CSI Roadshow Replay | Yueloong Technology: Independently Developed Core Technology Series

On March 13, Shandong Yuelong Rubber & Plastic Technology Co., Ltd. held an online roadshow for the public offering of shares to qualified investors and listing on the Beijing Stock Exchange, hosted by China Securities Journal and Zhongzheng.com.

Yuelong Technology mainly engages in the research, development, production, and sales of flexible fluid transfer pipes, including three major series of rubber hoses: marine engineering flexible pipes, land oil and gas flexible pipes, and industrial special hoses.

Xu Jincheng, Chairman of Yuelong Technology, stated that through years of R&D accumulation and process innovation, the company has independently developed a series of core technologies. These core technologies ensure the stability of flexible pipes’ rigidity, toughness, sealing, and aging resistance under harsh conditions such as high temperature, high pressure, exposure to sunlight, extreme cold, and seawater erosion. Key technologies include: “Ultra-high pressure flexible pipe pressure-bearing structure design technology,” “Integrated vulcanization embedding connection technology for ultra-high pressure flexible pipes and metal fittings,” “Rubber formulation technology for special hoses,” and “Full operating condition adaptable material composite technology.”

Roadshow Guests

Xu Jincheng, Chairman and General Manager of Yuelong Technology

Yang Peng, Deputy General Manager of Yuelong Technology

Guo Xu, Deputy General Manager and Secretary of the Board of Yuelong Technology

Wang Rongfeng, Chief Financial Officer of Yuelong Technology

Wang Jing, Senior Vice President of China Securities Investment Banking Committee and Sponsoring Representative

Bai Zhongfa, Director of China Securities Investment Banking Committee and Sponsoring Representative

Roadshow Site Source: China Securities Journal and Zhongzheng.com

Downstream Industry Demand Expected to Increase

Q: Please introduce the company’s main business and products.

A: The company mainly focuses on the research, development, production, and sales of flexible fluid transfer pipes, including three major series of rubber hoses: marine engineering flexible pipes, land oil and gas flexible pipes, and industrial special hoses. Unlike traditional rubber hoses, the core products target high-performance markets under extreme conditions such as ultra-high pressure/high pressure, ultra-low temperature/low temperature, high temperature, corrosion, and erosion. They are customized based on application conditions and transported media, primarily used in offshore oil and gas drilling equipment, deep-sea mining equipment, onshore oil and gas drilling equipment, large-scale oil and gas storage fields, as well as engineering machinery, chemical industry, rail transit, food, and other fields.

Q: Who are the company’s clients?

A: The company’s products are sold globally, with clients in China, Europe, the Americas, Southeast Asia, the Middle East, and Africa. The company supplies products and supporting services to large enterprises such as CNOOC, PetroChina, Sinopec, China National Heavy Duty Truck Group, CIMC Group, Shanghai Waigaoqiao, Schlumberger, Trico, NOV (National Oilwell Varco), ExxonMobil, and others.

Q: Does the company’s main business exhibit strong cyclical characteristics?

A: Currently, under the background of promoting new industrialization and accelerating the construction of a manufacturing powerhouse in China, downstream demand is expected to increase. As an essential part of infrastructure, the demand for rubber hoses is likely to grow.

Leading the Latest Technological Development in the Domestic Rubber Hose Industry

Q: Please introduce the company’s R&D model.

A: The company’s R&D is market demand-driven, leading the latest technological development in the domestic rubber hose industry, mainly relying on independent R&D with supplementary collaborative efforts. Through continuous investment in R&D, the company constantly improves its technical level and enhances product performance. It also tackles process challenges and bottlenecks in manufacturing, improving processes to realize new technologies and products, thereby building core competitiveness.

Q: What are the main technological barriers in the industry, and how does the company build and maintain these barriers?

A: Rubber hose manufacturing involves multiple technical fields, requiring consideration of various factors affecting hose performance.

First, manufacturing rubber hoses requires a deep understanding of polymer materials and rubber processes. The formulation of polymer materials determines product performance parameters and quality. The quality of formulations is a key competitive advantage for rubber hose companies.

Second, the connection technology between rubber and metal fittings is critical to ensure stable use under ultra-high pressure, tension, and bending without detachment or rupture.

Third, developing various rubber hoses requires thorough understanding of application scenarios across industries. Products must meet complex engineering environment requirements such as high temperature, high pressure, and corrosion resistance.

Fourth, environmental and application standards for rubber hoses are becoming increasingly strict, raising higher requirements for rubber formulations, structural design, and manufacturing processes. These require extensive testing to ensure quality and performance, increasing barriers for new entrants. Overcoming these barriers demands comprehensive technical knowledge and alignment with international standards, along with ongoing R&D and innovation. Leading companies continuously invest in advanced formulations and improve production equipment to meet market demands.

Fundraising Investment Projects Will Focus on Main Business

Q: Please briefly introduce the company’s fundraising project overview.

A: In line with the company’s development strategy, the funds raised will be fully dedicated to main business projects, including the construction of a new self-floating oil transfer rubber hose production line, upgrading and digital transformation of rubber hose manufacturing facilities, high-end hose R&D center, and marketing service network expansion.

Q: Please briefly describe the “New Self-Floating Oil Transfer Rubber Hose Production Line” project.

A: This project will build a production workshop and line for self-floating oil transfer rubber hoses within the existing plant area. The total investment is 142 million yuan, with a construction period of 24 months. After completion, the line is expected to produce 66,000 meters of self-floating oil transfer hoses annually.

Q: Please briefly introduce the “High-end Hose R&D Center Construction” project.

A: This project involves establishing a new R&D center, adding relevant hardware and software facilities, expanding R&D personnel, and enhancing the company’s forward-looking R&D capabilities. The main objectives include: developing deep-sea flexible hose design, manufacturing, and evaluation technologies; creating ultra-wear-resistant inner lining materials; focusing on high-wear resistance and lightweight polymer flexible hose design and manufacturing; researching damage detection and health management technologies for mixed transport pipes; establishing testing processes and evaluation methods for flexible pipes; and developing ultra-deepwater, lightweight, high-wear-resistant continuous flexible pipes to support deep-sea resource development. The R&D center will enable the company to stay at the forefront of technological innovation, providing strong technical support for business expansion.