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Sportswear revenue up sufficiently by 30.8%, Shenzhou International

04 Apr '11
5 min read

Further Optimization of Production Base Layout
When it continually expands its business scale, the Group pays careful attention to whether the layout of the production bases is optimal so as to capitalize on and combine the different strengths of various regions.

Following the establishment of the first garment factory in Cambodia in 2005, the Group's new garment factories in Anqing City, Anhui Province and Quzhou City in west Zhejiang Province have commenced production in the first and third quarter of 2009, respectively. During the year, the headcounts of the garment factories outside Ningbo City have been increased and the efficiency of the staff has been enhanced as the management teams matured.

The Group has learned valuable lessons on how to set up additional factories in other places from the successful operation of the Group's new factories outside Ningbo. The new dyeing and finishing factory of the Group in Ningbo Economic and Technical Development Zone has also been launched smoothly during the year, which has enhanced the fabric production capacity of the Group. The facilities in this new fabric factory are more advanced and consume less water and energy. The optimization of the layout of production bases has paved the way for the long-term development of the Group.

Further Improvement in Staff Welfare
In the face of rising labor costs, the Group has reduced its reliance on manual labor for production by enhancing staff efficiency through lean production management and largescale automation. On the other hand, it has also further improved the working and living environment of its staff during the year.

It has renovated and enlarged most of the staff quarters, shower rooms and canteen, and added other new and convenience facilities. The Group has arranged coaches for its non-local staff to return to their home towns during Chinese New Year and back to their workplaces after the festival at the expense of the Group. The Group's care for its staff has satisfactorily reduced its staff turnover and enhanced the outcome of its lean production measures.

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Shenzhou International Group Holdings Limited and its subsidiaries represent the largest vertically integrated knitwear manufacturer in China. The Group is principally engaged in the manufacture of high-end knitwear on an OEM basis. The Group was also the largest exporter of knitwear and the largest PRC textile supplier to Japan according to the 2004 report on the development of China's textile industry and the 2004 annual report on China's international trade in textiles and clothing.

Shenzhou International Group Holdings Limited

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