- Shenghuabo returns to Shanghai bourse two years after first rejection
- Auto supplier aims to scale smart motor push as EV demand rises
Shenghuabo (浙江胜华波), a dominant global supplier of automotive seat motors, has relaunched its initial public offering in Shanghai, seeking to raise 2.6 billion yuan ($384 million) after its first attempt was rejected two years ago.
The company’s main board listing application was accepted on June 8, according to the Shanghai Stock Exchange. Guotai Haitong Securities is serving as sponsor.
The proceeds will be used for seven projects, including production bases for auto body system intelligent drive components in Hangzhou, Guangzhou, Anhui and an upgraded Shanghai R&D center, with a focus on next-generation automotive “smart motor” systems.
No. 1 windshield wiper assembly
Founded in 1986 in Rui’an, Zhejiang, Shenghuabo started as a small motorcycle parts workshop run by three Wang brothers before becoming a joint-stock company in 2004.
Today it produces windshield wiper assemblies, seat motors and other automotive motion components.
According to research firm QYResearch’s data, Shenghuabo has ranked No. 1 in China’s windshield wiper assembly market for six consecutive years and leads global seat motor sales for five consecutive years.
The company holds roughly 25%-30% of China’s wiper assembly market and 15%-21% of the global seat motor segment.
Revenue rose from 4.13 billion yuan in 2023 to 6.56 billion yuan in 2025, while adjusted net profit increased from 616 million yuan to 920 million yuan over the same period, representing compound annual growth rates of 26% and 22% respectively.
Seat motor revenue reached 3.51 billion yuan in 2025, accounting for more than half of total sales. Its automotive body smart motor segment posted a compound growth rate of 54.03% over the past three years, though it still accounted for only about 3% of revenue last year.
Analysts say demand for smart vehicle components is rising alongside electrification and vehicle intelligence trends, but the company’s ability to absorb new capacity remains a key regulatory concern.
Diluting family ownership
Shenghuabo’s previous IPO attempt was rejected in January 2024 by the Shanghai exchange, which cited weak internal controls, concentrated ownership under the founding family, and insufficient disclosure of related-party transactions.
Since then, the company has implemented a series of reforms, including bringing in 11 external strategic investors in late 2024, reducing family ownership from 100% to 92.42%, and reshaping board governance.
It also replaced its former sponsor to Guotai Haitong Securities and significantly increased its fundraising target from 900 million yuan to 2.6 billion yuan.
The company supplies major Chinese automakers including SAIC, FAW, Dongfeng, GAC, Great Wall, Geely, Chery and BYD, as well as EV startups such as Nio, Xpeng and Li Auto.
Its products are also integrated into global supply chains through Tier 1 suppliers such as Forvia, Lear and Magna, ultimately reaching brands such as General Motors, Ford, Volkswagen and Toyota.
