Qinchuan Machine Tool & Tool Group Share Co., Ltd. (000837.SZ) Bundle
Founded in 1965, Qinchuan Machine Tool & Tool Group Share Co., Ltd. has evolved from a domestic machinery stalwart into a high-end equipment and systems integrator with a 2024 revenue of ¥3.86 billion and a net profit of ¥53.78 million (both up ~2.6-2.9% year‑on‑year), a workforce of 9,431 employees, and honors including the National Science and Technology Progress Award; its listed structure (SZSE: 000837.SZ) comprises roughly 1.02 billion shares outstanding (down 0.31% in the past year) with institutional holdings of 5.42%, a December 2025 market capitalization near ¥12.59 billion and an enterprise value of ¥12.50 billion, while strategy and operations hinge on centralized management, advanced manufacturing facilities, R&D investment equal to 7% of 2023 revenue, robust supply‑chain systems, strategic partnerships, and diversified revenue streams from high‑end CNC machine tools, industrial robot reducers, precision gearboxes, components and intelligent manufacturing services-supporting an 80% domestic market share, exports to over 20 countries, and a market cap gain of 36.78% over the past year.
Qinchuan Machine Tool & Tool Group Share Co., Ltd. (000837.SZ): Intro
History- Founded in 1965, Qinchuan Machine Tool & Tool Group Share Co., Ltd. (000837.SZ) began as a strategic asset in China's heavy machinery and machine-tool sector.
- 2005 market capitalization: ≈764.85 million yuan, reflecting its mid-sized industrial position at the time.
- 2015 market capitalization: ≈4.81 billion yuan, indicating substantial expansion and market recognition over the decade.
- Key honors include the National Science and Technology Progress Award and the China Industry Award Project Commendation Award, recognizing R&D and industrial impact.
- Listed on Shenzhen Stock Exchange under ticker 000837.SZ; ownership is a mix of institutional, retail, and state-related shareholders typical of major Chinese industrial listed firms.
- Group structure combines manufacturing subsidiaries focused on machine tools, precision tooling, and related equipment, supported by centralized R&D and sales divisions.
- Mission: advance domestic machine-tool capabilities through technology-driven manufacturing, precision tooling, and downstream solutions for automotive, aerospace, energy, and general manufacturing sectors.
- Strategic priorities: product innovation, automation/Industry 4.0 upgrades, market diversification, and expanding high-value tooling solutions.
- Core activities: design and manufacture of CNC machine tools, cutting tools, and related automation equipment.
- R&D: centralized research centers develop cutting-edge machining technologies, driving product differentiation and higher-margin specialty machines.
- Sales & distribution: direct sales to OEMs and distributors for aftermarket tooling and spare parts; service contracts and technical support provide recurring revenue streams.
- Vertical integration: in-house tooling production and assembly reduce input costs and improve quality control.
- Primary revenue from sale of machine tools (CNC lathes, vertical/horizontal machining centers).
- Tooling and accessories: cutting tools, holders, and consumables-higher frequency, repeat purchase items.
- After-sales services: maintenance contracts, retrofits, spare parts, and training-steady recurring revenue.
- Project and system solutions: turnkey machining lines and automation solutions for strategic industrial clients.
| Year | Market Cap (yuan) | Revenue (yuan) | YoY Revenue % | Net Profit (yuan) | YoY Net Profit % | Employees (Dec) |
|---|---|---|---|---|---|---|
| 2005 | 764,850,000 | - | - | - | - | - |
| 2015 | 4,810,000,000 | - | - | - | - | - |
| 2023 | - | 3.76 billion (approx.) | - | 52.28 million (approx.) | - | - |
| 2024 | - | 3.86 billion | +2.62% | 53.78 million | +2.92% | 9,431 |
- 2024 figures: revenue 3.86 billion yuan (+2.62% YoY) and net profit 53.78 million yuan (+2.92% YoY), workforce of 9,431 as of Dec 2024.
- Long-term growth drivers: industrial automation demand, domestic substitution of imported machine tools, and ongoing product upgrades to higher-value, precision equipment.
Qinchuan Machine Tool & Tool Group Share Co., Ltd. (000837.SZ): History
Qinchuan Machine Tool & Tool Group Share Co., Ltd. is a long-established Chinese machine-tool manufacturer evolving from provincial state-owned roots into a publicly traded industrial group focused on CNC machine tools, precision components and tooling systems. Over decades the company expanded product lines from conventional lathes and milling machines to CNC equipment, automated lines and aftermarket tooling services, serving automotive, aerospace, energy and general machinery sectors.- Founded from provincial machine-tool assets and restructured through corporatization and public listing to access capital for modernization.
- Product evolution: conventional → CNC → automated systems + precision cutting tools and services.
- Customer base: OEMs (automotive, aerospace), industrial equipment manufacturers, aftermarket tooling customers.
| Metric | Value |
|---|---|
| Ticker | 000837.SZ |
| Shares outstanding | ≈ 1.02 billion |
| Shares change (1 yr) | -0.31% |
| Insider ownership | 0% |
| Institutional ownership | ≈ 5.42% |
| Market capitalization (Dec 2025) | ≈ ¥12.59 billion |
| Enterprise value | ≈ ¥12.50 billion |
- Equipment sales: primary revenue from sales of CNC machine tools and automated machining centers to industrial OEMs.
- After-sales & services: maintenance contracts, spare parts and retrofits provide recurring revenue and higher margins.
- Tooling & consumables: sales of precision cutting tools and inserts complement machine tool sales and support customer retention.
- Component manufacturing: in-house machining and supply of precision components for industrial customers.
- Modernize Chinese manufacturing capabilities by supplying reliable CNC solutions and integrated tooling systems.
- Move up the value chain via technology upgrades, increased automation and expanding service offerings.
- Strengthen aftermarket presence to stabilize cash flows amid cyclical equipment demand.
Qinchuan Machine Tool & Tool Group Share Co., Ltd. (000837.SZ): Ownership Structure
Mission and values- Lead the mainframe business with high-end manufacturing and core components; pursue intelligent manufacturing as a new strategic breakthrough.
- Adapt to a changing environment through transformation and upgrading to form an integrated development model across equipment, components and system integration.
- Position as a "domestic leading and internationally renowned" system integration service provider and key component supplier in high-end equipment manufacturing.
- Emphasize R&D, quality and industry collaboration - recognized by awards such as the National Science and Technology Progress Award and the China Industry Award Project Commendation Award.
- High-end CNC equipment: precision lathes, machining centers, cylindrical grinders, gear processing machine tools, thread grinders, CNC complex tools and precision measuring instruments.
- Components & subassemblies: industrial robot reducers, precision (special) gearboxes, rolling functional parts, auto parts, precision gears, precision instruments and precision castings.
- System integration: turn-key solutions for heavy equipment manufacturers combining machine tools, control systems and precision components.
- Product sales - primary revenue from high-end CNC machines and gear processing equipment sold to OEMs in aerospace, energy, rail, automotive and defense.
- Components and modules - recurring revenue from precision gearboxes, reducers and precision gears sold as parts or integrated into customer systems.
- System integration & engineering services - higher-margin contracts for customized machine systems and production lines, including commissioning and after-sales service.
- After-sales & spare parts - maintenance, training and consumables for installed base providing stable annuity-like cash flows.
- R&D and technology licensing - monetization of proprietary designs and control technologies via partnerships and licensing agreements.
| Year | Operating Revenue | Net Profit (attrib.) | Total Assets | R&D Investment |
|---|---|---|---|---|
| 2021 | 3,200,000,000 | 125,000,000 | 6,900,000,000 | 150,000,000 |
| 2022 | 3,850,000,000 | 180,000,000 | 7,450,000,000 | 190,000,000 |
| 2023 | 4,100,000,000 | 210,000,000 | 8,600,000,000 | 250,000,000 |
- Large strategic shareholder typically: Qinchuan Group (state-affiliated industrial group) holding a controlling/major stake (around one-third range in recent filings), aligning corporate strategy with regional industrial policy.
- Other significant holders: institutional investors, domestic mutual funds and public float on SZSE - a mix of strategic, retail and institutional investors supports liquidity and governance oversight.
- Board and management: management teams emphasize R&D, state-industry collaboration and export development; governance follows Shenzhen Stock Exchange disclosure and reporting rules.
- National Science and Technology Progress Award and China Industry Award Project Commendation Award - evidence of technical capability and industry leadership.
- Strategic focus on electrification, automation and digitalization of manufacturing lines; push into intelligent machine tools and robot-reducer integration for smart factories.
Qinchuan Machine Tool & Tool Group Share Co., Ltd. (000837.SZ): Mission and Values
Qinchuan Machine Tool & Tool Group Share Co., Ltd. (000837.SZ) operates as an integrated industrial group focused on the design, manufacture and sale of high-precision machine tools, tool systems and related automation solutions. Its mission and values center on precision engineering, continuous innovation, customer-driven quality and the industrial modernization of manufacturing partners domestically and abroad. How It Works Qinchuan operates through a centralized management structure that coordinates several core divisions and subsidiaries to ensure strategic alignment, cost control and streamlined operations. Key operational features include:- Centralized corporate governance with divisional responsibility for R&D, manufacturing, sales, after-sales service and supply chain.
- R&D-led product development: the company allocated R&D spending equal to 7% of its revenue in 2023 to drive new product programs and process improvements.
- Advanced manufacturing: production lines equipped for high-precision machining, CNC equipment, and automated assembly to meet tolerance and repeatability targets.
- Quality and standards: multi-stage inspection, calibration labs and ISO-aligned quality systems to ensure products meet international standards for aerospace, automotive, energy and industrial customers.
- Supply chain management: robust procurement, vendor qualification and logistics systems to secure timely delivery and cost efficiency across domestic and export channels.
- Strategic collaborations: partnerships with academic institutions, component suppliers and system integrators to expand technological capability and market reach.
| Metric | Value (2023 or latest) |
|---|---|
| R&D spend (% of revenue) | 7% |
| R&D focus areas | High-precision machine tools, CNC control systems, automation integration, materials processing |
| Manufacturing footprint | Multiple domestic plants with advanced CNC and automation lines (regional hubs for assembly and testing) |
| Supply chain model | Central procurement with tiered suppliers, regional logistics centers |
| Employee base | Approx. several thousand employees (engineering, production, sales & service) |
| Primary revenue streams | Machine tool sales, precision components, automation systems, after-sales services & spare parts |
- Product sales: one-time revenues from machine tool units (CNC lathes, machining centers, specialized grinders) and integrated tool systems sold to OEMs and job shops.
- Project/turnkey contracts: higher-margin systems integration projects for automated production lines and custom machinery for industrial clients.
- After-sales and services: spare parts, maintenance contracts, retrofit and upgrade services-recurring revenue that leverages installed base.
- Components & tooling: sale of precision components and cutting tools that complement core machine tool offerings.
- Collaborative innovation income: joint development projects and licensed technologies from partnerships with research institutes or industrial partners.
- Investment-weighted R&D strategy (7% of revenue in 2023) sustaining product competitiveness and enabling movement up the value chain.
- Integrated production and quality control processes that secure compliance with international tolerances and certifications for export markets.
- Centralized supply chain governance that reduces lead times and improves cost predictability for large orders and international shipments.
- Strategic alliances that accelerate technology adoption (digital CNC, Industry 4.0-enabled monitoring, automation) and open channel access.
Qinchuan Machine Tool & Tool Group Share Co., Ltd. (000837.SZ): How It Works
Qinchuan Machine Tool & Tool Group Share Co., Ltd. (000837.SZ) operates as an integrated industrial equipment and precision components manufacturer, combining R&D, manufacturing, system integration and after-sales services. Its business model centers on designing, producing and selling high-end CNC machine tools, precision gearboxes and related precision parts, and on delivering intelligent manufacturing solutions to industrial customers at home and abroad.- Core product lines: high-end CNC machine tools, machining centers, grinding machines, and precision measuring instruments.
- Components & modules: industrial robot reducers, precision gearboxes, rolling functional parts, precision castings and shafts supplied both as OEM parts and standalone products.
- Value-added services: intelligent manufacturing systems (automated production lines, digital workshops), installation, commissioning, and long-term maintenance contracts.
- Markets: domestic heavy industry, aerospace, automotive, defence, energy, and exports to over 20 countries including the United States, Japan, South Korea and Germany.
| Revenue Source | Description | Approx. share of revenue |
|---|---|---|
| High-end CNC machine tools | Sales of machining centers, CNC lathes, grinding systems and precision instruments to industrial OEMs and shops. | 50-60% |
| Industrial robot reducers & precision gearboxes | Reducers and gearboxes sold into robotics, automation, and system integrators. | 15-25% |
| Components (castings, rolling parts) | Supply of precision castings, shafts and rolling components as parts suppliers to other manufacturers. | 10-20% |
| Intelligent manufacturing services | Turnkey automated production lines, digital workshop upgrades, integration, and service contracts. | 5-10% |
| Export sales | Direct exports and cross-border OEM/ODM arrangements serving markets in North America, Europe and East Asia. | ~15-25% of total sales |
- Order lifecycle: engineering & sales → custom machine/tool design → factory production (precision machining, assembly) → on-site installation & commissioning → after-sales service and upgrades.
- Vertical integration: in-house capability for precision castings, heat treatment, gear processing and measurement reduces supply-chain risk and improves gross margin control.
- Technology & R&D: ongoing investment in CNC control systems, toolpath optimization, high-rigidity machine structures and metrology to maintain competitiveness in high-value segments.
- Internationalisation: multi-channel export strategy (direct sales, distributors, trade shows, strategic partnerships) to serve customers in >20 countries; exports include both finished machines and precision components.
Qinchuan Machine Tool & Tool Group Share Co., Ltd. (000837.SZ): How It Makes Money
Qinchuan generates revenue primarily by designing, manufacturing and selling machine tools, precision tool accessories and automated manufacturing systems, plus after-sales services and international OEM/engineering contracts. Its commercial model blends product sales, long-term service contracts and technology-driven upgrades for industrial clients.- Core product sales: CNC lathes, milling machines, machining centers and high-precision tool systems sold to domestic manufacturers and state-owned enterprises.
- System integration & automation: Turnkey intelligent manufacturing solutions and retrofits for automotive, aerospace and energy sectors.
- After-sales & services: Maintenance contracts, spare parts, software upgrades and training - recurring revenue streams.
- Export & international projects: Direct exports, overseas agents and OEM partnerships expanding foreign sales.
| Metric | Latest / Noted Value |
|---|---|
| Domestic market share (machine tool segments) | ~80% |
| Recognition | National-level specialized & new "little giant" enterprise |
| Market capitalization 1‑year change | +36.78% |
| Near-term turning point | Anticipated 2025 (stable performance, revenue & net profit growth) |
| Strategic focus | High-end manufacturing & intelligent manufacturing solutions |
- Competitive position: Dominant domestic footprint (80% share) provides scale advantages in supply chain, R&D amortization and pricing power for high-end tool segments.
- Growth drivers: Industry upgrade cycles, government support for advanced manufacturing, ongoing international expansion and product innovation in smart machining.
- Investor signal: 36.78% market cap rise over the past year reflecting improved investor confidence and expectations of the 2025 turning point.
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