en.Wedoany.com Reported - China's localization rate for five-axis machine tools has increased from about 18% in 2020 to nearly 60% in 2025, opening a window for domestic substitution. According to data from the China Commercial Industry Research Institute and Guojin Securities research reports, the high-end five-axis linkage machine tool market, long dominated by German (DMG Mori Seiki, Gildemeister), Swiss (Starrag), and Japanese (Mazak, Okuma) companies, is undergoing transformation due to surging demand from the new energy and aerospace industries and the maturation of the industrial chain.
After decades of development, China's machine tool industry has formed three core ecosystems, confirmed in the Ministry of Industry and Information Technology's 2024 list of national advanced manufacturing clusters. The Yangtze River Delta precision machine tool belt (Shanghai-Suzhou-Ningbo-Taizhou-Nantong) accounts for over 42% of enterprises in major provinces nationwide, with the supply radius for castings, ball screws, guide rails, and CNC systems mostly within a "one-hour circle," making it a key incubator for high-end five-axis and precision gantry machine tools. The Pearl River Delta 3C and lithium battery equipment cluster (Shenzhen-Dongguan-Foshan), driven by high demand for global consumer electronics and power battery components, accelerates the rapid iteration of drilling and tapping machines and small five-axis machine tools. The Bohai Rim heavy machinery and small-to-medium machine tool base (Jinan-Weifang Gaomi-Tengzhou-Yantai) specializes in large stamping lines and small-to-medium machine tools, with Jinan Second Machine Tool holding over 80% of the domestic market share for large CNC stamping lines, and Tengzhou earning the title "Capital of China's Small-to-Medium Machine Tools." Additionally, the Northeast region (Shenyang, Dalian) retains a technological foundation in heavy machine tools, undergoing restructuring through the General Technology Group; the Central and Western regions (Wuhan-Xi'an-Baoji) hold unique positions in CNC systems and gear machine tools.
Among representative domestic machine tool companies, several listed firms demonstrate distinct growth paths. Haitian Precision (Ningbo, 601882.SH), leveraging the "half-hour supply circle" in Beilun, Ningbo, focuses on large gantry machining centers, firmly ranking in the domestic first tier for wind power flange and integrated die-casting mold processing. Kede CNC (Dalian/Yangtze River Delta layout, 688305.SH) is the only listed company in China achieving full autonomy in "CNC systems + servo drives + electric spindles + five-axis complete machines," with a core component autonomy rate of about 85%. Its GNC series five-axis system accuracy rivals Siemens 840D, entering aerospace and aviation engine supply chains in volume. Neway CNC (Suzhou, 688697.SH) started with economical vertical and horizontal machining centers and has broken through to precision horizontal machining centers and five-axis machines. Guosheng Zhike (Nantong, 688558.SH) produces its own castings, precision sheet metal weldments, and some functional components, forming a closed loop of "casting-machining-complete machine assembly." Qiaofeng Intelligent (Dongguan/Kunshan, 301605.SZ) excels in the scale production of vertical machining centers. Chuangjiji (Dongguan/Shenzhen, 300083.SZ), initially a leader in drilling and tapping machines for smartphone metal frames, has expanded into new energy vehicle housings and lithium battery structural component five-axis equipment, consistently ranking among the top private machine tool companies by revenue. Haomai Technology (Gaomi, Shandong, 002595.SZ), starting from its own production line validation as the world's top tire mold manufacturer, has introduced specialized five-axis machine tools to the market. Jinan Second Machine Tool has repeatedly beaten German Schuler and Japanese Komatsu to win global projects from Ford and Tesla. Qinchuan Machine Tool (Baoji, Shaanxi, 000837.SZ) leads domestically in precision gear grinding machines and thread grinders, and holds a controlling stake in Hanjiang Machine Tool. Beijing Jingdiao (Beijing/Langfang) has developed its own JD series CNC systems and electric spindles, achieving 0.1-micron-level feed control in high-speed small-tool machining. Huazhong CNC (Wuhan, 300161.SZ), backed by Huazhong University of Science and Technology, integrates AI chips into its Huazhong 9/10 series high-end CNC systems to support large model deployment. Shenyang Machine Tool, after restructuring, focuses on the VMU series five-axis vertical machining centers and core functional components.
Based on 2025 listed company annual reports and industry data, the domestic machine tool industry has entered a phase of "structural differentiation." Revenue scales have formed four tiers: The first tier, Chuangjiji, with revenue of RMB 5.320 billion (+15.53%); the second tier, Qinchuan Machine Tool at RMB 4.090 billion, Shenyang Machine Tool at RMB 3.738 billion, and Haitian Precision at RMB 3.368 billion; the third tier, Qiaofeng Intelligent with a growth rate of 41.88%, Guosheng Zhike at 22.34%, and Neway CNC at 17.52%; the fourth tier, Kede CNC with revenue of RMB 552 million (-8.86%). In terms of gross margin, Kede CNC's five-axis machine tool gross margin has long remained around 40%, while Huazhong CNC's CNC system segment gross margin rose to 42.76%; Neway CNC's gross margin fell from 23.68% to 20.77%, and Haitian Precision's comprehensive gross margin dropped to 25.70% (down 1.64 percentage points year-on-year), with Haitian Precision's overseas gross margin at 39.39% compared to 22.82% domestically. Regarding net profit attributable to parent company excluding non-recurring gains and losses and ROE, Haitian Precision's ROE is about 15.35%, Neway CNC's about 17.14%, while Qinchuan Machine Tool's ROE is only about 1.09% with net profit excluding non-recurring gains and losses in the red for three consecutive years (RMB -71.68 million in 2025); Chuangjiji's net profit attributable to parent company fell 39.63% in 2025; Huazhong CNC turned profitable (RMB 16.32 million). In terms of overseas revenue, Haitian Precision's overseas revenue reached RMB 560 million (+50%), accounting for 16.56% of total revenue; Chuangjiji's overseas revenue grew 88.26% year-on-year. In 2025, China's machine tool exports surpassed Germany for the first time, capturing a 21.6% global market share to rank first. In R&D investment intensity, Kede CNC's R&D expense ratio has consistently remained in the 10%-15% range, while Huazhong CNC continues high investment to advance its Huazhong 10 series AI CNC system.
The mid-to-low-end market continues to undergo consolidation and shakeout, while companies focusing on high-end five-axis systems and self-developed systems are building moats. The gap between leading private enterprises and some established state-owned companies is widening, and going global has become a new growth driver. Domestic machine tools have achieved large-scale substitution in mid-range precision machining, but still lag behind top German and Japanese levels in top-tier accuracy stability and some high-end functional components. Relying on increasingly mature national-level industrial machine tool clusters and sustained investment from leading companies, the pace of catch-up is accelerating.
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