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    Special Car From Shenzhou, A Hubei Employee, Has Made 60 Billion Big Orders For Nike ADI Puma UNIQLO In 4 Years.

    2020/3/31 11:38:00 0

    Shenzhou InternationalHubeiReceiving Staff

    Shenzhou International, headquartered in Beilun, Ningbo, is a large integrated knitting manufacturer. Since February 10th this year, Shenzhou group has resumed production in an orderly way, and the company has wrapped more than 700 buses to go to all parts of the country to pick up staff. However, there are still more than 1600 Hubei employees staying in their homes.


    According to media reports, at 2:50 p.m. on March 28th, with the last bus from Enshi, Hubei arrived at Shenzhou company headquarters, the same day, 49 buses from Hubei all arrived at the company, nearly 1200 employees from Hubei returned to the company. Plus a few days ago, a number of self driving back to Ningbo Hubei staff, since then, Shenzhou group Ningbo Beilun production base 35 thousand employees all back.


    The Shenzhou International has sent 52 bus buses to 1128 Hubei employees in Xiantao and Suizhou. Before returning to work, these Hubei employees will also receive nucleic acid testing to ensure safety.


    Ma Jianrong, chairman of Shenzhou International Board of directors, also wrote a book on employees in Hubei, which reads as follows:


    In order to ensure the safety of the epidemic prevention and control during the period of returning to factories, Shenzhou employees were stationed in the enterprises for the first time, and on-site offices were conducted. The epidemic risk analysis was carried out for nearly 40 thousand employees by using big data. The transportation department simplified the approval procedures to help enterprises solve the problem of Chartered cars; the health and epidemic prevention departments helped enterprises establish epidemic prevention and control system; Organize staff to leave home as soon as possible.


    Wang Xueheng, an analyst with Guoxin Securities, said that the impact of the new crown outbreak on Shenzhou International was mainly due to the delay in the resumption of work after the Spring Festival in the domestic factories and the closure of brands under the epidemic epidemic situation overseas.


    First of all, the resumption of the Spring Festival postponed the impact: Shenzhou International announced at the end of February, the capacity utilization rate has reached 95%, and the capacity utilization rate in March is expected to reach 100%. Earlier, Shenzhou International and domestic factories postponed the resumption of work for 1 weeks, and 2 weeks of steady recovery of production capacity, resulting in order delays, part of which was allocated through overseas factories, and the other part was catching up in the near future.


    Secondly, the spread of overseas epidemic: Nike, lululemon, Adidas and other brands announced that they began to close stores in Europe and the United States since March 16th, closing time around 2 weeks. It is expected that the deterioration of the overseas sales situation will have a slight impact on the Shenzhou International's two quarter orders, or the three and fourth order orders are currently of low visibility. It is expected that the brand will adjust the supplier's orders according to the market demand.


    Wang Xueheng believes that Shenzhou International has a remarkable productivity advantage, which is reflected in many aspects such as reliable delivery time, quick response and product quality of integrated production. It is in an advantageous position when the brand chooses the supplier, but if the brand is facing a serious decline in sales, it is expected that the company's orders will be adjusted. In view of the fact that the overseas epidemic is still spreading, Shenzhou International will share risks with the brand customers and tide over the difficulties. It is estimated that Shenzhou International's orders for the three and fourth seasons are quite uncertain.


    According to public information, Shenzhou International is one of the largest vertically integrated Knitting Manufacturers in the world. Its main business is to produce knitted garments by ODM and OEM models for international famous brands such as Nike, Adidas, UNIQLO and PUMA.


    As Shenzhou International, one of the top ten foreign trade enterprises in Ningbo, there are 1 million 800 thousand garments and 600 tons of fabric from the production line every 24 hours. Starting from 2010, Shenzhou group will send hundreds of buses every year to send new employees home for the new year and get back to work after the year.


    Shenzhou International has built production bases in Ningbo, Quzhou, Anqing, Southeast Asia, Vietnam and Kampuchea. In recent years, capacity growth has been mainly dependent on the new production capacity of Southeast Asian production base. In the future, there will be expansion plans for both domestic and foreign fabric and garment production capacity, but the main force of capacity expansion will mainly be overseas production bases, and domestic expansion will be achieved through efficiency optimization and new employees. At the same time, the cooperative relationship between the company and its brand customers will continue to deepen.


    Mi Hanjie, an analyst with GF Securities, introduced Shenzhou International Ningbo plant for nearly 30 years. After years of cooperation with international brand customers, it has abundant technology accumulation and talent pool. Garment manufacturing is a labor-intensive industry. In the initial stage of overseas production layout, employees are required to be trained. Output training of domestic production managers can rapidly increase the efficiency of overseas production. In addition. The domestic production area has Nike and Adidas design studio and fabric research and development laboratory, and will be the core technology export area for a long time. Domestic capacity upgrading has been supported by the government, and R & D strength and environmental protection standards are expected to continue to improve.


    Shenzhou International has issued a notice that it has signed a cooperation framework agreement with the Beilun district government of Ningbo, and the Beilun district government will provide support to 18 projects, including the expansion of new fabrics and garment production capacity, the construction of warehouses, staff dormitories and other environmental protection projects, including sewage and solid waste. The maximum investment of the project is about 7 billion 200 million yuan. With the company sign a positive signal of cooperation framework agreement release policy support, Future Ltd R & D and environmental protection project upgrading will further enhance the scale and competitiveness of the company's domestic capacity.


    In recent years, Shenzhou International has continued to invest heavily in production machinery and equipment, rapidly improving efficiency and creating scale advantages. Since 2005-2019, Shenzhou International has invested 6 billion 290 million yuan in production equipment, accounting for 25% of net profit.


    Mi Hanjie believes that Shenzhou International high input in equipment and technology upgrading ensures continuous improvement of production efficiency and stable and controllable product quality. For garment manufacturers, the improvement of automation level can increase production efficiency and shorten the delivery time of products. In the market environment where garment brands are expanding globally and demanding rapid response to the supply chain, supply chain manufacturers can achieve fast delivery, which is an important factor for maintaining cooperation with customers and enhancing market competitiveness. Due to the upgrading of equipment and technology, the number of clothing per capita and the per capita business income of Shenzhou are increasing, reflecting the increasing efficiency of the company.


    According to MI Han Jie, the improvement of production automation level can reduce the dependence on labor, make the production more refined, measurable, repeatable, ensure product quality, and create favorable conditions for the rapid expansion of production capacity. Although the cost of employees both at home and abroad has been rising rapidly in recent years, the proportion of international employees' cost expenditure in battalion has gradually declined since 2015, reflecting the efficiency of the company to some extent.


    According to the financial report, in the year of 2019, Shenzhou International realized business income of 22 billion 665 million yuan, an increase of 8.2% over the same period, 6 billion 876 million yuan gross profit, an increase of 4% over the same period last year, and the profit of the parent company should be 5 billion 95 million yuan, an increase of 12.2% over the same period last year.


    During the reporting period, the sales volume of Shenzhou International sports products was about 16 billion 322 million yuan, an increase of about 14.3%, mainly from the demand for sportswear in mainland China and the US market. Sales of leisure products increased by about 4.3% to 5 billion 388 million yuan, mainly from Japanese market, and the sales of underwear products increased by about 39.5% to 803 million yuan. This is mainly due to a reduction in the demand for underwear purchased from the Japanese market.
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