Zhejiang Jiuli Hi-Tech Metals Co., Ltd.: history, ownership, mission, how it works & makes money

From its founding as a Jiuli Group subsidiary in 1987 to its public debut on the Shenzhen Stock Exchange as 002318 in 2009, Zhejiang Jiuli Hi‑Tech Metals Co., Ltd. has grown into a major supplier of stainless steel and special alloy products-seamless and welded piping, tubing, clad/lined pipes, fittings and flanges-serving critical sectors like oil & gas, petrochemical, power and shipbuilding; the company backs production with an integrated Quality Assurance System (ISO 9001:2008, API 5LC/5CT/5LD, PED97/23/EC) and HSE credentials (ISO14001, OHSAS18001), exports to over 60 countries, supplies state players such as CNPC, Sinopec and CNOOC, and has pushed R&D with more than 40 provincial/national technical projects in recent years-most recently partnering with SMS group in June 2025 to install three advanced cold pilger mills to boost stainless and special alloy tube capacity while also forging strategic alliances like the June 2023, 10‑year deal with Hunting PLC to expand high‑nickel and chrome alloy OCTG and casing offerings.

Zhejiang Jiuli Hi-Tech Metals Co., Ltd. (002318.SZ): Intro

• Founded: 1987 (subsidiary of Jiuli Group Co., Ltd.)
• Shenzhen Stock Exchange listing: 2009 (stock code 002318)
• Core product families: seamless pipe, welded pipe, tubing, clad & lined pipe, butt-welding fittings, flanges
• Key served industries: oil & gas, petrochemical, power generation, shipbuilding, chemical processing

• Integrated manufacturing chain: raw material procurement → melting and rolling → tube forming (seamless/welded) → heat treatment and sizing → finishing, testing and certification.
• Quality assurance: in-house metallurgical labs and process controls aligned to ISO and API standards; records and traceability for heat lots and material certificates.
• Application-driven product design: alloys and claddings tailored for corrosion resistance, high temperature and high-pressure service conditions common in upstream oil & gas and petrochemical plants.

• ISO 9001:2008 - quality management system
• API approvals - API 5LC / 5CT / 5LD for oilfield tubular goods
• PED97/23/EC - European pressure equipment directive compliance for applicable products
• ISO 14001 & OHSAS 18001 - environmental and occupational health/safety qualifications

• Product sales - primary revenue from sales of stainless and special-alloy seamless & welded pipes, tubing, fittings and flanges to industrial clients.
• Project contracts - supply agreements and packaged deliveries for refinery, petrochemical, LNG and power plant projects (materials + testing + documentation).
• Value-added processing - clad/lined products and customized tubing for high-spec applications command premium pricing and margins.
• Export sales - international orders where API/PED certifications are required, expanding addressable market beyond domestic China demand.

• June 2025 - strategic partnership with SMS group to acquire three advanced cold pilger mills, aimed at scaling production and improving dimensional tolerances for stainless steel and special-alloy tubes.
• Expected benefits: higher yield on high-value tubing, tighter tolerances for premium customers, and improved unit economics for specialty alloys (project announced June 2025).

• Stock code: 002318.SZ (Shenzhen Stock Exchange)
• Further corporate values and guiding statements: Mission Statement, Vision, & Core Values (2026) of Zhejiang Jiuli Hi-Tech Metals Co., Ltd.

Zhejiang Jiuli Hi-Tech Metals Co., Ltd. (002318.SZ): History

• Parent ownership: majority strategic stake held by Jiuli Group Co., Ltd., enabling integrated supply chains and capital support.
• Public float: shares traded on Shenzhen (002318.SZ) provide access to institutional and retail capital.
• Shareholder mix: combination of the parent company, institutional investors (funds, QFII/RQFII where applicable) and retail investors.
• Regulatory oversight: listed status requires periodic disclosures, audited financials and board supervision.

• Capital access - listing has enabled bond issuance, equity financing and better bank credit terms for capacity expansion.
• Operational integration - Jiuli Group's upstream raw-material sourcing and downstream market channels are leveraged for cost and sales efficiency.
• Governance and transparency - regular disclosures, independent directors and audit requirements improve investor confidence and operational accountability.

Zhejiang Jiuli Hi-Tech Metals Co., Ltd. (002318.SZ): Ownership Structure

• Mission: Supply safe, reliable, high-performance materials to global industries while contributing to society and ensuring long-term, technology-driven development.
• Values: Harmonious development - create wealth for society, happiness for employees, and profits for shareholders.
• Safety & Environment: Holds ISO14001 and OHSAS18001 qualifications, prioritizing HSE standards.
• Culture: Fosters gratitude and happiness to build a 'Happy Jiuli' enterprise.
• R&D Focus: Continuous investment to localize formerly imported products and improve product reliability and competitiveness.

• How it makes money: manufacturing and sales of specialty metal products and components tailored to high-reliability sectors, leveraging localized alternatives to imported materials and differentiated technical services.
• Competitive approach: patented processes and product quality control aimed at reducing customers' supply risk and lifecycle costs.

Zhejiang Jiuli Hi-Tech Metals Co., Ltd. (002318.SZ): Mission and Values

• Integrated industry chain: Jiuli operates through an end-to-end model covering R&D, raw material procurement, processing (including cold pilgering, tube drawing, heat treatment, finishing), quality assurance and downstream distribution to end-users and OEMs.
• Product scope: manufactured items include stainless steel tubes, high‑nickel and special‑alloy tubes, oil‑well casing and tubing, precision mechanical tubes and welded/ seamless pipeline products for high‑pressure and corrosive environments.
• R&D and product development: dedicated research teams and pilot lines develop alloys and tube processes tailored for demanding sectors (oil & gas, petrochemical, power generation, automotive, medical instrumentation).
• Supply chain and aftermarket: integrated logistics and technical service network provide cut-to-length, testing, certification, and field-support services to customers worldwide.

• Quality management: Jiuli Hi‑Tech has implemented a comprehensive Quality Assurance System and holds certifications including ISO 9001:2008, API 5L C / 5CT / 5LD and PED 97/23/EC, demonstrating compliance with international tubing and pressure-equipment standards.
• HSE credentials: the company maintains ISO 14001 (environmental management) and OHSAS 18001 (occupational health & safety) certifications and has internal HSE programs for incident prevention, emissions control and worker safety.
• Product testing and traceability: laboratory and non‑destructive testing (NDT) capabilities (UT, eddy current, hydrostatic, hardness, metallography) support full batch traceability from melt to delivery.

• June 2025 SMS group partnership: Zhejiang Jiuli Hi‑Tech Metals partnered with SMS group to install and commission three advanced cold pilger mills intended to expand production capability for stainless steel and special alloy tubes. The project targets higher precision, improved yields and enhanced product ranges for high‑end markets.

• Product sales: core revenue from sale of seamless and welded tubes to energy, petrochemical, power, automotive and industrial customers-both standard and customized/high‑margin specialty alloy products.
• Value‑added services: processing (cut‑to‑length, threading, end‑finishing), heat treatment, NDT and certification services for pipeline and oilfield customers command premium pricing.
• Export sales and OEM contracts: long‑term supply agreements and export contracts, particularly for high‑specification tubes used in oil & gas and power generation, provide recurring revenue streams.
• Scale and mix optimization: profitability is driven by improving mix toward higher‑margin specialty alloys and precision tubes while leveraging production scale and new pilger capacity to lower unit costs.

• Integrated manufacturing chain and full QA traceability meeting API/PED standards support entry into regulated high‑value markets.
• HSE and quality certifications reduce customer onboarding friction for international OEMs and EPC contractors.
• Recent investment with SMS group in cold pilger mills enhances capacity for premium stainless and special alloy tubes, improving product mix and potential margin uplift.
• Technical service and aftermarket capabilities increase lifetime value per customer through repeat orders and service contracts.

Zhejiang Jiuli Hi-Tech Metals Co., Ltd. (002318.SZ): How It Works

• Core product portfolio: seamless piping, welded piping, tubing, clad & lined pipes, butt-welding pipe fittings, flanges.
• Key end markets: oil & gas, petrochemical, power generation (including nuclear), shipbuilding, instrumentation, offshore engineering.
• Distribution footprint: exports to over 60 countries, including the United States, Canada, the United Kingdom, Germany, and South Africa.
• Strategic customers: long-term contracts and repeat orders from major enterprises such as CNPC, Sinopec, CNOOC, and China National Chemical Corporation.

• Manufacturing margin: revenue derives from producing specification-grade tubular products and value-added fittings that command premium pricing for critical applications (e.g., nuclear, offshore projects).
• Product specialization: higher-margin revenues from clad/lined pipes and custom seamless tubing used in corrosive, high-pressure, and high-temperature environments.
• Contract and project sales: large, multi-year framework agreements with state-owned oil & gas and chemical companies generate predictable, bulk order income and backlog visibility.
• Export sales: international customers diversify revenue streams and allow Jiuli to capture higher unit prices in developed markets.
• Technology-driven efficiency: strategic investments and technology partnerships improve yields, reduce per-unit cost, and increase throughput-enhancing operating profit.

• Advanced manufacturing investments - e.g., cold pilger mill partnerships (SMS group) - to raise production efficiency and material yield while improving dimensional accuracy and product quality.
• Quality & certification premium - products qualified for nuclear and offshore standards command higher pricing and lower price elasticity.
• Vertical integration - control over forging, heat treatment, non-destructive testing (NDT), and finishing shortens lead times and preserves margin.
• Aftermarket & repair services - supply of replacement components and emergency deliveries for large operators increases recurring revenue.

• Large institutional buyers: framework agreements with CNPC, Sinopec, CNOOC and China National Chemical Corporation supply sizeable order volumes and predictable cash flow.
• Export diversification: selling to over 60 countries provides exposure to higher-margin Western markets (U.S., U.K., Germany) while maintaining volume from domestic energy and construction sectors.
• Premium project wins: participation in nuclear and offshore engineering projects not only raises average selling price but also strengthens brand and reference list for future bids.

• Cold pilger mill collaboration (SMS group): improves dimensional accuracy and material properties for high-spec seamless tubing, enabling entry into more demanding project tenders.
• Quality systems & certifications: attainment of industry-specific approvals (nuclear, API, ASME-grade manufacturing capabilities) enables premium pricing and reduces tender barriers.
• Scale and automation: higher-capacity, automated lines lower unit labor costs and increase throughput, supporting both volume growth and margin expansion.

Zhejiang Jiuli Hi-Tech Metals Co., Ltd. (002318.SZ): How It Makes Money

• Core product sales: stainless steel coils, tubes, bars, and special alloy products sold to energy, petrochemical, machinery, and construction sectors.
• High-value OCTG & casing: strategic supply agreements (notably the 10-year alliance with Hunting PLC announced June 2023) target high-nickel and chrome alloy tubulars for energy-transition and deepwell applications.
• Value-added processing & fabrication: finished machining, heat treatment, and testing services that capture downstream margin.
• Export and trading: sales to over 60 countries provide foreign-currency revenue and diversification.
• R&D-driven product premiums: commercialization of alloy innovations from >40 provincial and national technical projects initiated in the past three years.