{"id":64592,"date":"2026-10-28T14:29:35","date_gmt":"2026-10-28T14:29:35","guid":{"rendered":"https:\/\/www.kaysuns.com\/jiuli-special-materials-h1-2026-net-margin\/"},"modified":"2026-10-28T14:48:43","modified_gmt":"2026-10-28T14:48:43","slug":"jiuli-special-materials-h1-2026-net-margin","status":"publish","type":"post","link":"https:\/\/www.kaysuns.com\/pt\/jiuli-special-materials-h1-2026-net-margin\/","title":{"rendered":"Jiuli Special Materials Posts 10.1% Net Margin in H1 2026, Outperforming Baosteel"},"content":{"rendered":"

\"Jiuli<\/p>\n

Jiuli Special Materials<\/strong> \u2014 the Zhejiang-based listed manufacturer of industrial stainless steel and special alloy tubular products \u2014 has reported first-half 2026 revenue of RMB 3.884 billion<\/strong> and a net profit of RMB 393 million<\/strong>, giving it a net margin of 10.1%<\/strong>.<\/p>\n

That margin is roughly three and a half times that of Baosteel, China’s largest steel producer, which posted a 2.8% net margin over the same period on revenue of RMB 160.731 billion and net profit of RMB 4.571 billion.<\/p>\n

The comparison is striking precisely because of the scale gap. Jiuli’s revenue is a small fraction of Baosteel’s, yet it converts every yuan of sales into profit far more efficiently \u2014 a difference that says a great deal about where value sits in the steel supply chain.<\/p>\n

Baosteel Sets the Benchmark<\/h2>\n

Baosteel is the established leader of China’s steel industry. Over the past three years its total revenue has consistently exceeded RMB 300 billion<\/strong>, and its cumulative net profit across those three years has topped RMB 25 billion<\/strong>. Pay per employee has held steady at roughly RMB 350,000<\/strong> a year and has not fallen below RMB 300,000 regardless of how the steel market has moved.<\/p>\n

For many Chinese steelmakers, Baosteel’s revenue and profit represent a ceiling rather than a target. Some mills have lost money for three or four consecutive years, and their cumulative revenue over that period does not match Baosteel’s in a single year.<\/p>\n

Against that backdrop, the interesting question is not who is biggest \u2014 it is who earns the most per unit of revenue. And on that measure, Jiuli Special Materials\r\n \r\n <\/g><\/svg><\/span><\/a> outperforms the industry leader.<\/p>\n

Jiuli’s Revenue, Profit and Pay: 2023\u20132025<\/h2>\n

Jiuli’s three-year record shows steady growth on all three measures \u2014 revenue, net profit and pay per employee.<\/p>\n\n\n\n\n\n\n\n\n
Year<\/th>\nRevenue (RMB)<\/th>\nNet Profit (RMB)<\/th>\nPay per Employee (RMB\/yr)<\/th>\n<\/tr>\n<\/thead>\n
2023<\/strong><\/td>\n8.568 billion<\/td>\n1.489 billion<\/td>\n188,700<\/td>\n<\/tr>\n
2024<\/strong><\/td>\n10.918 billion<\/td>\n1.490 billion<\/td>\n242,100<\/td>\n<\/tr>\n
2025<\/strong><\/td>\n12.059 billion<\/td>\n1.509 billion<\/td>\n252,700<\/td>\n<\/tr>\n
H1 2026<\/strong><\/td>\n3.884 billion<\/td>\n393 million<\/td>\n\u2014<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In 2023, Jiuli’s revenue was just under RMB 10 billion while net profit approached RMB 1.5 billion \u2014 an unusually high conversion rate for a steel business. Pay per employee that year was RMB 188,700, a mid-range figure for the industry.<\/p>\n

In 2024, revenue rose to RMB 10.918 billion and net profit held at RMB 1.490 billion. More notable was the jump in pay per employee, from RMB 188,700 to RMB 242,100<\/strong> \u2014 an increase of nearly one third in a single year, an exceptional move in a sector where wage growth is usually modest.<\/p>\n

In 2025, revenue reached RMB 12.059 billion and net profit RMB 1.509 billion, with pay per employee rising again to RMB 252,700<\/strong>.<\/p>\n

2026 First-Half Results<\/h2>\n

With ten months of 2026 behind it, Jiuli reported first-half revenue of RMB 3.884 billion and net profit of RMB 393 million. The open question is whether the company can push full-year revenue and profit above the 2025 record.<\/p>\n

What is already clear is the margin performance. Across both the 2023\u20132025 period and the first half of 2026, Jiuli’s net margin has stayed consistently above Baosteel’s.<\/p>\n\n\n\n\n\n\n
Company (H1 2026)<\/th>\nRevenue (RMB)<\/th>\nNet Profit (RMB)<\/th>\nNet Margin<\/th>\n<\/tr>\n<\/thead>\n
Jiuli Special Materials<\/strong><\/td>\n3.884 billion<\/td>\n393 million<\/td>\n10.1%<\/strong><\/td>\n<\/tr>\n
Baosteel<\/strong><\/td>\n160.731 billion<\/td>\n4.571 billion<\/td>\n2.8%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Revenue Growth<\/h2>\n

Jiuli’s revenue has climbed steadily from RMB 8.568 billion in 2023 to RMB 12.059 billion in 2025 \u2014 an increase of nearly one third in two years. That trajectory matters in a sector where many producers have spent the same period contracting.<\/p>\n

Profit Growth<\/h2>\n

Net profit has risen alongside revenue, though at a more modest pace \u2014 from RMB 1.489 billion in 2023 to RMB 1.509 billion in 2025. The key point is not the size of the increase but its direction: profit grew while the broader steel market was weak. For a steel company to expand profitability in a downturn says something about the durability of its business model.<\/p>\n

Pay per Employee<\/h2>\n

Pay per employee has tracked the revenue and profit trend, reaching RMB 252,700 in 2025. That places Jiuli in the upper-middle range for the Chinese steel industry. For comparison, Shougang \u2014 a company known for investing in talent \u2014 pays roughly RMB 260,000 to RMB 270,000 a year.<\/p>\n

Three Reasons Jiuli Outperforms<\/h2>\n

Jiuli has managed to grow revenue and profit through a difficult steel cycle for three identifiable reasons.<\/p>\n

1. Technical leadership in high-end tubular products<\/h3>\n

In stainless steel and special alloy seamless pipe \u2014 a demanding niche \u2014 Jiuli is the domestic leader. Product quality is high enough that state-owned industrial enterprises routinely choose Jiuli as their supplier. Within the tubular segment, the company functions as the benchmark, with a market share in a class of its own.<\/p>\n

2. A genuine focus on research<\/h3>\n

Jiuli invests seriously in technology and research capability. Mills that prioritise technology tend to move their products into the high-end bracket, and once a producer is established at that level, the broader steel cycle affects it far less. Commodity steel competes on price; specialised alloy tube competes on specification, certification and reliability.<\/p>\n

3. A stable base of high-quality customers<\/h3>\n

Because the product quality holds up, major domestic oil and energy state-owned enterprises choose Jiuli as a supplier. A customer base of that kind provides sales visibility \u2014 and with volume secured, net profit follows.<\/p>\n

The company is also gradually reducing the share of low-end steel<\/strong> in its mix while increasing high-end products such as materials for nuclear power applications. That shift is itself a reason for the high net margin.<\/p>\n

What This Means for Buyers of Stainless Steel Pipe<\/h2>\n

For international buyers, Jiuli’s numbers illustrate a structural point about the stainless steel pipe market: margin follows specialisation<\/strong>. Producers focused on commodity grades compete almost entirely on price and are exposed to every swing in the nickel and energy markets. Producers focused on high-specification seamless tube \u2014 nuclear, oil and gas, petrochemical, power generation \u2014 compete on qualification, traceability and consistency.<\/p>\n

That distinction is worth keeping in mind when evaluating a supplier. The questions that matter are not only about price per tonne, but about which grades the mill actually specialises in, which approvals it holds, and whether its order book is anchored by long-term industrial customers.<\/p>\n

KAYSUNS supplies stainless steel pipes<\/a>, pipe fittings<\/a> and nickel alloy pipes<\/a> to industrial buyers worldwide, with material certificates to EN 10204 3.1 and compliance with ASTM, EN and JIS standards.<\/p>\n

Contact KAYSUNS<\/h2>\n

If you are sourcing stainless steel or nickel alloy tubular products for an industrial project, send your specification, quantity and destination port to info@kaysuns.com<\/strong>. Our technical team will confirm the most suitable grade and provide a quotation.<\/p>\n

Send Your Inquiry<\/h2>\n

Use the form below to send your requirement directly to our sales team \u2014 grade, size, quantity and destination port are enough for us to start. Every enquiry is reviewed by a technical engineer and answered within 24 hours.<\/p>\n\t\t

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