IPO Spotlight: Single New Stock Subscription This Week as Tile Giant Marco Polo Clears Final Hurdle

While China’s IPO market shows selective momentum this week, investors face limited new opportunities with only one subscription offering. Automotive equipment specialist Balanshi opens for Beijing Stock Exchange subscriptions, contrasting sharply with tile manufacturing giant Marco Polo’s landmark achievement in securing final regulatory approval for its upcoming Shenzhen listing. This divergence highlights evolving patterns in China’s equity fundraising landscape.

Key developments include:

• Balanshi priced at 15.78 yuan/share with 10.35x P/E ratio – below industry average
• Marco Polo becomes first major building ceramics firm approved for Shenzhen main board IPO
• Both companies demonstrate resilient financial performance despite market headwinds
• Balanshi targets global automotive equipment expansion with IPO proceeds
• Marco Polo cements industry leadership with 11 consecutive years as top brand

This Week’s Singular IPO Subscription Opportunity

The Beijing Stock Exchange presents the sole new subscription window this week, featuring automotive service equipment manufacturer Balanshi. The company’s IPO pricing positions it attractively relative to sector peers.

Balanshi Investment Fundamentals

Priced at 15.78 yuan per share, Balanshi enters the market with a price-to-earnings ratio of 10.35 times – notably below the industry’s recent average dynamic P/E of 32.39 times. This valuation disconnect potentially offers investors value opportunities in specialized industrial equipment.

The company’s product portfolio targets the global automotive maintenance sector:

• Tire changers and wheel balancers for repair shops
• Vehicle lifts and hydraulic lifting systems
• Refrigerant recovery/recharge machines
• Pneumatic oil extraction equipment

Balanshi’s Market Position and Financial Performance

With 11 years of industry experience, Balanshi has cultivated extensive domestic and international distribution channels. Its equipment reaches over 100 countries across five continents, with particularly strong European and South American penetration.

Domestically, Balanshi supplies major automotive players including:

• BYD Auto, Li Auto, and Great Wall Motors dealership networks
• Maintenance chains like Tuhu, Tmall Auto Care, and JD Auto Maintenance
• Petroleum companies including PetroChina, Mobil, and Shell

The company’s financial trajectory shows consistent growth:

• 2023 revenue: 794 million yuan (+33% year-over-year)
• 2024 revenue: 1.057 billion yuan
• First-half 2025 revenue: 540 million yuan
• Net profits grew from 81 million (2023) to 129 million (2024)
• First-half 2025 net profit reached 78 million yuan

Marco Polo’s Landmark IPO Approval

China’s securities regulator granted final approval for Marco Polo Holdings’ IPO registration on August 15, clearing the path for its Shenzhen main board debut. The company represents the building ceramics industry’s most significant listing candidate.

Industry Dominance and Brand Power

Marco Polo operates as China’s largest architectural ceramics manufacturer, commanding premium market positioning through its dual-brand strategy. The company maintains production facilities across three Chinese provinces plus Tennessee, USA.

Industry recognition includes:

• 2022-2024 revenue leadership in Chinese building ceramics (China Building Ceramics & Sanitaryware Association)
• 13 consecutive years as industry’s most valuable brand (World Brand Lab)
• Top-ranked ceramic tile supplier for 11 straight years (2025 Construction Supply Chain Report)

Financial Resilience in Challenging Market

Despite property sector headwinds, Marco Polo maintained profitability:

• 2023 revenue: 8.925 billion yuan
• 2024 revenue: 7.324 billion yuan
• First-half 2025 revenue: 3.218 billion yuan
• Net profits remained stable at 1.353 billion (2023) and 1.327 billion (2024)
• First-half 2025 net profit: 655 million yuan

The company’s consistent performance amid sector consolidation demonstrates operational discipline and brand premium durability.

China’s Evolving IPO Landscape

This week’s sparse IPO activity reflects regulators’ selective approach to equity fundraising. With no IPO review meetings scheduled, the focus shifts to previously approved companies preparing for market entry.

Regulatory Trends and Market Implications

Approval patterns suggest authorities prioritize established industry leaders with proven financial track records. Marco Polo’s greenlighting after thorough scrutiny signals confidence in traditional manufacturing champions despite economic transitions.

Investors should note:

• Beijing Exchange continues serving specialized SMEs like Balanshi
• Shenzhen main board remains destination for large-scale industry leaders
• Profitability thresholds appear strictly enforced across exchanges

Balanshi Subscription Process Guide

For investors participating in Balanshi’s subscription on August 19, follow this step-by-step approach:

Pre-Subscription Preparation

Ensure your securities account meets Beijing Stock Exchange eligibility requirements, including:

• Minimum 24 months securities trading experience
• Average 500,000 yuan in account assets over past 10 trading days
• Completed risk assessment questionnaire

Subscription Execution Steps

1. Confirm subscription date: August 19, 2025 (9:15-11:30 AM; 1:00-3:00 PM)
2. Enter stock code: 920112
3. Input subscription quantity in multiples of 100 shares
4. Verify use of available subscription quota
5. Confirm order before 3:00 PM cutoff

Allotment results will follow standard Beijing Exchange procedures, with unfilled shares distributed proportionally among valid subscriptions.

Strategic Implications of Marco Polo’s Listing

Marco Polo’s imminent IPO represents more than just corporate fundraising – it signals confidence in traditional manufacturing sectors and provides a benchmark for industry valuations.

Key considerations for investors:

• Building materials sector revival potential amid infrastructure stimulus
• Export competitiveness of premium Chinese manufacturing brands
• Domestic market consolidation opportunities for well-capitalized leaders
• Brand premium sustainability in competitive global markets

Future IPO Pipeline Outlook

As Marco Polo prepares its formal listing announcement, market watchers anticipate renewed momentum in traditional manufacturing IPOs. Several factors will shape coming months’ IPO activity:

• Regulatory receptiveness to specialized equipment manufacturers
• Market appetite for industrial sector listings
• Secondary market performance impact on pricing strategies
• Sector diversification beyond technology-focused offerings

The approval pipeline reportedly contains numerous specialized manufacturers awaiting regulatory review, suggesting potential subscription opportunities in automotive components, advanced materials, and industrial automation sectors.

This week’s contrasting IPO developments – one modest subscription versus one landmark approval – illustrate the nuanced dynamics of China’s equity markets. Balanshi offers investors exposure to automotive service equipment globalization, while Marco Polo’s impending listing provides a bellwether for traditional manufacturing’s resilience. As regulatory scrutiny continues shaping the IPO landscape, investors should maintain watchlists combining established industrial leaders and specialized equipment innovators. Monitor exchange announcements for Marco Polo’s official pricing and listing date, and consult your brokerage for Balanshi allotment results following subscription closure.