Tiangong International Company Limited (0826.HK) Bundle
Founded in 1981 and listed on the Hong Kong Stock Exchange in 2007 under ticker 0826.HK, Tiangong International has grown into one of China's leading producers of high-speed steel, die steel, cutting tools and titanium alloys-operating over 1.3 million square meters of manufacturing facilities and employing more than 3,600 staff as of 2025; the company, incorporated in the Cayman Islands, holds over 200 patents (2022), invested approximately RMB 400 million in advanced machinery in 2022 and about RMB 30 million in employee training in 2023, reported 2024 revenue of HKD 4.83 billion with net income of HKD 358.8 million, and commands a market capitalization of roughly HKD 8.31 billion (Dec 3, 2025) while its controlling shareholders are required to maintain at least a 45% stake-read on for a detailed look at Tiangong's ownership structure, mission, manufacturing processes, revenue streams, and market outlook including its Moderate Buy consensus and HKD 4.34 average price target.
Tiangong International Company Limited (0826.HK): Intro
History- Founded in 1981 in Danyang, Jiangsu Province as a specialty steel manufacturer focused on high-speed steel and tool steels.
- Listed on the Hong Kong Stock Exchange in 2007 (0826.HK), accelerating capital access and outward expansion.
- By 2021, ranked among China's largest producers of high-speed steel, die steel, cutting tools and titanium alloys.
- 2022: invested ~RMB 400 million (~USD 62 million) in advanced machinery and equipment to improve automation and yield.
- 2023: allocated ~RMB 30 million (~USD 4.6 million) for workforce training and technical skill upgrades.
- As of 2025, operations cover over 1.3 million m² with a workforce exceeding 3,600 employees.
- Publicly traded on HKEX (0826.HK); major shareholders include founding family interests, institutional investors and management holdings (typical concentration among top 10 shareholders).
- Corporate governance combines state-linked local relationships for supply chain/land access with market-driven board oversight post-2007 listing.
- Mission: supply high-performance metal materials and precision cutting solutions to global manufacturing sectors (automotive, aerospace, energy, tooling).
- Strategic pillars: product R&D (alloys & tooling), capacity expansion, vertical integration (from steelmaking to finished cutting tools), and export diversification.
- Vertical production chain: raw material procurement → molten steel & alloying → rolling/forging → heat treatment → precision machining → quality inspection → distribution.
- 2022 capital upgrade targeted high-frequency induction furnaces, CNC tool grinders, vacuum heat-treatment and automated material handling to cut unit costs and improve consistency.
- R&D centers focus on HSS formulations, carbide bonding, surface coatings and titanium-alloy processing to raise value-add per product.
- Product sales: majority of revenue from high-speed steel, die steel and cutting tools sold domestically and exported to Asia, Europe and North America.
- Value-added services: custom tool design, heat-treatment services and aftermarket technical support.
- Cost controls & scale: large integrated capacity (1.3M+ m² facilities) and automation investments reduce per-unit production costs and improve margins.
- Pricing mix: premium for specialty alloys and coated tools vs commodity steel products; higher-margin products drive profitability.
| Metric | Value |
|---|---|
| Founding year | 1981 |
| HKEX ticker | 0826.HK (listed 2007) |
| 2022 CAPEX (machinery & equipment) | RMB 400 million (~USD 62 million) |
| 2023 Training Investment | RMB 30 million (~USD 4.6 million) |
| 2025 Manufacturing footprint | >1.3 million m² |
| Employees (2025) | >3,600 |
Tiangong International Company Limited (0826.HK): History
Tiangong International Company Limited (0826.HK) traces its roots to industrial manufacturing and materials processing in Jiangsu province, expanding through subsidiaries and public listing in Hong Kong to access international capital and scale operations. Incorporated in the Cayman Islands, the group combines mainland operating units with offshore holding structures typical of many Hong Kong-listed Chinese enterprises. Tiangong International Company Limited: History, Ownership, Mission, How It Works & Makes Money- Publicly listed on the Hong Kong Stock Exchange under ticker 0826.HK.
- Incorporated in the Cayman Islands to support international investment and governance.
- Operational hub and manufacturing base centered in Jiangsu, including Jiangsu Tiangong Technology Company Limited.
| Metric | Value |
| Ticker | 0826.HK |
| Market Capitalization (late 2025) | HKD 8.31 billion |
| Incorporation | Cayman Islands |
| Controlling Shareholders | Mr. Zhu Xiaokun & Mr. Zhu Zefeng |
| Required Minimum Shareholding (per facilities agreement) | 45% |
| Significant Subsidiary Report | Jiangsu Tiangong Technology - H1 2025 interim report released |
- Control concentrated: the Zhu family (Mr. Zhu Xiaokun and Mr. Zhu Zefeng) function as controlling shareholders with covenanted responsibilities to maintain at least a 45% stake under a facilities agreement with a Hong Kong licensed bank.
- Diverse investor base: institutional investors, retail holders and strategic partners contribute to liquidity and governance oversight.
- Offshore holding: Cayman Islands incorporation facilitates cross-border listings and investor access.
- Drive industrial and technological advancement in materials and manufacturing through scale and subsidiary specialization.
- Deliver measurable shareholder value via stable operations, access to Hong Kong capital markets, and disciplined financial stewardship.
- Core model: production and sale of industrial products and materials through onshore operating subsidiaries (e.g., Jiangsu Tiangong Technology).
- Revenue drivers: manufacturing volumes, pricing on core materials, downstream processing contracts, and expansion into value-added product lines.
- Financial management: capital raised through HKEX listing supports working capital, capex and debt facilities governed by bank covenants (including the 45% shareholding requirement for controllers).
- Recent performance signal: the H1 2025 interim report from Jiangsu Tiangong Technology detailed operational and financial metrics used to guide group cash flow and investment decisions.
Tiangong International Company Limited (0826.HK): Ownership Structure
Mission and Values- Tiangong International is committed to producing high-quality specialty steel materials, including high-speed steel, die steel, cutting tools, and titanium alloys.
- The company emphasizes technological innovation, holding over 200 patents in tool design and manufacturing processes as of 2022.
- Tiangong values sustainability, investing in advanced machinery to enhance production efficiency and reduce environmental impact.
- The company prioritizes employee development, allocating resources to training and professional development programs.
- Tiangong is dedicated to global expansion, with products distributed across Europe, Southeast Asia, the United States, and the Middle East.
- Tiangong upholds transparency and shareholder value, as demonstrated by its interim dividend declaration in 2025.
- Raw materials sourcing and melting in specialized furnaces to produce high-speed and die steels.
- Precision forging, heat treatment and finishing lines tailored for cutting tools and alloy components.
- R&D and tool design centers convert patents and process know-how into product upgrades and new SKUs.
- Quality assurance labs and on-site testing ensure performance standards for industrial customers.
- Global sales channels and distribution partners manage exports to major markets.
- Product sales: specialty steels, cutting tools and titanium alloy components sold to machine tool, automotive, aerospace and oil & gas sectors.
- Value-added processing: heat treatment, regrinding and precision machining services commanding higher margins.
- Licensing and IP: monetization of patented tool designs and manufacturing processes.
- Aftermarket and service contracts: tool replacement, maintenance and training programs.
| Region | Approx. Share of Revenue |
|---|---|
| Europe | ≈ 30% |
| Southeast Asia | ≈ 25% |
| United States | ≈ 20% |
| Middle East | ≈ 15% |
| Greater China | ≈ 10% |
- Share register comprises a mix of founding shareholders, institutional investors and public float following the Hong Kong listing.
- Board oversight focuses on R&D investment, operational efficiency and ESG reporting.
- Dividend policy: interim dividend declared in 2025 as affirmation of shareholder returns.
Tiangong International Company Limited (0826.HK): Mission and Values
History Tiangong International Company Limited (0826.HK) traces its roots to specialized metallurgy and tool-steel manufacturing clusters in Jiangsu Province. Over decades the company scaled from regional foundry operations to an integrated manufacturer and trader of alloy steels, tool steels and precision components, expanding exports to Europe, Southeast Asia, the United States and the Middle East while listing on the Hong Kong Stock Exchange. How It Works Tiangong's operations are vertically integrated across R&D, raw-material sourcing, steelmaking, precision machining, finishing and trading/distribution.- Manufacturing footprint: production facilities in Danyang, Jiangsu covering over 1.3 million square meters.
- Automation & precision: high-precision CNC machines and automated production lines to boost throughput and consistency.
- Workforce & expertise: over 3,600 employees, including more than 1,500 technical specialists in metallurgy and machining processes.
- R&D capability: dedicated R&D center focused on metallurgical innovation and alloy development with over 200 patents as of 2022.
- Sales & distribution: domestic sales network plus export markets in Europe, Southeast Asia, the United States and the Middle East.
- Trading division: manages domestic and international distribution of tool steels, raw materials and alloy products.
- Mission: to lead in metallurgy and precision tooling by delivering high-performance alloy and tool-steel solutions that enable customers' productivity.
- Values: innovation in materials science, quality and precision in manufacturing, customer-focused service, and sustainable industrial practices.
| Metric | Value |
|---|---|
| Manufacturing area | Over 1.3 million sq. meters |
| Employees | Over 3,600 |
| Technical specialists | More than 1,500 |
| Patents (2022) | Over 200 |
| Key export regions | Europe, Southeast Asia, United States, Middle East |
- Manufacturing sales: finished tool steels, alloy bars, precision components and molds sold to industrial OEMs and tooling houses.
- Processing services: heat treatment, precision machining (CNC), surface treatments and custom alloy development billed on contract or per-piece basis.
- Trading division: wholesale and distribution of tool steels, raw materials and alloy products-domestic and cross-border sales contribute recurring margins.
- Aftermarket/support services: technical consulting, tooling refurbishment and replacement parts that drive repeat revenue.
- Revenue and gross margin trends from the manufacturing vs. trading segments
- Capacity utilization across Danyang facilities and automation-led productivity gains
- R&D spending and new-patent generation as a proxy for product differentiation
- Working capital trends tied to raw-material procurement and inventory for the trading business
Tiangong International Company Limited (0826.HK): How It Works
Tiangong International Company Limited (0826.HK) operates as an integrated specialty steel and tooling group combining upstream metallurgy, downstream tooling manufacture, trading and investment services. Its business model captures value across raw-material processing, precision-material production, finished tooling and distribution to global industrial end-markets.- Primary revenue streams: manufacturing and sale of specialty steels (high-speed steel, die steel), cutting tools, and titanium alloys.
- Ancillary revenue streams: trading of goods and special steel, investment management and advisory services, and distribution/assembly of electric/power tool sets.
- End markets: aviation, aerospace, automotive, high-speed rail, petroleum & chemical, railway construction, machinery manufacturing, home appliances, consumer electronics, marine engineering, biological sciences.
- Geographic reach: Europe, Southeast Asia, United States, Middle East and Greater China.
- Upstream metallurgical production: alloy formulation, smelting and rolling to produce high-speed steel, die steel and titanium alloys sold to toolmakers and OEMs.
- Tool manufacturing: machining, heat treatment and coating to produce cutting tools, dies and precision components for industrial customers.
- Toolkits and power tools: processing, assembly and sale of electric tool sets and power tool kits for industrial and retail channels.
- Trading & distribution: cross-border trading of specialty steel and tooling components, supporting international sales and inventory management.
- Investment & advisory: capital management, minority investments and advisory services that diversify income and capture downstream value.
| Metric | Value (HKD) |
|---|---|
| Revenue (2024) | 4,830,000,000 |
| Net income (2024) | 358,800,000 |
| Gross margin (approx.) | - (varies by product; tooling typically higher than raw steel) |
| Primary product groups | High-speed steel, die steel, cutting tools, titanium alloys, electric tool sets |
| Primary export regions | Europe, Southeast Asia, United States, Middle East |
- Manufactured specialty steels and alloys: core, higher-volume revenue with tight technical specs and long-term supply contracts to OEMs and industrial manufacturers.
- Cutting tools and dies: higher-margin product line driven by precision machining, proprietary heat treatments and coatings; recurring aftermarket sales.
- Power tool assembly and kits: leverages manufactured components for packaged product sales to distributors and retail channels.
- Trading services: margin from international procurement, distribution and logistics of special steel products-helps smooth cyclical demand in manufacturing sectors.
- Investment management/advisory: fee and investment income providing diversification against cyclical steel markets.
| Area | Role/Capability | Commercial Impact |
|---|---|---|
| Metallurgy & alloy R&D | Formulation of HSS, die steel, titanium alloys | Enables product differentiation and entry into aerospace / high-speed rail markets |
| Precision machining & tooling | Cutting tools, dies, coatings | Higher gross margins, aftermarket revenue |
| Assembly & distribution | Electric tool kits, power tools | Retail and export revenues; brand/channel reach |
| Trading & logistics | Global steel and tooling distribution | Access to Europe, SEA, US, Middle East markets |
| Investment services | Advisory and capital deployment | Non-operating income, strategic partnerships |
- Aerospace & aviation: high-performance alloys and precision cutting tools for components and assemblies.
- Automotive & high-speed rail: dies and HSS for stamping, machining and tool life under high-cycle production.
- Petrochemical & marine engineering: corrosion- and wear-resistant specialty steels and tooling.
- Consumer electronics & appliances: precision dies and small-scale high-speed steel tools for mass production.
- Biological sciences & medical devices: titanium alloys and precision tooling for medical components.
- Value-move up the chain: capture more margin via finished tools and aftermarket services versus raw steel sales.
- Export diversification: strengthen dealer and distributor networks across Europe, the US, Southeast Asia and the Middle East.
- R&D and certification: achieve industry certifications for aerospace and medical segments to win long-term contracts.
- Operational efficiency: optimize smelting, heat treatment and machining yields to protect gross margins during raw material volatility.
Tiangong International Company Limited (0826.HK): How It Makes Money
Tiangong is one of China's largest producers of high‑speed steel, die steel, cutting tools and titanium alloys, generating revenue from manufacturing, value‑added processing, OEM supply and aftermarket/tooling services. Its business model combines scale production, precision metallurgy and a broad distribution network to monetize raw‑material inputs into higher‑margin engineered steel products and finished tooling.- Primary revenue streams: sale of high‑speed & die steels, cutting tools, titanium alloy products, and customized OEM components.
- Service & recurring revenue: heat treatment, regrinding/repair, technical support and training for industrial clients.
- Channels: direct sales to manufacturers, OEM contracts, domestic distributors and export markets across Asia, Europe and the Americas.
- Competitive advantages: large production capacity, integrated supply chain, investments in advanced machinery and employee training.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue (HKD) | 4,250,000,000 | 4,600,000,000 | 4,830,000,000 |
| Net Income (HKD) | 310,000,000 | 340,000,000 | 358,800,000 |
| Market Capitalization (HKD, as of 3 Dec 2025) | - | 8,310,000,000 | |
| Analyst Consensus | - | Moderate Buy (Avg target HKD 4.34) | |
- How sales translate to profit: bulk steel production benefits from economies of scale; premium margins derive from value‑added alloys, precision tooling and after‑sales services.
- Growth drivers: capacity upgrades, automation, skilled workforce training and expanding global distribution for industrial, automotive and aerospace applications.
- Risk/return: exposure to raw material prices and cyclical manufacturing demand, offset by diversified product mix and long‑term OEM contracts.
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