Shenzhou International Vietnam Base Capacity Expansion Makes Revenue Growth

According to the world clothing shoes and hats net,

In March 26th, the 2017 annual performance report was released at noon. During the reporting period, the company achieved an income of 18 billion 85 million yuan (the same below), an increase of 19.8% over the same period, a net profit of 3 billion 762 million yuan, an increase of 27.6% over the previous year, a basic earnings per share of 2.58 yuan, and a HK $0.75 dividend per share.

Shenzhou International said that revenue growth was mainly due to the expansion of Vietnam's production base, the group's production efficiency continued to increase and the main customer's order demand maintained an ideal growth.

Among them, sales of sports products accounted for 66.6% of total sales.

In addition, sales of sports products increased by 22.8% year-on-year, accounting for about 66.6% of total sales; sales of leisure products increased by 18.4% year-on-year, accounting for 25.4% of total sales; sales of lingerie products increased by 0.7% over the same period last year, accounting for about 7.2% of total sales.

Shi Kun, an analyst with CITIC Securities, said that Shenzhou International performance has been growing rapidly, indicating that it is very important to seize the "track".

Mainly in 2006, the global movement prevailed. Shen Zhou shared the head from the leisure pformation movement.

Nike, ADIDAS and PUMA broke out and increased dividends and high gross margins.

After more than 10 years, the sales volume of Shenzhou sports has exceeded 65%.

In the view of Shi Kun, the choice of suppliers by international brands will give priority to the following factors: R & D and production of high value-added products, fast delivery, stable quality, and price advantage.

Shenzhou based on "four-dimensional layout of R & D highlights + intelligent equipment + capacity pfer + vertical integration", continuously strengthens the moat, so it can filter customer orders and get high-end orders for explosions, so as to achieve faster growth than customers.

Shi Kun believes that the difference of sports products is mainly reflected in the functional properties of fabrics, such as sweat, water and so on.

Shenzhou International Year has invested hundreds of millions of yuan in research and development expenses, and thousands of new fabrics have been developed in the year.

The production of fabrics is based on the ODM mode, which is to carry out research and development of new products with high value added with customers, promote the gross margin of products and enhance the bargaining power of customers.

In order to alleviate the pressure of rising labor costs, the company is far sighted and complied with the trend of the industry: on the one hand, it will pfer production capacity to Vietnam and Kampuchea, where the cost is low, and enjoy local tax preferences and demographic dividends.

On the other hand, increase the input and pformation of automation equipment and improve production efficiency. At present, Shenzhou International Half orders for delivery 45 days, Ningbo factory to achieve 15 days fast delivery.

In the view of Shi Kun, with the rapid change of consumers' demand for fashion, the degree of flexibility of the brand to the upstream supply chain is getting higher and higher.

Shenzhou International unique vertical integration layout, from yarn to weaving to clothing, all links lean management.

On the one hand, it saves intermediate circulation time and shortens the delivery cycle effectively. On the other hand, it controls the quality of products from the source and is easy to gain the trust of high-quality international brands.

In recent years, brand suppliers have been inclined to make orders to high-quality suppliers, and the suppliers of the head have benefited.

Shenzhou International said that under the pressure of rising costs and substantial appreciation of RMB, the sales revenue and operating performance of the company continued to maintain an ideal growth in 2017, and the profits from sales and equity holders increased by 19.8% and 27.7% respectively compared with that in 2016, achieving a profit of 2.58 yuan per share.

During the year, Shenzhou International has made further achievements in capacity expansion of overseas bases, upgrading of domestic base equipment, expansion of environmental protection, and continuous improvement of total staff productivity, focusing on improving the long-term sustainable development capability of the group.

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During the year, Shenzhou International's capacity in overseas bases was further expanded, playing an important role in its own business growth.

The new equipment of Vietnam textile factory has increased the production capacity of the upstream business of the group, and has provided capacity compensation for the upgrading of the domestic base equipment. During the year, the recruitment situation of Shenzhou International Garment Factory in Vietnam was in line with expectations, skill training was developing smoothly, and management level was maturing. With the promotion of staff scale and efficiency, the output of Vietnamese garment factories increased rapidly, and the fixed cost apportionment of unit products decreased significantly, and the first year realized profits.

Shenzhou International is a new special fabric factory in Vietnam, and has completed the reserve training of management and technical personnel, laying the foundation for further expansion of production capacity.

Thanks to the increase in the capacity of overseas fabric factories, Shenzhou International has been upgrading the equipment of domestic fabric factories in the year. By introducing more automation, energy saving and environmental protection equipment, the consumption of water and electricity will be effectively reduced. At the same time, through the application of information system, production planning and operation control can reduce the number of front-line operators, improve the accuracy of production processes, and promote the stability of product quality.

In addition, Shenzhou International has upgraded the existing sewerage facilities at the same time to prevent the adverse effects of sewage leakage on the environment.

In 2018, Shenzhou International will continue to upgrade the unfinished production workshop.

Expanding investment in environmental protection

During the year, Shenzhou International has completed the construction of two new natural gas boilers. By using natural gas instead of biomass as the basic fuel, the emissions of NOx and dust particles can be greatly reduced. The construction of the project has increased the investment and operation costs of the enterprises, but is of great significance to the environmental improvement. In addition, Shenzhou International and scientific research institutions have cooperated with the project on the exhaust gas collection and treatment of waste heat recovery and utilization of the stereotype machine to reduce the emission of exhaust gas significantly. Shenzhou International has switched to LED lamps as the lighting source in all factories and effectively saved the electricity.

Environmental protection capability will become an important threshold for industry access. Shenzhou International will continue to invest in environmental protection.

During the year, Shenzhou International production efficiency increased significantly, effectively promoting the growth of sales.

Through the promotion and application of automation equipment, the improvement and optimization of production technology, the continuous deepening of lean production management and the strengthening of production plan management, the employment pressure of Shenzhou International and domestic base has been alleviated. The management and operation of overseas factories are becoming mature, the number of new recruit staff is achieved according to the plan, the effectiveness of business training is also significant, and the actual output of overseas factories has been greatly improved compared with the previous year.

In the year ended December 31, 2017, sales of sports products amounted to about 12 billion 48 million yuan, representing an increase of about 2 billion 233 million yuan, or 22.8%, compared with sales of 9 billion 815 million yuan in the year ended December 31, 2016.

The sales growth of sports products mainly comes from the increase of clothing demand of international sports brands in the European market and the US market, and the demand for sports fabric products.

Sales of leisure products increased from about 3 billion 886 million yuan to the end of December 31, 2016 to about 4 billion 601 million yuan in the year ended December 31, 2017, an increase of about 715 million yuan, an increase of about 18.4%, mainly due to the rising demand for casual clothes in the mainland and Japanese markets.

Sales of underwear products increased from about 1 billion 293 million yuan in the year ended December 31, 2016 to about 1 billion 303 million yuan in the year ended December 31, 2017, an increase of about 9 million 469 thousand yuan, an increase of about 0.7%.

During the year, the purchasing demand of underwear for major customers remained relatively stable.

In the year ended December 31, 2017, the sales volume of Shenzhou International in the European market was about 4 billion 31 million yuan, an increase of about 676 million yuan, or about 20.1%, over the 3355516000 yuan in the year ended December 31, 2016.

The main European market is the rising demand for sports apparel.

In the year ended December 31, 2017, the sales volume of Shenzhou International in the Japanese market was about 3 billion 129 million yuan, an increase of about 125 million yuan, or about 4.2%, over the 3 billion 4 million yuan in the year ended December 31, 2016.

Mainly due to the increasing demand for casual clothing in Japanese market.

In the year ended December 31, 2017, the sales volume of Shenzhou International in the US market was about 2 billion 338 million yuan, an increase of about 790 million yuan, or about 51%, over the 1 billion 548 million yuan in the year ended December 31, 2016.

Shenzhou International sales increased significantly in the US market, mainly due to the revival of the US economy and the rising demand for sports apparel in the US market.

In the year ended December 31, 2017, sales in other overseas markets amounted to about 3 billion 742 million yuan, an increase of about 241 million yuan compared with the 3 billion 502 million yuan in the year ended December 31, 2016, an increase of about 6.9%, mainly due to the increase in sports fabric products exported to Vietnam.

By the end of December 31, 2017, Shenzhou International's sales in the domestic market increased by 31.3% over the previous year.

The sales of garments in domestic sales are about 4 billion 693 million yuan, up from about 3 billion 602 million yuan in the previous year, an increase of about 1 billion 91 million yuan, an increase of about 30.3%.

The continuous growth of consumer demand in the domestic market has led to a rapid rise in the demand for orders in the domestic market.

In order to seek long-term sustainable development, Shenzhou International's future development will focus on improving product innovation capability, improving enterprise operation efficiency, improving production automation and optimizing human resource management, etc., and paying attention to continuous improvement of environmental protection in the whole process of product manufacturing, such as raw material purchase, process formulation, equipment selection and terminal treatment.

Fabric quality is the key factor in the competitiveness of clothing products. Shenzhou International will focus on highlighting the technological content of fabrics and developing new fabrics with different advantages in terms of functionality and environmental protection on the basis of improving the fabric's traditional quality indicators.

Shenzhou International will integrate the resources of the existing R & D institutions, increase investment in R & D, cultivate and introduce high-end professionals, strengthen cooperation with scientific research institutions, and establish a leading fabric research and development center.

Shenzhou International will also collect and tidy market information in time, anticipate consumption trends, innovate products to cater for consumption upgrading needs, and win more market share for customers.

Shenzhou International will continue to improve automation and information technology level, increase the application of various new technologies in this industry, and promote the efficiency of our group's production and management.

In order to cope with the pressure of future recruitment, the Shenzhou International Garment innovation center will provide functional projects for the automation project promotion and automation equipment trial, and put forward the demand plan for personalized equipment that meets Shenzhou International production technology.

Shenzhou International information construction aims at improving management efficiency and reducing labor input, especially through the analysis and comparison of data in various links, forming pre warning and early warning information to guide the management of pre intervention, so as to further enhance the ability of short term delivery, promote the best use of existing capacity and prevent errors in all links, and achieve effective cost control.

At the same time, through the integration of information technology and automation, the intelligent level of production process can be improved.

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