Topstar recently released its 2017 annual performance forecast, projecting a net profit between 130 million and 145 million yuan, representing an impressive growth of 67.58% to 86.92%. Looking back at historical data, the company achieved a compound annual growth rate (CAGR) of 47.13% in operating income and 32.58% in net profit from 2012 to 2016, highlighting its strong financial trajectory.
During an interview with a reporter from China Securities Journal, Wu Shili, Chairman of Topstar, emphasized the importance of stability over rapid expansion, stating, “Stability is better than good,†and “stepping on the brakes.†He outlined the company’s vision to open up all three stages of the industrial robot ecosystem—system integration, ontology manufacturing, and software development—to build a healthy and collaborative environment that benefits both upstream and downstream partners.
Wu explained that Topstar positions itself as a smart manufacturing integrated service provider, offering solutions across the entire automation value chain. Starting from auxiliary injection molding machines, the company has expanded into industrial robots since 2011, becoming a key player in the automation industry.
According to Wu, the goal is to create a sustainable robotic ecosystem by avoiding direct competition with foreign brands and instead focusing on collaboration within the domestic market. “If we directly compete with foreign giants, it's not sustainable. We want to build a healthy development model through joint participation and mutual benefit,†he said.
To achieve this, Topstar relies on a strong distribution network and continuous R&D investment. The company currently operates more than 30 offices nationwide, with over 200 sales staff and 60,000 potential customers. Its client base includes major companies such as Midea, Haier, BYD, Great Wall Motor, and Bonn Optics.
Wu used a vivid analogy to explain Topstar’s role: “Our business is like running a restaurant. We integrate upstream and downstream, from raw materials to final products, creating a complete package for different customer needs.â€
From 2013 to 2016, over 90% of Topstar’s revenue came from direct sales, which strengthened its position in the supply chain. This strategy allowed the company to maintain strong bargaining power with suppliers and offer tailored automation solutions to downstream manufacturers, contributing to a high gross margin of 49% in the first half of 2017.
In addition to system integration, Topstar is also investing heavily in R&D. In the first half of 2017, the company spent 17.34 million yuan on research and development, a 143.6% year-on-year increase. Wu emphasized that mastering core technologies, such as control systems and servo technology, is crucial for long-term competitiveness.
Looking back at Topstar’s 11-year journey, the company has grown alongside the booming industrial robot market in China. With the decline of the demographic dividend and the rise of automation, demand for industrial robots has surged. From 2009 to 2016, the market grew at a CAGR of 46.5%, reaching 87,000 units sold in 2016. By November 2017, cumulative output had reached 118,200 units, up 68.8% year-on-year.
Despite this growth, Wu remains cautious, advocating for a balanced approach. “We can’t just rush; we need to slow down and step on the brakes,†he said. His philosophy of “faster but more stable†was shaped during the 2008 financial crisis, when many companies collapsed. Wu chose to focus on long-term sustainability rather than quick profits.
He also emphasized the importance of building a strong corporate culture and shared values. “The company is not just a hiring and firing enterprise, but an entrepreneurial platform where everyone struggles and succeeds together,†he said. To reinforce this, Topstar implemented employee stock ownership plans early on, ensuring that key talent remained loyal.
Wu believes that organizational certainty is essential to weather economic cycles. “Only through collective effort can we achieve great success,†he said. Over the past decade, Topstar has evolved from a fast-growing startup to a responsible leader in the industrial robot ecosystem, proving that stability and strategic growth can go hand in hand.
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