Before the speech

This report is the Enterprise Quality and Integrity Report published for the first time by Zhejiang Jiuli Hi-Tech Metals Co., Ltd. (hereinafter referred to as "Jiuli Special Material" or the "Company"), which is based on the national standard GB/T 29467- of the People's Republic of China

The provisions of 2012 "Enterprise Quality and Credit Management Implementation Specifications" and GB/T 31870-2015 "Enterprise Quality and Credit Report Compiling Guidelines" are compiled in combination with the construction of the company's quality and credit 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 concept, system, measures and achievements of the company in quality management, product quality responsibility, quality integrity management and other aspects during the period of December 31, 2019.

Report Release Form:

Our company regularly releases a quality credit report every year. This report is published on our website (http://www.jiuli.cn) as a 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's annual sales and market share rank first in the same industry in China for 11 consecutive years. 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, enterprise quality concept

Long litas material since its inception, is committed to create high quality products, the product quality as the cornerstone of enterprise survival and development, the company passed the ISO9001 quality management system and special equipment (pressure piping components) permission, ASME/API certification and standardization good behavior enterprise acceptance, strictly in accordance with the international quality management system, make the enterprise get effective guarantee the quality of product, so that enterprises "stands for: stand, foundation, sets, khalid, vertical line". From six different SiKua simple plant and auxiliary process felt hut started to the industry take the lead in the listed company, long made use of "hard work, quality win, with the letter as this" spirit of enterprise and "service users, contribute to society, to develop" the management idea of production of stainless steel pipe, stainless steel pipe in China's leading enterprise, safe and reliable products for industrial equipment in the world. Since the establishment of the factory, the company has never had a major quality complaints, in the past years to accept all levels of quality and technical departments sampling inspection, the qualified rate is 100%.

Three, enterprise quality management

1. Quality management organization

In line with the high importance of product quality, the company has established the quality responsible person system, formulated the inspection standards of various materials, components and products, and each performing his own duties, communication and cooperation with each other, from the research and development, procurement, production and other processes, to strengthen product quality control.
General manager and senior management team -- responsible for the allocation of total quality management resources, the promotion of awareness of all staff, and the promotion of compliance with the quality concept to all staff;
Quality Assurance Department -- responsible for the establishment, monitoring and improvement of the company's integrated management system, the implementation of total quality management work, and constantly improve the company's overall quality management level;

Supply Department -- responsible for the development and ability improvement of suppliers, to ensure the quality of source products of outsourcing and auxiliary materials;

Research institute and iron and steel laboratory -- responsible for new materials, new products testing, internal commissioned testing;

Sales department -- responsible for collecting market complaint information and product quality problems, and feedback to relevant departments;

Technical department -- responsible for organizing the planning of product realization process and the preparation of quality plan, and controlling the production and service provision process of the company;

Quality department -- responsible for promoting the implementation of the company's quality strategy, improving product quality and process quality indicators, and implementing quality improvement work.

The company set up a management representative, to determine their responsibilities and authority, the implementation of a vote on quality, otherwise, the comprehensive establishment of the company's quality culture.
In order to pay attention to the quality and safety of products and services, the general manager of the company has performed the following duties:
1) Participate in the formulation, review and determination of quality strategy;
2) Participate in regular quality meetings;
3) Participate in major product quality review and quality improvement activities;
4) Participate in quality recognition activities and award awards for QCC activities;
5) Participate in quality month activities and popularize quality and safety education;
6) Establish a clear accountability system for quality accidents and a traceability system for quality safety.

2. Quality management system

"Winning by quality" makes the company's product market bigger and bigger. At the beginning of 1997, the company has obtained the ISO9001 quality system certification, which provides reliable guarantee for the stability of product quality. At the same time, since 1999, the company also has obtained the CCS China classification society, DNV, GL, DNV, BV, bureau veritas certification, LR, Lloyd's register, ABS the approval certificate of plant classification, PED2014/68 / EU the EU pressure equipment directive certification and the national certificate of special equipment manufacturing license (pressure piping), civil nuclear safety equipment manufacturing license, etc.

1) Perform the main responsibility of quality and safety

The company has set up the concept of "product quality and safety is above everything else", established the quality management system of "internal and external maintenance", and implemented the process management for each process. The company formulates and implements the Detailed Rules for the Preparation of Product Labels to ensure the traceability of products. At the same time, the company regularly holds quality special meetings and quality special training, emphasizing the establishment of quality awareness: first, management personnel should take the lead; second, customers' opinions should be valued; third, all employees should pursue the goal of zero defect, nip it in the nip; fourth, quality personnel at all levels should be better played. The company carries out safety production month activities every year, and signs a responsibility letter with the person in charge of each production unit to strengthen the safety responsibility of management personnel at all levels. Jiuli implementation of quality and safety "one vote veto" system. The company's quality management system from continuous improvement to the pursuit of excellence, the establishment of the company strategy as the core, GB/T19580 performance excellence model as the framework of the integrated total quality management system. To meet the requirements of customers, shareholders, employees, suppliers, society and partners of six stakeholders, the company at all levels to establish the corresponding strategic planning, quality objectives. Based on the company's performance appraisal system, the quality assessment KPI and quality accountability system have been established.

2) Quality education

In the process of system operation, the company uses a variety of scientific and effective methods, measurement, analysis, improvement, based on PDCA system method, continuous improvement. The company uses a variety of tools to improve the performance of various departments and levels, and adopts benchmarking and learning methods to constantly revise individual working ideas and ways to ensure the realization of personal and company overall goals. The company actively communicates with the outside world and invites experts to carry out special training for the company's employees. The company regularly carries out quality education for employees at all levels, and carries out special management on quality control points to ensure the consistency of product quality in the manufacturing process.

In order to firmly establish the integrity consciousness of all employees, the company formulates the annual education and training plan at the beginning of each year. Implement three levels of education and training. The company organizes the first-level education work. According to the requirements of the company, the head of each department shall compile education and training plans and contents, and conscientiously organize the education and training of subordinates. Each workshop director is responsible for the integrity of the group leader and staff publicity and education work. The company carries out quality and integrity education to employees through special training, Posting or conveying written words, exchanging experience of advanced employees with quality and integrity, using morning meetings or pre-class meetings, and using pictures to display and other ways. The company will give certain rewards to those who have made outstanding achievements in education and training, and also give certain rewards to those who have played a role model or made outstanding achievements after training. Meanwhile, the company will publicize and promote experience among employees. The employees who fail to attend the quality and integrity education training on time or fail to pass the training and assessment shall be given certain penalties.

3) Quality regulations and liability system

By collecting laws, regulations and other standards and requirements, and formulating internal standards, the company makes its products meet the requirements of national laws, regulations and national and industry standards (some products exceed external requirements), and practices social responsibility in terms of product technology. At the same time, the company has formulated the "quality reward and punishment management standards", "quality assessment management measures", to punish product quality problems, follow the principle of not letting go of quality accidents.
Table 3.2.1 Quality standards and other relevant laws complied with by Joliteset

The company has formulated the "Internal Audit Control Procedure" and "Management Review Control Procedure", and trained a team of internal auditors. In order to ensure the effectiveness of the system operation and continuous improvement, arrange the internal audit, process audit and quality inspection, to audit nonconformities found by the responsibility department analysis reason, corrective or preventive measures, to carry out the rectification, and verify corrective effect, and finally form the internal audit report, the system proposed rectification, and the prevention of nonconformities, and as an important input of management review, report to top management.

The company has formulated the Control Procedures for Nonconforming Products, Control Procedures for Corrective or Preventive Measures, and Control Procedures for Monitoring and Measurement of Processes and Products to strictly control nonconforming products. All products of the company are inspected and qualified before they can be transferred to the next process or leave the factory. Any unqualified products have clear requirements such as identification, recording, isolation and treatment, etc. All unqualified products must be re-tested and qualified after reworking and repair before entering the next process.

At the same time, according to the monitoring and measurement of process and product control procedures ", for all the unqualified, have corresponding records, statistical analysis, and by the people by the responsibility unit according to the corrective or preventive measures to control procedures "corrective and preventive actions and corrective, assessment after corrective and preventive actions effectively can shut down the problem.
In addition, the company also developed a "quality manual", "enterprise management program", "employee handbook" system, such as to accountability and appear the quality problem of the education, research and development, production in the daily job, emphasizes the systematic, through quality control circles, such as continuous improvement activities and quality tools, fully application of PDCA cycle, continuous improvement, the pursuit of excellence.

3. Quality and safety risk management

The company develops routine product production and operation control process, and strictly controls and checks each link to ensure that the production of each process meets the relevant requirements and ensures the final product quality. The company also uses three inspection system, that is, self-inspection, sampling inspection, quality supervision group to strictly control the quality of products. Self-inspection includes product self-inspection and the re-inspection of the last process. Product self-inspection refers to the self-inspection of the products produced by the employees according to the process requirements, and the determination of whether they are qualified and the relevant records are made in the original production records. Sampling inspection refers to the sampling inspection of products by special inspectors during the whole production process, including intermediate products and finished products, as well as the inspection required by customers. The control of the quality supervision team includes the witness of the important working procedure in the production process and the supervision of customer complaints and special projects. The key quality links of products can be exposed and controlled, so as to ensure the overall quality and safety of products and prevent quality and safety risks.

Figure 3.3.1 Flow chart of risk management

Four, quality integrity management

1. Quality commitment

1) Honesty and law-abiding
Senior leaders to follow "in accordance with the business, the good faith management" management philosophy, strictly follow the company law, "economic law", "contract law", "product quality standard", "production safety law", "environmental law", "labor law", as well as relevant laws and regulations of pipe industry, strengthen the legal knowledge training, cooperate with the government departments to carry out the franco-prussian education activities, to encourage employees

"Positive energy", so that the integrity and law-abiding style of the company staff into the consciousness and behavior. The company has zero active default rate of contracts, never defaulted on bank loans, and overdue receivables have been reduced to a reasonable range. The company's senior and middle-level leaders have no record of violating laws and regulations, and the number of employees violating laws is zero. The company has established a good credit moral image among customers, users, the public and the society.

2) Meet customer needs

Company attaches great importance to technology research and development, with domestic and foreign advanced technology and equipment constantly reinvent production line, with reliable technology and equipment for enhancing the stability of product quality and provide strong support, through the "quality win, branding, image change, improve management, trademark lawsuit over Hitachi, rapid response" service marketing measures such as improving long brand reputation.

"In line with the company's global development strategy, and for the need of intellectual property protection, the company has registered its brand trademark in more than 70 countries and regions in the world, which has laid a brand foundation for further expanding the international market, and realized the dream of serving the country with industry of" replacing import ". The company strengthens the investment in research and development, takes customer demand as the center, actively listens to customer's opinions and suggestions on function, quality, configuration and other aspects, carries out product improvement and innovation activities, and meets customer's demand for products and delivery time. In terms of product quality, the company strictly implements the ISO9000 quality management system, and guarantees product quality and safety by carrying out technical research, quality improvement, QC team and other activities.

In the market research, the company found the market demand for a complete set of solutions, and decided to enter the market after discussing with the company leaders, sales, technology and business management departments. Long litas materials to provide customers industrial pipe manufacturing (turn-key solutions), will the customer purchase products technology, precision and efficiency of the actual demand in pipe industry, such as efficiency, precision and reliability, systematic, such as improving customer purchase long litas material added value of products, from product to provide the change of the role of manufacturing. In the process of interaction with customers, the company actively understand customer needs, to provide customers with professional technology development and consulting services, with technical strength and quality service to enhance the brand reputation of Jiuli special material products.

2. Operation management

1) Integrity management of product design

The company's product design and research and development strictly follow the "Design and Development Control Procedures", from research and development project approval, process of all kinds of activity records, research and development process summary, achievement transformation management, evaluation and control of the whole process related to research and development.

2) Integrity management of raw materials or parts procurement

According to the importance of the materials purchased by enterprises, they are divided into three categories: A, B and C. Steel is the main raw material of the company. The raw material of the company's stainless steel seamless tube is stainless steel round steel, which is mainly supplied by Yongxing Materials, Fushun Special Steel and Shanghai University of China Aviation Industry Co., Ltd. The company has established long-term cooperative relations with them, and the supply of raw materials is stable and sufficient. The main raw materials of the company's stainless steel welded pipe are stainless steel coil and stainless steel plate, which are mainly supplied by Shanxi Taizhou Steel Co., Ltd., Zhangjiagang (POSCO) and Jiangsu Daming Co., Ltd. The supply of raw materials is stable and sufficient. In terms of equipment and parts procurement, strictly review the supplier's qualification. When purchasing equipment and parts, purchase and use standard parts if they can use standard parts; If special processing is required, the use effect shall be fully verified to ensure that it meets the requirements of our company. All the equipment must pass the equipment acceptance before use, to ensure that the product process requirements.

3) Integrity management in the production process

The technical department of the company is responsible for the technical management of the production of various varieties. It has formulated and gradually improved various production management systems, post operating procedures, various technological procedures, management procedures and standard operating procedures. The workshop focused on training, clarificaiton will, after training and shift operators a comprehensive job skills training, hold relevant certificates, supervision, evaluation and use a variety of ways, enhance staff quality consciousness, improve the level of operation, in the process of production, management personnel at various levels shall strictly perform management duties, check in time, timely and correct errors, guarantee the stability of the production order.

Required for production of raw materials, auxiliary materials, packaging materials for review before feeding, the good quality of the intermediate products and finished products, strict enforcement of "not producing nonconforming, not receiving nonconforming, not circulation of nonconforming product" of the "three principles", the key working procedure quality control point, supervise staff do a good job in self-inspection, mutual inspection, perform monitoring verification procedures, strict records management discipline, do recipients, issue and check the unity. Carry out material balance for each production step to ensure that the input of materials and output quantity of products are consistent with the process requirements, confirm that there are no potential quality hazards and meet the specified requirements.

The original production record form shall be examined by the technical department, put on record by the quality assurance department, printed and kept by the production department. The staff shall fill in the production record in time according to the requirements, and the operator and the reviewer shall sign for confirmation according to the regulations. After the end of each batch of production, workshop statisticians will summarize and review the records, and hand them over to the competent department in time. After the competent department and relevant responsible departments check and find no error, they will sort out and file and be managed by special personnel.
According to the characteristics of the industry and the actual situation, the company strengthens the level of information construction in the production process. Besides using the production management module of ERP system to collect and monitor the whole process, it also specially establishes SAP information system to carry out systematic management of the whole production process of the company. And excavate the internal potential, give play to the strength of the key technical personnel, carry out the continuous transformation of the existing equipment or scientific and technological innovation work, set up a technical research team, technical research on the weak links; Production staff should go through training and assessment before taking up their posts, establish training files for all staff, and conduct training through centralized training, pre-class meeting training, "pass, help, lead", visual and other ways to strengthen their working skills and quality awareness. Production staff strictly abide by the workshop discipline.

The company implements the unit and fine production organization mode to shorten the production and delivery cycle, quickly adapt to the changes of market order variety and quantity, and meet customer demand on the basis of reducing inventory. On the basis of project management, imp