Entity

Nanshan Group Co., Ltd. (南山集团有限公司) is a large-scale private joint-stock enterprise group headquartered in Nanshan Industrial Park, Longkou City, Yantai, Shandong Province, China. Founded in the late 1970s at the dawn of China's reform and opening up era, the group has grown from a township-and-village enterprise of 56 households into one of China's top 500 enterprises, ranking 148th on the China Top 500 list and 67th in the Top 500 Chinese Manufacturing Enterprises in 2025. The group employs over 40,000 people and operates across multiple industries including aluminium, textiles and garments, petrochemicals, logistics, finance, aviation, real estate, education, tourism, and healthcare.

Founding and Historical Development

Nanshan Group traces its origins to 1978, when Song Zuowen — a native of Longkou, Shandong — organised the No. 3 Brigade of Qiansong Village into a township and village enterprise (TVE) in the wake of China's economic reforms. Initially producing a diverse range of goods from tofu to asbestos tiles to cement bags, the enterprise gradually pivoted to glass-fibre processing and textile spinning as demand patterns evolved. By 1987, Song had expanded the TVE to encompass multiple brigades, with fixed assets of approximately RMB 55 million.

In 1989, the enterprise was formally incorporated as Nanshan Group, and in 1993 a dedicated aluminium subsidiary — Shandong Nanshan Aluminium Co., Ltd. — was established to capitalise on China's infrastructure boom. Over the following decades, the group systematically absorbed 36 surrounding villages into what became Nanshan Village (renamed in 2001), building an integrated industrial township around its core businesses. The group's development is typically periodised as follows:

Business Divisions

Aluminium — Core Business

The aluminium division is Nanshan Group's defining business and the foundation of its growth. Shandong Nanshan Aluminium Co., Ltd. (stock code: 600219.SH), listed on the Shanghai Stock Exchange in December 1999, operates what is described as the world's most integrated short-distance aluminium processing industrial chain — covering co-generation, alumina production, electrolytic aluminium, casting, hot rolling, cold rolling, foil rolling, and aluminium recycling within a single location. The company has established the National Enterprise Technology Center and National Aluminium Alloy Pressure Processing Engineering Technology Research Center.

Key financials for Nanshan Aluminium (2024 full year):

• Operating revenue: RMB 33.477 billion (+16.06% YoY)
• Net profit attributable to shareholders: RMB 4.83 billion (+39.03% YoY)
• Overseas revenue: RMB 17.757 billion (+30.80% YoY)
• Gross profit margin: 35.81% (+9.89 ppt YoY)

Nanshan Aluminium International Holdings Limited (stock code: 2610.HK), listed on the Hong Kong Stock Exchange in March 2024, is the group's Southeast Asia-focused aluminium platform, specialising in metallurgical-grade alumina production at its PT Bintan Alumina Indonesia facility on Bintan Island. The HK-listed entity reported revenue of USD 1,141.8 million for full year 2025. The group is targeting electrolytic aluminium expansion at Bintan — a 250,000 t/y project planned for 2026, with a longer-term 500,000 t/y phase.

Nanshan Aluminium supplies aerospace customers including Boeing (7050 plate supply contract), Airbus (extrusion profiles), and Rolls-Royce (engine rotation parts). It operates with 234 granted patents and has participated in drafting 244 national and industry standards.

Textiles and Garments

Shandong Nanshan Fashion Sci-Tech Co., Ltd. (stock code: 300918.SZ), listed on the Shenzhen Stock Exchange in December 2020, is described as one of the few fully integrated wool textile and garment companies globally, with a complete industrial chain from wool to finished garments. In 2024, the company recorded revenue of RMB 1.616 billion and net profit of RMB 191 million. The division has expanded into advanced materials, establishing a 3,600-tonne UHMWPE fibre industrial park — a product that directly connects to the Yulong petrochemical chain — and an 80,000-tonne high-performance differential nylon industrial park.

Logistics

Hengtong Logistics (listed on Shanghai Stock Exchange, June 2015) is a comprehensive logistics enterprise providing oil, gas and bulk commodity trading, port development and operations, clean energy R&D, and smart transportation systems. Its port and logistics operations are directly relevant to feedstock supply for the Yulong Island complex.

Petrochemicals — Yulong Petrochemical

Nanshan Group holds a 51.0% controlling stake in Shandong Yulong Petrochemical Co., Ltd., the operator of the Yulong Island Refining and Chemical Integration Project — one of China's largest single grassroots petrochemical investments at approximately RMB 116.8 billion Phase I investment. This represented the group's most consequential strategic diversification, entering a sector entirely new to it. The Yulong investment is described as Nanshan having "staked everything" on the project.

Shandong Xinnanshan Chemical Co., Ltd., established in February 2022 as a wholly-owned subsidiary of Xinnanshan International Investment under Nanshan Holdings, extends the group's downstream petrochemical chain. With "olefin industry chain extension" and "refining product deep processing" as its two strategic pillars, Xinnanshan Chemical operates in new chemical materials, fine chemicals, additives and catalysts, and rubber and plastic deep processing. Its Xinnanshan Chemical High-end Chemical Industrial Park in Lijin County, Dongying broke ground in September 2024, designed to process raw materials from the Yulong Phase I complex.

International Expansion — Indonesia Refinery

In February 2026, Reuters reported that Nanshan Group is planning a 100,000 bpd crude oil refinery on Bintan Island, Indonesia — adjacent to its existing alumina plant. The refinery is intended to generate petroleum coke as a feedstock for a planned aluminium smelter, creating a vertically integrated energy-aluminium chain. This would represent the group's second major refinery project, extending its Yulong template internationally.

Finance, Education, Tourism and Healthcare

Nanshan Finance targets an all-licence financial platform across banking, securities, insurance, leasing, equity investment, private equity, and asset management. Nanshan Education operates Nanshan University, recognised by China's Ministry of Education. The group also operates Donghai Tourist Resort and a range of healthcare and real estate assets.

Industrial Geography

Nanshan Group's operations are concentrated in and around Longkou City, Yantai Prefecture, Shandong:

• Nanshan Industrial Park — core aluminium and textiles operations

• Donghai Tourist Resort — tourism and hospitality

• Shandong Yulong Petrochemical Industrial Park (Yulong Island, Longkou) — refining and chemicals

• Qimu Island Port-Centred Industrial Park — logistics and port operations

International presence includes subsidiaries and offices in the United States, Australia, Italy, Germany, Singapore, Indonesia, and Japan. The Singapore subsidiary (Nanshan Group Singapore Co. Pte. Ltd., established 2010) serves as the SEA regional headquarters, conducting aluminium trading, financial services, energy and chemicals, and real estate development.

Ownership and Corporate Structure

Nanshan Group Co., Ltd. is privately held, controlled by the Song family. Its major listed subsidiaries create a complex multi-tier structure:

The group's non-listed crown jewel is its 51% stake in Shandong Yulong Petrochemical Co., Ltd., which at RMB 380 billion registered capital is by far the largest single investment in Nanshan's history.

Strategic Significance of Yulong Investment

The decision to lead the Yulong Island project represented a fundamental strategic pivot for Nanshan. The group entered petroleum refining — an industry in which it had zero prior experience — and committed capital exceeding its entire historical aluminium investment. The motivations were several: Longkou City and the Nanshan Industrial Park are physically adjacent to Yulong Island, giving the group geographic and logistical primacy; the project was a provincial government priority under the 14th Five-Year Plan; and the downstream chemical products from Yulong (including UHMWPE, which feeds directly into Nanshan Fashion's materials business) created a direct vertical integration opportunity.

The October 2025 UK and EU sanctions on Shandong Yulong Petrochemical — imposed for engaging in Russian oil transactions — have created indirect reputational and financial risks for Nanshan Group as the controlling shareholder. Nanshan Group itself has not been sanctioned, but its 51% stake in a designated entity creates material exposure in its international financing, banking relationships, and the operations of its Singapore and Hong Kong subsidiaries.