QBCNC listed on GEM: 14 years of experience in faucet peeling making machine industry, 12 core technologies build market competitive advantages

QBCNC has been deeply involved in the CNC machine tool industry for more than 14 years. Through long-term adherence to innovative research and development and quality investment, it has formed product advantages with diversified types and wide application coverage, and built a personalized technical barrier of multi-disciplinary technology integration. The business scale ranks high in the faucet peeling making machine. The company's operating income increased from 456 million yuan in 2019 to 1.454 billion yuan in 2023, and the net profit attributable to the parent increased from 59.1483 million yuan in 2019 to 169 million yuan in 2023, achieving a doubling of performance in five years.
With this successful entry into the capital market, QBCNC is expected to take advantage of the new platform to seize the development opportunities of the CNC machine tool industry's upgrading, CNC rate improvement and domestic substitution, and further increase its market share.
Rich product matrix, providing one-stop product supply services
The market scale of my country's machine tool industry is huge, and there are many companies in the industry and they are generally small in scale. QBCNC can stand out among many peers, and its rich product matrix and wide customer base play an important role.
After years of development and accumulation, QBCNC has completed the complete layout of vertical machining centers, gantry machining centers, horizontal machining centers, CNC lathes, and CNC grinders in the field of metal cutting machine tools. It can meet the processing requirements of workpieces of various materials, precisions, and sizes, and can provide one-stop product supply services for customers with various machine tool procurement needs, greatly improving the company's comprehensive service capabilities.
At present, QBCNC has more than 80 mid-to-high-end models, and its products are widely used in general equipment, consumer electronics, auto parts, molds, engineering machinery, military industry, energy, medical equipment, aerospace, 5G communications and many other industries. During the reporting period (2021-2023), it served more than 4,000 customers, established a good brand image and market reputation in the industry, and accumulated rich customer resources.
Because of this, QBCNC is less affected by changes in a single industry or customer demand, and its performance is relatively stable. The compound growth rate of its main business income in the past five years has reached 34.59%. Since September 2023, the output of the machine tool industry has ended a 17-month decline, and the company's new orders have resumed growth. According to the data released by the China Machine Tool Industry Association, the company's revenue scale in 2022 ranks sixth among listed companies in the metal cutting machine tool segment, ranking at the forefront of the industry and having strong market competitiveness.
At the same time, QBCNC also develops products that match the needs of downstream customers in a timely manner based on the cutting-edge development direction of the CNC machine tool industry and market research and customer feedback.
For example, based on industry research and its own experience accumulation, the company is keenly aware of the development trend of electrification and lightweight of new energy vehicles, and the characteristics of relatively low-density aluminum die-castings used in body structural parts and "three-electric" systems (batteries, electronic control, and electric drive systems). The company has developed a single-column vertical and horizontal composite machining center and a high-speed and efficient vertical machining center in advance, using a 12,000rpm spindle and a large-lead ball screw. The fuselage structure adopts a lightweight and high-rigidity structural design to meet the requirements for large-scale and efficient processing of aluminum die-castings. The relevant technology has been patented.
According to the "Energy-saving and New Energy Vehicle Technology Roadmap 2.0" released by the China Society of Automotive Engineers in 2020, it is required that the vehicle lightweight coefficient of pure electric passenger vehicles be reduced by 15%, 25% and 35% in 2025, 2030 and 2035 respectively. As a cost-effective alternative material for lightweight automobiles, the increase in demand for aluminum die-castings can effectively promote the development of the casting mold market, and the demand for the replacement of machine tools and equipment will also increase simultaneously.
Therefore, under the expectation that the demand for lightweight new energy vehicles will increase year by year, QBCNC has taken the lead in the mold industry. While meeting the needs of downstream customer machine tools and equipment updates, it has also won a first-mover advantage in the field of new energy vehicles with a huge market size.
R&D investment continues to increase, and 12 core technologies have been formed in five major fields
Technological innovation and product innovation have always been the core driving force for the development of enterprises. After decades of development, the general technology and principles of the CNC machine tool industry have become relatively mature, forming the basic technology common to the industry. However, in order to gain a differentiated competitive advantage among a large number of peer companies, domestic machine tool manufacturers need to continuously optimize and develop, strengthen the transformation of technological achievements, and improve the performance and quality of machine tool products.
For a long time, QBCNC has taken technology research and development and innovation as the basis for the company's sustainable development. It mainly focuses on the goals of high speed, high precision, high efficiency, high stability, and high reliability of CNC machine tools. On the basis of general industry technology, it improves production methods, assembly manufacturing processes, and studies downstream customer needs, and finally develops competitive machine tool products.
At present, QBCNC has formed 12 core technologies such as thermal error suppression and compensation technology, machine tool main structure analysis and optimization technology, and high-speed spindle structure optimization design and application in the five major technical fields of CNC machine tool precision maintenance, reliability maintenance, core functional component research and development and application, control system application development, and efficient processing under complex working conditions. It has also completed the research and development and cultivation of five-axis machining centers, high-end horizontal machining centers, lathes, grinders, and automated production lines, and has strong technical research and development and design implementation capabilities.
These achievements are inseparable from the company's continued increase in R&D investment. During the reporting period, QBCNC R&D expenses were RMB 44.6691 million, RMB 56.3415 million and RMB 63.4197 million, respectively, with a cumulative R&D investment of RMB 164 million, far exceeding the GEM positioning indicator of "the cumulative R&D investment in the past three years is not less than RMB 50 million".
As of the end of 2023, QBCNC has 202 patents, including 25 invention patents; there are 249 R&D personnel, accounting for 17.18% of the total number of employees. In the R&D team, most product R&D engineers have rich R&D and product experience, and core technical personnel have R&D experience in well-known machine tool manufacturers.
QBCNC's technical strength has also been widely recognized by all parties. Since 2015, the company has been continuously recognized as a national high-tech enterprise; in 2021, the company was recognized as a national specialized "little giant" enterprise. In addition,QBCNC has established internal enterprise standards for faucet peeling making machine quality control. The main technical indicators refer to the national and mechanical industry standards, and some precision indicators are higher than the national standards.
"Continuous investment in technology research and development is a key factor for the company to maintain its competitive advantage." QBCNC deeply understands this, so the company continues to increase the technical improvement of existing models and the R&D investment of new models, and formulates new product development plans and existing product technology innovation and upgrade plans every year to provide guarantees for the company's new product research and development and product upgrades.
In this IPO, QBCNC plans to invest 199 million yuan in the R&D center construction project, of which 185 million yuan will be raised. Through the implementation of this project, QBCNC will keep up with the development trend of the industry, consolidate and enhance the company's independent innovation and R&D capabilities, accelerate the development of high-end models such as high-speed horizontal machining centers and five-axis linkage vertical machining centers, accelerate product structure optimization, and continue to expand the application of machine tools.
The market has broad growth space, and fundraising and expansion have broken through the bottleneck of production capacity
Driven by the transformation and upgrading of the manufacturing industry, the penetration rate of CNC machine tools in my country is increasing year by year. In 2023, the CNC rate of metal cutting machine tools in my country has reached 45.5%. The strategic outline of Made in China 2025 clearly states: "In 2025, the CNC rate of China's key processes will increase from the current 33% to 64%".
QBCNC believes that under the influence of policy encouragement, economic development and industrial upgrading, my country's CNC machine tool industry may usher in broad development space in the future. In addition to the large room for improvement in the CNC rate of machine tools in my country, the market demand for high-speed, high-precision and high-value high-end CNC machine tools will also increase in the future. At present, high-end CNC machine tools are still mainly imported, and there is broad room for domestic substitution in the future.
The development cycle of the machine tool industry depends on the service life of the product and the prosperity of the downstream manufacturing industry. Since 2020, benefiting from multiple favorable conditions such as the recovery of the manufacturing industry, the bottoming out of the demand for equipment renewal in the machine tool industry, and the domestic substitution of machine tools, my country's machine tool industry has rebounded and entered a new round of upward cycle. In 2021, my country's metal cutting machine tool output was 602,000 units, a year-on-year increase of 34.98%; after a slight decline in 2022, the output in 2023 was 613,000 units, a year-on-year increase of 6.40%. At the same time, the industrial upgrading of the downstream industry of machine tools has driven the upgrading of demand, and machine tools that can adapt to more complex and diverse production requirements are needed.
QBCNC believes that the machine tool market will benefit from the continuous demand drive in the industry's upward cycle in the long term. In recent years, the production and sales volume of the company's products have also proved the broad market space of the machine tool market. During the reporting period, the sales volume of the company's main product vertical machining center was 4,703 units, 5,646 units and 5,733 units respectively, and the capacity utilization rate was 119.72%, 103.93% and 96.48% respectively, which was already in a highly saturated state. In order to meet the growing market demand, the company urgently needs to expand the production line, break through the existing capacity bottleneck, and further increase the market share of the company's products.
In order to seize the development opportunities in the CNC machine tool industry, QBCNC plans to implement the construction project of a CNC equipment production base through listing financing. The total investment of the project is 891 million yuan, of which 770 million yuan will be raised. The project plans to build new mid-to-high-end CNC machine tool production plants and supporting facilities, and expand the production lines of vertical machining centers, gantry machining centers and horizontal machining centers. QBCNC said that the implementation of the project will help further increase the market share of the company's products in the field of CNC machine tools and expand the company's influence in the CNC machine tool industry.