What Does Shenzhou International Rely On?

Speaking of Nike, Adidas and UNIQLO, we are all familiar with it, but few people know that behind these international brands is Ningbo's knitting garment enterprise Shenzhou International.

In March 1990, Shenzhou sailed. In the past thirty years, Shen Zhou has been concentrating on its main business. On the road that looks like the sunset industry, the world is the largest vertically integrated garment manufacturer in the world.

In July 27th, Shenzhou also sounded its new round of industrial upgrading and development horn - a sum of more than 7 billion yuan for investment and construction of a series of new capacity and technological transformation projects. Under the background of the global trading environment is uncertain and most enterprises are hesitant, Shen Zhou once again took the initiative to plan and deal with it. Its courage and foundation confirmed the original intention and mission of "made in Ningbo".

Tencent in the clothing industry

In this era of capital frenzy and profit, the garment and textile industry always gives people a sense of belonging in traditional industries. If we add an attribution to the front of the garment industry, the textile and garment enterprises will be more likely to be "disliked".

But when you enter Shenzhou International, this impression will be completely overturned. The company has not only the most advanced equipment in the world, but also the world's leading fabric and garment laboratory. Every 24 hours, 1 million 500 thousand garments and 600 tons of fabrics are laid off from their production line. Nike, Adidas, UNIQLO, Puma, Anta, Lining and other international well-known brands are from here.

In 2018, China's apparel and textile industry had a gross profit margin of 15.1%, a net profit margin of 5.89%, a gross profit margin of 31.6% of Shenzhou International, and a net profit margin of 21.4%. Tencent is regarded as the most profitable enterprise in China. In 2018, the gross profit margin of Tencent was 30%, and its net profit margin was 26%. It was said that Foxconn was the most successful foundry in the world, but the net interest rate of 2018 was 4%.

At present, Shen Chau's international market value is HK $167 billion 200 million, which is equivalent to 147 billion RMB, and its market value has increased 50 times since its listing in 2005. It is the highest market value company in Ningbo. By the end of June, it ranked seventy-ninth in the market capitalization of Chinese listed companies. This market value even exceeds BYD, Ctrip, Qingdao Haier, suning.com, Iqiyi and other well-known well-known enterprises.

In December 2018, Shenzhou International was selected as "the most investment value listed company" in the eighth Hongkong international financial forum and China Securities gold Bauhinia awards.

However, Ma Jianrong, chairman of Shenzhou International Board of directors, is not concerned about the glory of market value.

"Market value is changing all the time, and I don't think Shenzhou is the first thing to become the market capitalization of Ningbo enterprises. I hope that under the impetus of the 246 industry cluster cultivation project, Ningbo will emerge more than 100 billion enterprises in the 5~10 market, even more than Shenzhou." "The data I care about are the net assets of the enterprise," Ma Jianrong said.

At the end of 2018, Shen Zhou's net assets reached 22 billion 500 million yuan, an increase of 12 times compared with 2005.

　　 Technological innovation in the first place

"I am a fool, so I only do one thing from a cotton thread to a piece of clothing, but I believe that with our team of more than 80 thousand people in Shenzhou, I will be able to do a good job of clothing and textile." Ma Jianrong said.

So, as a top generation factory, how can Shenzhou International achieve high net interest rate and high growth? The answer is that technology has built its own moat.

What is high technology? In Ma Jianrong's eyes, "what we do not understand is not high technology. High technology must be combined with our industrial production. It is necessary to combine with the needs of consumers in the market, combine technology with materials, and get better cost and higher value."

In 1997, after taking Shen Zhou's "command" from his father, Ma Jianrong regarded technological innovation as the first priority to promote the development of enterprises.

In 1998, enterprises once got into trouble. But Ma Jianrong still invested 2 million 800 thousand dollars, which was equivalent to the profits of the year, all of which were used for the purchase of equipment.

After two years of hard work, the market has finally opened up, with tens of thousands of orders. Thanks to the advanced equipment, the accuracy of Shenzhou's printing and dyeing can reach 99%, and the highest level of its counterparts can only reach 70%. With the reduction of the defective rate, light will save 60 million yuan a year.

This experience made Ma Jianrong more willing to spend money on production equipment. In the next few years, Shen Zhou used almost 90% of its profits in technological improvements, such as tens of millions of dollars to introduce the most advanced knitting machines in the world at that time.

In 2005, Shenzhou was successfully listed in Hongkong. Ma Jianrong put all the HK $more than 900 million into technical upgrading and upgraded the equipment to the most advanced level in the world.

"Shenzhou needs three purposes in technological innovation: efficient, comfortable and skilled." Ma Jianrong said.

Today's clothing market is a market dominated by "fast moving consumer goods". For example, UNIQLO, which was commissioned by Shenzhou, announced that the cycle from design to shipment should be reduced to 13 days, or even shorter. This is especially important in Shenzhou.

"We can make 5 million orders, and we can make 500 orders, but there are different requirements for each order. How can we respond quickly? How can we make a reasonable arrangement? The integration of big data and Internet of things will enable us to do that." Ma Jianrong said.

In this 7 billion 200 million yuan investment, Shenzhou will also invest most of its funds in R & D and upgrading of equipment to create a better new capacity.

　　 Global cards can not be separated from it.

It has been able to maintain a "glue like" partnership with Nike, Puma, Adidas and UNIQLO for a long time. Shen Zhou also has a pair of invisible wings.

For these international giants, the quality of a foundry depends not only on cost and technology, but on more valuable and convenient services, which is often referred to as "high added value".

According to the survey conducted by USFIA (American Apparel Association), in recent years, brand names tend to choose "fabric + OEM" integrated suppliers, and the willingness to choose from 37% to 59%. And the development of fabric is Shenzhou's masterpiece.

Shenzhou has established a chain of products from textile, printing, dyeing, design, tailoring to garments. The company has a world-class textile fabric research and development laboratory. Its persistence in fabric research and development is almost crazy. Ma Jianrong gave an example.

In order to develop a waterproof fabric for daily recreation, Shenzhou R & D personnel entered the American living environment to test the average time he could go out to the supermarket and go to work, and thus developed a waterproof fabric in 15 minutes.

"The reason is only 15 minutes, because the outdoor waterproof fabric is not breathable, and is not suitable for daily life, and the cost and the performance price ratio are not high. And 15 minutes of water resistance, not only to meet the needs of leisure, but also to prevent unnecessary needs, because he went to the supermarket, work may get caught in the rain for an average of 15 minutes.

In order to consolidate its core competitiveness, Shenzhou also plans to build its own fashion design and R & D center, and introduce global talent to upgrade again in fabric research and design.

At the same time, Shen Zhou is well versed in Chinese business intelligence. Nike and Adidas are the two giants in the sporting goods industry. In order to protect their trade secrets and avoid the production of homogeneous products, Shenzhou International has set up exclusive factories for Nike and Adidas in 2006 and 2007 respectively.

Considering the competition between the oligarchs, such a close move for the construction of exclusive factories has also deepened the binding of downstream clients.

Besides Ningbo Beilun, Anhui Anqing and Zhejiang Quzhou, Shenzhou also has production bases in Kampuchea, Vietnam and other Southeast Asian countries. The investment is also aimed at further increasing production capacity to meet the needs of the global market.

Take root in Ningbo, step forward

In the 14 years since its listing in Hongkong in 2005, Shenzhou has realized the leap growth of output value 9.3 times, sales revenue 7.5 times, tax contribution 12.3 times, pre tax profit 13 times, and export earning 4.2 times.

Local feelings and international vision make Shenzhou condense with surging power.

"Ningbo is my eyesight, the best business environment in the world, the highest efficiency of government, and the simplest relationship between government and business. So though I am not a native of Ningbo, I have long been determined to take root in Ningbo. Ma Jianrong said.

At present, Shenzhou's design, R & D, purchase orders and 65% capacity are all located in Ningbo. With the current 7 billion 200 million yuan investment and construction start up, Ningbo's central position in Shenzhou's globalization process is more prominent.

Because of choosing Ningbo as hometown, Shen Zhou cares about every landscape at his feet. He always uses the most green technology to produce and protect Ningbo's green hills and green hills.

Boiler heat energy reuse, printing and dyeing water reuse, resources can be reused, Shen Zhou will not waste. Shenzhou has set up a academician workstation at its International Textile Research Institute, employing two academicians as consultants, and a fellow academician focusing on the development and application of new fabrics and new materials. Another academician mainly studies how to reduce resource ownership, study environmental governance and green environmental printing and dyeing technology, and reach the "2025 zero emission" plan set by Shenzhou with sophisticated technology.

In the process of internationalization, Shenzhou has been committed to creating a reserve pool of resources suitable for multinational companies. In addition to actively introducing professional talents, Shenzhou also decided to spend three to five years to build a "core management talent pool".

Shen Zhou has a Shenzhou Management College. Every employee entering Shenzhou has the opportunity to receive training and education, so that ordinary grass roots workers can get promotion and create greater value.

Shenzhou also has the largest staff canteen in Shenzhou, the Shenzhou central kitchen, which provides free meals for 40 thousand employees of the company.

Every year, Shenzhou has invested hundreds of millions of dollars in improving the living environment of employees.

"Decent work, dignity life" is Shen Zhou's corporate culture. Ma Jianrong said that this is not a slogan to show off on the corporate wall, but should be a warning for corporate executives at all times.

The ROC starts up ninety thousand miles a day with the wind.

In the past thirty years, Ma Jianrong and Shen Zhou were in Ningbo, competing with a cotton yarn, competing with a piece of cloth, struggling with a drop of dyeing wastewater and competing against themselves. In the apparel industry, it has become one of the world's first vertically integrated garment manufacturers. This is the success of Shenzhou and the outcome of Ningbo's reform and opening up.

"I believe that as long as we keep calm and concentrate on one thing, stick to our main business, and remember our original intention, we will be able to do one thing well. Shenzhou must be a leading actor in Ningbo's fashion textile and garment industry. " Ma Jianrong said.