Shenzhou International Group Holdings reported first-half 2026 revenue of RMB 14.18 billion, down 5.3% year on year, as subdued global apparel demand and a firmer renminbi weighed on sales. Sportswear—the company’s core segment—declined 10.7% to RMB 9.04 billion and now represents 63.8% of total turnover. Casual wear and lingerie delivered mid-single-digit growth, rising 4.5% and 6.1% respectively, but could not offset weakness in sportswear.
Gross profit contracted 21.2% to RMB 3.20 billion, with margin sliding 4.5 percentage points to 22.6%. Management cited a roughly 4% year-on-year appreciation of the renminbi against the US dollar, higher synthetic fibre prices, and a two-percentage-point rise in labour costs as key drags on profitability.
Operating profit before tax dropped 43.8% to RMB 2.04 billion, while net profit attributable to shareholders fell 40.0% to RMB 1.90 billion. Basic EPS decreased to RMB 1.27 from RMB 2.11.
By geography, international markets contributed 75.6% of sales. Europe and the United States recorded revenue declines of 8.9% and 11.7% respectively, whereas Japan achieved a 2.6% uptick. Mainland China sales retreated 5.2% to RMB 3.46 billion.
Operating cash flow slipped to RMB 1.92 billion (H1 2025: RMB 2.69 billion). Cash and cash equivalents stood at RMB 15.28 billion at 30 June 2026, versus bank borrowings of RMB 14.76 billion, resulting in a modest net cash position of RMB 0.52 billion. The gearing ratio remained stable at 39.5%.
Capital expenditure reached RMB 0.74 billion, mainly for production expansion in Vietnam and Cambodia and ongoing automation upgrades in China. Outstanding capex commitments totalled RMB 0.84 billion.
Reflecting lower earnings, the Board declared an interim dividend of HK$0.88 per share, a 36.2% reduction from the prior year. The dividend will be payable on or before 24 September 2026 to shareholders on record as of 15 September 2026.
Management reaffirmed its strategy of expanding overseas capacity—construction of a new Indonesian garment plant begins September 2026—and intensifying digitalisation and lean manufacturing to bolster efficiency amid persistent cost inflation, currency volatility and global trade uncertainties.