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].
申洲国际(02313) - 2021 - 年度财报