Breaking Down Zhejiang Hangmin Co.,Ltd Financial Health: Key Insights for Investors

Zhejiang Hangmin Co., Ltd., founded in 1998 and headquartered in Hangzhou, stands as a vertically integrated textile printing and dyeing manufacturer exporting corduroy, cotton, stretch cotton, shirting, linen, non-woven and printed fabrics across Southeast Asia, the Middle East, North America, the EU, Hong Kong and Macau while operating thermoelectric generation, logistics and sewage treatment businesses; the company pairs a mission of innovation, quality and environmental responsibility with a vision to lead the global market-backed by a market capitalization of CN¥7.21 billion (as of July 1, 2025), a strong cash position of CN¥3.39 billion and minimal debt of CN¥40.6 million, and demonstrated financial momentum with ¥3.5 billion in revenue for 2023 (15% year‑on‑year growth) while investing approximately 10% of annual revenue in R&D and deploying advanced water recycling systems targeting a 30% reduction in water use over five years to align core values-customer focus, quality, pragmatic innovation, people‑orientation and win‑win cooperation-with measurable, results‑driven sustainability and long‑term partnership goals.

Zhejiang Hangmin Co.,Ltd (600987.SS) - Intro

• Founded: 1998 (Hangzhou, China)
• Sector: Consumer Cyclical - Textile Manufacturing & Related Services
• Core product lines: corduroy, cotton, stretch cotton, shirting, linen, non-woven, printed fabrics
• Value chain: textile production → dyeing/printing → logistics → energy generation → sewage treatment

• Deliver high-quality, sustainably produced textile fabrics that meet global fashion and industrial standards.
• Create value for customers and stakeholders through integrated manufacturing, energy efficiency, and end-to-end logistics.
• Maintain fiscal prudence to ensure long-term operational resilience and shareholder returns.

• To be a leading global textile supplier recognized for technological innovation, environmental stewardship, and supply-chain integration.
• Scale exports and partnerships to deepen presence in North America, EU, and emerging Southeast Asian markets while expanding value-added services.
• Leverage vertical integration to achieve low-carbon, cost-competitive manufacturing and circular textile solutions.

• Quality - stringent control across dyeing, printing, and finishing to meet international specifications.
• Sustainability - investment in energy generation and wastewater treatment to minimize environmental footprint.
• Integrity - transparent governance and conservative balance sheet management (cash-heavy, low debt).
• Customer Focus - responsiveness to design, delivery, and customization needs for global buyers.
• Innovation - continuous process improvement and adoption of advanced textile technologies.

• Optimize capacity utilization across fabric lines to improve gross margins and working capital turnover.
• Invest in energy and wastewater infrastructure to reduce unit costs and regulatory risk.
• Expand high-margin export channels and product mixes (printed and specialty fabrics) to diversify revenue.
• Maintain a strong liquidity position (CN¥3.39 billion cash) and keep leverage minimal (CN¥40.6 million debt) to enable opportunistic investments and shareholder returns.

Zhejiang Hangmin Co.,Ltd (600987.SS) - Overview

Zhejiang Hangmin Co.,Ltd (600987.SS) centers its corporate identity on innovation, quality and sustainability within the textile sector. The company's strategic priorities combine product excellence, environmentally responsible operations and long-term client partnerships to support expansion in global markets while emphasizing corporate social responsibility.

Mission Statement

To deliver high-quality textile products through continuous technological innovation and sustainable manufacturing practices, ensuring customer satisfaction and long-term value for stakeholders.

• Commitment to innovation in textile processes and materials.
• Focus on product quality and reliable supply-chain performance.
• Integration of environmentally responsible practices across operations.
• Building long-term partnerships with clients via continuous improvement.

Vision

To be a leading global textile enterprise recognized for technological leadership, sustainable production and exemplary corporate responsibility.

• Scale global presence while maintaining high environmental and social standards.
• Lead the industry in R&D-driven product and process advancements.
• Create value for customers, employees and communities through responsible growth.

Core Values

• Innovation - invest in R&D to drive competitive advantage and product differentiation.
• Quality - uphold rigorous quality control across design, production and delivery.
• Sustainability - minimize environmental footprint and adopt responsible resource use.
• Integrity - operate transparently and ethically with stakeholders.
• Customer-centricity - prioritize customer satisfaction and long-term collaboration.

Key Financial & Strategic Metrics (2023)

Further context on ownership, institutional holders and investor interest can be found here: Exploring Zhejiang Hangmin Co.,Ltd Investor Profile: Who's Buying and Why?

Zhejiang Hangmin Co.,Ltd (600987.SS) - Mission Statement

Zhejiang Hangmin Co.,Ltd (600987.SS) commits to producing high-quality textile products while embedding sustainability, innovation, and customer-centricity at the core of its operations. The mission centers on responsible growth, technological leadership in textile manufacturing, and the cultivation of enduring client partnerships.

Vision Statement

Zhejiang Hangmin aims to become a leading player in the global textile market by delivering premium products and scaling environmentally responsible practices across its value chain. Key vision pillars include:

• Global market leadership in selected textile segments (technical textiles, performance fabrics).
• Industry benchmark for sustainable manufacturing and circular water management.
• Trusted long-term partner for brand owners and industrial buyers through consistent quality and innovation.

Mission: Strategic Priorities & Targets

• Quality excellence - continuous improvement of production techniques and product offerings to maximize customer satisfaction.
• Sustainability - reduce environmental footprint with measurable targets (notably water reduction and recycling).
• Innovation investment - maintain technology and product leadership via sustained R&D commitment.
• Partnerships - foster long-term relationships with clients, suppliers, and communities.

Core Values

• Customer First - deliver consistent quality and responsiveness to build trust and long-term contracts.
• Integrity - transparent governance, compliance with regulations, and ethical business conduct.
• Innovation - reinvestment in R&D and adoption of advanced manufacturing technologies.
• Sustainability - proactive resource stewardship (water, energy, emissions) and circular practices.
• Collaboration - long-term partnerships with suppliers, clients, and research institutions.

Implementation & KPI Framework

Performance is measured through a focused KPI set tied to the mission and vision:

• Financial: revenue growth, gross margin, R&D ROI.
• Operational: defect rate, on-time delivery, production yield improvements.
• Sustainability: liters of water recycled per tonne of fabric, total water consumption reduction (%)-30% target in 5 years.
• Customer: Net Promoter Score, repeat order rate, contract retention.

Further corporate context and historical background: Zhejiang Hangmin Co.,Ltd: History, Ownership, Mission, How It Works & Makes Money

Zhejiang Hangmin Co.,Ltd (600987.SS) - Vision Statement

• Customer Focus - Treat customers as the foundation of a durable enterprise; prioritize responsiveness, customization, and lifecycle service to increase customer lifetime value and retention.
• Quality as Credibility - Uphold product and process quality as the basis for regulatory compliance and market trust; rigorous QA/QC and certification drive brand reputation.
• Realistic Innovation - Pursue pragmatic, evidence-based innovation across technology, products, services, and management systems to translate R&D into commercial outcomes.
• People-Oriented - Recognize employees as the primary productive force; invest in training, career pathways, safety, and wellbeing to unlock human potential.
• Win-Win Cooperation - Commit to integrity and unity with customers, employees, partners, and shareholders to build sustainable, mutually beneficial relationships.
• Continuous Improvement - Keep feet on the ground; embrace Kaizen-style incremental improvement to enhance customer satisfaction and develop a boutique brand.

• Customer-centric product roadmaps and post-sale services to increase repeat purchase rates and aftermarket revenue.
• Quality management investments (process controls, third-party certification) tied to reduction of returns, warranty costs, and regulatory incidents.
• R&D resourcing focused on incremental, commercially viable innovations and process optimization to compress time-to-market.
• Human capital programs including technical training, performance-linked compensation, and cross-functional career tracks.
• Partnership frameworks emphasizing long-term supply agreements, joint development, and transparent governance.

• R&D budget growth - targeting >20% YoY increase (reflected in R&D Spend column) to support realistic innovation initiatives and product upgrades.
• Quality CapEx - allocation to testing labs, production-line automation, and certification processes to lower defect rates and warranty reserves.
• People investment - training and talent retention budgets increased to support employee-centered growth and maintain operating continuity.
• Partner programs - strategic supplier financing and co-development funds to ensure supply integrity and joint innovation.

• Customer success teams and KPI-linked SLAs introduced to raise customer satisfaction and reduce churn.
• Lifecycle quality tracking system implemented to trace product issues back to specific process nodes, reducing rework and claims.
• Cross-functional innovation sprints to convert customer feedback into product features within 6-9 months.
• Employee stock/bonus mechanisms aligned to company performance to strengthen people-oriented culture and retention.