Jinhua New Materials: Taking flight from its parent company with cloud-driven transformation
Flexible and efficient business-finance management
At a critical stage in its IPO journey, Jinhua New Materials rapidly separated from its parent company’s instance of SAP S/4HANA by deploying an SAP Cloud ERP solution. This move enabled the chemicals company to establish an advanced, traceable, and comprehensive digital management platform tailored for IPO audit readiness.
| Industry | Region | Company Size |
| Chemicals | Zhejiang, China | Revenue ¥1.239 billion (US$172 million) |
reduction in IT operations and maintenance costs.
data accuracy, up from 85%.
increase in average employee operational efficiency.
CIO, Zhejiang Jinhua New Materials Co. Ltd.
| Industry | Region | Company Size |
| Chemicals | Zhejiang, China | Revenue ¥1.239 billion (US$172 million) |
reduction in IT operations and maintenance costs.
data accuracy, up from 85%.
increase in average employee operational efficiency.
CIO, Zhejiang Jinhua New Materials Co. Ltd.
Meeting IPO pressure for system independence and fast deployment
As a nationally recognized “Little Giant” enterprise, Zhejiang Jinhua New Materials Co. Ltd. (Jinhua New Materials) is a leading player in China’s ketoxime industry sector. Several of its products rank first globally in production capacity. Core offerings such as silane crosslinking agents and hydroxylamine salts hold leading positions in their domestic market segments and are exported to Europe, North America, Southeast Asia, and other regions.
As early as 2010, JuHua Group—the parent company of Jinhua New Materials—implemented SAP S/4HANA. For many years, Jinhua New Materials and other subsidiaries within the group operated on a shared system based on SAP S/4HANA. However, as Jinhua’s operations became increasingly advanced, the need for a self-managed, optimized system to support robust management grew more pressing. With IPO audits placing greater emphasis on IT system independence, Jinhua New Materials began planning its separation from the group’s existing instance of SAP S/4HANA.
However, Jinhua New Materials had no dedicated IT team and lacked independent system maintenance capabilities. Following its separation, the company faced the urgent task of achieving system autonomy within a short time frame—ensuring zero disruption to business operations while meeting the stringent demands of IPO audits. Constrained by both time and technical resources, the company was under significant pressure.
From a business perspective, Jinhua New Materials lacked an independent financial system. Everything from material codes to write-off processes was built and managed centrally by the group, often misaligned with the company’s specific operational needs. Striking the right balance between independent operations and group-level coordination was another key challenge for Jinhua New Materials.
CIO, Zhejiang Jinhua New Materials Co. Ltd.
Innovating with preconfigured capabilities and two-tier ERP
Drawing on its previous experience with SAP S/4HANA, Jinhua New Materials chose to continue its collaboration with SAP by deploying an SAP Cloud ERP solution. On one hand, this allowed the company to retain core business processes and master data from the original software, avoiding the need to rebuild from scratch. On the other, the company could leverage the standardized, preconfigured capabilities of cloud ERP to support rapid deployment and go-live. SAP Cloud ERP comes with more than 800 best-practice business processes built in, covering key areas such as sales, production, supply chain, and finance—providing a proven template for Jinhua New Materials to optimize its operations. At the same time, the solution’s intuitive and streamlined user interface is highly compatible with the logic of SAP S/4HANA, enabling key users to get up to speed with only minimal training.
Another major advantage of the preconfigured solution lies in its “lightweight maintenance” model. Previously lacking a dedicated IT team, Jinhua New Materials now relies on SAP to manage hardware maintenance, system upgrades, and security protection following the deployment of SAP Cloud ERP. SAP also provides continuous monitoring and 24x7 technical support, eliminating the need for Jinhua New Materials to invest in data centers or internal IT operations teams. SAP Cloud ERP automatically installs updates and performance optimizations on a regular basis. Its built-in data security and disaster recovery mechanisms comply with China’s Tier 3 Information Security Protection Standards, giving Jinhua New Materials the confidence to migrate its data more securely to the cloud.
To balance independent operations with group-level coordination, Jinhua New Materials implemented an innovative two-tier ERP architecture. With SAP Cloud ERP as its digital core, the company restructured its financial and business processes—removing more than 200,000 redundant data entries and improving data standardization and transparency to help meet the strict integrity and traceability standards of IPO audits. The company also adopted China localization reporting capabilities of SAP S/4HANA that feature built-in financial and tax templates aligned with Chinese accounting and compliance standards, further reducing costs and improving reporting efficiency.
Enabling a smooth transition and continuous growth on a new digital core
In just five months, Jinhua New Materials successfully completed its separation from the group’s system and launched SAP Cloud ERP—achieving a smooth, zero-disruption business migration while building a brand-new digital core. The new solution deployed a lean, streamlined setup, with elimination of the redundant data entries boosting data accuracy. Business processes were optimized, improving operational efficiency. What’s more, operations and maintenance costs were significantly reduced, with just two IT personnel now capable of managing the system. Thanks to the preconfigured capabilities of SAP Cloud ERP, the deployment cycle for new business units can now be compressed to under three months.
The company successfully completed its monthly financial close in the first month after go-live, laying a solid foundation for issuing full 2025 financial statements and meeting IPO compliance audit requirements.
Looking ahead, Jinhua New Materials plans to build out its IT ecosystem with SAP Cloud ERP as the core, gradually integrating systems such as customer and supplier relationship management. Leveraging the flexibility and scalability of the cloud, the company also aims to explore the application of cutting-edge AI technologies in areas such as demand forecasting and process optimization. In addition, it intends to use the SAP Analytics Cloud solution to enable data-driven, intelligent decision-making.
SAP Cloud ERP not only provides the digital foundation supporting Jinhua New Materials’ IPO journey but the globally proven solution also serves as a robust platform for the company’s international expansion and business diversification. This truly realizes the vision of “deploy once, evolve continuously.”