China's Xinghe raises hundreds of millions of yuan for precision machine tools

What's the deal? Shanghai-based Xinghe Electromechanical has raised several hundred million yuan in a Series A round. WuliangyeDealroom has a profile for this one. Try Dealroom →'s fund led the round, with listed company MegmeetDealroom has a profile for this one. Try Dealroom → participating. Shenlan Capital served as long-term exclusive financial adviser.

What does Xinghe do? The company develops and manufactures precision machine tools and is a leading maker of gear grinding machines. Its product range spans three series: gear grinders, thread grinders, and machining centres.

What's the endgame? Xinghe's tools are used across automotive manufacturing, robotics, wind power, and precision reducers. It plans to spend the funding on research and development for high-end gear grinders, grinding machines, and milling machines, while pushing new products and overseas markets.

The signal: Precision machine tools remain a strategic gap for China's advanced manufacturing sector, and the backing of an industrial investor like Megmeet points to demand from downstream industries such as robotics and wind. The involvement of Wuliangye's fund, tied to one of China's best-known liquor groups, underlines how corporate capital is flowing into high-end equipment.

Read more: ITjuzi

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