How Gree compares across the Chinese CNC field.
China CNC Daily Insight · Issue #1
KEDE CNC (科德数控) — China's Pure-Play Five-Axis Champion
A daily brief on China's CNC industry · Figures as of August 2026 · Prepared for buyers, investors and overseas partners. ← All insights · ← GREE CNC
Contents
KEDE is the closest thing China has to a "fully autonomous" high-end five-axis maker — it builds the brain (CNC system) itself, not just the body.
- Real strengths: A complete "CNC system — key components — whole machine" chain with the GNC high-end controller (the only Chinese system independently confirmed to own 100% of its source code), ~85% key-component self-sufficiency and >90% whole-machine localization. Its electromagnetic angle encoder (±2″, 23-bit) and torque motors have even passed German GROB testing. ~1,600 five-axis units are in service at aerospace / AECC / AVIC / CASC key units.
- Real gaps: The business is small — 2025 revenue was only ¥552M (≈US$76M), and it posted its first real downturn: revenue −8.9% and net profit −31.8% YoY, hit by a slowing overseas push and a product-mix shift toward lower-margin automation lines. Overseas revenue is still marginal.
- One line: KEDE is the "depth" champion of Chinese five-axis autonomy, but it is a specialist niche player — not yet a scale competitor to Gree's breadth, Haitian's volume, or German/Japanese incumbents.
2000s
Founded in Dalian (Guangyang Group)
¥552M
2025 revenue (−8.9% YoY)
¥88.6M
2025 net profit (−31.8% YoY)
85%
Key-component self-sufficiency
~1,600
Five-axis units at defense/aerospace
39.5%
2025 gross margin
1 · Company Snapshot
KEDE Numerical Control Co., Ltd. (科德数控, 688305.SH) is a holding subsidiary of Dalian Guangyang Technology Group. It was listed on the STAR Market in 2021 and is designated a national "little giant" specialized SME. Unlike Gree — an appliance maker that diversified into machine tools — KEDE is a pure-play high-end five-axis company, and uniquely among Chinese makers it produces the CNC controller, servo drives, motors, encoders, direct-drive rotary tables and spindles itself.
Its 2025 revenue broke down as: high-end CNC machine tools ¥331M (60.0%, −35.6%), flexible automation lines ¥185M (33.5%, +272.7%), key functional parts ¥16.6M (3.0%), and high-end CNC systems ¥1.3M (0.2%). The sharp rise of automation-line revenue is a strategic pivot — but those lines carry lower gross margins (36.6% vs 42.4% for the machines), which is exactly why blended gross margin slipped to 39.5% in 2025.
Sources: 2025 annual report (cnstock / cs.com.cn), company product brochures.
2 · Core Strengths
#1 · The "brain" is its own: the GNC high-end CNC system
KEDE's GNC60/62 bus-open high-end CNC systems are described by state media as the only Chinese CNC system independently confirmed by a national testing body to master 100% of its source code, with performance at international mainstream level. This is the single biggest differentiator versus Gree, which sells machines on third-party CNC controllers and does not make its own system. Owning the controller means KEDE controls the full software/hardware stack and is structurally insulated from controller import risk.
#2 · Deep component autonomy — and it's verified, not claimed
State-media reporting puts KEDE's key-component self-sufficiency at 85% and whole-machine localization at >90%. More importantly, several components are independently benchmarked:
- Electromagnetic angle encoder: ±2 arc-sec accuracy, 23-bit resolution, up to 10,000 r/min, IP67 — a Kede-original sensing technology.
- Torque motors: the GTML0360WS-100 passed German GROB testing and is used to replace German torque motors — a rare case of a Chinese component clearing a German OEM's bar.
- Direct-drive swing heads, rotary tables, linear motors, spindles and laser tool-setters are all in-house.
#3 · Proven at the top of the "mother-machine" pyramid
KEDE says 40+ types of high-end five-axis machines — KMC (vertical), KTX (turn-mill), KGHM (gantry), KHMC (horizontal), KTurboM (blade), DerThrone (lean) — have seen about 1,600 units deployed at aerospace, CASC, AECC and AVIC key units. It also won two 2025 Mechanical Industry Science & Technology Award first prizes, including one for "high-performance five-axis CNC system and major engineering application."
#4 · R&D intensity that is genuinely rare
A reported ~32% of revenue went to R&D over the recent three-year average. As of H1 2025 the company held 390 valid patents (227 invention), 61 software copyrights, participated in 35 national/industry standards, and led 50+ national-level projects. Its Dalian park includes Asia's largest 15,000 m² constant-temperature underground workshop and a 250,000 m² intelligent-manufacturing base.
3 · Objective Limitations
Scale is tiny — and 2025 was the first real downturn
At ¥552M revenue, KEDE is the smallest among the named Chinese peers (Gree intelligent-equipment ¥681M, Haitian ¥3.37B, Creator ¥5.32B) and a rounding error next to DMG MORI (~€2.5B) or Mazak. Worse, 2025 brought declines across the board: revenue −8.9%, net profit −31.8%, deduct-non-recurring profit −37.2%. Management attributed this to a slowed overseas push plus the lower-margin automation-line mix.
Overseas is still marginal
The 2025 results commentary explicitly cites "domestic and foreign policy factors" slowing overseas business progress. KEDE remains overwhelmingly a domestic, defense/aerospace-oriented supplier with little visible international brand or service footprint — a sharp contrast to the "global export" narrative sometimes attached to "China CNC."
Concentration & valuation risk
Revenue leans heavily on five-axis machines for aerospace/defense and is sensitive to that cycle. With a TTM P/E around 89× (per April 2026 data), the stock embeds very high growth expectations — a risk flag for investors, not a product flaw.
Maturity gap vs Germany/Japan remains
Like the broader domestic cohort, KEDE still trails German/Japanese leaders on long-term accuracy retention, process know-how databases and harsh-industry certification. These are accumulated over decades and are not closed by component self-sufficiency alone.
4 · Competitive Positioning
| Dimension | KEDE CNC | Gree Intelligent Equip. | Haitian Precision | DMG MORI / Mazak |
|---|---|---|---|---|
| Core identity | Pure-play five-axis | Appliance-diversified, scenario-led | Volume VMC / molding machines | Global full-range leader |
| Owns CNC system? | Yes (GNC) | No (3rd-party) | No | Yes |
| Autonomy depth | Brain + body (85% parts) | Motion/execution chain | Integration | Full |
| 2025 revenue | ¥552M | ¥681M* (whole segment) | ¥3.37B | €2.5B+ (est.) |
| Best fit | Aerospace / defense five-axis | EV, robot joints, 3C | High-volume general parts | Everything, premium |
* Gree figure is the entire intelligent-equipment segment (incl. robots/automation), not pure machine tools. Haitian/DMG MORI figures are approximate from public annual reports.
The strategic read: Gree and KEDE are complementary, not head-to-head. Gree wins on breadth, cost and scenario solutions (EV, humanoid-robot parts); KEDE wins on technological depth at the controller level and defense/aerospace credibility. A buyer choosing between them is really choosing between "execution-chain autonomy + scenario playbook" and "full-stack autonomy + niche authority."
5 · Overseas Reality
Honest answer: KEDE's overseas presence is minimal today. Its own 2025 results flag a slowdown in overseas business progress due to policy factors. The credible international signal is indirect — its torque motors clearing German GROB's test bar — rather than a visible export brand. Western buyer reviews or independent overseas case studies of KEDE machines are essentially absent in public sources. This is consistent with the broader "China CNC goes global" story: export volume is rising fast (China overtook Germany as the #1 machine-tool exporter in 2025 per VDW), but brand-level overseas recognition for specialist makers like KEDE is still early.
Sources: KEDE 2025 results commentary (toutiao/cnstock), VDW 2026 export data.
6 · Data Credibility Rating
| Figure | Rating | Why |
|---|---|---|
| 2025 revenue ¥552M, net profit ¥88.6M, product mix | High | Audited annual report / exchange filings |
| Gross margin 39.5%, per-product margins, 732 employees | High | Annual report |
| 85% component self-sufficiency, >90% localization, GNC "100% source code", 1,600 units deployed, 390 patents | Medium | State-media / company self-report; not independently audited, but internally consistent and detailed |
| GROB torque-motor test pass | Medium | Company brochure claim; plausible, not third-party published |
| "3-yr revenue CAGR 38.54%" vs reported 20.49% | Caution | Two different CAGR windows cited in sources; use the 20.49% (ranked #1/11) figure from exchange data, treat 38.54% as a different period |
7 · Guidance by Use Case
- Aerospace / defense / complex five-axis part shops: KEDE is a credible first look — full-stack autonomy and a proven track record in exactly this segment.
- High-volume EV / 3C / consumer parts: Gree's scenario solutions and cost base are a better fit; KEDE is less positioned here.
- Investors: Strong technology story and R&D intensity, but watch scale, the 2025 profit dip, overseas thinness and a rich valuation. Not a "China CNC winner" proxy on its own.
- Overseas buyers: Expect limited local service/support today; verify through a China-based trial or integrator rather than assuming global coverage.
Disclaimer: This is an independent-style research brief built from public sources, not a vendor brochure or investment advice. Figures carry the credibility ratings above.
Frequently asked questions
What makes KEDE different from Gree?
KEDE builds its own high-end CNC system (GNC) - the only Chinese system independently confirmed to master 100% of its source code. Gree sells machines on third-party controllers and does not make its own system.
Is KEDE profitable and large?
It is small: 2025 revenue was about RMB 552M, and 2025 was its first real downturn (revenue -8.9%, net profit -31.8%). Scale remains far below Haitian, Creator or German/Japanese incumbents.
Where is KEDE strong?
Aerospace and defense five-axis work, where its full-stack autonomy and ~1,600 deployed units at key aerospace/AVIC/AECC units give it rare credibility among Chinese makers.
Does KEDE export widely?
Not yet. Its own 2025 results flag a slowdown in overseas progress; overseas brand and service footprint remain minimal today.
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