Codern CNC Joins Hands with Shangfei Company to Build Excellence Innovation Center

On the evening of March 15, Kode CNC (688305) announced that the company signed a revised agreement with Shanghai Aircraft Manufacturing Co., Ltd. (referred to as “Shanghai Flying”) regarding the “Shanghai Flying - Kode CNC Excellence Innovation Center (COE) Co-Construction Agreement.” The revision details the core content such as R&D priorities outlined in the previously signed “Co-Construction Agreement.”

After discussions and negotiations, both parties will jointly establish the Excellence Innovation Center. Based on Kode CNC’s fully autonomous high-end five-axis machine tools and CNC systems, as well as other domestically produced key core components, the cooperation will focus on areas including processing technology for typical aircraft parts, pilot verification of domestic equipment, intelligent production line integration verification, and multi-domain collaborative “CNC workshop” development.

Kode CNC is a domestic manufacturer specializing in high-end CNC systems and key functional components. By 2025, the company’s product sales are expected to diversify. While consolidating its advantages in high-end CNC machine tools such as five-axis vertical machining centers, five-axis horizontal turning-milling centers, and five-axis horizontal machining centers, the sales of flexible automated production lines will also see significant growth.

Regarding this agreement, the announcement states that it further clarifies the foundation of cooperation, each party’s advantages, main research areas, equipment R&D priorities, and strategic development focus, establishing principles for joint innovation and collaboration. It also defines the management and supervision structure, operational support commitments for co-building the Innovation Center, and the main rights and obligations of both parties concerning intellectual property, confidentiality, compliance, and branding.

The cooperation will leverage Kode CNC’s self-controlled high-end five-axis machine tools, including at least seven types of equipment such as five-axis linkage vertical turning-milling composite centers, flexible units, five-axis linkage horizontal machining centers, gantry machining centers, and five-axis linkage horizontal tilting table milling machines. The focus will be on efficient and precise manufacturing of typical aerospace parts, developing advanced processing techniques, pilot verification and standard system construction for domestic equipment, and deep integration and optimization of domestically produced high-end CNC systems for civil aviation scenarios. The joint effort aims to promote the technological upgrade of China’s civil aircraft manufacturing and high-end five-axis machine tools.

According to the disclosed 2025 performance forecast, Kode CNC’s overseas business slowed due to domestic and international policy factors, resulting in a decline in annual sales revenue and net profit. For 2025, the company achieved operating revenue of 552 million yuan, down 8.86% year-over-year; net profit attributable to the parent was 88.76 million yuan, down 31.67%; and net profit after non-recurring gains and losses was 65.94 million yuan, down 37.08%.

Kode CNC stated that the co-construction of the Excellence Innovation Center will help accelerate deep cooperation between China’s high-end equipment industry and large aircraft industry. This collaboration will enhance the company’s brand influence and core competitiveness, promote high-quality and sustainable development in the high-end equipment manufacturing sector, and aligns with the company’s overall strategic plan. The cooperation will not change the company’s main business or operational scope, will not adversely affect its independence, and does not create dependency on the other party. There are no circumstances that would harm the interests of the company or all shareholders, especially minority shareholders.