On June 18, Futahe smoothly passed the review by the Beijing Stock Exchange's listing committee, taking another step closer to entering the capital market.

In the automotive components sector, where scale determines success, Futahe's size is not particularly large—its revenue just exceeded 900 million yuan in 2025. However, its client roster reads like a who's who of the industry: Bosch, Mercedes-Benz, General Motors, BorgWarner, ZF, Schaeffler... Nearly all of the top 10 global components companies are on its cooperation list.

Starting from Longgang, Shenzhen, to establishing production capacity in Germany, Mexico, the United States, and South Korea, Futahe has completed a 'reverse globalization' journey over two decades. While many components companies are still struggling to 'enter the global supply chain,' Futahe has already upgraded from a 'supporting player' to a 'synchronous R&D partner,' deeply embedding itself in the core system of the global automotive industry. Passing the review marks another starting point for this low-profile precision manufacturing company to step onto a broader stage.

01‍

From Longgang, Shenzhen to Germany's Black Forest: A Technological 'Feedback' Across Thousands of Miles

In 2015, Futahe made a bold decision at the time—to acquire a family-owned enterprise located in Germany's Black Forest region.

Founded in 1944, this German company had deep technological accumulation in automotive steering shafts. After the acquisition, Futahe not only obtained a complete precision manufacturing process system but, more critically, extended its R&D reach directly into the heartland of the global automotive industry.

The strategic value of this acquisition later proved to far exceed expectations. By integrating the technological resources of its German subsidiary, Futahe secured orders for Bosch's IPB brake-by-wire system in the domestic market, won North American business for Wuhan factory from IMS Gear, and further expanded gear shaft projects with ThyssenKrupp and Nexteer. A Chinese locally grown components company, through acquiring an old European factory, was able to reverse-empower its domestic production capacity—a rare sight in the industry.

An even deeper significance lies in brand endorsement. In the global automotive supply chain system, 'Made in Germany' is itself a gold-standard label. By holding the brand and technological heritage of this German subsidiary, Futahe gained stronger trust endorsements when facing top-tier clients like Bosch and Mercedes-Benz. The German subsidiary remains loss-making on a standalone basis, but its strategic synergistic value at the group level far exceeds what a profit-and-loss statement can measure.

02‍

Hidden Behind the World's Top Supply Chains: A Multi-Year Marathon for Market Access

In the automotive components industry, entering the global top-tier supplier system is an extremely high barrier, often requiring a certification cycle of 2 to 3 years. Once entered, partnerships are typically extremely stable.

Futahe's client list nearly encompasses the entire top echelon of the global automotive supply chain: among automakers, there are Mercedes-Benz, General Motors North America, and SAIC Motor; the tier-one supplier camp (ranks) are even more prestigious, including Bosch, BorgWarner, Schaeffler, ZF, Continental, and many other Fortune Global 100 companies.

This client structure was formed through sustained technological deepening. As of April 30, 2026, the company held 124 patents, including 37 invention patents. Its subsidiary, Dongfang Junchi, is even recognized by the Ministry of Industry and Information Technology as a national-level specialized, sophisticated, unique, and innovative 'Little Giant' enterprise.

From market data, Futahe has established a significant presence in its niche segments: it holds a 23.73% global market share in throttle shafts, 9.85% in center bolts, and 4.77% in actuator sleeves. In the new energy sector, the company has successfully secured positions in Bosch's IPB and iBooster brake-by-wire systems, as well as supply chains for electric vehicle platforms like Volkswagen's MEB and Mercedes-Benz's EVA2.

03‍

A 'Bridgehead' in the Era of Deglobalization: Using Localization to Counter Trade Barriers

If Futahe had merely Stay in (stopped at) 'product exports,' it might not have attracted much attention. What truly makes this company uniquely valuable for observation is its forward-looking global production capacity layout (layout).

Since 2015, the company has established production bases and sales centers in Germany, Mexico, the United States, and South Korea. As international trade frictions intensified and tariff barriers rose in recent years, this 'local manufacturing, global sales' layout (layout) began to pay dividends. The Mexican factory, serving as a springboard into the North American market, not only benefits from tariff preferences under the USMCA (United States-Mexico-Canada Agreement) but also responds promptly to demands from North American major clients like General Motors and Bosch.

Of course, the flip side is currency fluctuations. During the reporting period, the proportion of the company's overseas revenue climbed from 59.20% to 62.42%, causing foreign exchange gains and losses to disturb the profit statement. However, compared to the risk of order loss from trade barriers, currency fluctuations are a more predictable operational variable.

04‍

Financial Fundamentals: Steady Growth and Visible Challenges

From operational data, Futahe's growth trajectory is relatively clear. From 2023 to 2025, its revenue increased from 732 million yuan to 907 million yuan, net profit attributable to parents rose from 53.88 million yuan to 87.11 million yuan, and the gross profit margin of its main business steadily improved from 27.03% to 28.15%. Net cash flow from operating activities reached 175 million yuan in 2025, indicating sound profit quality.

For its Beijing Stock Exchange listing, the company plans to raise approximately 330 million yuan, primarily for the 'Intelligent Production Line Project for Key Components in New Energy and Traditional Vehicles.' With the accelerating penetration of brake-by-wire and steer-by-wire systems in intelligent driving, Futahe aims to leverage capital strength to further expand production capacity, converting technological and client advantages into scale advantages.

05‍

Conclusion

In the automotive components sector—a long-cycle, high-barrier industry—Futahe provides a noteworthy case study: instead of engaging in price wars in the domestic market, it gained technological endorsement by acquiring an old German factory, hedged against trade risks by establishing a plant in Mexico, and built long-term competitiveness by binding global top-tier clients.

This may well be the necessary path for Chinese precision manufacturing to evolve from 'supporting' to 'synchronous R&D.' Now, with its Beijing Stock Exchange review passed, this low-profile supply chain deep-diver is fully stepping onto a broader capital stage.

Note: All content in this article is compiled from publicly available information. For any feedback, please contact Quanjing Network for clarification.

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