Breaking Down Black Peony (Group) Co., Ltd. Financial Health: Key Insights for Investors

From its origins as Changzhou No. 2 Yarn-dyed Weaving Factory in 1940 to registering the 'Black Peony' brand in 1979 and pioneering Asia's denim market in 1981, Black Peony Co., Ltd. (600510.SS) has evolved into a vertically integrated textile powerhouse listed on the Shanghai Stock Exchange in 2002, reporting total assets exceeding 20 billion yuan and roughly 3,000 employees by 2021; today it trades with about 1.03 billion shares outstanding (float ~356.51 million), a market capitalization near 9.2 billion yuan, insider ownership of 0.92% and institutional holdings of 1.50%, while operating over ten plants with combined annual capacity above 15 million garments, achieving a ~25% production efficiency gain through automation in three years, exporting to more than 50 countries, holding certifications such as Oeko-Tex Standard 100, Zero Discharge of Hazardous Chemicals and SA8000, earning China Famous Brand accolades since 2005, generating revenue from denim fabrics and garments, real estate and industrial park operations, import-export activities and property services, and maintaining long-term partnerships with global retailers like Adidas and H&M.

Black Peony Co., Ltd. (600510.SS): Intro

• 1940 - Founded as Changzhou No. 2 Yarn-dyed Weaving Factory, entry into textile manufacturing.
• 1979 - Registered the 'Black Peony' brand, establishing a distinct market identity.
• 1981 - Expanded into denim production; recognized as an early pioneer in Asia's denim industry.
• 2002 - Listed on the Shanghai Stock Exchange (600510), improving access to capital and corporate governance.
• Since 2005 - Recipient of multiple national recognitions (China Famous Brand, Chinese Famous Product).
• 2021 - Reported total assets exceeding ¥20 billion and workforce of ~3,000 employees.

• Publicly listed entity: A-shares on Shanghai Stock Exchange (ticker 600510.SS).
• Major shareholders typically include a mix of state-owned entities, institutional investors, and founding group holdings (public filings identify significant stake concentrations among group affiliates and strategic investors-refer to latest annual report for precise percentages).
• Corporate governance: Board of directors, supervisory committee, and executive management aligned with PRC securities regulation for listed companies.

• Company mission centers on delivering high-quality textile and apparel products, leading in denim innovation, and maintaining recognized national brand standards.
• Core values emphasize craftsmanship, brand reputation, product quality, and sustainable operational practices.
• For the company's formal mission and vision statements, see: Mission Statement, Vision, & Core Values (2026) of Black Peony (Group) Co., Ltd.

• Vertical integration across fiber sourcing, yarn-dyeing, weaving, finishing, garment cutting, and distribution.
• Product mix includes denim fabrics, woven textiles, and finished apparel (private labels and OEM/ODM for domestic and international customers).
• R&D and design units focused on denim technologies, fabric finishes, and sustainable textile processes.
• Sales channels: wholesale to apparel manufacturers, partnerships with garment brands, and distribution to retail / e-commerce platforms.

• Fabric and materials sales: core revenue from yarn-dyed fabrics and denim rolls sold to apparel manufacturers.
• Finished garments and private-label manufacturing: margins from cutting, sewing, and finishing services.
• OEM/ODM contracts: stable, repeatable revenue via long-term manufacturing agreements.
• Branded product sales: retail and distribution of Black Peony-branded apparel in domestic markets.
• Value-added services: design, R&D-led specialty finishes, and sustainability certifications that command premium pricing.

• First-mover status in Asian denim production gives scale and know-how advantages.
• Vertical integration reduces input cost variability and supports quality control.
• Strong brand recognition domestically from long history and national awards.
• Listed status enhances access to capital for modernization and capacity expansion.

• Commodity price volatility (cotton, chemicals) affecting gross margins.
• Competition from lower-cost producers and fast-fashion supply chains.
• Need to continuously invest in environmental compliance and sustainable processes to meet regulatory and buyer expectations.

Black Peony Co., Ltd. (600510.SS): History

• Listed on Shanghai Stock Exchange under ticker 600510.SS.
• Expanded from a domestic manufacturing base to diversified operations across related sectors.
• Strategic investments focused on improving production efficiency and distribution reach.

• Publicly traded with a sizable public float (~356.51M shares) that supports liquidity.
• Low insider ownership (~0.92%)-management and directors hold a small stake.
• Modest institutional presence (~1.50%), indicating limited large-investor concentration.

• Deliver consistent, quality-manufactured products within its core industries.
• Enhance operational efficiency and supply-chain stability to support long-term growth.
• Maintain shareholder value through disciplined capital allocation and market expansion.

• Primary revenue drivers are sales of core manufactured goods across domestic channels and to industrial customers.
• Profitability depends on production scale, input cost management, and distribution efficiency.
• Capital structure and share base (≈1.03B shares) influence earnings per share and investor returns.

Black Peony Co., Ltd. (600510.SS): Ownership Structure

• Mission and values: commitment to producing premium denim through continuous innovation, strict quality control and lifecycle management from fiber to finished garment.
• Vertical integration: in-house spinning, dyeing, weaving, finishing and garment processing to control quality, lead times and margins.
• Sustainability: certified to Oeko‑Tex Standard 100 and aligned with Zero Discharge of Hazardous Chemicals (ZDHC) targets.
• Social responsibility: SA8000 Social Responsibility Management System certification and supplier-audit programs to protect worker rights and safety.
• Global reach: products exported to more than 50 countries and regions; strategic partnerships with renowned global apparel brands to strengthen reputation and repeat order flow.

• Upstream to downstream integration reduces third‑party costs and captures value across the supply chain (yarn → fabric → garment).
• Product R&D and wet-processing technologies (including indigo and sustainable dyeing) enable premium pricing on technical and fashion denim lines.
• Direct OEM/ODM contracts and branded-customer sourcing secure recurring revenue and improve capacity utilization.
• Exports and diversified customer base reduce single‑market risk while enabling scale economies.

Black Peony Co., Ltd. (600510.SS): Mission and Values

• Vertically integrated textile-to-garment production: in-house spinning, weaving/knitting, dyeing, finishing and garment processing to control quality, lead times and margins.
• Manufacturing footprint: manages over 10 manufacturing plants across China with a combined annual production capacity exceeding 15 million garments.
• Automation and efficiency: recent capital investments in robotics, automated cutting and smart factory systems have improved production efficiency by approximately 25% over the past three years.
• Import-export trading: engages in cross-border trade of industrial inputs and consumer goods, providing foreign-currency revenue streams and supply-chain arbitrage.
• Industrial and cultural parks: develops and operates specialty industrial science & technology parks and cultural & creative parks to generate recurring rental and service income while incubating industry partners.
• Urban development and property services: participates in urban infrastructure construction, real estate development and property management to diversify cash flow and land-value capture.

• Manufacturing margins: derive from vertical control (raw material sourcing to finished product) and scale efficiencies across >10 plants.
• Trade margins: realized through import-export arbitrage, logistics, and distribution contracts with domestic and international buyers.
• Property and park economics: recurring revenues from leasing, facility management, and services within industrial/creative parks plus project income from real estate development.
• Operational leverage: automation-driven cost reductions (c.25% efficiency gain) improve gross margins and throughput without proportionate headcount increases.

• Public listing: traded on the Shanghai Stock Exchange (600510.SS), subject to public reporting and governance standards.
• Corporate governance: board-led strategic planning couples industrial operations with property and park investments to optimize asset utilization and cash flows.
• Capital allocation: reinvestment into automation and park infrastructure has been prioritized to raise margin resilience and recurring-income ratios.

Black Peony Co., Ltd. (600510.SS): How It Works

• Core manufacturing - denim fabric and finished garments produced in vertically integrated facilities, sold to domestic apparel brands and exported to overseas buyers.
• Real estate development - affordable housing projects and urban infrastructure development delivered through property development subsidiaries and joint-ventures.
• Industrial science & technology parks - land development, facilities leasing, and supporting services to manufacturing and high-tech tenants.
• Cultural & creative park operations - adaptive reuse of industrial assets into creative clusters, generating rental income, event and IP-related revenues.
• Import-export trade - cross-border trading of textiles, accessories, machinery and consumer goods supporting manufacturing and external sales channels.
• Property services - asset/property management, maintenance and facility services for the group's real estate portfolio and third-party clients.

• Denim & Garment Manufacturing: Revenue earned from bulk fabric sales, branded/contract garments and value-added finishing services. Key unit economics include fabric yield per loom, average selling price (ASP) per meter and gross margin on finished garments (typically higher than commodity fabric).
• Real Estate Development: Income recognized on project completion and sales (affordable housing and mixed-use projects) plus recurring rental from completed assets. Development margins vary by project; land conversion and pre-sale policies affect cash timing.
• Industrial & Tech Parks: Recurring rental and service income from leased factory units, incubation service fees and infrastructure charges. High occupancy rates (target >80%) and multi-year leases create stable cashflow.
• Cultural & Creative Parks: Monetization through long-term leases to creative tenants, short-term events, exhibitions and related retail/food & beverage operations - margins depend on footfall and event cadence.
• Import-Export Operations: Trade margins on outbound textile shipments and inbound procurement of machinery/components. Export volumes smooth manufacturing seasonal swings and optimize utilization.
• Property Services: Fee-based revenue from facilities management, maintenance contracts and value-added tenant services, contributing steady recurring income and cross-selling opportunities within the group.

• Capacity utilization of looms and cut-and-sew lines - higher utilization reduces per-unit fixed cost.
• Product mix shift to higher-margin finished garments and specialty denim treatments (e.g., enzyme wash, laser finishing).
• Land-bank monetization and timing of property project deliveries - impacts cashflow and EBITDA from property sales.
• Leasing occupancy and rental escalation clauses in industrial and creative park contracts - underpin recurring revenue.
• Export contract terms (FOB/CIF), foreign exchange management and logistics efficiency affecting trading margins.

Black Peony Co., Ltd. (600510.SS): How It Makes Money

• Core revenue streams: OEM/ODM manufacturing for international brands, own-brand sales, and technical textile products.
• Key customers include long-term partners such as Adidas and H&M, which provide steady order flow and volume stability.
• Geographic mix: Majority of sales across Asia and Europe, with growing export share to North America.

• Profit drivers: scale efficiencies, product mix (premium denim and technical textiles), and fixed-cost absorption from higher factory utilization.
• Cost pressures: raw material volatility (cotton, dyes), labor costs, and shipping disruptions that can compress margins in weak demand periods.
• Strategic focus: increasing automation to lower unit labor costs, expanding higher-margin branded products, and deepening sustainable manufacturing capabilities.