Shenzhou International Group Holdings Limited · HKEX:2313
Shenzhou International — H1 2023 Earnings Presentation
27 slides from Shenzhou International's earnings presentation, August 2023
Slide 1: Interim Results 2023
INTERIM RESULTS 2023 August 2023
Slide 2: Agenda
Agenda 01 Financial Highlight 02 Business Review AGENDA 03 Strategies & Plans 04 Open Forum
Slide 3: Financial Highlight
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Slide 4: Financial Highlights
Financial Highlights For the 6 months ended 30 Jun (RMB '000) 2023 2022 Change Sales 11,561,962 13,592,789 (14.9%) Gross profit 2,594,904 3,065,607 (15.4%) Profit attributable to owners of the parent 2,126,829 2,366,616 (10.1%) Basic EPS (RMB) 1.41 1.57 (10.2%) Interim dividend per share (HK$) 0.95
Slide 5: Sales Analysis
Sales Analysis ❖ Mainly attributable to Sales Profit Attributable to Equity Holders (RMB million) (RMB million) 15,000 3,000 13,592.80 2,366.60 11,562.00 2,126.80 10,000 2,000 5,000 1,000 0 0 1H 2022 1H 2023 1H 2022 1H 2023 ❖ Recorded a decrease in revenue ❖ Main factors of change ❖ Weak global cons
Slide 6: Profit Margin Analysis
Profit Margin Analysis Gross Profit Net Profit Attributable to Equity Holders (RMB million) (RMB million) 3,200 3,065.6 25% 2,500 2,366.6 18.4% 20% 22.4% 2,126.8 22.6% 2,594.9 20% 2,000 17.4% 2,400 15% 15% 1,500 1,600 10% 10% 1,000 800 5% 5% 500 0 0% 0 0% 1H 2022 1H 2023 1H 2022 1H 2023 GP GPM NP NP
Slide 7: Operating Expenses Analysis
Operating Expenses Analysis For the 6 months ended 30 Jun (RMB '000) 2023 2022 Change Selling & distribution expenses 81,135 124,736 (43,601) Administrative expenses 913,688 1,002,415 (88,727) Finance cost 146,258 103,557 42,701 Operating Expenses 1,141,081 1,230,708 (89,627) % to Revenue 9.87% 9.05
Slide 8: Net Profit Analysis
Net Profit Analysis For the 6 months ended 30 Jun (RMB '000) 2023 2022 Change Net Profit to Equity Holders 2,126,829 2,366,616 (239,787) Less: Government Incentives 169,284 162,598 6,686 : Net Exchange Gain 243,663 617,230 (373,567) Net Profit Excluding Government Incentives & Exchange Gain & 1,713,
Slide 9: Expenses Analysis by Nature
Expenses Analysis by Nature For the 6 months ended 30 Jun (RMB '000) 2023 2022 Change Employee benefit expenses: Wages and salaries 2,906,471 3,600,922 (694,451) Retirement benefit contributions 339,110 344,538 (5,428) Other benefits 120,134 173,472 (53,338) Total 3,365,715 4,118,932 (753,217) Depre
Slide 10: Dividend and Payout Ration
Dividend and Payout Ration (HK$) 2.2 65% 62.40% 60.30% 2.0 60% 56.20% 53.40% 53.36% 55% 1.8 50.70% 50.67% 50.50% 51.18% 50.70% 50% 46.55% 45.73% 1.6 45% 0.85 1.10 1.4 1.00 0.57 40% 0.90 1.2 35% 31.35% 30.62% 29.97% 29.60% 0.75 1.0 30% 25% 0.8 0.85 0.72 0.65 20% 0.6 1.06 1.06 15% 0.50 0.55 0.90 0.90
Slide 11: Domestic and International Cotton Prices
Domestic and International Cotton Prices (RMB/tonne) 元/吨 28,000 CC Index3128B（中等级） 170.00 26,000 FC Index M（中等级进口棉价格指数） 1%关税 24,000 FC Index M（中等级进口棉价格指数） 滑准税 150.00 国际CotlookA(远东) 1%关税 22,000 国际CotlookA(远东) 滑准税 20,000 130.00 18,000 110.00 16,000 14,000 90.00 12,000 70.00 10,000 8,000 50.00
Slide 12: Turnover Breakdown by Products
Turnover Breakdown by Products ❖ Revenue from sales of sportswear decreased mainly due to the decrease in sportswear products order demand in both the US and European markets ❖ Recorded increase in casual wear sales was led by the increase in demand in the PRC and Japan market ❖ Revenue slightly inc
Slide 13: Turnover Breakdown by Regions
Turnover Breakdown by Regions ❖ Both US and European market recorded decrease in sales, which were primarily due to the decrease in demands for sportswear ❖ Recorded a slightly increase in revenue in the Japanese market mainly due to an increase in demand of casual wear ❖ A slightly sales decrease i
Slide 14: Key Financial Indicators
Key Financial Indicators 2023.06.30 2022.12.31 2022.06.30 Inventory turnover days 127 109 125 Debtor turnover days 75 56 55 Creditor turnover days 20 20 24 2023.06.30 2022.12.31 2022.06.30 Gross gearing ratio (debt to equity) (%) 33.5 29.9 33.5 Current ratio (times) 2.2 2.6 2.2 Cash and cash equival
Slide 15: Inventory Turnover Days Analysis
Inventory Turnover Days Analysis 160 140 139 140 135 129 127 124 122 125 125 120 116 116 120 109 100 80 60 40 20 0 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023
Slide 16: Inventory
Inventory (RMB’000) 30-Jun-23 31-Dec-22 % 30-Jun-22 % Raw materials 1,241,118 1,224,123 1.4 1,522,526 (18.5) Work in progress 3,027,303 2,925,493 3.5 3,620,438 (16.4) Finished goods 2,209,152 2,247,586 (1.7) 2,886,946 (23.8) 6,477,573 6,397,202 1.3 8,029,910 (19.3) Provision (158,078) (136,399) 15.9
Slide 17: Treasury Management
Treasury Management (RMB’000) 30 Jun 2023 30 Jun 2022 Change Bank Interest Income 325,831 119,356 206,475 Other Interest Income/ Fair Value Gain 90,568 22,750 67,818 416,399 142,106 274,293 Less: Bank Interest Expenses 142,023 100,866 41,157 Other Interest Expenses on lease 4,235 2,691 1,544 liabili
Slide 18: Treasury Management (Cont'd)
Treasury Management (Cont’d) (RMB’000) 30 Jun 2023 31 Dec 2022 Change Cash & Cash Equivalents 10,365,717 7,369,498 2,996,219 Less: Bank Loan (10,760,034) (9,197,684) (1,562,350) Net (Debts)/ Cash (394,317) (1,828,186) 1,433,869 Long Time Deposits (+1 year) 6,889,203 2,940,984 3,948,219 Bank Deposit
Slide 19: Business Review
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Slide 20: Major Achievements in 1H2023
Major Achievements in 1H2023 Expansion of overseas production facilities ❖ New customer-specific factory has also commenced operation Vietnam ❖ Enhanced the application of automation equipment ❖ With approx. 4,500 current employees ❖ Production efficiency of new garment factory has Production been s
Slide 21: Major Achievements in 1H2023 (Cont'd)
Major Achievements in 1H2023 (Cont’d) Further improved digital management ecosystem realized informatization data collection and visualized management of the entire process from research and development, design, procurement, manufacturing, logistics, inspection and sales Improved the integrated plat
Slide 22: Major Achievements in 1H2023 (Cont'd)
Major Achievements in 1H2023 (Cont’d) Accelerated the promotion of green and low-carbon actions Added 6.3MW of installed rooftop photovoltaic power generation capacity, with the cumulative total installed capacity reaching 51.9MW, and will further expand the construction scale of rooftop photovoltai
Slide 23: Major Achievements in 1H2023 (Cont'd)
Major Achievements in 1H2023 (Cont’d) ESG achievements IR excellence Highly recognized suppliers
Slide 24: Optimization of Product Structure
Optimization of Product Structure Sportswear customers Casual wear customers ❖ Strengthened cooperation with strategic customers by prioritizing the allocation of production resources and Increased sales to domestic brand customers, the Group also introduced certain quality new clients ❖ Revenue fro
Slide 25: Strategies & Plans
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Slide 26: Future Strategies
Future Strategies ❖ Continue to deepen the integration of the industrial chain and gain market share with high-quality ❖ Adopt lean production products and innovative 01 and digital management technologies 04 to improve production efficiency 02 ❖ Deepen customer 03 relationships with value creation
Slide 27: Open Forum
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Shenzhou International Group Holdings — H1 2023 Earnings Presentation on 6ix