Before the speech
This report is the Corporate Social Responsibility Report published by Zhejiang Jiuli Hi-Tech Metals Co., Ltd. (hereinafter referred to as "Jiuli Tecai" or the "Company"), and is prepared in light of the construction of the company's social responsibility system in 2019. The Company guarantees that the information contained in this report does not contain any false records or misleading statements, and undertakes the responsibility for the authenticity and accuracy of the content.
Scope of Report:
The organization scope of this report is Zhejiang Jiuli Hi-Tech Metals Co., Ltd. This report describes the company's concept, system, measures and achievements in economic responsibility, social responsibility and environmental responsibility during the period of December 31, 2019.
Report Release Form:
The company regularly publishes a social responsibility report every year. This report is published on the company's website (http://www.jiuli.cn) in the form of PDF electronic document. Welcome to download and read it and give your valuable comments.
I. Company profile
Zhejiang Jiuli Hi-Tech Metals Co., Ltd., founded in 1987, is a key high-tech enterprise specializing in the production of stainless steel pipes and special alloy pipes and fittings for industrial use in the National Torch Plan. In December 2009, it was listed in Shenzhen Stock Exchange (stock code: 002318). The company has been in the leading position in the domestic industry for many years, leading and promoting the development of domestic industrial stainless steel pipe industry. In 2019, the total operating revenue was 4.44 billion yuan and the total profit was 597 million yuan.
Jiuli special material is one of the few professional manufacturers of industrial stainless steel pipes with complete varieties and specifications in China. The products are characterized by "excellent length, high precision and precision". Over the years, the company has been committed to providing high performance, corrosion, pressure and temperature resistant materials for the oil and gas (including LNG) extraction, storage, processing and energy equipment industries such as power. So far, there have been a variety of products to replace imports to fill the gap in the field of domestic technology.
Jiuli special materials for high-tech enterprises, with a national enterprise technology center. Since its inception, the company stick to the path of independent innovation, and gradually formed a "long litas material research institute" as the core, the postdoctoral research station of zhejiang province, member of expert workstation, research of new materials, welding technology, pipe technology laboratory, technical equipment, laboratory, laboratory testing technology research, standard information and CNAS national recognized testing laboratory of companies such as research and development innovation platform, covering stainless steel and special alloy pipe manufacturing process of complete technical research and development system.
"Jiulii" brand stainless steel welded pipe was also awarded by China Iron and Steel Industry Association "Metallurgical Products Physical Quality Gold Cup Award". "Jiuli" trademark has been registered in more than 70 countries and regions in the world.
Jiuli Special Material is the leading backbone enterprise in Zhejiang Province, has won the honorary title of "National May Day Labor Certificate", "Abide by Contract and Honor" unit, Zhejiang Province civilized unit and so on. The company has passed ISO9001 quality management system, ISO14001 environmental management system, ISO45001 occupation health and safety management system certification. The company has earlier obtained the "special equipment manufacturing license" issued by the State Administration of Quality Supervision, Inspection and Quarantine. Company is the domestic industry's first obtain PED2014/68 / EU EU pressure equipment directive nuclear quality assurance system certification, the American society of mechanical engineers (ASME Section III NPT containing MO), the American petroleum institute API5LC / 5 ct / 5 ld/cra certification of enterprises, and access to CCS China classification society, DNV, GL, DNV, BV, bureau veritas, ABS American bureau of shipping, LR and Lloyd's register classification society certification.
The culture development of Jiuli Special Products has gone through the evolution of four stages: enlightenment period (1987-1992), formation period (1993-2003), development period (2004-2008) and promotion period (2009-now), forming the current enterprise culture system with Jiuli characteristics. The cultural philosophy of Kuri Tecai is as follows:
Enterprise spirit: hard work, quality win, faith-based
Business philosophy: serve users, contribute to the society, develop themselves
Corporate mission: to provide high performance materials to the global industry
Second, economic responsibility
1. Strategic direction
The development of Jiuli Special Material is always strategy-oriented. In 2002, in zhejiang university of technology school of economics and the Beijing iron and steel research institute, with the help of the company formulated the "product development planning", established the development strategy of "prominent main business, financial and material resources, human factors, such as do big, do strong stainless steel and the MI cable business, adjust and gradually withdraw from the magnesium industry, silicon powder, etc. Since then, the company has been sticking to the product strategic positioning of "long, excellent, sophisticated and sophisticated", and will focus on the application field of more high-end industries.
"Specialist" and "strong" are the basic characteristics of the strategic goal of Jiuli Special Material. In the process of realizing the strategic goal of "specialized" and "strong", the company has already had the basic advantages, and will continue to strengthen and reflect these advantages in the future, so as to enhance the overall core competitiveness of the company.
(1) The company's long-term, medium and short-term main vision goals
★ Long-term strategic development goals (the period is set to be 10 years)
1) Development direction
Company as a strategic emerging industry, new materials research and development and production of high performance products enterprise, always adhere to the "specialized, refined, special, new" the road of development, using the world's most advanced production technology and research and development technology focus on the new smelting and processing of metal materials, and independent innovation research and development and production to meet thermal power, petroleum, aviation, aerospace, Marine engineering, high-end equipment manufacturing and other fields need new materials and special metal pipe material, continuously promote the transformation and upgrading and structural adjustment, to create long made products in the global market of brand awareness and customer satisfaction both at home and abroad.
2) General idea
Highlight a key point: continue to promote fine management, so as to: concentrate on management, potential to tap, potential release.
We should focus on two tasks: improving the integration of innovation and human resources.
Occupy three commanding heights: First, relying on the state-recognized technology research and development center, research institute, academician expert workstation and industry-university-research-use cooperation system platform, further occupy the commanding heights of industrial stainless steel pipes and special metal pipe manufacturing technology; Second, relying on resource advantages and core technologies to seize the commanding heights of high-end market competition; The third is to rely on the market expansion and localization of the promotion, so that the "jiu li" brand to further occupy the global brand of stainless steel pipe commanding heights.
Four new breakthroughs have been made. First, new breakthroughs have been made in capital operation and low-cost expansion. Second, optimize the industrial chain and achieve new breakthroughs in improving the value-added capacity of each link of the industrial chain; Third, in the development of high-end products, promote the domestic substitution of imported market applications to achieve new breakthroughs; Fourth, to promote information, fine management, management to achieve new breakthroughs in efficiency.
★ Short-to-medium term vision Development Goals (13th Five-Year Plan: 2016-2020)
1) Production and sales target of high-end products:
During the 13th Five-Year Plan period, the company will continue to increase the proportion of production and sales of products with high value-added and high-tech content. Among them, high value-added, high technology content of the product production and sales target to reach 16% of the total product.
2) Main business indicators realized during the reporting period (i.e. 2019)
Operating revenue: 4.437 billion yuan, including:
Seamless pipes: 2.30 billion yuan
Welded pipes: 1.362 billion yuan
Pipe fittings: 315 million yuan
Others: 460 million yuan
2. Decomposition of strategic objectives
Long litas material from finance, customer and market, internal business, learning and growth, "four aspects, such as key to short - and long-term strategic target decomposition, and the child has been clear about the company and medium-term development strategy target of target, in order to ensure the maneuverability of the strategic objective and effective measure resource requirements, and various functional departments in accordance with the functional strategy, plan and support requirements, formulate their respective strategic goals and work plan of action (e.g., production planning, human resource planning) continue to break down each position after the transfer, development of performance evaluation of each position, specific target index data and corresponding schedule.
(6) Strategic development direction and objectives
1) Formulation and implementation of key strategic planning
The strategic planning of Jiuli Special Material is led by the chairman of the board, the general manager takes the lead, and the leaders of other branches and all functional departments participate in the formulation. In the formulation process, strategic maps, annual business work plans and performance appraisal tools are used to decompose them to each department and individual layer by layer to ensure the feasibility of strategic planning.
图2.1.2 久立特材战略地图
表2.3：职能战略规划
2) Response to key changes
Table 2.4: Critical change response
3) Strategic adjustment
The company organizes the senior leadership team to hold a seminar every year, at which the strategy achievement of each functional module is summarized and corrected from the four aspects of raising problems, analyzing problems, solving problems and implementing problems. Discusses the difficulties in the implementation process, and identifies the changes in the external environment.
When major external changes occur, the company's general manager organizes a meeting to make strategic adjustments.
4) Support for resource allocation
After subdividing the overall strategic planning and the strategic planning of each functional department, the company allocations resources from human, financial and material resources to each department to ensure the effective implementation of the strategy.
◆ Human resource allocation
The company adopts various forms of targeted training for management personnel, technical personnel, marketing personnel and operation personnel.
Comprehensively improve the quality of personnel; Cultivate creative talents by combining external introduction and internal training; We will establish and improve an employment and incentive mechanism for employees who are able to move up and down, compete for positions, and have their salaries linked to performance.
◆ Financial resource allocation
The financial department monitors and analyzes the financial indicators of the company comprehensively through the ERP financial management system, and makes a budget for the future capital demand, so as to make a fund raising plan in time according to the surplus and shortage of funds, and ensure the timely supply of funds during the implementation of strategic objectives.
表2.6：投融资情况及计划表
◆ physical resource allocation
The company actively arranges and dispatches physical resources scientifically from the three aspects of infrastructure construction, equipment management and material supply through specific plans such as technical transformation plan, equipment maintenance plan and material supply plan.
◆ Information construction configuration
During the 13th Five-Year Plan period, we will continue to carry out ERP project and further improve SAP function. That is to say, we will gradually build MES production and manufacturing execution system, WMS warehousing and transportation management system and other business execution systems to provide more accurate and real-time logistics business data for SAP. External through CRM customer relationship management, SRM supplier relationship management and other systems to better support the business management at both ends of the industry chain; Through OA or BPM integration of various systems to achieve single sign-on, convenient for mobile office applications; In the basic business with complete basic construction of various business systems, further consider the relevant analysis and application of BI business intelligence, and finally establish a standardized, standardized and integrated university information platform.
5) Performance monitoring
The company has been committed to strengthening and improving the performance monitoring system. It convenes directors of all functional departments to hold a meeting of directors every month. The directors will report the achievement of the monthly target, analyze the reasons for failure, propose improvement plans, and reach an agreement at the meeting, so as to continuously improve the operation of the company.
The company holds business analysis meetings every quarter and at the end of each year to summarize the actual completion of the strategic target values of each quarter and each year. By summarizing the quarterly and annual business conditions, the company formulates the business plans for the next quarter and the next year, and decomposes the strategic planning goals to each functional department.
6) Performance forecasting
◆ Prediction method
The company collects competitors' key performance indicators, policies and development data related to the company's core business and other relevant information through multiple channels to ensure the reliability and timeliness of performance forecast information sources. The company adopts correlation analysis and trend analysis to forecast the company's future key performance indicators, and makes vertical and horizontal comparison with the company's past performance and the performance of its main competitors.
◆ Main prediction results and comparison
In order to better carry out business activities, the company and its competitors have made performance forecasts. Through horizontal comparative analysis of performance and competitors, as well as longitudinal comparative analysis of historical data and long-term and short-term goals, trends and rules of various indicators are mined.
2. Market performance
(1) Market share
Long as the company with "high,,,,, fine," the strategic thought of planning, based on domestic, think globally, adhere to the "hard work, quality win, to the letter for this" spirit of enterprise and the mission of "high-performance materials for industry in the world", and work closely together to promote our country modernization, hand in hand, for the global industrial equipment to provide safe and reliable for products. With reliable products and high quality service, we continue to meet customer needs and hopes, and win customer satisfaction and loyalty. The company's market share has increased year by year in the past three years.
⑵ Market position
According to the statistics of China Stainless Steel Industry Association, the national production and sales of Jiuli Special Materials stainless steel pipes have been ranked from 2010 to now, ranking the top in the world.
⑶ Business growth and new markets
The business scope of the company has expanded from the foreign market to the domestic market, "Jiuli special material" brand has become a well-known brand in the country, the establishment of regional offices and distribution network. Achieve the trend of annual sales growth.
3. Financial performance
The company strictly follows the Securities Law, Accounting Standards for Business Enterprises and Financial General Principles. In March 2019, the company improved and revised 32 financial management systems in the Enterprise Management System Compilation. According to the company's strategic target and implementation plan, make the overall annual capital demand, and divide it into quarterly and monthly according to the indicators to determine the monthly capital demand, including the capital demand of raw materials, project funds, taxes, expenses, etc., and guarantee the capital supply by combining the traditional financing channels and financial innovation methods; According to the Comprehensive Budget Management System, the budget index is taken as the basis for the implementation of the internal economic responsibility system and linked to the annual management responsibility assessment of operators, and the control of costs and expenses is strengthened. According to the Internal Control System, in order to prevent and avoid risks, the implementation of risk assessment mechanism, to ensure the safety of the company's assets; By reducing inventory, reducing accounts receivable and other methods to speed up the capital turnover, the use of inventory assets and other methods to improve the utilization of assets, in order to achieve the optimal allocation of financial resources, improve the efficiency of the use of funds, so as to maximize the benefits of the company.
(1) Guarantee capital supply according to strategic objectives
According to the medium and long term strategic planning and annual business plan, the company determines the "strategic capital needs" and forms detailed project investment and development funds in combination with the objectives of investment and inventory purchase. Combined with the characteristics of the industry market, the "short-term operational capital needs" are determined through comprehensive budget and fund demand investigation and comprehensive balance.
Companies using "the centralized fund management" and "across the bank cash management platform system (CBS) advantages, flexible use of multiple financing methods (such as a public stock offering to raise funds, bonds into shares to raise funds, etc.), financial innovation and open up the financing channels, using the administration of foreign exchange approved" within the territory of foreign exchange funds the collection "model, is used for the part of the customer payment bank acceptance and settlement way, reduce the financing cost, optimize the financing structure, make sure that the money supply. The company's large-sum financing channels in the past three years are shown in the following table.
表2.8：近三年公司大额融资渠道
(2) Promote comprehensive budget management and improve budget accuracy
According to the "comprehensive budget management system" and its implementation rules, the company began to implement comprehensive budget management in 2004, and the budget management has been constantly improved. Comprehensive budget management work under the leadership of the board of directors consists of comprehensive budget management committee, by the finance department and the enterprise management office of the comprehensive budget management responsibilities, every child, branch and production base and affiliated factory, the responsibility of the department is the comprehensive budget management department, the ministry of audit is responsible for regularly or irregularly on the budget implementation and supervision through auditing over the implementation of this system, and put forward the corresponding improvement suggestion or opinion, report to the board of directors for examination and approval after implementation or improvement to the auditees or department.
图2.3.1 公司全面预算管理体系
1) Budget project and management: the company's comprehensive budget is composed of four parts: business budget, capital budget, capital budget and financial budget. The management mode is based on the realization of sales target and cost control, and the internal management level and core competitiveness are improved to ensure the maximum realization of the company's business target.
2) Budget execution control: the financial department is responsible for supervising the budget execution status of each department, verifying and analyzing the reported data of each department, compiling and analyzing the company's general budget execution status and reporting it to the decision-making level of the company. For example, according to the annual budget, collection cycle (including credit policy), payment cycle, etc., the financial department determines the annual, quarterly and monthly fund income and expenditure status, checks the budget implementation status monthly, and timely adjusts the annual budget.
3) Budget adjustment: due to special circumstances, it is necessary to increase expenditure, reduce revenue or make other adjustments to the original budget, including the adjustment of changing the annual overall budget target, the budget adjustment that does not affect the annual overall budget target and the adjustment among budget items. Budget adjustment plans shall be examined and approved by relevant personnel according to their contents, and no department shall adjust the budget without authorization, and any violator shall be investigated for responsibility. The Comprehensive Budget Management System stipulates the specific examination and approval procedures and powers for various budget adjustments.
4) Budget assessment: at the end of the budget year, the comprehensive budget management committee of the company shall report to the board of directors according to the adjusted budget and its implementation, and conduct assessment on the budget responsibility department according to the budget completion and budget audit.
5) Financial final accounts: after the end of each year, prepare the financial final accounts report, make a comparative analysis of the completion of budget data, and provide improvement suggestions for the budget of the next year. At the same time, compared with the actual data of last year, compared and analyzed the increase or decrease data and the increase or decrease range of various indicators, analyzed the main data to find out the reason for the difference, and summarized whether it is reasonable, to provide experience and reference for the future actual operation.
⑶ Carry out cost management, effectively control and reduce costs
1) Cost planning: the company plans the cost level and cost target through cost forecasting, and makes cost decisions and prepares cost plans based on the comparative analysis of the realization plans of the cost target, which are used as the basis for cost control.
2) Costing: The Company establishes and improves the Cost Accounting System, and ensures the accuracy and rationality of cost calculation by reasonably determining the object and period of cost calculation, selecting appropriate cost calculation method, reasonably setting cost items and expense allocation standards.
3) Cost analysis: the company carries out "cost analysis" every month, studies the reasons for the increase or decrease of each cost item, and explores the methods to reduce production costs and save costs; Analyze the product efficiency capability through the analysis of the industrial chain, combined with the price of products and raw materials and the operation status of production equipment, forecast the marginal contribution of products and put forward financial opinions, so as to provide the decision-making basis for the operation optimization of the company and reasonably control and reduce the cost.
4) Cost assessment: the cost indicators of each cost center and expense center can be decomposed layer by layer and managed and assessed by segment, and the cost assessment results are linked to the economic responsibility system of each unit and department. Through strengthening cost control, reducing and reducing process loss and waste, promoting the improvement of cost management and improving the level of cost management.
(4) Carry out financial risk management to ensure financial security
Innovation "capital centralized control mode," according to "the surely with closing, income and expenses two line" principle to ensure that the fund use highly centralized power, unified credit account for payment collection company, subsidiary companies capital expenditures through the total amount of monthly plan and daily cash application form as a whole fund dispatching management, comprehensive monitoring, capital operation information with accurate active monitoring, early warning, timely decisions.
(5) Speed up the capital turnover and improve the efficiency of capital use
1) Reasonable capital planning: the company can reduce capital precipitation, reasonably plan existing funds, reasonably allocate working funds and fixed funds, realize effective investment and management of funds and improve the efficiency of fund u
