HONG KONG, May 12, 2026 - (ACN Newswire) - Shanghai Top Numerical Control Technology Co., Ltd. (“TopNC” or the “Company”) has officially initiated its IPO process, with plans to commence trading on May 20. It is set to become the “First Chinese Commercial Aerospace Stock” in the Hong Kong stock market. This IPO is jointly sponsored by Guotai Junan International and CCB International. RBC, 3W, Boyu, HHLRA, CDH, TT International, Mirae Asset, GSAM etc. serve as a cornerstone investor. The company plans to globally offer approximately 65,330,000 shares. The share price is set at HK$26.39 per share, with total proceeds expected to reach approximately HK$1.7 billion. As an absolute leader in China’s aviation and aerospace five-axis CNC machine tool sector, TopNC has cultivated the high-end industrial machine tool field for twenty years. It is deeply integrated into national strategic projects such as the C919 large aircraft and Long March carrier rockets, marking a milestone in the domestic substitution of high-end manufacturing.

Founded in 2007, TopNC was led and established by Dr. Wang Yuhan, an associate professor at the School of Mechanical Engineering, Shanghai Jiao Tong University. Headquartered in Shanghai, the Company is a national-level key “Little Giant” enterprise and a “Specialized, Fined, Peculiar and Innovative” SME. The Company focuses on the R&D, production, and sales of high-end intelligent manufacturing equipment, with five-axis CNC machine tools at its core. While its products focus on core aviation and aerospace scenarios, they also extend to general industries such as automotive, energy, medical, shipbuilding, and mould manufacturing.

The most iconic breakthrough for TopNC was the successful development of the dual five-axis mirror milling machine tool prototype in 2016. This made China the third country in the world, after France and Spain, to master this technology, breaking the long-term technical blockade by Europe, the U.S., and Japan. Since then, the Company’s product line has been incorporated into the manufacturing systems of the C919 large aircraft and the Long March series carrier rockets, covering core equipment links for China’s full range of rocket manufacturing.

According to the CIC Report, TopNC ranked first in China’s aviation and aerospace five-axis CNC machine tool market in 2025 with a market share of 10.0%. As high-end industrial machine tools, five-axis CNC machine tools are a core symbol of a nation’s manufacturing strength. The market size is expected to grow from RMB 12.9 billion in 2025 to RMB 31.9 billion in 2030, with a CAGR of 19.8%. A more critical shift is occurring at the localization level: the market share of domestic suppliers has increased from 18.0% in 2020 to 59.5% in 2025, and is projected to exceed 78.0% by 2030. The scarcity value of TopNC is reflected in a triple barrier: first, a high technical barrier, with core technologies covering precision mechanical design, CNC systems, intelligent measurement and control, and process software ; second, an independent and controllable supply chain with a high localization rate of core components ; third, a strong customer barrier, having established over ten years of cooperative relationships with mainstream domestic aviation and aerospace groups, deeply binding with the “national team”.

In terms of financial data, TopNC’s growth curve shows a strong acceleration trend. In FY2025, the Group recorded a significant increase in newly secured contract value amounting to RMB 693.6 million. The Company’s current project backlog is approximately RMB 680 million, a substantial increase compared to the same period last year, providing strong revenue certainty and a solid guarantee for sustained high performance growth in the future.

Operational quality has simultaneously achieved a qualitative breakthrough. From 2023 to 2025, TopNC’s revenue grew from RMB 334.6 million to RMB 578.0 million. On the profit side, the Company’s adjusted net loss was RMB 61.0 million in 2023, and it successfully achieved a turnaround in 2024 with a net profit of RMB 6.9 million. In FY2025, despite increased R&D expenses, the Company maintained a profitable state with a net profit of RMB 1.6 million.

Even more noteworthy is that the Company’s net cash flows from operating activities turned positive in FY2025, recording a net inflow of approximately RMB 25.4 million. This indicates that TopNC has overcome the long-term cash flow “hemorrhage” dilemma commonly faced by high-end equipment enterprises, successfully achieving self-sustaining capabilities. The positive operating cash flow, combined with a gross profit margin maintained at a high level of 35.4% in 2025, collectively confirms that the Company has entered a virtuous development cycle of “scale expansion — profit growth — cash recovery”.

From the business structure perspective, TopNC’s core revenue is highly concentrated in the aviation and aerospace intelligent manufacturing equipment sector. In FY2025, this segment generated revenue of RMB 512.4 million, accounting for 88.7% of total revenue. Meanwhile, the Company is accelerating the development of its second growth curve: compact general industrial five-axis machine tools contributed RMB 39.4 million in revenue in 2025, with sales volume increasing from 3 units in 2023 to 32 units. Large-span carbon fiber composite five-axis machine tools achieved a commercial breakthrough in 2025, with 6 units sold for a revenue of RMB 24.4 million. The Company is the world’s first and only manufacturer to achieve commercial sales of machine tools that fully apply carbon fiber composite materials across all moving parts. This technology has a significant barrier and is adapted for cutting-edge scenarios such as low-altitude economy drone frames and large lightweight aerospace components, with a steadily expanding growth space.

The successful IPO is an important milestone, representing capital market recognition of TopNC’s twenty years of technical accumulation, and marks the beginning of a new development stage. With the support of the capital market and the empowerment of high-quality investors, TopNC will further strengthen its resource integration capabilities, accelerate the domestic substitution process of high-end five-axis CNC machine tools, and continue to consolidate its leading position in technology and the market, solidifying the foundation for long-term growth and expanding into even broader development spaces. The Company will continue to reinforce independent R&D of core technologies at a faster pace and with deeper strategic investment, drive the iterative upgrading of its five-axis CNC machine tool product system, actively participate in building an independent and controllable high-end manufacturing system in China, and work with ecological partners to explore the vast prospects of aviation, aerospace, and general high-end manufacturing.

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