Zhengyang Technology raised hundreds of millions of yuan in its Pre-IPO round of financing and its application for listing on the Growth Enterprise Market was accepted.
Zhengyang Technology recently completed a Pre-IPO round of financing worth hundreds of millions of RMB. The investors in this round include industrial and financial investment institutions such as Midea Capital, Muteng Investment, BAIC Capital, Jackery, and Hanhai Qianli. After this Pre-IPO round of investment, the company's valuation exceeded 2.7 billion RMB. The funds raised will be mainly used for deepening technological R & D, expanding production scale, and exploring the global market, providing strong support for the company's IPO process on the Growth Enterprise Market and the development of its new energy business.
Meanwhile, on May 7, 2026, Zhengyang Technology's IPO application on the Growth Enterprise Market was accepted by the Shenzhen Stock Exchange. The sponsoring institution is Huatai United Securities. This is the second attempt by this auto parts enterprise to enter the capital market. Just over four months after withdrawing its application for listing on the main board, Zhengyang Technology quickly adjusted its listing track and restarted its listing journey.
Zhengyang Technology is a global auto parts supplier dedicated to continuous innovation and development in key areas of automotive electronics, integrating R & D, production, sales, and services. Domestically, the company has production bases in Dongguan, Weifang, and Hefei, covering the core automotive industry clusters in the Pearl River Delta, North China, and the Yangtze River Delta. Overseas, it has established subsidiaries and production bases in Hong Kong (China), the United States, Mexico, India, the Netherlands, Thailand, etc., to serve global customers nearby.
The company's actual controllers, Mr. Gu Yixin and Ms. Tian Hong, a couple, are Taiwanese entrepreneurs. Zhengyang Technology was established in Huangjiang, Dongguan in 2004. "We are a global enterprise and need to compete with enterprises around the world." The company put its global layout on the agenda as early as 2016, successively establishing production, R & D, and sales centers in Europe, India, North America, etc. By the end of 2025, the company's overseas revenue had reached 55%. It has obtained the first - tier supplier qualification from more than 100 domestic and foreign OEMs and achieved global sales of its products through its global layout.
The company has two major product lines. Its traditional advantageous business is sensors and assembly products, mainly used in industries such as commercial vehicles, large machinery, and ships. The other is new energy products, including VCU controllers, thermal management systems, energy storage cabinets, etc., mainly used in industries such as new energy vehicles and energy storage.
In the company's traditional business, according to the certification of the China Internal Combustion Engine Industry Association, the company's core product, the urea sensor, ranked first in the Chinese market share for 10 consecutive years from 2015 to 2024. Zhengyang Technology's industry faces the core pain points of exhaust emission control, and its market competitors mainly include international giants such as TE and Amphenol. Facing international competition, Zhengyang Technology shows significant advantages in local service and cost control, being able to respond more quickly to domestic customer needs and continuously consolidate its market leadership position.
Energy conservation and emission reduction are an irreversible trend globally, and achieving this goal cannot be accomplished solely through vehicle electrification. By comparing the Euro 7 standard, it requires a further 50% and 20% reduction in NOx and PM emissions respectively on the basis of the Euro 6 standard. As an important global participant in energy conservation and emission reduction, China's National VI standard will also implement similar requirements. Therefore, the market demand for efficient and reliable SCR after - treatment systems is expected to remain strong.
In addition to its main business of SCR sensors, the company regards the new energy business as its second growth curve. In 2025, the revenue from the new energy business reached 180 million RMB, a growth of more than 350% compared to 2024. Benefiting from the customer recognition and industry reputation accumulated by the company's SCR sensor products, its new energy product business will also enter the fast lane of development. With the completion of this round of financing and the advancement of the future listing process, the company will continue to enhance its comprehensive R & D strength and expand its new energy product line in the future.
From the perspective of Muteng Investment, "Zhengyang Technology is a growth - oriented enterprise rather than a cyclical one. Its growth comes from the company's understanding and in - depth exploration of the global trend of energy conservation and emission reduction. The company's SCR business has been recognized by global leading commercial vehicle and large machinery customers. In the current era of electrification, its core technologies will also be gradually applied to the new energy vehicle industry." The investment by new energy industry players such as Jackery and BAIC Capital this time may also be due to their recognition of the company's development trend of gradually transforming from an auto parts manufacturer to a global energy - saving and emission - reducing manufacturer.
This Pre - IPO round of financing is a crucial step before the company's listing on the capital market. The introduction of multiple industrial and financial investors in this round reflects the market's high recognition of its technological strength, market position, and future growth potential. The main challenges the company faces at present may lie in how to further expand the international market and engage in more in - depth competition with international giants globally, as well as how to accelerate the improvement of its new energy product layout.
Looking back at its listing journey, Zhengyang Technology once applied for listing on the main board of the Shenzhen Stock Exchange. After queuing for two years, its IPO application was terminated in July 2025. After withdrawing its first IPO application, Zhengyang Technology did not slow down its capitalization pace. Just over four months later, it quickly restarted its IPO, changing the listing board from the main board to the Growth Enterprise Market. In terms of listing positioning, the Growth Enterprise Market is more in line with the company's attributes as a high - tech enterprise and a manufacturing innovation enterprise, suitable for its development direction of R & D and manufacturing of automotive sensors and transformation of the new energy business. Compared with the main board, the Growth Enterprise Market is more inclusive of growth - oriented technology manufacturing enterprises, making it the preferred track for the company's second attempt at listing.
Zhengyang Technology's core advantage stems from its continuous investment in technological innovation and accurate grasp of market demand. From the perspective of the industry fundamentals, Zhengyang Technology has established a global reputation with its monopoly - level market share of urea sensors and a mature global customer system. This round of financing and future listing fundraising will further enhance the development momentum of its new energy business. In the future, the company will continue to focus on the emission control market driven by environmental protection regulations. With its leading products, mature supply chain, and deep customer base, it is expected to occupy a more favorable position in global competition and contribute solutions to global green mobility.