Shenzhou International (02313): Expected Net Profit After Tax Falls By 31% - 39% In 2021

Shenzhou International (02313) announced that the group expected to record net profit after tax of about RMB 3.1 billion to RMB 3.5 billion for the year ending December 31, 2021, with a year-on-year decrease of 31% to 39%. The decrease in profit was mainly due to the suspension of operation of the group's production base in Cambodia in the first half of 2021 due to the suspension of operation of the group's production base in Cambodia in the first half of 2021 in order to cooperate with the Cambodian government's preventive measures against the new coronavirus epidemic in 2019

According to the announcement, in the second half of 2021, due to the social isolation measures implemented by the Vietnamese government in response to the epidemic situation, the group's production base in Xining province and the production base in Ho Chi Minh City, Vietnam were temporarily suspended in the second half of 2021; As the group's sales are mainly settled in US dollars, the appreciation of RMB against US dollar has a negative impact on the group; And in the second half of 2021, the production costs increased significantly, and the delivery of sales pricing lagged behind. In particular, the sales price of orders postponed due to the epidemic situation could not be adjusted, which had a negative impact on the performance of the second half of 2021.