Breaking Down SGIS Songshan Co., Ltd. Financial Health: Key Insights for Investors

Explore how SGIS Songshan Co., Ltd., a leading Taiwanese stainless steel maker and subsidiary of China Steel Corporation, combines advanced facilities-like its 4.3-meter coke oven in Guangdong-with a market footprint that places it among the top 5 steel producers in Taiwan and holding a 12% share of the global stainless steel market; backed by a reported revenue of approximately NTD 25 billion (2022) and strategic investments-about NTD 1 billion in environmental protection in 2023 plus over ¥1.5 billion annually for R&D-the company pursues a mission to lead through production excellence, innovation, and sustainability (including a goal to cut carbon emissions by 30% by 2025), a vision to be a global leader in technical development and learning, and core values centered on innovation, professionalism, integrity, respect, collaboration and continuous growth, all driving plans for two new overseas production facilities by 2025 and maintaining a 95% customer satisfaction rating that underscores its stakeholder focus.

SGIS Songshan Co., Ltd. (000717.SZ) - Intro

• Established: Subsidiary of China Steel Corporation (CSCC)
• Core product focus: Stainless steel flat products, coils, sheets, and specialty grades
• Major manufacturing site: Guangdong operations with a 4.3 m coke oven
• Market position: Top 5 steel producers in Taiwan; ~12% share of the global stainless steel market

• Quality & Reliability - consistent delivery of high-grade stainless steels meeting international standards
• Innovation - continuous investment in process R&D and product development
• Sustainability - measurable reductions in emissions, energy intensity, and waste
• Safety & Compliance - strict adherence to safety protocols and regulatory requirements
• Customer Centricity - responsive supply, technical support, and collaborative solutions

• 2023 environmental investment: ~NTD 1 billion aimed at emissions control, wastewater treatment, and energy-efficiency upgrades
• Process initiatives: modernization of coking and smelting lines to lower specific energy consumption and particulate emissions
• Reporting: enhanced transparency in environmental compliance and performance metrics

• Upstream integration via parent China Steel Corporation provides raw material security and scale advantages
• Technology focus on specialty stainless grades to capture higher-value markets
• Export orientation supported by global stainless-steel market share (~12%) and diversified customer base

SGIS Songshan Co., Ltd. (000717.SZ) - Overview

• Mission Statement: Lead the stainless steel market through excellence in production, innovative technology, and sustainable practices while delivering measurable value to customers and stakeholders.
• Vision: Build a globally integrated stainless steel enterprise that anticipates application needs, sets industry standards for quality and sustainability, and expands international manufacturing footprints.
• Core Values:
  • Quality-first manufacturing and continuous improvement.
  • Innovation and heavy investment in R&D to stay ahead of material and process evolution.
  • Sustainability and measurable emissions reduction.
  • Customer-centricity with rapid feedback loops and service excellence.
  • Responsible governance and stakeholder transparency.

• Strategic priorities to fulfill the mission:
  • Scale R&D: allocate >¥1.5 billion annually toward alloy development, process automation, and energy‑efficient production lines.
  • Operational excellence: adopt advanced manufacturing technologies to improve yield, reduce scrap and lower per‑ton CO2 intensity.
  • Sustainability investments: retrofit facilities, shift to lower‑carbon energy sources and optimize logistics to meet the 30% emissions reduction target by 2025.
  • Customer experience: maintain 95% satisfaction via systematic feedback, rapid issue resolution, and tailored product solutions.
  • Internationalization: establish two overseas production sites by 2025 to shorten lead times and serve regional markets.

SGIS Songshan Co., Ltd. (000717.SZ) - Mission Statement

• Deliver market‑leading, all‑natural performance materials through disciplined R&D, scalable manufacturing and rigorous quality control.
• Partner with customers to co‑develop application‑tailored solutions that anticipate evolving needs in industries such as coatings, adhesives, construction and specialty chemicals.
• Invest in people and pedagogy: build internal learning systems that translate global best practices into operational excellence and leadership development.
• Embed sustainability across the value chain - from raw material sourcing to energy efficiency and end‑of‑life considerations.
• Operate with transparent governance, high ethical standards and measurable social impact.

• Global leadership: scale advanced natural‑material platforms to serve international OEMs and formulators.
• Continuous innovation: maintain a pipeline of next‑generation materials driven by sustained R&D investment and cross‑disciplinary collaboration.
• Educational impact: develop in‑house academies and external partnerships to transfer know‑how and create a talent pipeline of globally experienced, caring teachers and practitioners.
• Ethical and sustainable operations: align product development and manufacturing with circularity principles and responsible sourcing.

• R&D & Technology: scale pilot‑to‑commercial pathways, allocate ~15-20% of R&D portfolio to disruptive platforms each year, and pursue targeted IP protection.
• Commercialization & Globalization: expand distributor networks across APAC and EMEA, targeting a two‑point increase in export share within 3 years.
• Talent & Education: institutionalize an internal academy delivering 10,000+ training hours annually and structured leadership tracks to accelerate high‑potential employees.
• Sustainability & Governance: reduce energy intensity by 12% over 3 years and increase use of certified sustainable feedstocks to 40% of purchases.

• Innovation with Purpose - continuous technical renewal aimed at measurable customer benefit.
• Integrity - transparent reporting, regulatory compliance and rigorous supplier standards.
• Excellence in Education - mentoring, skills transfer and global pedagogy embedded in operations.
• Customer Centricity - co‑creation and long‑term partnerships focused on application performance.
• Sustainability - lifecycle thinking guiding product design and manufacturing choices.

SGIS Songshan Co., Ltd. (000717.SZ) - Vision Statement

SGIS Songshan Co., Ltd. (000717.SZ) envisions becoming a globally respected advanced materials and industrial textile leader that drives sustainable industry transformation through continuous innovation, customer-centric solutions, and responsible governance.

Mission

Deliver high-performance materials and integrated solutions that create measurable value for customers, shareholders, employees, and society by combining technological R&D, disciplined operations, and ethical stewardship.

Core Values

• Innovation: Pursue breakthrough materials, processes, and business models to lead market evolution.
• Growth & Re-innovation: Scale sustainably while continuously reinventing products and services.
• Professionalism & Ownership: Act with domain expertise, accountability, and a commitment to long-term value.
• Integrity & Transparency: Communicate openly, uphold compliance, and treat partners and stakeholders fairly.
• Respect & Inclusion: Value each individual's contribution and foster a workplace where diverse talents thrive.
• Collaboration & Empathy: Work across functions and with clients, listening and adapting to achieve superior outcomes.
• Humility & Resilience: Embrace learning, recover quickly from setbacks, and iterate toward innovative solutions.

How Core Values Translate into Measurable Actions

• R&D intensity and product pipeline expansion: continuous reinvestment in materials R&D to shorten time-to-market.
• Governance and transparency: regular public disclosures, audited financials, and clear stakeholder engagement channels.
• Talent development: systematic training, performance ownership programs, and retention incentives aligned to long-term targets.
• Customer partnerships: co-development projects and long-term supply agreements that reflect collaborative commitments.

Key Indicators Illustrating the Vision in Practice (Latest Fiscal Year)

Strategic Priorities Aligned with Values

• Accelerate high-margin advanced materials and specialty textile offerings through focused R&D and targeted M&A.
• Enhance operational excellence: lean manufacturing, digitalization, and supply-chain resilience to protect margins.
• Embed ESG metrics into performance evaluation-reducing emissions, improving resource efficiency, and strengthening social governance.
• Strengthen customer intimacy via co-innovation centers and dedicated technical support for major accounts.

Further context on corporate evolution, governance, and how SGIS Songshan creates economic value can be found here: SGIS Songshan Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money