC funding rounds; rather, it grew for over 70 years within the state-owned enterprise system before accessing public capital markets. This section is therefore organized around the IPO process and issuance terms rather than a conventional funding-round timeline. The listing application was accepted by the Shenzhen Stock Exchange on November 28, 2025, and the Company cleared two rounds of regulatory inquiry before its listing committee review passed in May 2026.
Luoyang Bearing Factory, founded in 1954, was reorganized into Luoyang Bearing Group Co., Ltd. Over the subsequent two decades as an unlisted SOE, the Company built out its supply track record across wind power, rail, and aerospace applications.
The listing application was formally accepted with CITIC Securities acting as sponsor. Per available disclosure, the two subsequent rounds of regulatory inquiry focused on related-party procurement dependence, the Company’s debt-to-asset ratio, and commercialization risk associated with newer high-end products.
The fundraising plan was approved, earmarked for five projects: high-speed rail bogie bearing development and application, intelligent production capacity for new-energy bearings, precision bearing upgrades for major technical equipment, industrialization of high-end precision small slewing bearings, and bank loan repayment.
The issue price was set at RMB 15.88 per share for a total of 124 million shares, representing approximately 17.13% of post-issue share capital. Strategic placement accounted for 40% of the offering (roughly 49.6 million shares), with 19 strategic investors participating, including China Shipbuilding Group Investment, Dongfeng Asset Management, and the Anpeng Sci-Tech Automotive Industry Investment Fund.
Shares opened approximately 93.95%–94% above the issue price on the first trading day, establishing a market capitalization of roughly RMB 22.3 billion (an estimated USD 3.1 billion equivalent). Total proceeds raised were finalized at RMB 1.969 billion, above the original RMB 1.8 billion target.
• Exchange / ticker: Shenzhen Stock Exchange ChiNext board, 301699.SZ
• Issue price / size: RMB 15.88/share × 124 million shares (~17.13% of post-issue share capital)
• Total proceeds: RMB 1.969bn (above the RMB 1.8bn target)
• Strategic placement: 40% of the offering (~49.6m shares, 19 strategic investors)
• Sponsor: CITIC Securities Co., Ltd.
• Largest use-of-proceeds allocation: Intelligent production capacity for new-energy bearings (RMB 789m, the largest single allocation)
We assess the Company’s competitive position across four dimensions: (1) sole possession of national-tier research infrastructure, (2) positioning across the full breadth of national strategic industries, (3) a broad, general-purpose product portfolio, and (4) state-backed brand trust supporting customer lock-in. That said, we caution that these advantages more closely resemble state-linked policy and infrastructure assets than a conventional technology-startup moat, and investors should weight them accordingly.
The Company’s national key laboratory for aviation precision bearings is the only such state-designated platform within China’s bearing industry, which we view as a licensing and policy asset that competitors cannot readily replicate in the near term. Its research consortium with Henan University of Science and Technology — the sole university with an undergraduate bearing major — and the Chinese Academy of Sciences’ Institute of Metal Research further reinforces a structural talent and fundamental-research pipeline.
The Company maintains supply references across four national strategic sectors — wind power, rail transit, aerospace, and new-energy vehicles — and is disclosed to be extending its R&D pipeline into emerging applications such as precision bearings for RV and harmonic reducers used in robotics, and bearings for low-altitude aircraft. We view this diversification as a mitigant against single-industry cyclicality, though it is worth noting these end-markets share common exposure to broader Chinese industrial policy cycles.
The Company’s product range — from 6mm bore diameter to 15-meter outer diameter across roughly 30,000 variants — enables one-stop supply to OEM customers, a structural advantage over narrower specialists such as wind slewing-bearing peer Luoyang Xinqianglian. We note, however, that this breadth has not translated into superior margins: gross margin of 19.58%/17.84%/21.99% for 2023–2025 trails comparable specialized peers, including Xinqianglian, Sinomach Precision Industry, and Changsheng Bearing. In our view, this reflects a genuine trade-off between portfolio breadth and profitability that the Company has yet to resolve.
“LYC” is registered as a China Well-Known Trademark, and the Company maintains direct commercial relationships with sector leaders including China State Railway Group, CRRC, China State Shipbuilding, BYD, Goldwind, and Sany. Its base of large accounts (annual transaction value above RMB 10 million) reportedly expanded from roughly 20 in 2016 to more than 120 by 2024, which we view as supportive evidence of customer diversification and improving revenue stability.
Macro backdrop: Per Precedence Research, the global bearing market was valued at approximately USD 132.6 billion in 2024 and is projected to grow at a roughly 9.53% CAGR to reach USD 329.4 billion by 2034. Continued expansion of downstream wind, high-speed rail, aerospace, and new-energy-vehicle demand, alongside China’s domestic-substitution push, provides a favorable macro backdrop, in our view. We caution, however, that this tailwind benefits the broader domestic bearing sector rather than representing a company-specific advantage unique to Luoyang Bearing.
The Company’s disclosed financial trajectory shows clear growth: revenue of RMB 4.441bn, RMB 4.675bn, and RMB 6.034bn for 2023, 2024, and 2025 respectively, with net income attributable to parent shareholders of RMB 231m, RMB 251m, and RMB 529m over the same period — effectively a near-doubling of net income in 2025. Per company guidance, 2026 nine-month revenue is expected in a range of RMB 4.75bn–5.0bn (+5.52% to +11.08% year-over-year), with net income guided at RMB 450m–470m (+7.47% to +12.25%). That said, we view the risk factors below as meaningful constraints on any valuation premium the market may assign.
- Elevated leverageThe Company’s debt-to-asset ratio is reported near 80%, alongside a large base of interest-bearing debt and low current and quick ratios — a combination we flag as a near-term repayment and financing-cost concern.
- Related-party procurement dependenceBearing-steel purchases from related party Jiyuan Iron & Steel account for an estimated 11.62%–16.81% of total procurement, a relationship that regulators also scrutinized during the listing review process on pricing-fairness and independence grounds.
- Commercialization uncertainty in higher-value productsHigh-speed rail and aerospace bearings remain at the validation or trial stage; any delay in commercialization would, in our view, undermine a central pillar of the Company’s forward growth narrative.
- Minimal overseas revenueExport revenue remains limited, with only modest shipments to Europe, the U.S., and Southeast Asia — constraining exposure to overseas certification hurdles, trade barriers, and geopolitical risk, but also leaving international growth largely unrealized to date.
- Margin gap versus specialized peersConsolidated gross margin (19.58%/17.84%/21.99% for 2023–2025) trails specialized competitors such as Xinqianglian, Sinomach Precision Industry, and Changsheng Bearing, indicating that scale has not yet fully converted into superior profitability.
- High-speed rail import substitutionSuccessful commercialization of high-speed rail bearings would align directly with China’s national agenda of achieving full component-level self-sufficiency in high-speed rail.
- Capacity upgrades funded by IPO proceedsThe largest single allocation of the RMB 1.969bn raised (RMB 789m) targets new-energy vehicle bearings and precision components such as ball screws, which we expect to support accelerated growth in the NEV segment.
- Emerging robotics and low-altitude applicationsThe Company has already established test platforms for RV/harmonic-reducer precision bearings and cross-cylindrical roller bearings, positioning it for optionality as humanoid robotics and low-altitude aircraft markets scale.
- Structural growth in the global bearing marketA projected ~9.53% CAGR for the global bearing market through 2034, combined with China’s ongoing domestic-substitution push, represents a structural tailwind for leading domestic players such as the Company.
- Expanding large-account baseGrowth in large customer accounts from roughly 20 in 2016 to more than 120 in 2024 supports our view of improving revenue stability and cross-sell potential going forward.
Revenue, net income, total proceeds, and market-capitalization figures cited in this report were reconstructed from media coverage (Sina Finance, Xinhua, Ifeng, law.asia, and related secondary sources) rather than directly from the registered prospectus or official Shenzhen Stock Exchange filings. Certain granular items — segment-level revenue breakdowns, the precise allocation of use-of-proceeds line items, and total R&D spend — have not been fully cross-verified against primary disclosure. We recommend investors independently confirm all figures against the official prospectus and exchange filings before making investment decisions.