On October 2, SHENZHOU INTL fell 3.56% in regular trading, trading at HKD 33.52 per share, with turnover of approximately HKD 56.75 million.
On the news front, the company's previously disclosed interim results showed first-half revenue of RMB 14.18 billion, down 5.3% year-over-year, while net profit attributable to shareholders plunged 40% to RMB 1.905 billion. Gross margin contracted sharply by 4.5 percentage points to 22.6%, primarily driven by RMB appreciation against the USD, rising raw material and labor costs, and weaker demand from European and American sportswear clients. Operating cash flow also declined 28.5% year-over-year. The profit decline significantly exceeded the revenue drop, reflecting compounded margin pressure and foreign exchange revaluation losses on USD-denominated net assets.
Despite Chairman Ma Jianrong conducting multiple rounds of open-market purchases since early September — accumulating shares through SPLENDID STEED INVESTMENTS LIMITED to raise his stake to 43.78% — the market remains divided on the pace of gross margin recovery in the second half. Institutional fund Pzena Investment Management also increased its holding to 5.24% in mid-September, while JPMorgan trimmed its position to 6.95%.
The broader Apparel, Accessories and Luxury Goods sector traded weak on the day, with ANTA SPORTS down 1.08%, LI NING down 2.24%, SAMSONITE down 2.21%, LAOPU GOLD down 3.12%, and CHOW SANG SANG down 0.63%, adding sector-level drag to the stock.
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