Investment Rating - Buy (Maintained) with a current price of HKD 72.7 [2] Core Views - Despite a 10.1% YoY decline in revenue in 2023, the company's net profit remained stable, with a slight decrease of 0.1% YoY to RMB 4.557 billion [5] - The company's gross margin improved by 2.2 percentage points to 24.3% in 2023, driven by increased efficiency in overseas factories and reduced fixed costs per unit [6] - The company's net cash assets after deducting borrowings reached RMB 11.438 billion at the end of 2023, indicating strong financial health and risk resistance [8] - The company expects order improvements and profitability recovery in 2024, with capacity utilization returning to full production levels in Q1 2024 [9] Revenue and Profit Analysis - Revenue in 2023 was RMB 24.97 billion, down 10.1% YoY, primarily due to reduced demand in European and American markets and customer inventory adjustments [5] - Net profit attributable to shareholders was RMB 4.557 billion, down 0.1% YoY, with a net profit margin of 18.3%, up 1.8 percentage points YoY [5] - EPS for 2023 was RMB 3.03, with a full-year dividend payout ratio of 60.3% [5] - Revenue from sportswear and casual wear declined by 13.6% and 1.4% YoY, respectively, while revenue from underwear increased by 30.2% YoY [5] Geographic and Customer Breakdown - Domestic sales accounted for 28.5% of total revenue, growing 0.7% YoY, while sales in Europe and the US declined by 19.1% and 20.4% YoY, respectively [6] - The top four customers (adidas, Nike, Uniqlo, and Puma) accounted for 79.6% of total revenue, down 2.4 percentage points YoY, with their combined revenue declining by 12.8% YoY [6] Operational Efficiency and Financial Health - The company's overseas factories contributed 53% of total garment output in 2023, up 7 percentage points YoY, with Cambodia accounting for 26% of total output [8] - Inventory turnover days increased by 11 days to 120 days, while accounts receivable turnover days increased by 17 days to 73 days [7] - Operating cash flow increased by 12.9% YoY to RMB 5.227 billion in 2023 [7] Future Outlook - The company plans to expand its workforce in 2024, adding approximately 2,000 workers in Ningbo and Vietnam, and exploring new regional layouts beyond Vietnam and Cambodia [9] - Revenue and net profit are expected to grow in 2024, with projected EPS of RMB 3.71, 4.29, and 4.90 for 2024, 2025, and 2026, respectively [9] - The company's PE ratio is forecasted at 18x for 2024 and 15x for 2025, maintaining a "Buy" rating [9]

Investment Rating - The report maintains a "Buy" recommendation for Shenzhou International, indicating a positive outlook for the stock price in the next six months [3][7]. Core Views - The revenue decline in the second half of 2023 has narrowed, with a sequential improvement in profits. The company reported a total revenue of 24.97 billion HKD for 2023, down 10.1% year-on-year, but the second half revenue was 13.41 billion HKD, down only 5.5% year-on-year and up 16% quarter-on-quarter [5][6]. - Profitability improved in the second half of 2023 due to increased production capacity in overseas factories and a rise in core customer order volumes. The gross profit for the second half was 3.46 billion HKD, up 13.2% year-on-year, with a gross margin of 25.8% [6][7]. - The company has a strong competitive position as the largest vertically integrated knitwear manufacturer in China, with key clients including Nike and Adidas. The report suggests that the current valuation offers good value for investors [7]. Financial Summary - For the fiscal year 2023, the company reported a net profit attributable to shareholders of 4.56 billion HKD, a slight decrease of 0.1% year-on-year, with a net profit margin of 18.3% [5][6]. - The report projects net profits for 2024 and 2025 to be 5.35 billion HKD and 6.17 billion HKD, respectively, with an expected net profit of 7.10 billion HKD in 2026 [7][8]. - The company's earnings per share (EPS) for 2023 was 3.03 HKD, with projections of 3.56 HKD for 2024 and 4.11 HKD for 2025 [8].

Investment Rating - The report maintains a "Buy-A" rating for the company [2][6] Core Views - The company experienced a revenue decline of 10.1% year-on-year in 2023, with total revenue reaching 24.97 billion yuan. However, the net profit remained relatively stable, decreasing only by 0.1% to 4.557 billion yuan [3][4] - The company’s sales gross margin improved in the second half of 2023, driven by increased efficiency in overseas factories and a rise in production capacity utilization [6][5] - The company is expected to benefit from its vertical integration in fabric and garment production, which is anticipated to enhance profitability in the long term [6] Market Performance - In 2023, the company achieved revenues of 24.97 billion yuan, with a breakdown of 11.562 billion yuan in H1 and 13.408 billion yuan in H2, reflecting a year-on-year decline of 14.9% and 5.5% respectively [1] - The company’s core product lines include sportswear, casual wear, and underwear, with sportswear revenue declining by 13.6% and underwear revenue increasing by 30.2% [1][4] Financial Highlights - The company’s gross margin improved by 2.2 percentage points to 24.3% in 2023, with H2 gross margin reaching 25.8% [5][6] - The company’s earnings per share (EPS) for 2023 was 3.03 yuan, with a proposed total dividend of 2.03 yuan per share, resulting in a payout ratio of 60.3% [3][4] - Forecasted EPS for 2024-2026 is expected to be 3.59, 4.13, and 4.68 yuan respectively, with corresponding P/E ratios of 16.6, 14.5, and 12.8 [6][9]

证券研究报告 | 2024年03月27日 申洲国际（02313.HK） 买入 2023 年净利润持平，下半年毛利率修复至 25.8% 核心观点 公司研究·财报点评 纺织服饰·纺织制造 2023年净利润持平，下半年收入及毛利率环比提升明显。2023年公司收入 下降10%至249.7亿元，人民币单价提升5%左右，美金单价上升1%左右， 证券分析师：丁诗洁 证券分析师：关竣尹 0755-81981391 0755-81982834 体现品牌去库存影响。归母净利润同比持平45.6亿元，剔除政府补贴、 dingshijie@guosen.com.cnguanjunyin@guosen.com.cn 汇兑、利息净收入影响的主营净利润同比提升11%，主要由于毛利率提升2.2 S0980520040004 S0980523110002 百分点至24.3%，及税率更低的海外子公司盈利占比提升带动所得税率下降。 基础数据 全年经营性现金流净额52亿元，增长13%，净现比1.15；公司净现金 投资评级 买入(维持) 114亿元，同比增加32亿元。全年派息率小幅提升至60%。 合理估值 91.00 - 99.00港元 收盘价 65. ...

Investment Rating - The report maintains a "Buy" rating for the company [2] Core Views - The company's 2023 performance met expectations, with a revenue decline of 10.1% year-on-year to 24.97 billion yuan, while net profit remained stable at 4.557 billion yuan, reflecting a slight decrease of 0.1% year-on-year [1] - The order trend for 2024 is expected to improve, with core customers anticipated to see steady growth in orders [1] - The company is positioned as the largest vertically integrated garment manufacturer globally, with a clear trend of order improvement and long-term capacity expansion [1][2] Financial Performance Summary - **2023 Financials**: Revenue decreased by 10.1% to 24.97 billion yuan, while net profit was nearly flat at 4.557 billion yuan. The gross margin improved by 2.2 percentage points to 24.3% [1] - **2024 Projections**: Expected revenue growth of 15.8% to 28.92 billion yuan and net profit growth of 23% to 5.605 billion yuan [1][5] - **Earnings Per Share (EPS)**: Projected to increase from 3.03 yuan in 2023 to 3.73 yuan in 2024 [5] Customer and Product Breakdown - **Customer Sales**: Sales to the top four customers were 7.7 billion, 6.0 billion, 3.69 billion, and 2.49 billion yuan, with year-on-year changes of -11%, +3%, -24%, and -28% respectively [1] - **Product Categories**: Sales in sports, leisure, underwear, and other categories were 18.03 billion, 5.67 billion, 1.07 billion, and 0.2 billion yuan, with year-on-year changes of -14%, -1%, +30%, and -42% respectively [1] Capacity and Operational Efficiency - The company's production capacity utilization is currently strong, with expectations for gradual improvement in gross margins throughout 2024 [1] - The company continues to enhance its integrated and international supply chain, with over 90,000 employees and significant production capabilities [1] Future Outlook - The company is expected to achieve steady growth in orders and shipments starting from Q1 2024, with a projected revenue growth of mid-double digits for the full year [1] - Long-term improvements in gross margins and rapid growth in core business profits are anticipated [1]

Sales Performance - Total sales for the year ended December 31, 2023, were approximately RMB 24,969,792,000, a decrease of 10.1% compared to 2022[2] - Sales of sportswear products accounted for 72.2% of total sales, decreasing by 13.6% year-over-year due to reduced demand in Europe and the US[2] - Sales of casual wear products accounted for 22.7% of total sales, with a slight decrease of 1.4% year-over-year, primarily due to reduced demand in Japan and other markets[2] - Sales of underwear products increased by 30.2% year-over-year, accounting for 4.3% of total sales, driven by increased demand in Japan and other markets[3] - Revenue from Mainland China increased slightly to RMB 7,124,052 thousand in 2023 from RMB 7,074,146 thousand in 2022, a growth of 0.7%[14] - Revenue from the EU decreased to RMB 5,027,285 thousand in 2023 from RMB 6,215,018 thousand in 2022, a decline of 19.1%[14] - Revenue from the US decreased to RMB 3,879,987 thousand in 2023 from RMB 4,873,358 thousand in 2022, a decline of 20.4%[14] - Revenue from Japan decreased to RMB 3,675,539 thousand in 2023 from RMB 3,926,014 thousand in 2022, a decline of 6.4%[14] - Total revenue decreased to RMB 24,969,792 thousand in 2023 from RMB 27,781,412 thousand in 2022, a decline of 10.1%[14] - Revenue from major customer A decreased to RMB 7,696,598 thousand in 2023 from RMB 8,630,511 thousand in 2022, a decline of 10.8%[16] - Sales of sportswear products decreased by 13.6% to RMB 18,031,526,000 in 2023, primarily due to reduced demand in European and American markets[41] - Sales of lingerie products increased by 30.2% to RMB 1,066,643,000 in 2023, driven by higher demand in Japan and other markets[42] - European market sales declined by 19.1% to RMB 5,027,285,000 in 2023, while U.S. market sales dropped by 20.4% to RMB 3,879,987,000[43] - Domestic sales in China increased slightly by 0.7% to RMB 7,124,052,000 in 2023, accounting for 28.5% of total sales[43] - European market sales decreased by 19.1% to RMB 5,027,285,000 in 2023 compared to RMB 6,215,018,000 in 2022, primarily due to reduced demand for sportswear[44] - US market sales declined by 20.4% to RMB 3,879,987,000 in 2023 from RMB 4,873,358,000 in 2022, driven by lower demand for sportswear[44] - Japanese market sales dropped by 6.4% to RMB 3,675,539,000 in 2023 from RMB 3,926,014,000 in 2022, mainly due to reduced demand for casual wear and discontinuation of mask sales[44] - Other overseas markets sales decreased by 7.6% to RMB 5,262,929,000 in 2023 from RMB 5,692,876,000 in 2022, primarily due to reduced exports to Australia, India, and Mexico[44] - Domestic China market sales increased by 0.7% in 2023, with apparel sales rising by 0.9% to RMB 6,964,278,000, driven by higher demand for casual wear[44] Profitability and Financial Performance - Gross profit margin for 2023 was 24.3%, an increase of 2.2 percentage points compared to 2022, with gross profit amounting to RMB 6,059,876,000, a slight decrease of 1.1% year-over-year[3] - Net profit after tax for 2023 was approximately RMB 4,557,263,000, a slight decrease of 0.1% compared to 2022[3] - The company proposed a final dividend of HKD 1.08 per share, with a total annual dividend of HKD 2.03 per share, representing a 6.3% increase compared to 2022 and a payout ratio of 60.3%[3] - Gross profit margin improved by 2.2 percentage points to 24.3% in 2023, attributed to increased capacity utilization, improved efficiency at overseas factories, and reduced COVID-19 related expenses[45] - Basic and diluted earnings per share (EPS) for 2023 were RMB 3.03, slightly down from RMB 3.04 in 2022[29] - The company achieved sales revenue of approximately RMB 24,969,792,000 in 2023, a decrease of 10.1% compared to the previous year, with net profit attributable to shareholders slightly declining by 0.1% to RMB 4,557,263,000[38] - The gross profit margin increased by 2.2 percentage points to 24.3% in 2023, driven by improved efficiency in overseas factories and reduced fixed costs per unit[38] Assets and Liabilities - Total non-current assets increased to RMB 20,131,649,000 as of December 31, 2023, compared to RMB 17,328,331,000 in 2022[7] - Total current assets stood at RMB 28,479,488,000 as of December 31, 2023, compared to RMB 26,164,534,000 in 2022[7] - Total current liabilities increased to RMB 13,384,483,000 as of December 31, 2023, compared to RMB 10,259,437,000 in 2022[7] - Net current assets decreased to RMB 15,095,005 thousand in 2023 from RMB 15,905,097 thousand in 2022, a decline of 5.1%[8] - Total assets minus current liabilities increased to RMB 35,226,654 thousand in 2023 from RMB 33,233,428 thousand in 2022, a growth of 6.0%[8] - Total non-current liabilities decreased to RMB 2,359,338 thousand in 2023 from RMB 2,467,644 thousand in 2022, a decline of 4.4%[8] - Total equity increased to RMB 32,867,316 thousand in 2023 from RMB 30,765,784 thousand in 2022, a growth of 6.8%[8] - Accounts receivable and notes increased to RMB 5,023,635 thousand in 2023 from RMB 5,005,167 thousand in 2022, with 97.3% of receivables aged within 6 months[31] - Cash and bank balances increased significantly to RMB 10,539,092 thousand in 2023 from RMB 7,097,073 thousand in 2022, while time deposits rose to RMB 12,199,178 thousand from RMB 7,099,231 thousand[36] - Total cash and cash equivalents reached RMB 11,596,453 thousand in 2023, up from RMB 7,369,498 thousand in 2022[36] - Financial assets at fair value through profit or loss decreased to RMB 803,889 thousand in 2023 from RMB 3,195,232 thousand in 2022, primarily due to a reduction in financial products issued by financial institutions[35] - Accounts payable increased to RMB 1,198,212 thousand in 2023 from RMB 931,593 thousand in 2022, with 98.8% of payables aged within 6 months[34] - The company held RMB 10,962,855 thousand in cash and bank balances denominated in RMB as of December 31, 2023, up from RMB 6,004,624 thousand in 2022[36] Costs and Expenses - Cost of goods sold decreased to RMB 18,904,165 thousand in 2023 from RMB 21,649,619 thousand in 2022[21] - Employee benefit expenses decreased to RMB 6,982,131 thousand in 2023 from RMB 7,694,740 thousand in 2022[21] - Tax expenses decreased to RMB 438,238 thousand in 2023 from RMB 698,908 thousand in 2022[23] - Current tax in Vietnam increased to RMB 92,840 thousand in 2023 from RMB 77,529 thousand in 2022[23] - Current tax in Macau slightly decreased to RMB 187,190 thousand in 2023 from RMB 188,846 thousand in 2022[23] - Deferred tax decreased to a loss of RMB 51,540 thousand in 2023 from a gain of RMB 118,345 thousand in 2022[23] - Financing costs increased to RMB 345,805 thousand in 2023 from RMB 228,359 thousand in 2022[20] - Financing costs increased by RMB 117,446,000 to RMB 345,805,000 in 2023 due to higher interest rates on USD and HKD loans[49] - Income tax expenses decreased by RMB 260,670,000 to RMB 438,238,000 in 2023, as a result of higher contributions from overseas subsidiaries with lower tax rates[49] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 1.08 per share, with a total annual dividend of HKD 2.03 per share, representing a 6.3% increase compared to 2022 and a payout ratio of 60.3%[3] - Interim dividend per ordinary share decreased to HKD 0.95 in 2023 from HKD 1.06 in 2022, with a total payout of RMB 1,316,672 thousand compared to RMB 1,362,689 thousand in 2022[26] - Final proposed dividend per ordinary share increased to HKD 1.08 in 2023 from HKD 0.85 in 2022, with a total payout of RMB 1,471,198 thousand compared to RMB 1,141,404 thousand in 2022[26] - The company proposed a final dividend of HKD 1.08 per ordinary share (approximately RMB 0.98) for the year ended December 31, 2023, subject to approval at the Annual General Meeting on May 28, 2024[59] - The company will suspend share registration from May 23, 2024, to May 28, 2024, and from June 7, 2024, to June 12, 2024, to determine shareholders eligible for the annual general meeting and final dividend distribution[60] Operational and Strategic Highlights - Overseas factories accounted for 53% of the company's total apparel output in 2023, up from 46% in 2022, with Cambodia's output share rising to 26% from 22%[39] - The company's green energy consumption reached 50% of total electricity usage, with cumulative photovoltaic installed capacity reaching 75MW, a 65% increase year-over-year[39] - Net cash generated from operating activities increased to RMB 5,226,525,000 in 2023 from RMB 4,628,120,000 in 2022, reflecting stronger cash flow[47] - Net debt decreased by RMB 1,320,671,000 to RMB 507,515,000 in 2023, driven by higher operating cash inflows[47] - Total number of employees as of December 31, 2023, was approximately 92,030, with employee costs accounting for 28.0% of the company's sales, an increase of 0.3 percentage points from the previous year[52] - Total investment in property, plant, and equipment, and prepaid land lease payments for the year amounted to approximately RMB 1,059,526,000, with 42% allocated to purchasing production equipment and 53% to constructing and purchasing new factory buildings and prepaid land lease payments[53] - Capital commitments for land use rights, property, plant, and equipment as of December 31, 2023, were approximately RMB 956,201,000, to be funded mainly by internal resources and bank loans[53] - The company's capital-to-debt ratio as of December 31, 2023, was 36.8%, calculated as the percentage of total outstanding borrowings to equity attributable to owners of the parent[54] - The company expects global inflation pressures to ease, with potential interest rate cuts in major developed economies, which could boost consumer demand, particularly in overseas apparel markets[56] - The company plans to expand its overseas production capacity beyond existing bases in Vietnam and Cambodia to better meet customer procurement needs across different markets[56] - The company will focus on advancing smart manufacturing, digital management, green and low-carbon development systems, and diversifying and upgrading its product offerings[56] - The company aims to enhance its green development model by optimizing resource and energy usage, improving recycling processes, and increasing the use of clean energy and green materials[57] - The company plans to expand its product categories, invest in R&D for innovative and functional products, and strengthen collaboration with upstream and downstream partners in the industry chain[58] - The company aims to enhance corporate governance, focusing on net profit growth and stable cash flow, ensuring long-term development and shareholder returns[61] Corporate Governance and Committees - The board of directors complies with the requirement of having at least three independent non-executive directors, with one possessing appropriate professional qualifications or financial expertise[64] - The company has adopted a shareholder communication policy to address shareholder concerns and ensure effective communication, effective since March 26, 2012[67] - No purchases, redemptions, or sales of the company's listed securities were made during the year ended December 31, 2023[70] - The public holds at least 25% of the company's total issued share capital as of December 31, 2023[72] - The audit committee, chaired by Mr. Jiang Xianpin, consists of four independent non-executive directors and oversees financial practices, risk management, and internal controls[72] - The audit committee held two meetings with external auditors during the year to discuss audit procedures and accounting matters[73] - The company established a Remuneration Committee on October 9, 2005, responsible for recommending overall remuneration policies and structures for directors and senior management[74] - The Remuneration Committee consists of executive director Ma Renhe and three independent non-executive directors: Zhang Bingsheng, Jiang Xianpin, and Liu Chunhong, with Zhang Bingsheng as the chairman[74] - The company established a Nomination Committee on October 9, 2005, responsible for identifying and recommending suitable candidates for directorship and reviewing the board's structure and diversity[75] - The Nomination Committee includes executive director Ma Jianrong and three independent non-executive directors: Liu Xinggao, Jiang Xianpin, and Zhang Bingsheng, with Ma Jianrong as the chairman[75] - The company's auditor, Ernst & Young, confirmed that the preliminary results for the year ended December 31, 2023, matched the consolidated financial statements[76] - The annual report for the year ended December 31, 2023, will be published on the Hong Kong Stock Exchange and the company's website by April 30, 2024[77] - The Annual General Meeting will be held on May 28, 2024, at the company's office building in Ningbo, Zhejiang Province, China[78] - The company has four executive directors: Ma Jianrong, Huang Guanlin, Ma Renhe, and Wang Cunbo, and four independent non-executive directors: Jiang Xianpin, Zhang Bingsheng, Liu Xinggao, and Liu Chunhong[78] Miscellaneous - Government subsidies increased to RMB 250,305 thousand in 2023 from RMB 172,632 thousand in 2022[19] - Interest income rose significantly to RMB 778,904 thousand in 2023 compared to RMB 278,126 thousand in 2022[19] - Net exchange differences improved to RMB 150,577 thousand in 2023 from a loss of RMB 1,105,563 thousand in 2022[19]

Investment Rating - The report gives a "Buy" rating for Shenzhou International, with a target price of approximately 69.4 HKD, indicating a potential upside of 10.6% from the closing price on March 7, 2024 [5][13]. Core Views - Shenzhou International is the largest vertically integrated knitted garment manufacturer in China, primarily serving well-known global sportswear brands such as Nike and Adidas. The company combines fabric manufacturing (OEM) and garment design (ODM) to enhance its competitive edge [2][6]. - The company has three core competitive advantages: a vertically integrated production model, stable capacity release, and a strong focus on ESG and labor relations [3][10][11]. Summary by Sections Company Overview - Shenzhou International is the largest vertically integrated knitted garment manufacturer in China, providing products mainly in sportswear, casual wear, and underwear. The company has a significant market presence in China, Europe, Japan, and the United States [2][6]. - The company has shown stable revenue and profit growth, with revenue increasing from 2.483 billion CNY in 2005 to 27.781 billion CNY in 2022, representing a CAGR of approximately 15.3% [6]. Competitive Advantages - **Advantage 1: Vertically Integrated Production Model** The company extends its supply chain to fabric production, leading to higher gross and net profit margins compared to pure garment manufacturing. The self-sufficiency in fabric production enhances profitability [3][8]. - **Advantage 2: Stable Capacity Release** Shenzhou has established production bases in Vietnam and Cambodia, benefiting from lower labor and land costs, which supports business growth [10]. - **Advantage 3: Focus on ESG and Labor Relations** The company prioritizes environmental protection and energy efficiency, setting ambitious sustainability goals for 2025-2030. It also maintains strong labor relations, resulting in improved employee retention and productivity [11][12]. Financial Projections - Revenue projections for 2023-2025 are 27.28 billion CNY, 30.57 billion CNY, and 34.98 billion CNY, with year-on-year growth rates of -1.8%, +12.1%, and +14.4% respectively. Net profit projections are 4.58 billion CNY, 5.51 billion CNY, and 6.23 billion CNY, with growth rates of +0.3%, +20.4%, and +13.2% respectively [5][13].

智通财经APP获悉，申洲国际(02313)的代工客户Nike(NKE.US)最新预计，全年收入增长1%，低于原先指引的中个位数百分比增长。其中，耐克预计第三财季收入将略有负增长，第四财季收入将出现低个位数增长。公司解释新指引反映了宏观阻力的增加，特别是在大中华区和欧洲、中东和非洲地区。二级市场上，12月22日，申洲国际收跌7.69%，报78港元。 据悉，申洲国际以OEM和ODM相结合的方式为客户提供高质量针织品，主要客户包括Nike及Adidas等国际品牌。该公司业绩稳健，2013-2019年保持双位数的复合增速，2020-2022年三年疫情，对材料价格及品牌商订货节奏产生冲击，盈利受到了影响。 从业务上看，运动类服装和休闲类服装为申洲国际核心收入来源，往年收入份额超过90%，其中运动类服装超过70%，2020-2022年，上述两大服装业务收入复合增速为14.45%及13.13%，带动整体收入复合增速9.83%。该公司客户集中度非常高，四大客户收入份额超过80%，包括Nike、Uniqlo、Adidas和Puma，2022年收入份额分别为31%、21%、18%及12%，分布往年相对稳定，不过Nike收入份额 ...

智通财经APP获悉，国盛证券发布研究报告称，维持申洲国际(02313)“买入”评级，考虑近期基本面情况整体符合预期，综合预计2023~2025年公司归母净利润分别为45.7/55.3/64.7亿元，同比分别+0%/+21%/+17%。公司是成衣制造龙头，合作下游优质大客户，国际化、一体化产业链布局具备竞争力。 国盛证券主要观点如下： 订单：该行判断目前公司订单需求情况稳步向好，符合预期。 近期公司基本面改善趋势明确，伴随着下游品牌商库存压力的改善，该行估计公司订单及出货同比表现环比均有改善。1)出货层面：该行估计公司9月份出货同比转正、10月以来同比稳健快速增长，综合来看该行估计2023H2公司收入有望同比实现中个位数增长。2)分客户来看：公司深度合作Nike、Uniqlo、Adidas、Puma等核心品牌，2023H1向前四大客户销售分别为34.7/25.4/18.9/13.4亿元，同比分别-22%/+5%/-26%/-29%，占比分别为30%/22%/16%/12%。考虑品牌客户自身销售及库存情况，该行估计公司2024年Uniqlo/Adidas/Lululemon订单有望健康快速增长、Nike客户订单有 ...

Financial Performance - For the six months ended June 30, 2023, the company reported sales of RMB 11,561,962,000, a decrease from RMB 13,592,789,000 in the same period of 2022, representing a decline of approximately 15.0%[24]. - Profit attributable to owners of the parent was RMB 2,126,829,000, compared to RMB 2,366,616,000 in the prior year, reflecting a decrease of about 10.1%[24]. - Gross profit for the reporting period was RMB 2,594,904,000, with a gross profit margin of 22.4%, slightly down from 22.6% in 2022[24]. - For the first half of 2023, the Group reported sales revenue of approximately RMB 11.56 billion, a decrease of approximately 14.9% compared to the same period last year[32]. - Profit attributable to owners of the parent was approximately RMB 2.13 billion, representing a year-on-year decrease of approximately 10.1%[32]. - Gross profit decreased by approximately 15.4% to approximately RMB 2.59 billion compared to the same period last year[32]. - Total revenue for the six months ended 30 June 2023 was approximately RMB 11,561,962,000, representing a decrease of approximately RMB 2,030,827,000 or approximately 14.9% from RMB 13,592,789,000 for the six months ended 30 June 2022[47]. - Total comprehensive income for the period was RMB 2,536,871, a decrease of 6.1% compared to RMB 2,701,830 in the previous year[90]. Assets and Liabilities - Total assets increased to RMB 46,335,581,000 as of June 30, 2023, up from RMB 43,492,865,000 at the end of 2022, indicating a growth of approximately 6.4%[24]. - Equity attributable to the owners of the parent company increased to approximately RMB 32,154,301,000 as of 30 June 2023, compared to RMB 30,752,918,000 as of 31 December 2022[53]. - Non-current liabilities totaled RMB 2,410,434, a slight decrease from RMB 2,467,644, down 2.3%[95]. - Total current assets decreased to RMB 25,404,794, down from RMB 26,164,534, a decline of 2.9%[93]. - Net current assets decreased to RMB 13,633,948, down 14.3% from RMB 15,905,097[93]. Cash Flow and Financing - The company's cash and cash equivalents rose to RMB 10,365,717,000, compared to RMB 7,369,498,000 at the end of 2022, marking an increase of about 40.5%[24]. - Net cash generated from operating activities for the six months ended June 30, 2023, was approximately RMB 2,703,715,000, representing an increase of RMB 2,157,517,000 from approximately RMB 546,198,000 for the same period last year[56]. - The balance of bank borrowings was approximately RMB 10,760,034,000 as of June 30, 2023, compared to approximately RMB 9,197,684,000 as of December 31, 2022[59]. - Financing costs increased to approximately RMB 146,258,000 for the six months ended June 30, 2023, from approximately RMB 103,557,000 for the same period last year, primarily due to higher interest rates on HKD and USD loans[61]. - The net cash flows from financing activities for the period were RMB 266,995 thousand, a recovery from a net cash outflow of RMB (1,494,435) thousand in the prior year[107]. Market and Operational Insights - The overall market demand remains the largest operational pressure for the industry due to sluggish global economic growth and high inventory adjustments[32]. - The management remains optimistic about the recovery of demand in the second half of 2023, despite the challenges faced in the first half[22]. - The company plans to focus on market expansion and new product development to drive future growth[22]. - The Group's strategy includes promoting product diversification and high-end offerings, incorporating elements of technology, sustainability, and fashion[81]. - There are signs of gradual recovery in consumer demand, with expectations that business performance in the second half of the year will surpass that of the first half[85]. Production and Efficiency - The new garment factory in Cambodia achieved a production output of approximately 17% of the Group's total output in the first half of 2023[32]. - The production efficiency of the new garment factory in Cambodia improved significantly, with its output accounting for approximately 17% of the Group's total production in the first half of the year[35]. - The Group has implemented policies to hedge against foreign exchange risks due to fluctuations between USD and RMB[64]. - The company aims to enhance product competitiveness by improving interaction with customers during the product development stage, targeting higher success and accuracy rates in clothing design[81]. - The Group is focusing on talent development and management to drive technological advancements within the industry[83]. Sales and Revenue Breakdown - Sales of sportswear products were approximately RMB 8,560,723,000, a decrease of approximately 19.9% from RMB 10,687,190,000 for the same period last year, mainly due to reduced demand in the European and US markets[43]. - Revenue from the European market decreased by approximately RMB 905,227,000 or approximately 27.2% to RMB 2,421,402,000 for the six months ended June 30, 2023[49]. - Revenue from the US market decreased by approximately RMB 889,175,000 or approximately 32.7% to RMB 1,831,356,000 for the six months ended June 30, 2023[49]. - Domestic retail sales of apparel amounted to approximately RMB 501.67 billion, representing a year-on-year increase of approximately 15.5%[29]. - Revenue from the Japanese market increased by approximately RMB 33,573,000 or approximately 2.1% to RMB 1,666,147,000 for the six months ended June 30, 2023[50]. Employee and Operational Costs - Employee benefit expenses amounted to RMB 3,365,715, a decrease from RMB 4,118,932 in the previous year[134]. - The Group employed approximately 95,050 employees as of June 30, 2023, with total staff costs accounting for approximately 29.1% of the Group's revenue[68]. - The increase in trade payables was RMB 110,322, compared to a modest increase of RMB 6,820 in the same period last year, suggesting improved supplier relationships[103]. Investments and Capital Expenditures - Total investment in property, plant, and equipment for the six months ended June 30, 2023, amounted to approximately RMB 532,429,000, with about 43% allocated for acquiring production facilities[69]. - The Group's capital expenditures for the six months ended June 30, 2023, included additions of RMB 413,029,000 for property, plant, and equipment[157]. - As of June 30, 2023, the Group had contracted capital commitments of approximately RMB 448,645,000 related to the acquisition and construction of properties, plants, and equipment[69]. Taxation and Compliance - Income tax expense decreased to approximately RMB 221,595,000 for the six months ended June 30, 2023, from approximately RMB 400,724,000 for the same period last year, mainly due to lower profitability[61]. - The total income tax expense for the six months ended June 30, 2023, was RMB 221,595, a decrease of 44.7% from RMB 400,724 in 2022[141]. - The company’s income tax rate in China is 25%, with certain subsidiaries qualifying for reduced rates of 5% and 15%[147].