Leading Bicycle OEM Fushida Seeks IPO Amid Pressure to Expand E-bike Production

On June 8, Tianjin Fujita Bicycle Industry Co., Ltd. ("Fujita") will face its main board IPO review.

Fujita's two-wheeled products cover bicycles, electric bicycles, shared bicycles, with Decathlon, Specialized, Hello, and others as important clients.

In 2025, Fujita’s revenue and net profit attributable to the parent company reached 5.061 billion yuan and 382 million yuan, respectively.

For this IPO, Fujita plans to raise 773 million yuan, to be invested in “intelligent manufacturing of electric-assisted and high-end bicycles”, “R&D center construction”, and “brand and marketing network” projects.

Compared to the decline in basic bicycle business, electric bicycles maintained rapid growth, generating 1.171 billion yuan in 2025, a year-on-year increase of nearly 20%.

With this IPO, Fujita plans to add production capacity for 500,000 electric bicycles, but whether this new capacity can be absorbed remains highly uncertain.

Fujita’s electric bicycles are mainly sold to overseas markets such as Europe and North America, but with Rad Power and other electric bicycle brands collapsing in North America, and vehicle purchase subsidies rolling back in some European countries, Fujita faces new challenges.

In fact, Fujita is not the first bicycle OEM to sprint for an IPO. As early as 2023, Yongqi (China) Bicycle Co., Ltd. attempted to launch a main board IPO on the Shanghai Stock Exchange but ultimately withdrew the application.

Whether Fujita can knock on the doors of A-shares is getting attention.

Growth “Gold Content”

During the reporting period, Fujita’s revenue scale maintained steady growth.

Fujita’s revenue grew from 3.621 billion yuan in 2023 to 5.061 billion yuan in 2025, now surpassing listed peers like Jiuqi, Shanghai Phoenix, etc.

2024 was the most significant year for Fujita’s performance during the reporting period, with 4.88 billion yuan in revenue and a year-on-year growth rate as high as 34.76%.

The key driver for this round of growth was the recovery of Fujita’s basic bicycle business. After a period of adjustment in 2023, downstream bicycle brand operators gradually digested their inventory pressure and the market showed signs of recovery. In 2024, Fujita’s bicycle sales and average prices grew 29.15% and 13.90% year-on-year, respectively, leading to bicycle business revenue of 2.392 billion yuan that year, a nearly 50% year-on-year increase.

However, since 2025, due to impacts from trade policies and other factors, the bicycle business experienced a decline, and Fujita’s growth rate has slowed, with revenue growth dropping to 3.7% year-on-year in 2025, over 30 percentage points less than in 2024.

Moreover, in 2025, Fujita’s revenue growth was mainly benefited from external mergers and acquisitions.

At the end of May 2025, Fujita completed the acquisition of 75% equity in Fujita Electric Vehicle Technology (Changzhou) Co., Ltd. ("EV (Changzhou)"). After consolidation, this contributed 387 million yuan in revenue in that year, directly boosting Fujita’s overall revenue scale.

Excluding this part, Fujita’s 2025 revenue would have dropped about 4% year-on-year.

Fujita believes that the acquisition is expected to further expand its electric bicycle business and bring more incremental space for performance.

According to Fujita, EV (Changzhou) is located in the Yangtze River Delta, one of China’s three major bicycle industry clusters. Through this acquisition, they successfully completed a business layout in East China, directly increasing shared bicycle market share and greatly expanding electric bicycle production capacity.

Whether the growth brought by this acquisition is sustainable still awaits further observation.

Meanwhile, it’s noted that before this acquisition, EV (Changzhou)’s subsidiary Bond Bohai Electric Technology (Changzhou) Co., Ltd. ("Bond Electric") had a recall incident.

In April 2025, Changzhou Market Supervision Administration announced Bond Electric's recall of 285 “Bond Fujita TDT018Z electric bicycles” made on December 7, 2023, due to missing standard-required markings/warnings and no collaborative charging function.

This isn't an isolated case. As early as 2024, Bond Electric recalled over 200 electric bicycles due to product defects such as speed exceeding standard limits, misaligned wiring installation/short-circuit protection, and inconsistencies in manuals.

At a time when electric bicycles are under stricter regulation, this may be an important challenge for Fujita in expanding its electric bicycle business.

The “Electric Bicycle Safety Technical Standard” implemented on September 1, 2025 further regulates manufacturing by reducing plastic parts, strengthening flame retardant requirements for non-metallic materials, and improving anti-tampering technical indicators and testing methods.

This means that while Fujita quickly supplements electric bicycle production capacity through M&A, it must also face higher compliance and quality control requirements.

Expansion Against Headwinds?

From Fujita’s fundraising allocation, electric bicycles remain its key bet.

With this IPO, Fujita plans to invest 478 million yuan in “Intelligent manufacturing of electric-assisted and high-end bicycles”, aiming to add 500,000 units of electric bicycle capacity, mainly for mature overseas markets such as Europe, North America, Japan/Korea, and the domestic mid-to-high-end market.

But in reality, the electric bicycle industry in Europe and North America is facing some challenges.

In North America, with the post-pandemic decline in demand, many electric bicycle brands have collapsed one after another: In 2024, U.S. veteran Juiced Bikes announced bankruptcy and asset auction; In December 2025, Rad Power, once claimed the largest seller of electric bikes in North America and valued over $1 billion, filed for bankruptcy protection.

In 2024, Rad Power contributed 60 million yuan in revenue for Fujita, once ranking as Fujita’s third-largest electric bicycle customer.

Whether downstream brand client exits mean shrinking order foundations in North America remains to be observed.

Additionally, Europe is also facing decline.

A major driver for electric bicycle market expansion in Europe was government cash subsidies for buyers, but some countries have now canceled subsidies. For example, France officially ended electric bicycle purchase incentives in February 2025.

Against this backdrop, whether Fujita’s added capacity risks not being absorbed is under scrutiny.

In the second round of inquiry, the Shanghai Stock Exchange also raised this question: further explain the rationality and necessity of the fundraising project, and whether there is risk of unabsorbed capacity.

Fujita responded that it has established long-term stable partnerships with mainstream Euro-American brand clients such as Specialized, Lectric, Pon, Samchuly, MFC, Cycleurope, and that the share of high-end product revenue is rising, giving it a good market foundation.

But stable partnerships do not necessarily mean new capacity can be smoothly digested. Especially as Euro-American electric bicycle demand falls, downstream brands exit, and subsidy advantages fade, whether Fujita’s fundraising-driven capacity expansion can translate into incremental revenue still depends on the continuity of its overseas client orders and the recovery of terminal demand.

This may also be the crucial question Fujita faces at this IPO review.

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