Shenzhou Is Well-Positioned to Benefit From Entrenched Relationships With Global Sportswear Giants

We have a strong conviction in Shenzhou’s ability to continue serving as the dominant supplier for global apparel giants. The firm is well-positioned for growth, thanks to the combination of its strong R&D capabilities and entrenched relationships with leading brands. Shenzhou’s business expansion will be driven by: 1) growing demand for sportswear globally; and 2) brands' efforts in further consolidating their supplier bases. Efficiency improvements at existing plants and capacity expansions at new plants will enable the company to accept more orders, especially those from fast-growing brands like Lululemon.