Core Viewpoint - The company Kede CNC (688305.SH) has successfully deployed its five-axis machining centers in various regions, indicating strong market demand for its products in the gas turbine component manufacturing sector [1] Group 1: Product Deployment - Kede CNC's five-axis blade processing center, the KTurboM series, has been utilized in batch production [1] - The KMU series, a five-axis turning and milling composite machining center, is also in use for component processing [1] - The KMC series, a five-axis vertical machining center, has been implemented for manufacturing structural components [1] Group 2: Market Reach - The company's products are being used by customers in East China and Northwest regions, showcasing its geographical market penetration [1]

Core Viewpoint - The company is developing axial flux motor products, aiming to launch a prototype by early 2026, which offers advantages over traditional radial flux motors in terms of compact structure, lighter weight, and higher power and torque output for the same volume/weight [1] Group 1: Product Development - The company has initiated the development of axial flux motor products [1] - The planned prototype launch is set for early 2026 [1] Group 2: Product Advantages - Axial flux motors are more compact and lighter compared to traditional radial flux motors [1] - These motors can deliver higher power and torque for the same volume and weight [1] Group 3: Application Potential - The axial flux motors are expected to have significant potential in humanoid robots, low-altitude economy, and new energy vehicles [1] - The company's five-axis machine tools can be directly used for processing precision components such as robot joints and gears [1] - The self-developed motor products are already being applied in the mass production of threaded grinding machines for processing screws and other threaded parts [1]

Core Viewpoint - The company has successfully deployed its five-axis machining centers in various regions for processing components related to gas turbines [1] Group 1 - The five-axis blade processing center KTurboM series is now in mass production [1] - The five-axis turning and milling compound machining center KMU series is also being utilized [1] - The five-axis vertical machining center KMC series has been implemented for component processing [1] Group 2 - The company's products are being used by customers in East China and Northwest regions [1] - The applications include processing gas turbine blades and structural components [1]

Core Viewpoint - The company, Kede CNC, has reported a decline in revenue and net profit for Q3 2025, but has shown significant improvement in operating cash flow, indicating a potential recovery in financial health and market demand [1][2]. Financial Performance - In Q3 2025, Kede CNC achieved revenue of 106 million yuan, a year-on-year decrease of 15.79%, and a net profit of 14.87 million yuan, down 37.56% [1]. - For the first three quarters of 2025, the company reported total revenue of 400 million yuan, a year-on-year increase of 5.01%, while net profit decreased by 11.53% to 63.93 million yuan [1]. - The operating cash flow for the year-to-date period was 218 million yuan, a significant improvement from a negative cash flow of 19.74 million yuan in the same period last year [1]. Market Demand and Orders - Kede CNC has experienced a noticeable increase in orders in Q3 compared to Q2, driven by heightened market interest and increased inquiries from potential clients [2]. - The company has secured new collaborations in sectors such as medical, semiconductor, and low-altitude economy, alongside repeat purchases from existing customers [2]. - The new five-axis blade processing center, KTurboM1500, has attracted significant interest from new clients in the domestic large aircraft sector [2]. Product Development and Innovation - Kede CNC has successfully launched several new products this year, including the five-axis milling and grinding composite processing center, KTFMS200, which has been purchased by clients in the aerospace sector [2]. - The company has established a joint innovation center with AVIC to enhance domestic civil aircraft manufacturing technology and high-end CNC equipment [2]. - The development of axial flux motors is underway, with plans to release a prototype by early 2026, targeting applications in low-altitude economy, new energy vehicles, and humanoid robots [3].

Core Viewpoint - The company emphasizes the importance of market value management and is committed to enhancing operational efficiency and development quality while focusing on shareholder returns [1] Group 1 - The company actively implements dividend policies to benefit all shareholders [1] - The company promotes an equity incentive mechanism to align interests with shareholders [1] - The company strengthens communication with investors to foster transparency and trust [1]

Core Viewpoint - The company, Kede CNC, claims to be the only domestic company fully covering three core technologies: high-end five-axis CNC machine tools, high-end CNC systems, and key functional components, indicating a strong position in the market despite challenges in market share growth [1] Group 1: Company Performance - Kede CNC has achieved a compound annual growth rate (CAGR) of 38.54% in revenue and 46.72% in net profit from 2022 to 2024 [1] - The average price of five-axis CNC machine tools is expected to increase by 47.78% in 2024 compared to 2022 [1] - The company has successfully transitioned from a startup research and development phase to an industrialization development stage [1] Group 2: Market Position and Strategy - The company is actively involved in high-end equipment manufacturing sectors such as aerospace, automotive, energy, and shipbuilding [1] - Kede CNC currently has a sufficient backlog of orders and is accelerating capacity construction [1]

Core Viewpoint - The company is progressing in the construction of a pilot base for large aircraft structural components, which is expected to generate economic and social benefits in the future [2] Group 1: Project Development - The "Large Aircraft Structural Component Process Verification Pilot Base" project signed a cooperation agreement in June 2025 and is currently in the construction phase [2] - The pilot base will utilize dozens of domestic high-end five-axis equipment to tackle key processing technologies for typical aerospace structural components such as titanium and aluminum alloys [2] - A closed-loop mechanism for "application feedback - equipment upgrade" will be established to support the advancement of the project [2] Group 2: Collaboration and Innovation - The company has signed a "Center of Excellence (COE) Co-construction Agreement" with AVIC to establish the first domestic Center of Excellence [2] - This collaboration aims to promote the industrial upgrading and high-quality development of China's civil aircraft manufacturing technology and high-end CNC equipment [2]

Group 1 - The company is currently in the preparation stage for production at the new factory in Yinchuan, Ningxia, which has been relocated [2] - The Shenyang factory has completed the main construction and has begun internal decoration [2]

Report Summary 1. Report Industry Investment Rating No information provided in the content. 2. Core Viewpoints of the Report - The high - end equipment manufacturing industry is the cornerstone of the country's high - speed and high - quality development. The demand for high - precision and high - efficiency processing equipment and functional components is on the rise, and the future application prospects of five - axis linkage CNC machine tools and key components are broad and long - lasting [27]. - The report research company, with its core technology of independent control, has formed a multi - point profit system centered on five - axis linkage CNC machine tools, and has made breakthroughs in new fields such as medical, semiconductor, and low - altitude economy, with a promising future [27][31]. 3. Summary According to Relevant Catalogs 3.1. Research Basic Situation - The research object is Kede CNC, belonging to the general equipment industry. The reception time was on November 5, 2025. The listed company's reception personnel included the chairman, general manager, board secretary, financial director, and independent director [17]. 3.2. Detailed Research Institutions - The research institutions included investors and urban commercial banks [20]. 3.3. Research Institution Proportion No information provided in the content. 3.4. Main Content Data - **Business Income Composition in 2025**: From January to September 2025, the revenue of five - axis linkage CNC machine tools accounted for about 49%, the production line business revenue accounted for about 44%, and the revenue of other key functional components, high - grade CNC systems, after - sales service and other businesses totaled about 7% [24]. - **Axial Flux Motor Progress**: The company is actively carrying out research and development of axial flux motors and plans to launch a prototype in early 2026. This new - generation motor technology has great potential in fields such as electric aviation, new - energy vehicles, and humanoid robots [24]. - **Civilian Aircraft Field Planning**: The company has a clear strategic plan and active layout in the civilian aircraft field. It has applied mature products to aircraft and engine manufacturing, is developing new products, and has jointly established a "large aircraft structural parts process verification pilot base" to support the domestic aviation industry chain [24][25]. - **Order Outlook**: The company has a full order backlog. Since the third quarter of this year, market demand has increased. There are repeat purchases from existing customers and breakthroughs in new markets and customers. In the domestic large - aircraft field, it has also won new customers [25]. - **New Field Breakthroughs**: The company has made continuous breakthroughs in new fields such as medical, semiconductor, and low - altitude economy. It has entered the medical field for the first time, seen accelerated order growth in the semiconductor field, and expanded its coverage in the aerospace and low - altitude economy fields [26]. - **Aerospace Field Progress**: The company has continued to develop in the aerospace field. User units under the Aerospace Science and Industry Corporation and the Aero - Engine Corporation have increased their purchases of the company's products. As of the reporting date, the company's products have been widely used in more than 50 user units under four major groups [26]. - **Future Product Layout**: The company builds its core competitiveness through self - developed technologies, forming a multi - point profit system centered on five - axis linkage CNC machine tools, with independent market space for self - developed functional components [27]. - **Industry Development Prospects**: The high - end equipment manufacturing industry is crucial for the country. With the development of various industries, the demand for high - precision and high - efficiency processing equipment and components will continue to increase [27]. - **Financing Progress**: The company will not launch a simple - procedure financing plan this year. The project under consideration has sufficient funds, so there is no need for a private placement [28]. - **Competitors and Core Competitiveness**: In bidding projects, the company competes with international advanced brands and domestic excellent equipment manufacturers. It has advantages such as independent control of core components, excellent processing performance, and rapid after - sales service response. It is a key force for domestic substitution [29]. - **Factory Progress**: The Yinchuan factory has completed relocation and started trial operation, and the Shenyang factory is in the interior decoration stage. The new factories will support the company's future performance growth [30]. - **Revenue and Profit Growth Points in 2025 - 2026**: The company's revenue and profit growth will come from continuous development in traditional fields, breakthroughs in new fields, new product launches, and the research and development of axial flux motors [31]. - **Gross Margin Analysis**: The company's main business gross margin has remained above 40%. In 2025, due to the increase in the proportion of production line business, the overall gross margin fluctuated slightly, but it is still higher than that of the industry. With capacity expansion and cost optimization, the gross margin will remain at a high level in the future [32][34].

Core Viewpoint - The establishment of the "Aviation Manufacturing - Kede CNC Excellence Innovation Center" marks a significant collaboration between Kede CNC and Shanghai Aircraft Manufacturing Company, focusing on advanced processing technologies and high-end equipment in the aerospace sector [1] Group 1: Partnership Details - Kede CNC's Chairman Yu Benhong and Shanghai Aircraft Manufacturing's Deputy General Manager Hu Xueying signed a cooperation agreement for the establishment of the Excellence Innovation Center [1] - This center is the first of its kind in China dedicated to metal cutting machine tools, indicating a strategic move to enhance domestic capabilities in aerospace manufacturing [1] Group 2: Focus Areas of Collaboration - The partnership will focus on advanced processing techniques for complex core components of large aircraft, high-end five-axis machine tools, advanced CNC systems, and flexible intelligent production lines [1] - The collaboration aims to drive research and transformation of new technologies, processes, and equipment, contributing to the upgrade of China's civil aircraft manufacturing technology and high-end CNC equipment [1]