Shenzhou International Issues Profit Warning on RMB Gains, Higher Costs
Shenzhou International (02313. HK) issued a profit warning, reporting shareholder-attributable profit of RMB 3.177 billion and earnings per share of RMB 2.11 for the comparable 2025 period. The company attributed the decline to higher raw material and labour costs, a significantly stronger RMB against the US dollar, and weaker demand that slightly reduced sales volume, all of which pressured gross margins and produced exchange losses versus gains a year earlier.
The company reported shareholder-attributable profit of RMB 3.177 billion and earnings per share of RMB 2.11 for the comparable period in 2025.
The company explained that the profit decline primarily reflects multiple challenges in its operating environment. During the period, rising raw material and labour costs, combined with a significant appreciation of the RMB against the US dollar and a slight decline in sales volume due to weak demand, negatively affected gross margins and resulted in exchange losses, whereas the comparable period in 2025 recorded exchange gains.