Shengbang Co. in Chengdu Plans Major Asset Restructuring: Intends to Acquire a 60% Stake in a German WOCO Group Subsidiary Valued at 430 Million RMB.

Shengbang Sealing Plans to Acquire 60% Stake in Wuxi WOCO, Potential Major Asset Restructuring

On November 18, Chengdu Shengbang Sealing Co., Ltd. (Shengbang, 301233.SZ) announced that it has signed a framework agreement with WOCO.F.J. Wolf Holding GmbH (WOCO Group) to acquire a 60% stake in Wuxi WOCO Engine Noise Reduction Components Co., Ltd. via cash payment.

According to preliminary estimates, the transaction may constitute a major asset restructuring. Upon completion, Wuxi WOCO will become a majority-owned subsidiary of Shengbang.

The deal is still in the planning stage, and key terms—including the final price—remain under negotiation.

About WOCO Group: A Global German Enterprise

WOCO Group, the transaction counterparty, is a global family-owned enterprise headquartered in Germany, with manufacturing sites and partners across Europe, NAFTA regions, and Asia. In 2024, it achieved 590 million euros in sales and employs about 4,400 people.

About Wuxi WOCO: Stable Revenue and Strong Profitability

Founded in December 2003, Wuxi WOCO is wholly owned by WOCO Group. Its products span both traditional engine vehicles and new energy vehicles, including rubber & plastic automotive components, engine parts, and electric-drive motor assemblies.

Financial performance:

• 2023 revenue: 539 million RMB, net profit: 37 million RMB
• 2024 revenue: 533 million RMB, net profit: 38 million RMB

The two parties tentatively agreed to an overall valuation of 430 million RMB for Wuxi WOCO.

After the acquisition, the company will be reorganized as a Sino-foreign joint venture under Chinese law, with the name containing “Shengbang WOCO” or “WOCO Shengbang.”

Synergies Expected After Acquisition

Shengbang stated that once the acquisition is finalized, the target company will be included in its consolidated statements, significantly enhancing scale and profitability.

Business synergy highlights:

• Shengbang focuses on seals for engines, transmissions, axles, EV battery packs, motors, and control units
• Wuxi WOCO covers automotive interior/exterior rubber & plastic parts, engine components, and drive-motor assemblies

Customer bases are also complementary:

• Wuxi WOCO has strong penetration among European and joint-venture automotive brands
• Shengbang holds advantages among Chinese domestic brands

The acquisition is expected to strengthen channel synergy, boost customer stickiness, and accelerate performance growth. Furthermore, Wuxi WOCO’s international management experience will support Shengbang’s global market expansion.

Shengbang’s Financial Performance

Founded in 2004, Shengbang is a national “Specialized, Refined, Differentiated, and Innovative Little Giant” enterprise, specializing in high-polymer materials and sealing/insulation systems. It went public on ChiNext in 2022.

For the first three quarters of 2025:

• Revenue: 328 million RMB, +12.71% YoY
• Net profit: 67.71 million RMB, +0.17% YoY
• Non-recurring net profit: 62.70 million RMB, +2.72% YoY
• Operating cash flow: 52.83 million RMB, +361.70% YoY

Market Performance

As of Nov. 18 closing, Shengbang closed at 49.82 RMB/share, down 6%, with a market capitalization of 2.564 billion RMB.