Neway CNC (纽威数控) — China's Broad-Line Mid-to-High Metal-Cutting Champion
Neway is the "full-menu" champion of Chinese metal cutting — the company with one of the widest model ranges (300+) and an aggressive capacity build-out, rather than a single deep-tech bet.
- Real strengths: A balanced three-pillar portfolio — large machining centers (RMB 1.23B, 42%), vertical CNC lathes (RMB 935M, +25.3%) and horizontal lathes (RMB 661M) — sold to 60+ countries; a four-phase smart plant now live (≈RMB 700M new annual output) with a five-phase plant breaking ground in Jan 2026 (RMB 850M investment).
- Real positioning facts: 2025 revenue RMB 2.893B (+17.52%) but net profit fell 6.43% to RMB 304M — its first annual profit decline since the 2021 IPO — as cost growth outran revenue and gross margin slipped to 20.89%. Overseas is only 10.5% of sales and fell 10.94% in 2025.
- One line: The broadest, fastest-scaling private player in Chinese mid-to-high metal cutting — but a margin story under price pressure, with no headline proprietary CNC system.
1 · Company Snapshot
| Attribute | Detail |
|---|---|
| Name / ticker | Neway CNC Equipment (Suzhou) Co., Ltd. · 纽威数控 · SSE STAR Market 688697 |
| Founded / listed | 1997 (Suzhou Hi-Tech Zone) · listed STAR Market Sept 2021 |
| Ownership | Private (non-SOE) — differs from state-owned Qinchuan |
| Core products | Large machining centers, vertical CNC lathes, horizontal CNC lathes, typical-industry machines — 300+ models |
| 2025 revenue | RMB 2.893B (+17.52%); domestic RMB 2.574B (89.0%), overseas RMB 305M (10.5%) |
| R&D | RMB 138M (+22.6%), 4.77% of revenue; 339 R&D staff (19.55% of headcount) |
| IP | 35 invention patents, 218 utility-model, 28 design, 45 software copyrights (cum.) |
| Capacity | Phase-4 smart plant live (≈RMB 700M new annual output); Phase-5 broke ground Jan 2026 (RMB 850M, 51k m²) |
Source: 2025 annual report (SSE, published 2026-04-17); company announcements; East Money / 10jqka earnings coverage.
2 · Core Strengths
Broad, balanced product matrix
Unlike single-focus peers, Neway runs three growing pillars at once: large machining centers (RMB 1.226B, +13.45%), vertical CNC lathes (RMB 935M, +25.33% — the growth engine), and horizontal lathes (RMB 661M, +9.48%). It can supply a single customer with 300+ models covering parts from 10 g to 200 t — a genuine one-stop pitch.
Aggressive, de-risked capacity build-out
Phase-4 smart plant (focus: high-end, flexible production) is live with ~RMB 700M of new annual output. Phase-5 (RMB 850M, 51k m², for vertical lathes, grinders, special machines) broke ground Jan 2026. Combined, the company guides total annual output capacity beyond RMB 4.5B — a clear scale trajectory.
Five-axis & turn-mill now industrialised
Five-axis turn-mill, five-axis vertical and five-axis gantry machining centers have reached "relatively high industry level" performance and are gaining domestic customer adoption. The company also launched screw/nut turning lathes and thread grinders aimed at the humanoid-robot supply chain — a forward-looking product bet.
3 · Objective Limitations
First profit decline since IPO, margin under pressure
2025 revenue grew 17.52% but net profit attributable fell 6.43% to RMB 304M (deducted -5.48% to RMB 264M). Cost grew 21.82% — faster than revenue — and gross margin slid 2.79 pct to 20.89%, hit by Phase-4 depreciation and price competition. This is a margin story still being written, not a growth story in doubt.
No headline proprietary CNC system
Neway highlights in-house R&D in six areas (accuracy retention, high-speed motion, fault analysis, ease-of-use, complex-part machining, functional-part development) but does not market a proprietary controller like KEDE's GNC or Gree's GNC. Controllers are sourced externally (FANUC / Siemens / domestic). For a single-vendor control stack, KEDE or Gree is the closer fit.
Working-capital build-up
Accounts receivable rose 38.67% to RMB 452M (12.4% of current assets) and inventory stood at RMB 1.18B (32.5% of current assets) — normal for a capacity-expanding machine-tool maker, but a receivables-risk item to watch given the fixed-asset nature of the product.
4 · 2026 Tailwinds — Why Buyers Should Watch
- Phase-4 capacity release lifts delivery speed and order intake headroom (≈RMB 700M new annual output).
- Phase-5 foundation laid (Jan 2026) opens mid-term high-end capacity for vertical lathes, grinders and special machines.
- 2026 Q1 recovery signal: revenue RMB 712M (+25.04%), net profit RMB 67M (+8.62%), deducted +20.23% — the profit decline has likely bottomed.
- Restricted-stock incentive (Jul 2026): 6.66M shares at RMB 7.34 to 78 core staff, anchoring 2026–2028 net-profit growth of ≥10% / 21% / 33% vs the 2025 base — a management confidence signal.
- Humanoid-robot adjacency: screw/nut lathes and thread grinders position Neway inside the robotics-component supply chain that overseas buyers (EU/DE) are actively sourcing.
5 · Competitive Positioning
| Dimension | Neway (688697) | KEDE (688305) | Haitian (601882) | Qinchuan (000837) | Gree CNC |
|---|---|---|---|---|---|
| 2025 revenue | RMB 2.89B | ~RMB 0.5B* | RMB 3.37B | RMB 4.09B | private / n.a. |
| Core focus | Machining centers + VMC/HMC | Pure five-axis | Gantry / molding | Gear / screw / RV | Gantry + VMC + 5-axis + robot |
| In-house CNC | No (3rd-party) | Yes (GNC) | No | Yes (QCNC68) | Yes (GNC) |
| Overseas mix | 10.5% (declining) | small | 16.5% | 10.5% | focus market |
| Ownership | Private | Private | Private | SOE | Gree group |
| Edge | Breadth + capacity | Five-axis autonomy | Volume gantry | Component chain | Machine+robot package |
*KEDE revenue is a smaller pure-play figure; verify against its latest report before reuse. Sources: respective 2025 annual reports.
6 · Overseas Reality
Overseas is the soft spot. 2025 overseas revenue was RMB 305M (10.5% of sales), down 10.94% YoY — though the decline narrowed versus prior years. Products ship to 60+ countries, but the revenue base remains overwhelmingly domestic (89%). For an overseas buyer this means: Neway is export-capable but not export-led, and its overseas push is currently in retreat — a window for competitors (including Gree) expanding abroad.
7 · This Week's Gree CNC Angle
Where Neway and Gree overlap — and diverge
Both cover vertical and gantry/five-axis machining centers, so they meet in the same buyer shortlists. The divergence is strategic:
- Neway's edge: model breadth (300+) and one-stop supply, plus an aggressive capacity ramp that improves lead times.
- Gree's edge: a machine + robot + thermal management + process package, in-house spindles/linear motors, and a spotlight on 0.003mm five-axis precision and liquid-cooling applications shown this week.
- Opening for Gree overseas: Neway's overseas revenue fell 10.94% in 2025 — a concrete signal that established Chinese exporters are pulling back, leaving room for Gree's overseas-first GTM to capture share in DE/EU and beyond.
8 · Data Credibility Rating
| Claim | Source | Confidence |
|---|---|---|
| 2025 revenue RMB 2.893B (+17.52%), net profit RMB 304M (-6.43%) | 2025 annual report (SSE, 2026-04-17) | High |
| Product-line revenue split (42% / 32% / 23%) | 2025 annual report segment data | High |
| Phase-4 live, Phase-5 groundbreaking Jan 2026 | Company announcements / East Money | High |
| Overseas revenue -10.94% in 2025 | Annual report + Soochow Securities note | High |
| Five-axis performance "relatively high industry level" | Company / broker descriptions | Medium |
| 2026–2028 revenue/profit forecasts | Broker estimates (e.g. Soochow, Guosen) | Medium-Low |
9 · Guidance by Use Case
Overseas buyer / distributor
If you source general-purpose VMCs, horizontal lathes or large machining centers, Neway's breadth (300+ models) and live Phase-4 capacity make it a credible, price-competitive option with 60+ country reach. For proprietary five-axis control or a single-vendor stack, weigh KEDE or Gree instead. Note Neway's overseas revenue is currently shrinking — confirm local service/support before committing.
Investor
Revenue compounding (~16% 3-yr CAGR), capacity release, a Q1-2026 profit rebound and an incentive plan anchored to double-digit growth are constructive. The bear case is margin compression (gross 20.89%, still falling) and a weak overseas mix. Watch 2026 H1 gross margin for the turn.
Technology / supply-chain partner
Neway's screw/nut lathes and thread grinders for humanoid robots, plus its six in-house R&D domains, are concrete collaboration entry points for component and automation suppliers serving the EU/DE robotics market.
Frequently Asked Questions
What is Neway CNC best known for?
One of China's broadest mid-to-high metal-cutting portfolios: large machining centers, vertical CNC lathes and horizontal lathes across 300+ models, sold to 60+ countries. Its large machining-center line alone is RMB 1.23B (42% of revenue). It is a private STAR-Market champion founded in 1997 in Suzhou.
Does Neway make its own CNC controller?
Not as a headline capability. Neway emphasises in-house R&D in six areas but does not market a proprietary CNC system the way KEDE (GNC) or Gree (GNC) do; controllers are sourced externally (FANUC / Siemens / domestic). For a single-vendor control stack, KEDE or Gree is the closer fit.
Is Neway profitable?
Revenue is growing fast — 2025 revenue RMB 2.893B (+17.52%) — but 2025 net profit fell 6.43% to RMB 304M, the first annual decline since its 2021 IPO, as cost growth outpaced revenue and gross margin slipped to 20.89%. The recovery is early: 2026 Q1 net profit returned to growth (+8.62% YoY, deducted +20.23%).
How does Neway compare with Gree's CNC business?
Both cover vertical and gantry/five-axis machining centers, but Neway's edge is breadth (300+ models) and aggressive capacity build-out. Gree packages machine + robot + thermal management + process know-how, with in-house spindles/linear motors and a spotlight on 0.003mm five-axis precision. Note Neway's overseas revenue fell 10.94% in 2025 — a window for Gree's overseas push.
