Shenzhou International's net profit rises to 2.9 billion yuan in H1 2024

Recently, Shenzhou International, the largest OEM sportswear factory in China, announced its performance for the first half of 2024. According to the data, revenue increased by 12.2% year-on-year to 12.976 billion yuan, net profit rose by 37.8% to 2.931 billion yuan, and the gross profit margin increased by 6.6 percentage points to 29%.

By product category, revenue from sportswear increased by 7.6% to 9.1 billion yuan, casualwear revenue grew by 20% to 2.76 billion yuan, and lingerie revenue surged by 47% to 900 million yuan.

By client, sales to Uniqlo increased by 33.8% to 3.4 billion yuan, Nike's sales decreased by 6.5% to 3.24 billion yuan, Adidas's sales rose by 23.8% to 2.33 billion yuan, and Puma's sales remained flat at 1.34 billion yuan. The contribution ratio of these four major clients slightly decreased by 30 basis points to 79.5%.

By region, the group's revenue in Chinese mainland increased by 20% year-on-year to 3.724 billion yuan, grew by 27% to 2.116 billion yuan in Japan, increased by 2.7% to 1.881 billion yuan in the US, rose by 4.4% to 2.527 billion yuan in EU, and grew by 11.8% to 2.728 billion yuan in other regions.

The mid-term profit increased by 37.8% to $2.931 billion USD, mainly benefiting from significantly higher capacity utilization rates, expansion of overseas factory scales, and continued efficiency improvements. The mid-term gross profit margin of 29.0% increased by 660 basis points year-on-year, also benefiting from improved capacity utilization, new overseas factories reaching their planned scale, and continued improvements in production efficiency.

The group stated that as of the end of June, the new garment factory in Cambodia employed 18,000 workers, meeting its expected scale, with continued improvements in employee productivity. Additionally, the garment factory in Ho Chi Minh City, Vietnam, hired over 2,200 more workers during the period. Furthermore, the group has initiated a new acquisition project, including land, buildings, and production equipment in Xining Province, Vietnam. Upon completion, this acquisition will further expand Vietnam's fabric production capacity to better support the fabric needs of overseas garment factories.