Yongjin Technology Group, founded in 2003, is an industrial group focused on cold-rolled stainless steel processing. Headquartered at No. 99 Chuangye Avenue, Lanxi Economic Development Zone, Jinhua City, Zhejiang Province, Yongjin Technology Group has grown from a local enterprise into a renowned leader in the domestic stainless steel cold-rolling industry, with operations spanning China and expanding internationally. In December 2019, the company successfully listed on the Shanghai Stock Exchange’s main board (stock abbreviation: Yongjin Shares, stock code: 603995), marking a new phase for the company’s entry into the capital market.
Yongjin Technology Group’s development history has witnessed several key milestones, demonstrating the expansion of its production capacity and the refinement of its strategic layout:
- August 2003: Lanxi Yongjin Stainless Steel Co., Ltd., the company’s predecessor, was established (renamed Zhejiang Yongjin Stainless Steel Co., Ltd. the same year), launching its cold-rolled stainless steel business.
- 2009: The company completed its shareholding reform, laying the foundation for its subsequent IPO. November 2010: Established a wholly-owned subsidiary, Jiangsu Yongjin Metal Technology Co., Ltd., establishing a production base in the coastal region of East China.
- March 2014: Established a joint venture with Tsingshan Group, Fujian Yongjin Metal Technology Co., Ltd., further expanding its upstream raw material and regional advantages.
- February 2018: Established a controlling subsidiary, Guangdong Yongjin Metal Technology Co., Ltd., entering the South China market. That same year, the company was selected as one of the top 100 private enterprises in Zhejiang Province.
- April 2019: Established its first overseas subsidiary, Vietnam Yongjin Metal Technology Co., Ltd., taking the first step towards internationalization. In December 2019, Yongjin Co., Ltd. was listed on the A-share main board.
- April 2022: The Vietnam Yongjin cold-rolled stainless steel project was completed and put into production, with an annual production capacity of 250,000 tons, primarily targeting the Southeast Asian, European and American markets.
- 2023: Preparatory work will begin on the Yongjin Stainless Steel production base in Thailand, with plans to build a new project in Jingjiang, Jiangsu with an annual production capacity of 1.2 million tons of high-end wide-width stainless steel sheet and strip. Meanwhile, the company will explore the development of a cold-rolled stainless steel project in Indonesia, further strengthening its global production capacity.
After these development stages, Yongjin Technology Group now has production bases in Lanxi, Zhejiang; Jingjiang, Jiangsu; Fu’an, Fujian; Yangjiang, Guangdong; and Jiayuguan, Gansu. The company also has production lines in overseas markets such as Vietnam, establishing a strategic presence in East China, with nationwide coverage and a global reach.
Stainless Steel Product Types and Grades
Yongjin Technology Group specializes in the research, development, production, and sales of stainless steel sheet and strip, offering a broad product range that meets the needs of various downstream sectors. Key product forms include:
- Stainless Steel Coil: Stainless steel sheet and strip delivered in coil form, allowing downstream customers to cut and flatten the coils as needed. Yongjin offers wide-width cold-rolled stainless steel coils up to 1550mm in width, featuring a smooth surface and high dimensional accuracy.
- Stainless steel sheet: A flat sheet formed by slitting stainless steel coils longitudinally or transversely. Yongjin’s cold-rolled stainless steel sheet is widely used in industries such as kitchenware, home appliances, and architectural decoration. Surface finishes include 2B, BA (bright annealing), and 8K mirror finishes.
- Stainless steel strip: A narrow strip of stainless steel, typically referring to precision stainless steel with a width ranging from a few millimeters to tens of millimeters. Yongjin’s precision stainless steel strip can be as thin as 0.05mm and is primarily used in electronics, electrical appliances, precision equipment, and other fields requiring high-quality thin materials.
Common production grades include austenitic, ferritic, and other specialty stainless steel series, including but not limited to:
- 300 series austenitic stainless steel: 304, 304L, 316L, and 321. These grades have a high nickel content, offer excellent corrosion resistance and toughness, and are the most widely used stainless steel. 304 stainless steel is Yongjin’s flagship material and is widely used in food-grade containers and chemical equipment.
- 200 Series Stainless Steel: For example, 201 stainless steel. 201 is a low-nickel austenitic stainless steel. Due to its low nickel content and lower cost, it is used as an alternative to 304 in some applications where rust protection is less critical. Yongjin produces 201 and other 200 Series stainless steel sheet and strip to meet the needs of the mid-range market.
- 400 Series Ferritic Stainless Steel: For example, 430 stainless steel. 430 is nickel-free, offers moderate corrosion resistance, and good thermal conductivity. It is commonly used in automotive trim, kitchenware, and cookware. Yongjin’s 430 cold-rolled stainless steel sheet has a smooth surface, making it suitable for subsequent polishing or coating.
Other Specialty Steel Grades: The company also processes duplex stainless steel (such as 2205), heat-resistant stainless steels (such as 309S and 310S), and precipitation-hardening stainless steel (17-4PH), providing customized solutions to meet specific customer needs.
By covering the major steel grades and product forms mentioned above, Yongjin Technology Group offers customers a full range of cold-rolled stainless steel products, from thin-gauge precision strip to wide-width coils. These products are widely used in kitchen and bathroom appliances, automotive manufacturing, petrochemical machinery, electronic devices, and new energy.
Company Capacity and Equipment
- Cold Rolling Lines: Yongjin Technology Group currently specializes in the deep processing of cold-rolled stainless steel and owns dozens of advanced cold rolling lines. Its core equipment is a 20-high reversing cold rolling mill, which is used to produce high-precision stainless steel thin strip. Initially, the company introduced and independently upgraded nine 20-high cold rolling mills at its Lanxi base for the production of ultra-thin precision stainless steel strip. A single mill can roll material as thin as 0.05mm.
With the construction and commissioning of various bases, by 2023, the company will have designed and independently integrated approximately 30 cold rolling lines (including precision and wide-width rolling mills), with an annual combined production capacity exceeding 3 million tons of cold-rolled stainless steel strip. These include mills specialized in producing ultra-thin precision strip and large cold rolling mills with widths of 1.3-1.5 meters, meeting both high-end precision and high-volume production needs.
- Hot Rolling Production Line: The company does not have its own hot-rolled stainless steel production line. Yongjin employs a “hot-rolled raw material procurement + cold-rolled finishing” business model, sourcing high-quality hot-rolled stainless steel coils from upstream steel mills. These coils are then processed through its own cold rolling, annealing, and pickling processes into high-quality cold-rolled stainless steel products. This model enables Yongjin to establish close collaborations with large upstream stainless steel smelters (such as Tsingshan Holdings and its subsidiary Guangqing Technology) to ensure a stable supply of hot-rolled coils and high raw material quality. Furthermore, by not operating its own steelmaking and hot-rolling facilities, Yongjin is able to focus resources on cold rolling, building specialized advantages in technology and equipment.
Key Equipment and Processes: Yongjin Technology Group leads the industry in equipment investment and automation. The company’s imported and independently developed 20-high rolling mill features automatic thickness control and flatness control systems, ensuring that the thickness tolerance and flatness of rolled stainless steel plate meet internationally advanced standards. Each production base is also equipped with a complete set of post-processing equipment, including bright annealing furnaces (BA furnaces), pickling lines, skin-pass mills, slitting mills, and levelers, enabling a seamless production process from cold rolling and heat treatment to finishing and packaging.
Automation and information management are extensively utilized throughout the production line: The mill’s tension, speed, and thickness are precisely controlled by computers; finished coils are coiled and transported using automatic coilers and crane systems. Some production bases have also implemented intelligent warehousing and coil conveying systems to reduce manual handling. These advanced equipment and processes have enabled Yongjin to maintain high levels of production efficiency and product quality, significantly enhancing its market competitiveness.
Overview of Business Performance in the Past Three Years
Yongjin Technology Group has achieved steady growth in recent years, with production and sales reaching record highs, achieving simultaneous growth in scale and profitability.
Production, sales, and operating revenue have maintained rapid growth in recent years: from 2020 to 2022, annual stainless steel production increased from approximately 1.8 million tons to 2.47 million tons, and annual revenue soared from 20.4 billion yuan to 39.5 billion yuan, nearly doubling its scale. This was primarily due to the company’s continued capacity expansion, the commissioning of new projects, and strong market demand.
In terms of net profit, the company achieved 591 million yuan in 2021, a significant 43% year-on-year increase, with profitability increasing alongside its scale. In 2022, due to high raw material prices and fluctuating industry conditions, net profit fell slightly to 487 million yuan, but the company still maintained its industry-leading profitability.
Notably, the company’s export business has seen significant growth: With the commissioning of the Yongjin base in Vietnam, Yongjin Group’s overseas sales revenue climbed to approximately 7.3 billion yuan in 2022, accounting for approximately 18% of total revenue. This represents a significant increase compared to the export share in previous years, demonstrating the competitiveness of the company’s products in the international market.
