KEDE Numerical Control Co., Ltd.: history, ownership, mission, how it works & makes money

Founded in Dalian in 2008 and publicly listed on the Shanghai STAR Market as 688305.SS in 2021, KEDE Numerical Control has grown from initial R&D on five-axis linkage machines in 2009 to producing core components in-house by 2017 and expanding to a product lineup of 4 general and 4 special machining centers by 2024; the company-now a subsidiary of Dalian Guangyang Technology Group with about 735 employees (late 2025)-claims >85% self-sufficiency in its high-end five-axis tools and operates multiple manufacturing bases in Dalian, Shenyang and Yinchuan while planning a 250,000 m² intelligent manufacturing park integrating big data, IoT and AI; KEDE's KMC five-axis vertical machining centers offer ±360° rotation, spindle speeds up to 20,000 RPM and machining accuracy of 0.001 mm, supporting its dominant domestic position where five-axis sales ranked third in 2024, and its financials underscore rapid growth-revenues surged from ¥75 million to ¥605 million in 2024 (CAGR 34.9%), high-end CNC sales made up >90% of revenue, gross margin held at 42% vs. an industry average of 25.4%, and net profit attributable to the parent rose from ¥70 million in 2017 to ¥130 million in 2024 (CAGR 51.6%)-with orders up 24% year-on-year in 2024 and plans to lift production capacity to about 1,100 units by 2028 to serve aerospace, precision molds and export markets.

KEDE Numerical Control Co., Ltd. (688305.SS): Intro

• Founded: 2008, Dalian, Liaoning Province, China.
• Core focus: High‑end five‑axis linkage CNC machine tools and key functional components (CNC systems, electric spindles, toolholders, control software).
• Primary end markets: Aerospace, new energy vehicles (NEVs), precision mold making, and advanced manufacturing sectors.

• Early R&D orientation (2009-2016): concentrated investment in five‑axis linkage control, kinematics, and machine rigidity to target advanced component geometries.
• Vertical integration (2017 onward): in‑house CNC systems and electric spindle production reduced reliance on key suppliers and shortened lead times for assemblies.
• Public listing (2021): access to capital markets via the STAR Market accelerated product development and capacity projects.
• Portfolio breadth (2024): four general and four special machining centers expanded customer addressable market across standard and specialized machining tasks.
• Capacity scale‑up (2025): three manufacturing bases positioned geographically to serve Northeast and Northwest Chinese industrial clusters and strategic aerospace/NEV clients.

• Core product families:
  • Five‑axis CNC machining centers (general purpose and specialized variants).
  • In‑house CNC control units and motion controllers tuned for complex kinematics.
  • High‑speed electric spindles and precision toolholding systems.
  • Integrated software solutions for toolpaths, feedback control, and process monitoring.
• Manufacturing model: modular machine assembly using internally produced cores (control, spindle) plus outsourced structural castings and precision guides; quality control and calibration performed in‑house.
• R&D feedback loop: customer pilot programs in aerospace and NEV sectors inform iterative hardware and software upgrades, with short product cycles enabled by STAR Market funding.

• Primary revenue streams:
  • Machine tool sales (higher single‑ticket value from multi‑axis, specialized machines).
  • After‑sales and services: installation, commissioning, periodic maintenance, spindle/co ntrol refurbishment, and spare parts.
  • Software and control upgrades: recurring upgrades/licenses tied to controllers and process optimization modules.
• Margin levers: internalization of CNC systems and spindles improves gross margins and protects against external vendor price/availability shocks.
• Customer concentration: design win cycles with aerospace and NEV OEMs yield high ASP (average selling price) orders but entail long sales cycles and certification requirements.

• Listed entity: KEDE Numerical Control Co., Ltd. on SSE STAR Market (688305.SS), enabling institutional and retail investor participation.
• Use of capital: post‑IPO funds directed to R&D, production capacity expansion, and certification/testing facilities for aerospace customers.
• Typical investor emphasis: strategic industrial investors and technology‑focused funds targeting domestic machine‑tool leaders in China's advanced manufacturing push.

• Win design‑ins with tier‑1 aerospace and NEV suppliers to secure long‑cycle, high‑margin machine orders.
• Expand recurring service and parts revenue through extended maintenance contracts and spare parts supply.
• Leverage in‑house components to improve product differentiation, cost structure, and time‑to‑market for new machine models.
• Scale manufacturing footprint (Dalian, Shenyang, Yinchuan) to meet regional demand and reduce logistics/cycle times for major customers.

KEDE Numerical Control Co., Ltd. (688305.SS): History

• Ownership: Holding subsidiary of Dalian Guangyang Technology Group Co., Ltd.; publicly traded on the Shanghai Stock Exchange (688305.SS).
• Workforce: Approximately 735 full-time employees as of late 2025.
• Leadership team: General Manager & Director Hu Chen; Financial Director & Accounting Supervisor Yunzhong Yin; Secretary & Director Lihua Zhu, among others.
• R&D strategy: Dual R&D system focused on high-end CNC machine tools and integrated control systems to capture domestic demand and support localization.
• Manufacturing footprint: Expansion projects and production sites across Dalian, Shenyang and Yinchuan to increase capacity and regional market reach.

• How it works: KEDE designs, develops and manufactures CNC machine tools and related control systems; integrates in-house software, hardware and after-sales services to offer complete manufacturing solutions.
• How it makes money: Product sales of machine tools and control systems; service, maintenance and retrofit contracts; system integration and software licensing for industrial customers; capacity expansion enables higher volume sales to domestic and regional manufacturers.
• Strategic growth drivers: Localized high-end tooling, expanded production capacity in new facilities, and centralized R&D to shorten product development cycles and improve margin capture.

KEDE Numerical Control Co., Ltd. (688305.SS): Ownership Structure

• Mission: Provide complete numerical-control solutions emphasizing high quality, reliability and industry-tailored innovation.
• Integrity: Comprehensive compliance program, transparent disclosure and customer- and partner-focused governance.
• Innovation: R&D-driven growth with sustained capital and human investment to advance control systems, motion platforms and intelligent machining.
• Quality & Customer Satisfaction: High-end CNC platforms certified for aerospace-grade tolerances and widely adopted in precision mold manufacturing; dedicated R&D and advanced production systems to deliver turnkey solutions.
• Future orientation: Plan to build a 250,000 sqm intelligent manufacturing equipment industrial park integrating big data, IoT and AI to raise automation and production efficiency.

• Product sales: High-precision CNC machine tools and control systems sold to aerospace, automotive, precision mold and energy equipment makers.
• System integration & turnkey projects: End-to-end delivery for complex machining centers, including software, hardware and on-site commissioning.
• After-sales & services: Spare parts, maintenance contracts, retrofits and software upgrades generating recurring revenue.
• R&D contracts & customization: Customer-funded development for specialized machine tools and control algorithms.

• Major strategic shareholders: founding/insider block holding a significant controlling stake to secure operational continuity (approx. 34%).
• Institutional investors: domestic mutual funds and QFII allocations (approx. 21%).
• Public float & retail shareholders: remaining free float on STAR Market (approx. 45%).
• Board & governance: professional board with independent directors and compliance systems aligned to STAR Market rules.

• High-value product mix: premium pricing on aerospace-grade CNC systems delivers higher unit margins than commodity machine tools.
• Customization and integration: project-based revenues with higher margin profiles from turnkey contracts and software/controls IP.
• Recurring services: maintenance, spare parts and software licensing provide margin-stable, recurring cash flows.
• R&D-driven premiumization: sustained R&D spend (≈8% of revenues) supports product differentiation, enabling longer product lifecycles and higher ASPs.

• Industrial park: 250,000 sqm intelligent manufacturing base to scale production, lower per-unit costs and integrate IoT/AI for predictive maintenance and yield improvement.
• Vertical expansion: deeper integration of controls, drives and machining platforms to capture more value per system sold.
• Export & domestic aerospace demand: targeting higher content share in domestic aerospace and strategic manufacturing supply chains.

KEDE Numerical Control Co., Ltd. (688305.SS): Mission and Values

• Core mission: Achieve technological self-reliance in high-end CNC and five-axis machine tools and enable intelligent manufacturing adoption among industrial users.
• Values: Technical excellence, product reliability, customer-centric service, and continuous digital transformation.

• Dual R&D structure: Parallel development teams for high-end five-axis machine tools and for CNC systems/controls, enabling synchronized hardware + software product releases.
• High self-sufficiency: Achieved a self-sufficiency rate of over 85% in its high-end five-axis machine tools, reducing reliance on imported subsystems and key components.
• Advanced manufacturing infrastructure: Production facilities include a 14-meter-deep underground workshop dedicated to assembly, alignment, and debugging of large CNC machine tools, improving thermal and environmental stability for ultra-precision assembly.
• End-to-end systems: Specialized R&D, production, marketing, and after-sales teams provide turnkey numerical control solutions, including commissioning, training, and maintenance.

• KMC series five-axis vertical machining centers: ±360° rotation, spindle speeds up to 20,000 RPM, machining accuracy as fine as 0.001 mm.
• Integrated hardware + control: Machine structures engineered in concert with proprietary CNC systems to optimize motion control, thermal drift compensation, and high-speed spindle dynamics.
• Quality control & testing: Deep workshop and in-house test rigs allow full-process verification and high repeatability during final acceptance tests.

• Revenue streams: Sale of CNC machine tools (including KMC five-axis centers), proprietary CNC control systems, system integration projects, maintenance contracts, and aftermarket services.
• Value proposition: High-precision domestic alternatives to imported five-axis solutions, lower total cost of ownership through local support and high in-house component content.
• Digital/Industry 4.0 strategy: Planned integration of big data, IoT sensors, and AI-driven analytics to enable predictive maintenance, process optimization, and smart factory management-positioning products as part of a scalable industrial software+hardware offering.

KEDE Numerical Control Co., Ltd. (688305.SS): How It Works

• Primary revenue source: sale of high‑end five‑axis CNC machine tools (domestic market focus).
• Secondary revenue: key functional components, spare parts, maintenance contracts and technical upgrades.
• Value capture: premium pricing for high precision, after‑sales service, and recurring spare‑parts sales.
• Scale/expansion drivers: new manufacturing facilities (Dalian, Shenyang, Yinchuan) to raise capacity and improve delivery lead times.

• Direct machine sales: multi‑axis five‑axis machines sold to large end‑users and system integrators at premium margins.
• Component sales: proprietary spindles, linear guide systems and control modules sold separately or bundled.
• After‑sales & services: installation, calibration, maintenance contracts and paid upgrades generate recurring revenue and spare‑parts demand.
• Capacity leverage: expanded plants in Dalian, Shenyang and Yinchuan increase throughput, shorten delivery times and enable larger contracts.

• Revenue growth: 75M → 605M yuan (2017 to 2024), CAGR 34.9%.
• Profitability: gross margin 42% in 2024 vs. industry avg. 25.4%, indicating pricing power and operational efficiency.
• Net income growth: 70M → 130M yuan, CAGR 51.6%, reflecting scalable margins as sales expand.

KEDE Numerical Control Co., Ltd. (688305.SS): How It Makes Money

• Founded to serve high-end CNC machining needs, KEDE has grown into a leading domestic five-axis machine tool enterprise.
• Publicly listed as 688305.SS, with ownership split among institutional investors, management holdings and public shareholders (typical listed-company structure).

• Mission: supply high-precision, reliable five-axis machining centers for aerospace, precision molds and advanced manufacturing to accelerate domestic equipment upgrades.
• Primary end markets: aerospace, precision mold, and export customers in Europe and North America.

• Design and manufacture five-axis CNC machine tools and associated automation and software.
• Sell machines direct to OEMs and integrators, plus aftermarket services (installation, tooling, maintenance, spare parts, software upgrades).
• Export channel sales into Europe and North America provide foreign-currency revenue and higher-margin project orders.

• Unit sales of five-axis machines (high-ticket hardware) are the primary revenue source; aftermarket service and parts provide recurring revenue and better margin stability.
• Project and export contracts often include integration, training and extended service agreements that boost lifetime customer value.
• National policy tailwinds for domestic manufacturing upgrades increase replacement cycle and demand for high-end CNC equipment.

• As of 2024, KEDE ranks 3rd in five-axis machine tool sales revenue among domestic manufacturers, signaling leading market share in the segment.
• 2024 new orders increased by 24% year‑on‑year, reflecting strengthening market recognition and demand.
• Export footprint in Europe and North America demonstrates product competitiveness internationally.
• Capacity expansion plan targets ~1,100 units annual production by 2028 to capture rising demand and scale margins.

• Rising order intake and export wins indicate product-market fit and willingness of international customers to adopt KEDE machines.
• Capacity scale-up and national policy support create a favorable environment for revenue and margin expansion over the medium term.