Shenzhou International Group Holdings Limited expects profit attributable to owners to fall by approximately 38%–43% year-on-year for the six months ended 30 June 2026. Based on the RMB3.18 billion profit recorded in the first half of 2025, management projects interim earnings at roughly RMB1.81 billion–RMB1.97 billion for 2026.

The company attributes the downturn to three main factors:

1. Renminbi appreciation • The average RMB exchange rate strengthened about 4% against the US dollar during the period. • As an export-oriented group with US-dollar-denominated sales, the currency movement compressed margins and generated foreign-exchange losses, versus gains a year earlier.

2. Rising labour and raw-material costs • Group-wide wage and pension expenses increased, exacerbated by expanded production capacity in Vietnam and Cambodia, where new facilities remain in ramp-up phase. • Higher international oil prices lifted yarn costs, pushing up overall manufacturing expenses.

3. Softer global demand and external pressures • Macroeconomic uncertainties, tariff policies and inflation dampened retailers’ restocking appetite, leading to lower order volumes and revenue. • Tariff-sharing arrangements further weighed on performance.

Management stated it will monitor global economic developments and adjust capacity allocation while pursuing efficiency gains. The figures in the profit warning stem from unaudited management accounts; definitive interim results are scheduled for release on 25 August 2026.

Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.