Shengu Group's IPO Registration for Shanghai Main Board Takes Effect, 2025 Revenue RMB 10.122 Billion

Shengu Group Co. , Ltd. received registration approval on July 30, 2026, and is set to list on the Shanghai main board. The company was established in February 2003 and converted to a joint-stock company in October 2010, with its headquarters in the Shenyang Economic and Technological Development Zone. Prior to this offering, Tiexi District State-owned Assets Company held 43.07% of the company's shares as the controlling shareholder, and the Shenyang Tiexi District State-owned Assets Supervision Bureau is the actual controller. During the mixed-ownership reform in 2022, the company introduced strategic investor Advanced Manufacturing Fund, which is now the second-largest shareholder with a 38.23% stake. The board comprises nine directors, including three independent directors, with Dai Jishuang serving as chairman.

Shengu Group's main products are centrifugal compressors, reciprocating compressors, and nuclear pumps. Among them, centrifugal compressors are primarily large heavy-duty centrifugal compressors, reciprocating compressors are mainly process-flow reciprocating compressors, and nuclear pumps cover nuclear main pumps, nuclear secondary and tertiary pumps, and conventional island pumps. The company serves a wide range of sectors including petroleum, chemicals, power, natural gas, and new energy. It adopts a production mode based on sales orders and sells directly to customers. During the reporting period, key clients included Sinopec, PetroChina, CNOOC, and State Power Investment Corporation.

In 2023, 2024, and 2025, the company's revenue was RMB 8.206 billion, RMB 9.309 billion, and RMB 10.122 billion, respectively, with net profit attributable to shareholders of RMB 355 million, RMB 442 million, and RMB 739 million. In the first quarter of 2026, the company achieved revenue of RMB 2.104 billion, up 0.89% from the same period in 2025, and net profit attributable to shareholders of RMB 59.707 million, up 132.21% year-on-year.

At the end of each reporting period, the company's on-hand order value was RMB 20.581 billion, RMB 22.784 billion, and RMB 20.857 billion, respectively, with the cumulative on-hand orders declining at the end of 2025. During the reporting period, the gross margin of main business was 21.89%, 24.62%, and 26.08%, showing an upward trend. R&D expenses were RMB 339 million, RMB 401 million, and RMB 422 million, accounting for 4.13%, 4.31%, and 4.17% of revenue, respectively.

As of the end of each reporting period, the book value of accounts receivable was RMB 3.331 billion, RMB 3.802 billion, and RMB 3.362 billion, representing 16.49%, 16.88%, and 13.92% of current assets, respectively. Some customers have been slow in payments, resulting in overdue receivables. The overdue accounts receivable as a percentage of total accounts receivable at the end of each reporting period was 52.82%, 53.8%, and 61.41%. The company's debt-to-asset ratio at the end of each reporting period was 81.4%, 80.13%, and 78.54%, mainly due to the relatively large contract liabilities arising from advance receipts. Net cash flow from operating activities was RMB 1.596 billion, RMB 1.223 billion, and RMB 1.641 billion during the reporting period, and fell to -RMB 1.000 billion in the first quarter of 2026.

The Chinese centrifugal compressor market grew from RMB 8.92 billion in 2019 to RMB 13.58 billion in 2023, with a compound annual growth rate of 11.1%. The market for process-flow reciprocating compressors in China expanded from RMB 3.02 billion in 2019 to RMB 5.56 billion in 2024. The domestic compressor industry has gone through three stages over the past two decades: a period of rapid growth from 2002 to 2012; a phase from 2012 to 2022 marked by market expansion and domestic design breaking foreign monopoly; and from 2022 onward, driven by energy structure adjustment and industrial upgrading, emerging demand in compressed-air energy storage, hydrogen energy, and CCUS has appeared.

Shengu Group operates mainly in the major technical equipment segment of the industry. Besides Shengu Group, other major centrifugal compressor producers in China include Siemens Energy, MAN Turbo, Shaanxi Blower Power, and Baker Hughes. In 2024, by sales of large heavy-duty centrifugal compressors, Shengu Group ranked first in market share in the industry.