Financial Performance - For the six months ended June 30, 2023, total sales reached approximately RMB 11,561,962,000, a decrease of about 14.9% compared to the same period in 2022[1]. - Gross profit for the six months was approximately RMB 2,594,904,000, down about 15.4% year-on-year, with a gross margin of approximately 22.4%[1]. - Net profit attributable to equity holders of the parent company was approximately RMB 2,126,829,000, a decrease of about 10.1% year-on-year[1]. - Basic earnings per share were RMB 1.41, down approximately 10.2% from RMB 1.57 in the same period last year[1]. - Total revenue for the six months ended June 30, 2023, was RMB 11,561,962 thousand, a decrease of 15% compared to RMB 13,592,789 thousand in the same period of 2022[13]. - The profit attributable to equity holders of the parent company for the six months ended June 30, 2023, was approximately RMB 2,126,829,000, down 10.1% from RMB 2,366,616,000 for the same period in 2022[21]. - The gross profit margin for the six months ended June 30, 2023, was approximately 22.4%, a slight decrease of 0.2 percentage points from 22.6% in the previous year[48]. Sales Breakdown - Sales from sports products accounted for approximately 74.0% of total sales, with a decline of about 19.9% year-on-year[1]. - Sales from leisure products represented approximately 19.9% of total sales, increasing by about 10.1% compared to the previous year[1]. - Sales of sports products were approximately RMB 8,560,723,000, down RMB 2,126,467,000 or 19.9% from RMB 10,687,190,000 in the previous year, primarily due to decreased demand in the European and American markets[44]. - Sales of leisure products increased to approximately RMB 2,299,766,000, an increase of RMB 211,822,000 or 10.1%, driven by higher demand in the Japanese and Chinese markets[45]. - Sales in the European market were approximately RMB 2,421,402,000, a decrease of RMB 905,227,000 or 27.2% compared to RMB 3,326,629,000 in the previous year, mainly due to reduced orders for sports apparel[47]. - Sales in the U.S. market decreased to approximately RMB 1,831,356,000, down RMB 889,175,000 or 32.7% from RMB 2,720,531,000, primarily due to decreased demand for sports apparel[47]. Assets and Liabilities - Total non-current assets as of June 30, 2023, amounted to RMB 20,930,787,000, an increase from RMB 17,328,331,000 as of December 31, 2022[6]. - Total current assets were RMB 6,319,495,000, compared to RMB 6,260,803,000 as of December 31, 2022[6]. - Total equity increased to RMB 32,154,301,000 as of June 30, 2023, from RMB 30,765,784,000 as of December 31, 2022[7]. - The company’s total liabilities decreased to RMB 1,338,811,000 as of June 30, 2023, from RMB 1,670,595,000 as of December 31, 2022, indicating a reduction of approximately 19.8%[29]. - Accounts receivable and notes amounted to RMB 4,585,421,000 as of June 30, 2023, down from RMB 5,005,167,000 as of December 31, 2022[25]. Expenses and Costs - Employee benefits expenses, including wages and salaries, totaled RMB 2,906,471 thousand, a decrease of 19.3% from RMB 3,600,922 thousand[16]. - The total cost of sales, selling and distribution expenses, and administrative expenses was RMB 9,961,881 thousand, a decrease of 14.5% from RMB 11,654,333 thousand[16]. - Financing costs rose to RMB 146,258 thousand, compared to RMB 103,557 thousand in the previous year, reflecting an increase of 41.1%[18]. - The income tax expense for the six months ended June 30, 2023, totaled RMB 221,595,000, a decrease of 44.7% from RMB 400,724,000 for the same period in 2022[19]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.95 per share, a decrease of about 10.4% from HKD 1.06 per share in the previous year[1]. - The interim dividend declared is HKD 0.95 per share, totaling approximately HKD 1,428,061,000 (approximately RMB 1,316,672,000), a decrease from HKD 1.06 per share for the same period in 2022[22]. Operational Insights - The company has enhanced its digital management ecosystem, achieving comprehensive data collection and visualization across the entire production process[42]. - The company has diversified its product offerings by adding new fabric categories, which is expected to help expand its business and increase market share[42]. - The company anticipates that the business performance in the second half of the year will be better than the same period last year, with gradual improvement in production capacity utilization[60]. - The company recognizes the challenges in the current economic environment but believes there are significant growth opportunities in the domestic market[59]. Governance and Compliance - The board is responsible for governance and managing the assets entrusted by shareholders, including setting business strategies and evaluating management performance[71]. - The Audit Committee, consisting of four independent non-executive directors, reviews the group's financial practices and internal controls, including the unaudited financial statements for the six months ending June 30, 2023[72]. - The Remuneration Committee ensures that the compensation policies for directors and senior management are fair and competitive based on market levels and responsibilities[73]. - The Nomination Committee is responsible for identifying qualified candidates for directorship and reviewing the board's structure and composition[74].

Company Overview - Shenzhou International is one of the largest vertically integrated knitwear manufacturers globally, producing approximately 500 million pieces of knitwear annually[9]. - The company has around 94,340 employees and operates factories covering over 6.44 million sq.m. in China, Vietnam, and Cambodia[9]. - Major clients include international brands such as NIKE, UNIQLO, ADIDAS, and PUMA, with products distributed across Mainland China, Japan, Asia Pacific, Europe, and the US[9]. - Shenzhou International was listed on the Hong Kong Stock Exchange in November 2005, with stock code 2313[10]. - The company has been included in various indices, including the Hang Seng Composite Index and MSCI Index, enhancing its market visibility[10]. - Shenzhou International has received multiple awards for corporate governance and investor relations, including "Best Investor Relations Listed Company" in 2017[13]. - The company aims to be the most competitive knitwear manufacturer globally, focusing on high-end knitwear production through OEM and ODM methods[8]. - Shenzhou International's strategic expansion includes establishing garment factories in key locations to optimize production and distribution[9]. - The company has been recognized as one of Asia's top listed companies by Forbes Asia in 2018[14]. - Shenzhou International's commitment to sustainability and corporate governance has been acknowledged through various awards, reflecting its dedication to responsible business practices[14]. Financial Performance - Total revenue for 2022 reached RMB 27,781,412, an increase of 16.4% from RMB 23,845,006 in 2021[20]. - Profit for the year was RMB 4,563,165, up 35.3% from RMB 3,371,679 in 2021[20]. - Gross profit margin decreased to 22.1% in 2022 from 24.3% in 2021[20]. - Net profit margin improved to 16.4% in 2022 compared to 14.1% in 2021[20]. - Non-current assets increased to RMB 17,328,331 in 2022 from RMB 15,622,465 in 2021[20]. - Current liabilities decreased to RMB 10,259,437 in 2022 from RMB 13,532,431 in 2021[20]. - Revenue from sportswear accounted for 75.1% of total sales in 2022, up from 73.9% in 2021[21]. - Revenue from international markets reached RMB 20,000,000, representing 72.1% of total revenue in 2022[25]. - The gearing ratio improved to 29.9% in 2022 from 38.1% in 2021[20]. - Cash and cash equivalents increased to RMB 7,369,498 in 2022 from RMB 6,687,623 in 2021[20]. Market Challenges - In 2022, the average price of cotton yarns was significantly higher than the previous year, despite fluctuations throughout the year[49]. - The domestic apparel consumption experienced a year-on-year decline for the first time due to unstable income and pandemic-related travel restrictions[49]. - The Group's Ningbo base faced two production suspensions of approximately half a month each due to the pandemic, increasing operational pressure[49]. - Rising costs and weak demand were identified as major difficulties faced by the industry in 2022[49]. - Geopolitical conflicts and high inflation levels in major economies suppressed external demand and consumption[49]. - The apparel brand owners generally undertook destocking actions in response to weakened market demand in the second half of 2022[49]. - The global economic recession risk and high inflation levels in developed countries have contributed to a slowdown in external demand for Chinese textile and apparel products[63]. Sustainability and Corporate Governance - The Group emphasized green production and accelerated transformation and upgrading initiatives[49]. - The Group has made significant progress in promoting green production and corporate transformation, ensuring employee income stability amid fluctuating demand and rising costs[82]. - The Chinese government aims to peak carbon dioxide emissions by 2030, with specific targets for energy consumption and emissions reductions by 2025[79]. - The Group aims to enhance corporate competitiveness and sustainable development capabilities by optimizing regional layouts and strengthening new product development[58]. Production and Sales Insights - Sales of sportswear reached approximately RMB 20,869,553,000, an increase of approximately RMB 3,257,425,000 or 18.5% from RMB 17,612,128,000 in the previous year, driven by increased demand in European and US markets[92]. - Casual wear sales increased to approximately RMB 5,751,836,000, up by approximately RMB 1,031,101,000 or 21.8% from RMB 4,720,735,000, mainly due to rising demand in Japan and other markets[92]. - Lingerie sales decreased to approximately RMB 819,133,000, a decline of approximately RMB 221,113,000 or 21.3% from RMB 1,040,246,000, primarily due to reduced demand from the Japanese market[92]. - Domestic sales in China decreased by 6.5%, with apparel sales down approximately RMB 490,736,000 or 6.6% to approximately RMB 6,904,658,000, mainly due to reduced procurement demand from international brands[100]. Corporate Governance and Board Structure - The Board complied with the requirement of having at least three independent non-executive directors, with independent directors representing at least one-third of the Board[144]. - The Company received written annual confirmations of independence from all independent non-executive directors, affirming their compliance with independence guidelines[144]. - The Board is responsible for formulating the Group's business strategies and management objectives, as well as supervising management performance[153]. - The Company has adopted a shareholders' communication policy to ensure shareholders' views and concerns are appropriately addressed[150]. - The Company has established three Committees: Audit Committee, Remuneration Committee, and Nomination Committee, with a majority of independent non-executive Directors in the latter two[169]. Risk Management and Internal Controls - The risk management and internal control system was reviewed for effectiveness, covering financial reporting, operations, and compliance for the year ended December 31, 2022[194]. - The internal audit function reported directly to the Chairman and had unrestricted access to information for reviewing risk management and governance processes[193]. - The Company established procedures for handling and disclosing inside information to ensure timely reporting to the Board[192]. - The independent external auditor for the Group is Ernst & Young, with audit and non-audit service fees amounting to RMB3,595,000 and RMB874,000 respectively for the year ended December 31, 2022[198].

Financial Performance - For the year ended December 31, 2022, total sales reached approximately RMB 27,781,412,000, an increase of about 16.5% compared to 2021[1] - Net profit after tax for the year was approximately RMB 4,563,165,000, a significant increase of about 35.3% year-over-year, driven by higher sales of sports and leisure products and increased foreign exchange gains[2] - Total revenue for the year was RMB 27,781,412 thousand in 2022, compared to RMB 23,845,006 thousand in 2021, reflecting a growth of approximately 16.5%[17] - The profit attributable to the owners of the parent company for 2022 was RMB 4,562,783,000, a significant increase of 35.3% year-over-year, including a foreign exchange gain contributing approximately RMB 1,105,563,000 to pre-tax profit[40] - Basic and diluted earnings per share for 2022 were RMB 3.04, an increase of 35.7% from RMB 2.24 in 2021[29] Sales Breakdown - Sales of sports products accounted for approximately 75.1% of total sales, with a significant increase of about 18.5% year-over-year, driven by rising demand in Europe and the United States[1] - Sales of leisure products represented approximately 20.7% of total sales, showing a notable increase of about 21.8% year-over-year, primarily due to strong demand in Japan[2] - Sales of lingerie products accounted for approximately 3.0% of total sales, declining by about 21.3% year-over-year, mainly due to decreased demand in Japan[2] - The sales revenue of leisure products increased from approximately RMB 4,720,735,000 in 2021 to approximately RMB 5,751,836,000 in 2022, representing a growth of about RMB 1,031,101,000 or 21.8%[44] - The sales revenue of underwear products decreased from approximately RMB 1,040,246,000 in 2021 to approximately RMB 819,133,000 in 2022, a decline of about RMB 221,113,000 or 21.3%[44] Geographic Revenue - Revenue from external customers in mainland China decreased to RMB 7,074,146 thousand in 2022 from RMB 7,568,345 thousand in 2021, a decline of about 6.5%[14] - Revenue from the European Union increased significantly to RMB 6,215,018 thousand in 2022, up from RMB 4,732,599 thousand in 2021, representing a growth of approximately 31.3%[14] - Revenue from the United States rose to RMB 4,873,358 thousand in 2022, compared to RMB 3,805,130 thousand in 2021, indicating an increase of about 28.1%[14] Cost and Profitability - Gross profit margin for the year was approximately 22.1%, a decrease of about 2.2 percentage points from the previous year, while gross profit increased by about 5.8% to RMB 6,125,849,000[2] - The cost of goods sold was RMB 21,649,619,000 in 2022, compared to RMB 18,050,496,000 in 2021, indicating a significant increase in costs[22] - Financing costs rose to RMB 228,359,000 in 2022 from RMB 144,036,000 in 2021, primarily due to increased bank borrowing interest[21] - The total income tax expense for 2022 was RMB 698,908,000, compared to RMB 451,637,000 in 2021, showing a substantial increase[24] Assets and Liabilities - Total non-current assets as of December 31, 2022, amounted to RMB 17,328,331,000, compared to RMB 15,622,465,000 in 2021[6] - Current assets totaled RMB 26,164,534,000, a slight decrease from RMB 26,509,441,000 in the previous year[6] - Total current liabilities decreased to RMB 10,259,437,000 from RMB 13,532,431,000 in 2021, indicating improved liquidity[6] - Net current assets increased to RMB 15,905,097 thousand in 2022 from RMB 12,977,010 thousand in 2021, representing a growth of approximately 22.5%[8] - Total equity reached RMB 30,765,784 thousand in 2022, up from RMB 27,783,063 thousand in 2021, marking an increase of around 7.1%[8] Cash Flow and Debt - The net cash generated from operating activities for 2022 was approximately RMB 4,628,120,000, compared to RMB 3,594,348,000 in 2021[49] - The net debt (bank borrowings minus cash and cash equivalents) decreased to approximately RMB 1,828,186,000 in 2022 from RMB 3,901,056,000 in 2021[49] - The debt-to-equity ratio decreased to 29.9% in 2022 from 38.1% in 2021, a reduction of 8.2 percentage points[49] Dividends - The proposed final dividend is HKD 0.85 per share, leading to a total proposed dividend of HKD 1.91 per share for the year, an increase of about 17.2% from HKD 1.63 per share in 2021[2] - The proposed final dividend for 2022 is HKD 0.85 per share, up from HKD 0.57 per share in 2021, totaling RMB 1,141,404,000 compared to RMB 700,550,000 in the previous year[27] Corporate Governance - The company has adopted a corporate governance code since October 9, 2005, and has complied with all provisions during the year ended December 31, 2022[61] - The Audit Committee, consisting of four independent non-executive directors, reviewed the financial statements for the year ending December 31, 2022, ensuring compliance with accounting principles and practices[73] - The company has established a policy for shareholder communication to ensure that shareholder views and concerns are appropriately addressed[67] Future Outlook - The company anticipates a gradual recovery in domestic consumption as COVID-19 restrictions ease, supported by government policies to stimulate domestic demand[57] - The company aims to enhance competitiveness and sustainable development through product diversification and new customer acquisition[57] - Due to weak global clothing demand and ongoing inventory destocking by major customers, the company's production capacity utilization is expected to remain below ideal levels in the first half of 2023, with a potential decline in revenue compared to the same period in 2022[58]

Financial Performance - Sales for the six months ended June 30, 2022, reached RMB 13,592,789, an increase of 19.5% compared to RMB 11,368,606 in the same period of 2021[12]. - Gross profit for the same period was RMB 3,065,607, resulting in a gross profit margin of 22.6%, down from 29.7% in 2021[12]. - Profit before tax increased to RMB 2,768,408, representing a growth of 9.4% from RMB 2,530,164 in the previous year[12]. - Profit attributable to owners of the parent was RMB 2,366,616, up from RMB 2,226,278, marking an increase of 6.3%[12]. - For the first half of 2022, the Group achieved sales revenue of approximately RMB 13.59 billion, representing a growth of 19.6% compared to the same period last year[27]. - Gross profit decreased by approximately 9.1% to about RMB 3.07 billion, primarily due to significant increases in production costs that could not be offset by sales price adjustments[27]. - The profit attributable to the owners of the parent company was approximately RMB 2.37 billion, an increase of 6.3% year-on-year[27]. - The profit for the period increased to RMB 2,367,684, representing a growth of 6.4% compared to RMB 2,225,838 in the same period last year[75]. - Total comprehensive income for the period reached RMB 2,701,830, up from RMB 2,170,698, indicating a year-over-year increase of 24.4%[75]. Assets and Equity - Total assets as of June 30, 2022, were RMB 43,461,466, compared to RMB 42,131,906 at the end of 2021[13]. - Total equity increased to RMB 29,784,343 from RMB 27,783,063, reflecting a growth of 7.2%[13]. - The Group's equity attributable to owners amounted to approximately RMB 29,770,791,000 as of 30 June 2022, an increase from RMB 27,770,579,000 as of 31 December 2021[46]. - As of June 30, 2022, equity attributable to owners of the parent was approximately RMB 29,770,791,000, an increase from approximately RMB 27,770,579,000 as of December 31, 2021[47]. Cash Flow and Liquidity - Cash and cash equivalents stood at RMB 6,809,218, slightly up from RMB 6,687,623 at the end of 2021[13]. - For the six months ended June 30, 2022, net cash generated from operating activities was approximately RMB 546,198,000, a decrease from approximately RMB 1,720,608,000 for the same period in 2021[51]. - The cash generated from operations was RMB 797,481, with interest paid amounting to RMB 103,391 for the first half of 2022[89]. - The cash and cash equivalents at the end of the period were RMB 6,809,218,000, down from RMB 10,294,661,000 at the end of June 2021[90]. Debt and Financing - The gearing ratio improved to 33.5% from 38.1% in the previous period, indicating a reduction in financial leverage[13]. - The debt to equity ratio was approximately 33.5% as of June 30, 2022, down from 38.1% at the end of the previous year, representing a decrease of 4.6 percentage points[52]. - Net borrowings as of June 30, 2022, were approximately RMB 3,153,454,000, a decrease of approximately RMB 747,602,000 from approximately RMB 3,901,056,000 as of December 31, 2021[51]. - Finance costs for the six months ended June 30, 2022, increased to approximately RMB 103,557,000 from approximately RMB 51,501,000 for the same period in 2021, primarily due to increased borrowings and rising USD loan interest rates[54]. Operational Performance - The Group's sportswear sales reached approximately RMB 10,687,190,000, a 32.4% increase from RMB 8,069,966,000, driven by higher demand in Europe and the US[36]. - Casual wear sales decreased by approximately RMB 118,512,000 or 5.4%, primarily due to reduced demand in China and Japan[38]. - Lingerie sales fell by approximately RMB 171,964,000 or 22.0%, attributed to decreased procurement demand from Japan[38]. - The daily production capacity of the Vietnam fabric factory increased to 400 tons after expansion, enhancing fabric supply to overseas garment factories[30]. Market Conditions - The total export value of China's textile and clothing from January to June 2022 was approximately US$156.49 billion, an increase of 11.7% year-on-year[20]. - The export value of apparel products from Mainland China to the US and EU increased by 14.6% and 19.6%, amounting to US$19.30 billion and US$15.90 billion respectively[20]. - Domestic retail sales of apparel amounted to approximately RMB 446.26 billion, a decrease of 8.0% compared to the same period last year[20]. - Future export conditions for China's textile and apparel industry are uncertain, with inflation and supply chain issues potentially impacting demand and procurement plans[63]. Corporate Governance and Shareholding - The Company has complied with all code provisions of the Corporate Governance Code throughout the six months ended 30 June 2022[200]. - The Company has maintained compliance with the Securities and Futures Ordinance regarding the disclosure of shareholdings[182]. - The total number of shares held by substantial shareholders (5% or more) includes Keep Glory and JPMorgan Chase & Co.[184]. - As of June 30, 2022, Keep Glory Limited holds 639,328,200 shares, representing 42.53% of the issued share capital of the Company[186]. Environmental and Social Responsibility - The Group is focusing on enhancing its industry competitiveness through green low-carbon initiatives and increased investment in clean energy[27]. - The Group's reclaimed water recycling project in Vietnam has a daily processing capability of 5,000 tons, promoting resource recycling and reducing sewage discharge[30]. - Self-supplied electricity from the rooftop solar power project in Ningbo reached approximately 3,000 MWh, an increase of 72% year-on-year[30].

Company Overview - Shenzhou International is one of the largest vertically integrated knitwear manufacturers globally, producing approximately 490 million pieces of knitwear annually[9]. - The company has over 95,820 employees and operates factories covering over 6.17 million sq.m. in China, Vietnam, and Cambodia[9]. - Major clients include international brands such as NIKE, UNIQLO, ADIDAS, and PUMA, with products distributed across Mainland China, Japan, Asia Pacific, Europe, and the US[10]. - Shenzhou International was listed on the Hong Kong Stock Exchange in November 2005, with stock code 2313, and has been included in various indices including the Hang Seng Composite Index since March 2010[11]. Awards and Recognition - The company has received multiple awards for corporate governance and investor relations, including recognition as one of the "Best Under A Billion" Companies by Forbes Asia in 2010[15]. - In 2018, Shenzhou International was named one of "Asia's 50 Top Listed Companies" by Forbes Asia and received several awards for excellence in corporate governance and sustainability[16]. Business Strategy and Goals - The company aims to be the most competitive knitwear manufacturer globally, focusing on high-quality production through OEM and ODM methods[8]. - Shenzhou International has strategically expanded its production bases and garment factories to enhance operational efficiency and market reach[9]. - The company’s strategy includes diversifying products and optimizing production processes to enhance competitiveness[47]. - The company aims to develop into the most competitive technology-based and green apparel manufacturer in the industry[44]. Financial Performance - Total revenue for 2021 reached RMB 23,845,006, an increase of 3.5% from RMB 23,030,648 in 2020[20]. - Profit for the year decreased to RMB 3,371,679, down 33.6% from RMB 5,082,645 in 2020[20]. - Gross profit margin for 2021 was 24.3%, a decline from 31.2% in 2020[20]. - Net profit margin for 2021 was 14.1%, down from 22.1% in 2020[20]. - Non-current assets increased to RMB 15,622,465, up from RMB 13,297,911 in 2020[20]. - Current liabilities rose significantly to RMB 13,532,431, compared to RMB 8,852,625 in 2020[20]. - The gearing ratio increased to 38.1% in 2021, compared to 24.2% in 2020[20]. - Cash and cash equivalents decreased to RMB 6,687,623 from RMB 8,227,060 in 2020[20]. Market Performance - Sportswear sales accounted for 73.9% of total revenue in 2021, up from 69.2% in 2020[20]. - Revenue from international markets was RMB 20,276,982, representing 84.6% of total revenue in 2021[21]. - The Group's operational environment was further pressured by factors such as rising transportation costs and power supply shortages[31]. - The textile and apparel industry faced significant challenges in 2021 due to the COVID-19 pandemic, impacting supply chain stability and leading to increased costs in raw materials, labor, and energy[31]. Challenges and Responses - The Group emphasized a "people first, customer foremost" philosophy to mitigate the impacts of the pandemic and operational pressures[31]. - The management team focused on capacity expansion, upgrades, efficiency improvements, and lean management to enhance competitiveness[31]. - The Group aims to solidify its foundation and actively plan for better future development despite the challenges faced in 2021[31]. - The prolonged COVID-19 pandemic continues to pose challenges to the recovery of supply capacity and capacity expansion in the textile and apparel industry[39]. Sustainability and Development - The Group has focused on sustainable development, investing in employee care, capacity expansion, and efficiency enhancement, achieving positive results[72]. - The Group is committed to sustainable development, constructing a green manufacturing system that includes green materials and processes, and aims to meet "emission peak and carbon neutrality" goals[142]. - The Group aims for high-quality development focusing on quality enhancement, innovation, energy conservation, and emission reduction as part of its strategy to cope with industry pressures[136]. Corporate Governance - The Board of Directors consists of five Executive Directors and four Independent Non-executive Directors as of March 30, 2022[167]. - The Company complies with the Listing Rules, including having at least three Independent Non-executive Directors and one with appropriate professional qualifications[155]. - The Company has adopted a shareholders' communication policy to ensure shareholders' views and concerns are appropriately addressed[163]. - The Board is responsible for formulating the Group's business strategies and management objectives, and evaluating the effectiveness of management strategies[168]. Employee and Labor Relations - The Group employed approximately 95,820 employees as of December 31, 2021, with total staff costs accounting for approximately 31.7% of the Group's revenue, an increase of about 5 percentage points compared to the previous year[119]. - The company continued to implement various epidemic prevention measures during the pandemic, ensuring employee health and safety while maintaining wage payments during production suspensions[75][76]. Investment and Expansion - The Group's new garment factory in Phnom Penh, Cambodia, had cumulative investments of approximately USD283,000,000, with around 11,200 employees hired as of December 31, 2021[121]. - The Group's new garment production facility in Vietnam is estimated to require an investment of approximately USD100,000,000, with cumulative investments of approximately USD62,000,000 as of December 31, 2021[125].

Financial Performance - Sales for the six months ended June 30, 2021, reached RMB 11,368,606, an increase of 11.1% compared to RMB 10,233,778 in the same period of 2020[14]. - Gross profit for the same period was RMB 3,372,167, reflecting a gross profit margin of 29.7%, down from 30.9% in 2020[14]. - Profit before tax decreased to RMB 2,530,164, compared to RMB 2,777,939 in the prior year[14]. - Profit attributable to owners of the parent was RMB 2,226,278, a decline from RMB 2,512,399 in 2020[14]. - Earnings per share for the period was RMB 1.48, down from RMB 1.67 in the previous year[14]. - Net profit margin for the reporting period was 19.6%, compared to 24.6% in 2020[14]. - For the six months ended June 30, 2021, the profit before tax was RMB 2,530,164, a decrease of 8.9% compared to RMB 2,777,939 in the same period of 2020[89]. - The Group's profit for the period was RMB 2,225,838, down from RMB 2,488,979 in the previous year[72]. - Total comprehensive income for the period was RMB 2,170,698, a decline of 15.6% compared to RMB 2,570,664 in the previous year[75]. Market Expansion and Strategy - The company continues to focus on expanding its market presence and enhancing product offerings[13]. - Future outlook includes potential investments in new technologies and product development to drive growth[13]. - The company is exploring strategic partnerships and acquisitions to enhance its competitive position in the market[13]. - Management remains committed to improving operational efficiency and cost management strategies[13]. - The Group will focus on enhancing competitiveness and expanding production capacity to capture a larger market share amid industry consolidation[69]. - The Group aims to expand its product variety, particularly in high-functionality indoor sports products, to enhance service capabilities for existing customers[66]. - The Group plans to further optimize supply chain processes to ensure stability and responsiveness to customer orders[66]. Financial Position and Assets - Total assets increased to RMB 38,712,464 thousand as of June 30, 2021, up from RMB 36,851,761 thousand as of December 31, 2020, representing a growth of approximately 5.0%[15]. - Total equity rose to RMB 28,049,905 thousand, compared to RMB 27,270,830 thousand, reflecting an increase of about 2.9%[15]. - Cash and cash equivalents reached RMB 10,294,661 thousand, a significant increase from RMB 8,227,060 thousand, marking a growth of approximately 25.2%[15]. - The gearing ratio increased to 28.0% from 24.2%, indicating a rise in financial leverage[15]. - The current ratio decreased to 2.5 from 2.7, suggesting a slight decline in short-term liquidity[15]. - The Group's non-current assets were approximately RMB 14,238,296,000 as of June 30, 2021, up from approximately RMB 13,297,911,000 as of December 31, 2020[48]. - Total current assets rose to RMB 24,474,168, an increase of 3.9% from RMB 23,553,850 at the end of 2020[78]. - The Group's total investment in property, plant, and equipment for the six months ended June 30, 2021, was approximately RMB 1,107,087,000, with 43% allocated for production equipment and 51% for new factory buildings[59]. Sales and Revenue Breakdown - The total export value of textile and clothing from China was approximately US$140.09 billion for the first half of 2021, a year-on-year increase of about 12.1%[20]. - Apparel exports from China amounted to approximately US$71.53 billion, showing a significant year-on-year increase of approximately 40.3%[20]. - Domestic retail sales of apparel reached approximately RMB 487.46 billion, representing a year-on-year growth of about 37.4%[21]. - Sales in the European market increased by approximately RMB 224,441,000 or approximately 11.7% to RMB 2,141,998,000 for the six months ended June 30, 2021, driven by increased demand for sportswear[41]. - Sales in the Japanese market increased by approximately RMB 58,427,000 or approximately 3.0% to RMB 2,011,868,000 for the six months ended June 30, 2021, influenced by increased demand for lingerie and casual wear[42]. - Sales in the US market increased by approximately RMB 308,660,000 or approximately 21.3% to RMB 1,759,824,000 for the six months ended June 30, 2021, primarily due to increased demand for sportswear[42]. - Domestic sales increased by approximately 15.1% to RMB 3,303,033,000 for the six months ended June 30, 2021, with garment sales amounting to approximately RMB 3,218,954,000, representing an increase of approximately 15.5%[45]. Cost and Expenses - Employee costs accounted for approximately 32.4% of the Group's sales for the six months ended June 30, 2021, compared to approximately 28.5% for the same period in 2020[57]. - Total cost of sales, selling and distribution expenses, and administrative expenses amounted to RMB 9,023,721, up 13.3% from RMB 7,967,829 in the prior year[113]. - Other income decreased to RMB 298,768, down 49.3% from RMB 587,851 in the same period of 2020, primarily due to lower government incentives and interest income[115]. - Finance costs decreased to RMB 51,501, down 18.5% from RMB 62,861 in the same period of 2020, reflecting lower interest on bank borrowings[118]. - The company reported a depreciation and amortization expense of RMB 567,818, an increase from RMB 512,425 in the previous year[113]. Inventory and Receivables - Inventories increased significantly to RMB 6,228,174, up 29.4% from RMB 4,811,434 as of December 31, 2020[78]. - Trade and bills receivables as of June 30, 2021, totaled RMB 3,655,783,000, a decrease from RMB 4,167,602,000 as of December 31, 2020, representing a decline of approximately 12.2%[148]. - The Group's raw materials and work in progress inventory as of June 30, 2021, was RMB 4,041,086,000, compared to RMB 3,411,656,000 as of December 31, 2020, indicating a rise of approximately 18.4%[145]. Taxation and Compliance - Income tax expense increased by approximately RMB 15,366,000 to approximately RMB 304,326,000 for the six months ended June 30, 2021, primarily due to two wholly-owned subsidiaries starting to pay corporate income tax[52]. - The corporate income tax in Mainland China for the period was RMB 106,478,000, down from RMB 232,742,000 in the previous year, indicating a decrease of 54.2%[121]. - The current Hong Kong profits tax for the period was RMB 7,339,000, compared to RMB 6,379,000 for the same period in 2020, reflecting an increase of 15.1%[121]. Shareholder Information - As of June 30, 2021, Mr. Ma Jianrong held 639,328,200 shares, representing 42.53% of the issued share capital of the Company[196]. - Mr. Ma Renhe held 71,675,000 shares, accounting for 4.77% of the issued share capital[196]. - The major shareholders recorded as holding 5% or more of the issued share capital were disclosed in the register maintained by the Company[199].

Company Overview - Shenzhou International is one of the largest vertically integrated knitwear manufacturers globally, producing approximately 440 million pieces of knitwear annually[7]. - The Group has over 89,100 employees and operates factories covering over 5.55 million sq.m. in China, Vietnam, and Cambodia[7]. - Major clients include international brands such as NIKE, UNIQLO, ADIDAS, and PUMA, with products distributed across Mainland China, Japan, Asia Pacific, Europe, and the US[8]. - Shenzhou International was listed on the Hong Kong Stock Exchange in November 2005, with stock code 2313, and has been included in various indices including the Hang Seng Composite Index since March 2010[9]. Awards and Recognition - The Group has received multiple awards for corporate governance and investor relations, including "Best Investor Relations Listed Company 2017" by Ta Kung Pao[11]. - In 2018, Shenzhou International was recognized as one of "Asia's 50 Top Listed Companies" by Forbes Asia[12]. - The Group's commitment to sustainability and corporate governance has been acknowledged through various awards, including the "Award for Sustainability Excellence" in 2018[12]. Financial Performance - Total sales for the year ended December 31, 2020, reached RMB 23,030,648, an increase of 1.6% from RMB 22,665,272 in 2019[18]. - Profit for the year was RMB 5,082,645, representing a growth of 2.5% compared to RMB 4,958,536 in 2019[15]. - Gross profit margin improved to 31.2% in 2020 from 30.3% in 2019[15]. - Net profit margin increased to 22.1% in 2020, up from 21.9% in 2019[15]. - Current assets rose to RMB 23,553,850, a 14.5% increase from RMB 20,494,238 in 2019[15]. - Non-current assets increased to RMB 13,297,911, up from RMB 11,360,620 in 2019[15]. - The gearing ratio significantly increased to 24.2% in 2020 from 15.8% in 2019[15][16]. - Cash and cash equivalents increased to RMB 8,227,060, a rise of 62.5% from RMB 5,060,896 in 2019[15]. Market Trends and Challenges - In 2020, China's textile and apparel exports grew by 9.6%, largely due to effective pandemic control and a well-established supply chain[39]. - Despite the growth in exports, the apparel sector faced challenges with declining demand and rising costs, leading to increased profit pressure for many exporters[39]. - The pandemic has tested the Group's resilience, but it has successfully maintained operations and laid a foundation for future growth[37]. - The pandemic has led to significant operational pressure on the textile and apparel industry, resulting in reduced capacity utilization and increased operational costs[53]. Production and Capacity Expansion - The Group plans to expand production capacity at overseas bases and upgrade domestic facilities to enhance sustainable development capabilities[36]. - The Group's competitive advantages were highlighted during the pandemic, particularly in supply chain stability and rapid response capabilities[36]. - The Group optimized production bases to better match domestic and overseas market demands amid the pandemic[84]. - The Group's digital management advancements facilitated smooth business communication with customers despite pandemic-related travel restrictions[84]. Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code throughout the year ended 31 December 2020[137]. - The Board includes at least three independent non-executive directors, with one possessing appropriate professional qualifications or financial management expertise, in compliance with Listing Rules[141]. - Continuous professional development for Directors is arranged to update knowledge on Listing Rules and related legal requirements[140]. - The Company adopted a shareholders' communication policy effective from 26 March 2012, allowing shareholders to propose candidates for Director elections[147]. Sustainability and Innovation - The company aims to transform the industry towards high-quality development driven by technology and innovation, enhancing the value chain and promoting low-carbon green production[47]. - The Group intends to improve its sustainable development capabilities by increasing the proportion of clean energy consumption and enhancing resource utilization efficiency[132]. - The Group will actively pursue low-carbon practices in its production model in response to increasing environmental protection requirements and legislation[125]. Employee and Operational Management - The Group's total staff costs accounted for approximately 26.7% of the Group's sales, an increase of 0.4 percentage points compared to 2019[113]. - The domestic bases implemented significant salary increases to stabilize the workforce amid rising order demand[81]. - The Group faced challenges in meeting order demands due to employee shortages in domestic bases at the beginning of the year[86]. Risk Management and Internal Controls - The Group's risk management system aims to enhance operational efficiency and safeguard assets against misappropriation[185]. - The Internal Audit Department plays a crucial role in monitoring internal governance and has unrestricted access to information for comprehensive reviews[188]. - The Board believes that the risk management and internal control systems were effective and adequate as of December 31, 2020[187].

Financial Performance - For the six months ended June 30, 2020, the company reported sales of RMB 10,233,778,000, a slight decrease from RMB 10,279,693,000 in the same period of 2019[10]. - Gross profit for the same period was RMB 3,158,594,000, with a gross profit margin of 30.9%, consistent with the previous year[10]. - Profit attributable to owners of the parent was RMB 2,512,399,000, compared to RMB 2,416,027,000 in 2019, reflecting an increase of 4%[10]. - The net profit margin improved to 24.6% from 23.5% year-on-year[10]. - The Group achieved sales revenue of approximately RMB 10,233,778,000, representing a slight decrease of 0.4% year-on-year, while profit attributable to owners of the parent increased by approximately 4.0% to RMB 2,512,399,000[20]. - Earnings per share for the period were RMB 1.67, indicating the Group's ability to maintain basic stability in production and operations despite a challenging environment[20]. - Profit before tax increased to RMB 2,777,939, representing a growth of 6.3% from RMB 2,613,900 in 2019[72]. - Total comprehensive income for the period was RMB 2,570,664, an increase from RMB 2,366,501 in 2019, marking an 8.6% rise[75]. Assets and Liabilities - Total assets as of June 30, 2020, were RMB 35,384,233,000, up from RMB 31,854,858,000 at the end of 2019[10]. - The Group's equity attributable to owners of the parent increased to approximately RMB 26,419,908,000 as of June 30, 2020, from RMB 25,172,450,000 as of December 31, 2019[42]. - Total non-current assets as of June 30, 2020, amounted to RMB 12,736,666, up from RMB 11,360,620 at the end of 2019[78]. - Total current assets increased to RMB 22,647,567 from RMB 20,494,238, showing a growth of 10.5%[78]. - Interest-bearing bank borrowings rose significantly to RMB 5,651,275 from RMB 3,192,164, indicating a 77.0% increase[78]. - Total non-current liabilities increased to RMB 1,429,629,000 as of June 30, 2020, up from RMB 1,078,813,000 at the end of 2019, representing a growth of approximately 32.5%[80]. Cash Flow and Investments - Net cash generated from operating activities amounted to approximately RMB 2,406,056,000 for the six months ended June 30, 2020, compared to RMB 2,258,576,000 for the same period in 2019[46]. - Cash and cash equivalents as of June 30, 2020, totaled approximately RMB 5,978,246,000, an increase from RMB 5,060,896,000 as of December 31, 2019[46]. - The total expected investment for the Cambodia project is approximately USD 200,000,000, primarily for downstream garment facilities[57]. - The Group has committed capital expenditures of approximately RMB 637,193,000 for property, plant, and equipment as of June 30, 2020[56]. Market and Sales Performance - The total export value of Chinese textile and garment products from January to June 2020 was approximately US$125.19 billion, representing an increase of approximately 3.2% year-on-year[15]. - Retail sales of apparel, footwear, and headwear in China amounted to approximately RMB511.99 billion, with apparel retail sales at approximately RMB360.91 billion, both showing a year-on-year decrease of approximately 19.6% and 21.8% respectively[16]. - Revenue from the Japanese market increased by approximately RMB402,098,000 or approximately 25.9% to RMB1,953,441,000 for the six months ended June 30, 2020[36]. - Revenue from the European market increased by approximately RMB173,313,000 or approximately 9.9% to RMB1,917,557,000 for the six months ended June 30, 2020[37]. - Revenue from the US market decreased by approximately RMB81,082,000 or approximately 5.3% to RMB1,451,164,000 for the six months ended June 30, 2020[39]. Operational Challenges and Strategies - The pandemic has led to unprecedented difficulties across the apparel supply chain, affecting production capacity and increasing pressure on retail brand customers[19]. - The Group has expanded the production capacity of overseas factories and improved management stability, enhancing its ability to respond to market uncertainties[21]. - The Group plans to enhance supply chain competitiveness through product innovation and rapid response capabilities while optimizing the self-supporting of the industrial chain[66]. - The Group is committed to sustainable development by optimizing energy structure and promoting production automation to address rising cost pressures[68]. Employee and Corporate Governance - As of June 30, 2020, the Group employed approximately 85,100 employees, with total staff costs accounting for approximately 28.5% of the Group's sales[55]. - The Group's focus on employee interests has strengthened corporate cohesion, which is crucial for sustainable development[21]. - The Group did not lay off employees during the pandemic and provided additional allowances to domestic employees returning to work after the holiday[26]. Related Party Transactions and Shareholding - As of June 30, 2020, Mr. Ma Jianrong held 672,824,000 shares, representing approximately 44.76% of the issued share capital[194]. - Mr. Ma Renhe held 75,745,000 shares, representing approximately 5.04% of the issued share capital[195]. - The Group's related party transactions were conducted based on published prices and conditions offered to major customers[182].

Company Overview - Shenzhou International is one of the largest vertically integrated knitwear manufacturers globally, producing approximately 430 million pieces of knitwear annually[9]. - The company has over 85,700 employees and operates factories covering over 5.38 million square meters[9]. - Major clients include renowned brands such as NIKE, UNIQLO, ADIDAS, and PUMA, with markets spanning China, Japan, Asia Pacific, Europe, and the US[9]. - Shenzhou International was listed on the Hong Kong Stock Exchange in November 2005 and is included in several indices, including the Hang Seng Composite Index and MSCI Index[10]. - The company has received multiple awards, including recognition as one of the "Top 100 HK Listed Companies" in 2012, 2015, and 2016[12]. - In 2019, Shenzhou International was named in the "Listed Company Awards of Excellence 2019" by Hong Kong Economic Journal[13]. Financial Performance - Total sales for 2019 reached RMB 22,665,272, an increase of 8.7% from RMB 20,950,205 in 2018[19]. - Profit for the year was RMB 4,958,536, representing a growth of 10.4% compared to RMB 4,492,543 in 2018[16]. - Gross profit margin decreased to 30.3% in 2019 from 31.6% in 2018[16]. - Net profit margin improved slightly to 21.9% in 2019 from 21.4% in 2018[16]. - Non-current assets increased to RMB 11,360,620 in 2019, up from RMB 9,411,627 in 2018[16]. - Current assets rose to RMB 20,494,238, compared to RMB 18,140,427 in the previous year[16]. - Total equity reached RMB 25,191,327, an increase from RMB 22,454,279 in 2018[16]. - Cash and cash equivalents increased to RMB 5,060,896 in 2019 from RMB 3,565,916 in 2018[16]. - The profit attributable to owners of the parent for the same period was approximately RMB 5,095,206,000, reflecting a year-on-year increase of approximately 12.2%, or approximately 14.1% when excluding the negative impact from the retail business[41]. - Earnings per share for the year were RMB 3.39, with cash and cash equivalents amounting to approximately RMB 5,060,896,000 as of 31 December 2019[41]. Market Trends and Challenges - The apparel industry in China faced a challenging operating environment in 2019, with exports of apparel products declining by approximately 4% year-on-year, particularly to the US, EU, and Japan[43]. - Despite the challenges, the Group focused on enhancing long-term competitiveness by expanding production capacity and improving efficiency in overseas factories[39]. - The current difficulties in the industry are viewed as opportunities for growth, promoting quality-oriented development and enhancing competitiveness through innovation and flexible manufacturing[43]. - The textile and apparel industry in China faced multiple pressures in 2019, including slow global economic recovery and rising operational costs[54]. - The domestic demand growth has significantly slowed, impacting market demand and export enterprises[54]. Production and Operations - The company aims to be the most competitive knitwear manufacturer globally, focusing on high-quality production through OEM and ODM methods[8]. - Shenzhou International has strategically established production bases in Ningbo, China, and Tây Ninh, Vietnam, enhancing its manufacturing capabilities[9]. - The Group's global production layout and vertical integration have mitigated the adverse impacts of COVID-19, allowing full production capacity to be resumed in a short period[45]. - The Group's operational management has matured, and resource allocation in domestic bases has been optimized, leading to reduced energy consumption levels[39]. - The Group plans to moderately increase domestic fabric production capacity to replace imports from overseas bases, aiming to balance upstream and downstream productivity[76]. Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code throughout the year ended December 31, 2019[132]. - The Board includes at least three independent non-executive directors, with one possessing appropriate professional qualifications or financial management expertise, meeting all regulatory requirements[137]. - Continuous professional development for Directors is arranged to update their knowledge on Listing Rules and related legal requirements[136]. - The Company adopted a shareholders' communication policy effective from March 26, 2012, allowing shareholders to propose candidates for Director elections[143]. - The Company has increased transparency and governance standards through continuous training for Directors and staff, and by appointing external professional advisers[131]. Sustainability and Social Responsibility - The sustainability report outlines the company's commitment to environmental protection, social responsibility, and governance practices across its major subsidiaries in China, Vietnam, and Cambodia[195]. - The company aims to become the best garment operator globally, focusing on innovation, automation, and environmental protection as key components of its future development strategy[200]. - The company is committed to creating a green enterprise and achieving sustainable development through ongoing investment in environmental protection[199]. - Stakeholder engagement is prioritized, with internal and external communication channels established to gather feedback and address major issues[197]. Future Outlook - The Group aims to improve employee living conditions and establish motivating remuneration and welfare policies[49]. - The Group emphasizes excellent corporate governance and transparent communication with shareholders and investors[47]. - The Group plans to enhance the sharing of resources between overseas and domestic production bases, improving the independent operational capabilities of overseas factories[123]. - Continuous investment in environmental protection is seen as a future competitive advantage, with plans to increase the use of clean energy sources like solar and wind energy[124][125].

Financial Performance - For the six months ended June 30, 2019, the company reported sales of RMB 10,279.7 million, an increase from RMB 9,159.9 million in the same period of 2018, representing a growth of 12.2%[20] - Gross profit for the same period was RMB 3,174.9 million, with a gross profit margin of 30.9%, compared to a gross profit margin of 32.3% in 2018[20] - Profit attributable to owners of the parent was RMB 2,416.0 million, up from RMB 2,178.9 million in 2018, reflecting a growth of 10.9%[20] - The Group's sales revenue and profit attributable to owners increased by approximately 12.2% and 10.9% respectively, achieving earnings per share of RMB1.61[28] - For the six months ended June 30, 2019, total revenue was approximately RMB10,279,693,000, representing an increase of 12.2% compared to RMB9,159,900,000 for the same period in 2018[36] - The consolidated profit attributable to the parent company for the six months ended June 30, 2019, was approximately RMB 2,416,027,000, an increase from RMB 2,178,871,000 for the same period in 2018[155] Assets and Liabilities - The company's total assets as of June 30, 2019, were RMB 28,294.9 million, compared to RMB 27,552.1 million as of December 31, 2018[20] - The balance of bank borrowings as of June 30, 2019, was approximately RMB2,501,869,000, slightly down from RMB2,516,749,000 as of December 31, 2018[45] - The equity attributable to owners of the parent as of June 30, 2019, was approximately RMB23,554,147,000, an increase from RMB22,298,738,000 as of December 31, 2018[44] - The Group's total assets as of June 30, 2019, were RMB 8,421,687,000, reflecting a solid financial position for future growth[165] Cash Flow and Liquidity - Cash and cash equivalents increased to RMB 3,938.5 million from RMB 3,565.9 million at the end of 2018, indicating improved liquidity[20] - Net cash generated from operating activities for the six months ended June 30, 2019, amounted to approximately RMB2,258,576,000, compared to RMB1,671,542,000 for the same period in 2018[45] - The net increase in cash and cash equivalents for the same period was RMB 346,107,000, compared to a decrease of RMB (855,891,000) in the prior year, reflecting a positive cash flow trend[86] - Cash and cash equivalents at the end of the period reached RMB 3,938,455,000, significantly up from RMB 1,643,650,000 at the end of June 2018, showing strong liquidity[86] Market and Sales Performance - Revenue from sportswear products was approximately RMB7,369,014,000, an increase of approximately RMB1,153,421,000 or 18.6% from RMB6,215,593,000 in the prior year, driven mainly by demand in the mainland China and US markets[32][33] - Revenue from casual wear products rose to approximately RMB2,373,614,000, an increase of approximately RMB209,255,000 or 9.7% from RMB2,164,359,000, primarily due to increased procurement demands in the Japanese market[34] - Revenue in the European market was approximately RMB1,744,244,000, a decrease of 5.8% from RMB1,851,673,000 in the same period last year[37] - Revenue in the Japanese market increased by approximately 8.6%, reaching RMB1,551,343,000 compared to RMB1,428,645,000 in the previous year[39] - Revenue in the US market grew by approximately 19.3%, totaling RMB1,532,246,000, up from RMB1,284,561,000 in the same period last year[39] Operational Efficiency - Accounts receivables turnover period was 58 days, while inventory turnover period was 139 days, showing efficiency in asset management[20] - The Group continued to expand its overseas production capacity while optimizing resource allocation domestically[28] - The Group is expanding upstream fabric processing capacity domestically to reduce fabric imports from Vietnam, aiming for better alignment of production capacities[29] - The Group is building more automated and intelligent logistics and warehousing facilities in China to improve logistics efficiency and accuracy[29] Strategic Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[22] - The management remains optimistic about the outlook for the second half of 2019, expecting continued revenue growth and profitability improvements[22] - The Group aims to accelerate production expansion in Vietnam and Cambodia while increasing the sales share of the domestic market to mitigate risks from exchange rate fluctuations and trade policy changes[62] - The Group will continue to increase investment in product R&D and enhance product innovation capabilities to produce more consumer-satisfactory products[60] Environmental and Regulatory Factors - The tightening of environmental protection policies led to significant increases in raw material prices, impacting the cost structure of Chinese enterprises[27] - The Group aims to minimize adverse environmental impacts during production processes while achieving coordination between enterprise development and environmental protection[59] Employee and Operational Costs - Employee benefit expenses increased to RMB 2,989,622, up 15.8% from RMB 2,581,753 in 2018[143] - The Group's total investment in property, plant, equipment, right-of-use assets, and intangible assets for the six months ended June 30, 2019, was approximately RMB1,202,156,000, with 46% allocated to production equipment and 51% to new factory buildings and right-of-use assets[57] Accounting and Compliance - The company has adopted new accounting standards effective from January 1, 2019, which may impact future financial reporting and compliance[93] - The Group's financial statements for the six months ended June 30, 2019, include notes to the interim condensed consolidated financial statements detailing the accounting policies and their impacts[102]