- The Zhejiang-based manufacturer dominates China’s steel drill market with more than 50% share and serves customers in 90-plus countries
- Its listing highlights the rise of China’s industrial “hidden champions” moving up the global value chain
Zhejiang CH Tools (浙江欣兴工具), a manufacturer specializing in steel drills and industrial cutting tools, surged nearly 198% in its first trading session on July 30 after listing on the Shenzhen Stock Exchange’s ChiNext board.
The listing underscores investor appetite for specialized manufacturing companies with established industrial niches.
The company’s shares opened at 100 yuan ($14.78) apiece, compared with its IPO price of 33.58 yuan, giving the company a market capitalization of about 10 billion yuan.
As of today’s close, the stock fell to 82.4 yuan, down 25.1% from the midday high of 110 yuan, valuing the tools maker at 8.24 billion yuan.
Half of the domestic market
Based in Haiyan, a county governed by Jiaxing, CH Tools was founded in 1994 and has focused on the research, production and sales of drilling tools, with steel drills as its flagship product.
The company ranks first among domestic tool manufacturers in steel drill sales, with a domestic market share exceeding 50%, according to industry data cited by the company.
Its products are widely used in steel structures, rail transit, shipbuilding, energy equipment, machinery manufacturing and oil engineering.
Customers and end users include major industrial companies such as Bosch and C.&E.FEIN GmbH, while its products have been used in projects including the Qinshan Nuclear Power Plant and Shanghai Maglev Railway.
The company’s growth story reflects a broader shift among Chinese industrial suppliers: moving from contract manufacturing toward global competitiveness.
Initially focused on ODM production for international tool companies, CH Tools now generates about 60% of its revenue from ODM business and around 30% from its own “Chuangheng” (创恒) brand, with products sold in more than 90 countries and regions.
Between 2023 and 2025, the company’s revenue increased from 425 million yuan to 512 million yuan, while net profit rose from 177 million yuan to 198 million yuan.
The IPO raised about 840 million yuan, which will be used to build a digital precision CNC tooling factory expected to add roughly 510 million yuan in annual revenue once fully operational.
From ‘Made in China’ to industrial core components
China’s cutting-tool market is undergoing a structural transition. While the domestic market has expanded steadily, high-end cutting tools remain heavily reliant on imports, leaving room for local manufacturers to move up the value chain.
CH Tools’ listing highlights how Chinese manufacturers are attempting to replicate a familiar industrial upgrading path: starting as suppliers to global brands, accumulating engineering know-how, and eventually building independent capabilities and brands.
For global investors, CH Tools represents a broader shift in China’s manufacturing sector.
The country’s industrial upgrade is moving beyond high-profile industries such as EVs and semiconductors. It is increasingly reaching into less visible but critical areas, including precision tools, industrial equipment and core components.
CH Tools’ IPO highlights how Chinese manufacturers are moving up the value chain — from supplying global brands to developing their own technologies and competing in specialized industrial markets.
