The Most Boring Company In China: Earn 20 Billion 900 Million In A Low Key Year, And Nike And Adidas Are Inseparable From It.

　 The most boring company in China

There is no shortage of hidden martial arts experts in the world. In the arena of clothing, Nike, Adidas, UNIQLO, Puma, Anta, and Lining are well-known brands. I believe no one will deny that they are the existence of big guys. Behind them, however, there is a more dominant heavy player, Ningbo Shenzhou Knitting Co., Ltd.

We haven't heard of it before. Do you know that all of the clothing giants mentioned above are inseparable from it?

As the largest garment processing enterprise in China, Shenzhou produces almost every product in our wardrobe, and nearly half of the sports leisure brand clothing we buy in the shopping mall is from the company.

To say that China's enterprises are most likely to be rich in prosperity, Shen Zhou dares to call second. Just by making clothes for each brand, today's Shenzhou, 24 hours a day, has 1 million 500 thousand garments and 600 tons of fabric from its production line. Its business market extends from Japan to Southeast Asia, and even to the remote hinterland of Europe.

In 2017, the total revenue of Shen Zhou was 18 billion 85 million yuan, with gross profit of 5 billion 671 million yuan. In 2018, its revenue reached 20 billion 950 million yuan, an increase of 15.8% over the same period, and a gross profit of 6 billion 614 million yuan a year. Some people have compared it with Tencent, one of the most profitable enterprises in China.

In 2018, the gross profit margin of Tencent was 45%, its net profit margin was 26%, while Shenzhou's gross profit margin was 31.6%, and its net profit margin was 21.4%. The profit margin is almost equal to that of Tencent. We should know that the gross profit margin of peer enterprises in the same year is only 15.1%, while the net profit margin is only 5.89%.

Thanks to its strong operating efficiency, Shen Zhou's market value has also been as high as 170 billion 616 million, which directly exceeds that of Anta and Hai Lan's home. There is no doubt that Ningbo Shenzhou has become the "king of foundry" worthy of the international apparel industry.

In 14 years, the market value has increased 50 times.

Shenzhou group was founded in 1988 and its current chairman is Ma Jianrong.

At that time, Shen Zhou belonged to state-owned assets. It was a garment processing enterprise established by the Ningbo municipal government to solve local employment problems. In the early days of the company, Ma Jianrong's father, Ma Baoxing, was the backbone of the company. The important contribution was to open the Japanese market for the company. Under the influence of his father, Ma Jianrong began to work in Shenzhou at the age of 25, and gradually formed his own knowledge system about textile technology and enterprise management.

In 1997, when Ma Baoxing retired, Ma Jianrong had just taken Shen Zhou from his father and ushered in his first challenge. At that time, UNIQLO asked customers to complete the production of 350 thousand garments in 20 days. Ma Jianrong understands that this is both a challenge and an opportunity. So he led the staff to work at full speed, and several days later, they hurried on schedule and finished the task on schedule. In this war, he won more credibility and cooperation opportunities for Shenzhou and became the largest supplier of UNIQLO in the world. In the same year, the Asian financial crisis broke out, Shen Zhou ushered in the biggest turning point in history. Management basically sold all the shares to Ma Jianrong. From this, Ma Jianrong officially fully grasps Shenzhou. After the equity transfer, Ma Jianrong started a series of hard core actions in order to gain more room for development. First of all, spend 30 million of the sewage treatment plant, deal with the pollution problem of the processing plant and break the worries behind it. Subsequently, seek listing, and strive to expand the scope of business and upgrade equipment. In 2005, Shenzhou successfully realized this vision and was successfully listed on the HKEx, and was endorsed by Nike, Adidas and Puma to win the orders of the three largest customers.

In addition, overseas garment factories should be set up overseas to expand their hinterland. For example, in 2006, Shenzhou set up its own Nike special factory and Adidas special factory in Kampuchea. Although it is processing many brands at the same time, Shenzhou has been completely independent in all production processes, protecting each other's trade secrets and winning the trust of customers.

After years of training, Shenzhou has gradually developed a complete and mature clothing processing system. Brands including Nike, Adidas, Puma and UNIQLO are all long-term stable international customers. In addition, it has deep cooperation with domestic sports giants, such as Anta and Lining. Up to now, Shenzhou International has HK $106 per share, and its total market value is HK $159 billion 342 million. Since its listing in 2005, its market value has increased by 50 times. It is the highest market value enterprise in Ningbo.

　　 What can Shenzhou kill?

Why can Shenzhou drop off a few blocks and become a unicorn in this generation of processing industry market? This is because Shenzhou has formed a complete production system and has the competitive advantage that its peers can not match.

First, the integrated production mode with high efficiency.

In order to improve production efficiency, Shenzhou has invested a lot of capital to improve its production management system over the years. Today, Shenzhou has formed an integrated process from weaving to finished products. It has many advantages, such as strong profitability, deep moat, short delivery time, and strong innovation ability.

Second, the company is favored by international leading brands. Shenzhou has achieved a very high standard in special factories, energy saving, environmental protection, staff care and supplier management. This has met the requirements of the international leading brands on the comprehensive aspects of processing plants, so they have been highly recognized and favored by them.

　　 Third, we must have a forward-looking strategy to open the broad future of traditional industries. In order to deal with many bottlenecks in traditional industries, such as recruitment difficulties, environmental pressures, and price rises of raw materials, etc. Shenzhou not only expands the production capacity through integrated mode to protect the short-term steady growth, but also promotes intelligent manufacturing through continuous automation research and development. In the next 3-5 years, it will build an unmanned factory and take the lead in realizing intellectualization in the industry, which is expected to break the ceiling of traditional industries.

From the small factory in 80s to the largest clothing manufacturer in China, Shenzhou has been in the vicinity for nearly thirty years.

In the past thirty years, the clothing market has experienced ups and downs and capricious changes. However, the company has grown stubborn in silence, and its market value has risen nearly 50 times.

Here we have seen: the master who is not aware of the past, the blockbuster, and the outburst in silence, is beyond your imagination.