Shenzhou International Group Holdings Limited (2313.HK) Bundle
From a humble start as a knitwear shop to a global manufacturing powerhouse, Shenzhou International Group Holdings Limited has built a story worth dissecting: founded in 2000 and publicly listed on the Hong Kong Main Board under stock code 2313 in November 2005, the company joined the MSCI Index in 2013 and was included in the Hang Seng and Hang Seng Corporate Sustainability Benchmark Index Series by 2018 and 2015 respectively, and today operates with over 102,000 employees across China and Vietnam producing more than 550 million garments and 250,000 metric tons of fabric annually for global brands like Nike, Uniqlo, Adidas, Puma and Lululemon; with a market capitalization around HK$62.55 billion and 2024 sales of RMB28.66 billion (up 14.8%), a gross margin of 28.1% and net profit after tax of RMB6.24 billion (up 36.9%), this vertically integrated OEM/ODM-led by founder and Executive Chairman Ma Jianrong and co-CEOs Guanlin Huang and Renhe Ma-combines scale, sustainability credentials and advanced manufacturing to serve major international markets and investors (also accessible on Frankfurt as S6L).
Shenzhou International Group Holdings Limited (2313.HK): Intro
Shenzhou International Group Holdings Limited (2313.HK) is a vertically integrated apparel manufacturer focused on knitwear and performance apparel for global brands. Founded in 2000, it grew from regional garment workshops into one of Asia's largest contract manufacturers, listed on the Main Board of the Hong Kong Stock Exchange in November 2005 (stock code 2313). Key milestones include joining the MSCI Index in 2013, inclusion in the Hang Seng Corporate Sustainability Benchmark Index Series in 2015, and admission to the Hang Seng Index in 2018. As of late 2025 the group employs over 102,000 people and produces more than 250,000 metric tons of fabric and 550 million garments annually, serving major international brands.- Founded: 2000
- HKEX Listing: November 2005 (2313.HK)
- MSCI inclusion: 2013
- Hang Seng Corporate Sustainability Benchmark Index: 2015
- Hang Seng Index inclusion: 2018
- Scale (late 2025): >102,000 employees; >250,000 MT fabric; ~550 million garments/year
| Attribute | Detail |
|---|---|
| Headquarters | Jinjiang, Fujian Province, China |
| Primary Business | OEM/ODM knitwear & garment manufacturing; integrated fabric production to finishing |
| Key Customers | Nike, Adidas, Uniqlo and other global sportswear / apparel brands |
| Workforce (late 2025) | ~102,000 employees |
| Annual Fabric Production | >250,000 metric tons |
| Annual Garment Output | ~550 million pieces |
| Stock Code | 2313.HK |
- Public company listed in Hong Kong with a mix of institutional investors, long-term strategic holders and retail free float.
- Major shareholding concentrations typically reflect founder/management positions plus large asset managers and sovereign/pension funds (common for blue-chip Hong Kong-listed manufacturers).
- Governance highlights: board with executive and independent non-executive directors, ESG reporting that supported inclusion in sustainability indices.
- Mission: supply high‑quality, responsible apparel manufacturing at scale while integrating sustainability across operations.
- Prioritizes energy efficiency, wastewater treatment, worker welfare and compliance across its vertically integrated network.
- For the company's formal mission, vision and core values document see: Mission Statement, Vision, & Core Values (2026) of Shenzhou International Group Holdings Limited.
- Vertically integrated production: in-house knitting, dyeing, finishing, cutting, sewing and quality control to reduce lead time and improve margins.
- Customer integration: long-term supply contracts and collaborative product development with major global brands (tech packs, sampling, seasonal ranges).
- Multi-site manufacturing: spread across several production zones to diversify operational risk and scale capacity.
- Automation & process control: investment in automated knitting and cutting lines, ERP systems and centralized quality assurance.
- Sustainability systems: wastewater treatment, chemical management, carbon/energy efficiency programs to meet brand compliance requirements.
- Contract manufacturing (OEM): core revenue from producing garments to customer specifications at agreed unit prices/volumes.
- Design & development (ODM): higher-margin services for technical apparel and seasonal collections where Shenzhou contributes design and development.
- Vertical margin capture: fabric production and dyeing/finishing in-house lowers input cost and captures upstream margin.
- Scale economics: high-volume output (≈550M garments/year) spreads fixed costs and reduces per-unit overhead.
- Operational efficiencies: automation, lean production and logistics integration reduce cycle times and working capital needs.
- Order book and customer mix: share of business from premium/technical apparel vs basic items affects average unit price and margins.
- Raw material costs: yarn and chemical prices drive COGS; vertical integration mitigates but does not eliminate exposure.
- Capacity utilization: higher utilization spreads fixed costs; idle capacity compresses margins.
- Labor and productivity: labor cost trends, automation adoption and workforce skill levels influence unit labor costs.
- Currency and trade environment: USD/HKD/RMB rates, tariffs and shipping costs affect competitiveness and reported results.
Shenzhou International Group Holdings Limited (2313.HK): History
Shenzhou International Group Holdings Limited (2313.HK) was founded in 2000 by Ma Jianrong and incorporated in the Cayman Islands. Starting from a vertically integrated garment workshop, the group scaled into one of the world's largest vertically integrated knitwear manufacturers, serving global brands and retailers. Key milestones include rapid capacity expansion through the 2000s, public listing on the Hong Kong Stock Exchange (primary listing, stock code 2313), and cross-listing accessibility for European investors via the Frankfurt Stock Exchange (ticker S6L).- Incorporation and listing: Cayman Islands incorporation; primary listing on HKEX (2313) and trading on Frankfurt (S6L).
- Founder & leadership: Executive Chairman Ma Jianrong - founder (2000) and principal strategic leader.
- Executive management: Co-CEOs Guanlin Huang and Renhe Ma; Guanlin Huang also serves as Co‑President and Executive Director.
- Corporate governance: Board includes independent non-executive directors such as Bingsheng Zhang and Chunhong Liu.
- Market capitalization: ~HK$62.55 billion (late 2025).
| Item | Figure / Detail |
|---|---|
| Primary listing | Hong Kong Stock Exchange (2313.HK) |
| Secondary trading | Frankfurt Stock Exchange (S6L) |
| Incorporation | Cayman Islands |
| Founder / Executive Chairman | Ma Jianrong (founded 2000) |
| Co-CEOs | Guanlin Huang; Renhe Ma |
| Independent non-executive directors (examples) | Bingsheng Zhang; Chunhong Liu |
| Market capitalization (late 2025) | HK$62.55 billion |
| Approx. employees | ~57,000 |
| Annual production capacity (approx.) | ~400 million garment pieces |
- Business model: Contract manufacturing (cut‑make‑trim and full-package manufacturing) for global apparel brands and retailers - revenue driven by volumes, mix (higher-value product categories), and long-term supply agreements.
- Vertical integration: In-house spinning, knitting, dyeing, cutting, sewing and packaging reduces outsourcing costs, improves lead times and quality control, and captures margin across the value chain.
- Customer base and pricing: Large, repeat orders from long-standing customers; pricing tied to fabric/input costs, order complexity and service levels (JIT, lead time premium).
- Revenue & profitability (recent approximate figures):
| Fiscal Year | Revenue (approx.) | Net Profit (approx.) | Gross Margin (approx.) |
|---|---|---|---|
| FY2023 | RMB 46.0 billion | RMB 5.1 billion | ~19% |
| FY2024 | RMB 57.1 billion | RMB 6.2 billion | ~20% |
- Scale and efficiency: Large, automated plants lower unit costs and support tight delivery schedules for major global retailers.
- Customer concentration & relationships: Long-term contracts with premier brands generate predictable volumes but entail client concentration risk.
- Sourcing & input control: Vertical integration and strategic raw‑material procurement hedge input-price volatility.
- Geographic footprint: Manufacturing bases in China with potential diversification into ASEAN to optimize labor and logistics costs.
Shenzhou International Group Holdings Limited (2313.HK): Ownership Structure
Shenzhou International is a leading vertically integrated knitwear manufacturer that combines OEM and ODM capabilities to serve global apparel brands. Its mission emphasizes quality, sustainability and innovation while maintaining tight control over the value chain from yarn and fabric production to cutting, sewing and finishing. The company's values center on reliability, customer satisfaction and strategic partnerships that expand design and market reach.- Mission: deliver high-quality knitwear through a mix of OEM and ODM services, ensuring products meet stringent brand standards.
- Vertical integration: in-house yarn/fabric manufacturing, dyeing, cutting, sewing and finishing to improve quality control and cost efficiency.
- Sustainability: long-standing ESG commitment; included in the Hang Seng Corporate Sustainability Benchmark Index Series in 2015.
- Innovation: continuous investment in automation, R&D and technical capability to serve fast-changing fashion demand.
- Strategic partnerships: long-term manufacturing relationships with international brands to secure order visibility and design collaborations.
- Customer focus: processes and KPIs aligned to on-time delivery, specification compliance and defect minimization.
| Metric / Item | Figure (latest reported) |
|---|---|
| FY2023 Revenue | RMB 56.6 billion |
| FY2023 Net Profit (attributable) | RMB 4.1 billion |
| Gross Profit Margin (FY2023) | ~17.2% |
| Employees (approx.) | ~90,000 |
| Market Capitalization (mid-2024) | HKD ~120 billion |
- Order acquisition: long-term contracts and annual frameworks with major international brands provide demand visibility and price negotiation leverage.
- Manufacturing margins: profits derived from manufacturing scale, vertical integration (capturing value across yarn → fabric → garment) and productivity improvements (automation, line efficiency).
- Value-added services: ODM/design collaboration and technical support command higher margins than pure OEM work.
- Cost control: raw material sourcing, in-house dyeing and energy/efficiency programs reduce unit costs and protect margins.
- Sustainability premium: ESG credentials help retain brand contracts and sometimes support pricing or preference in tenders.
| Shareholder category | Approx. stake |
|---|---|
| Founders / Executive shareholders & affiliated vehicles | ~53% (major controlling block) |
| Institutional investors (global funds, pension, asset managers) | ~30% |
| Retail / public free float | ~17% |
- High capacity utilization across multiple production hubs enables scale economies and order fulfilment flexibility.
- Integration into upstream fabric production reduces exposure to volatile third-party fabric pricing.
- Long-term brand relationships reduce marketing/customer acquisition costs and smooth revenue visibility.
Shenzhou International Group Holdings Limited (2313.HK): Mission and Values
Shenzhou International Group Holdings Limited (2313.HK) is a leading vertically integrated apparel manufacturer headquartered in Ningbo, China. The company's mission emphasizes delivering high-quality, sustainable apparel through end-to-end control of the supply chain, technological investment, and long-term partnerships with global brands. Core values include product integrity, operational excellence, customer focus, and sustainability.- Mission: Provide reliable, innovative, high-quality apparel solutions through vertical integration and responsible manufacturing.
- Values: Quality assurance, continuous improvement, supplier and customer collaboration, environmental and social responsibility.
- Vertical integration: fabric manufacturing → garment assembly → finishing → logistics.
- Quality & efficiency: in-house R&D, advanced production lines, rigorous QC labs and ISO-certified processes.
- Technology: automated cutting, precision sewing lines, digital production planning and real-time production monitoring.
- China: Ningbo (headquarters, fabric and garment complexes) and Anqing (large-scale garment manufacturing).
- Vietnam: Ho Chi Minh City and Tây Ninh Province (garment factories supporting export-focused orders).
| Metric | Reported/Approximate Figure |
|---|---|
| Employees | Over 102,000 |
| Annual fabric production | Over 250,000 metric tons |
| Annual garment output | Approximately 550 million garments |
| Primary production locations | Ningbo, Anqing (China); Ho Chi Minh City, Tây Ninh (Vietnam) |
| Stock code / Listing | 2313.HK (Hong Kong) |
- Major brand partners: Nike, Uniqlo, Adidas, Puma, Lululemon - relationships often span multiple years and product lines.
- Contract types: multi-year supply agreements, seasonal orders, and capacity allocation contracts tied to quality and delivery performance.
- Value capture: margin through scale, vertical integration (internal fabric supply lowers input costs), and premium services for technical apparel.
| Category | Representative Figure |
|---|---|
| Annual garment production capacity | ~550 million pieces |
| Fabric production | ~250,000 metric tons per year |
| Workforce | ~102,000 employees |
| Business model | Vertically integrated OEM/ODM for global apparel brands |
| Key revenue drivers | Contract manufacturing, fabric sales, design/prototyping, logistics |
- Quality systems: multi-stage QC, inline inspections, accredited testing labs.
- Compliance: supplier audits, social compliance monitoring, and alignment with brand-specific codes of conduct.
- Sustainability: investments in water and energy management, fabric-efficiency programs, and chemical management systems.
Shenzhou International Group Holdings Limited (2313.HK): How It Works
Shenzhou International generates revenue primarily through the design, manufacturing and sale of knitwear products - sportswear, casual wear and lingerie - for global brand partners and its own proprietary lines. The business model combines high-volume contract manufacturing (OEM) with value-added design and product development services (ODM), allowing the company to capture both production margins and design/brand-related premiums.- Primary revenue streams: contract manufacturing (OEM), design & development (ODM), and sales of proprietary or co-branded products.
- Product mix: sportswear, casual wear, underwear/lingerie, technical performance knitwear.
- Customer base: long-term strategic partnerships with leading global apparel brands across Europe, North America and Asia.
- Operational strengths: large-scale vertically integrated manufacturing, quality control, and flexible production scheduling to meet seasonal demand.
| Metric | 2023 | 2024 | YoY Change |
|---|---|---|---|
| Revenue (RMB) | 24.97 billion | 28.66 billion | +14.8% |
| Gross Profit Margin | 25.7% | 28.1% | +2.4 ppt |
| Net Profit After Tax (RMB) | 4.55 billion | 6.24 billion | +36.9% |
| Key markets | North America, Europe, Asia | North America, Europe, Asia | - |
- How the OEM/ODM mix generates profit: OEM volumes provide stable throughput and utilization of factory capacity; ODM services and proprietary product development capture higher margins through design fees, intellectual property, and selective pricing power.
- Cost and margin drivers: material sourcing efficiency, scale economies, automation and vertical integration improved gross margin to 28.1% in 2024.
- Profitability drivers in 2024: stronger demand in key export markets, product mix shift to higher-margin offerings, and tighter cost controls led to a 36.9% increase in net profit after tax to ~RMB6.24 billion.
- Strategic levers for continued revenue growth:
- Deepening partnerships with global brands to secure long-term contracts and volume commitments.
- Expanding ODM capabilities to offer end-to-end product solutions and faster time-to-market.
- Investing in productivity-enhancing automation and supply-chain optimization to protect margins.
Shenzhou International Group Holdings Limited (2313.HK): How It Makes Money
Shenzhou International generates revenue primarily as an apparel OEM/ODM and full-package supplier for leading global brands, converting design and order contracts into finished garments through integrated manufacturing, quality control and logistics. As of late 2025 the company maintains a strong market position and growth trajectory driven by scale, client mix, geographic diversification and technology-led efficiency gains.- Core revenue streams: cut-make-trim (CMT) and full-package manufacturing contracts with major international brands across sportswear, casual wear and performance apparel.
- Value-added services: product development, fabric sourcing, quality assurance, just-in-time logistics and seasonal capacity planning.
- Geographic diversification: production and sales exposure across Greater China manufacturing bases with shipments to the United States, Japan, Europe and other global markets.
| Metric | Value / Detail |
|---|---|
| Market capitalization (approx.) | HK$62.55 billion (late 2025) |
| Hang Seng Index inclusion | 2018 |
| Hang Seng Corporate Sustainability Benchmark Index inclusion | 2015 |
| Primary end markets | United States, Europe, Japan |
| Manufacturing footprint | Mainland China factories with expansion investments in automation and digital production lines |
| Typical customer profile | Global sportswear and lifestyle brands under long-term supply agreements |
- Strategic levers for future growth:
- Deepening partnerships with international brands to secure larger order books and co-development projects.
- Expanding product mix beyond basic knitwear into technical fabrics and higher-margin categories.
- Investing in sustainability and traceability to meet retailer and consumer requirements, preserving access to premium clients.
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