How does Shenzhou International, which set a new record in the supply chain, achieve a net profit margin of over 20%?
Shenzhou International was born as a subcontractor. It uses professional terms called OEM, which means that a manufacturer produces products and product accessories for another manufacturer according to the requirements of another manufacturer. It is also known as OEM or authorized OEM. In the 2019 half-year report, Shenzhou International achieved total revenue of CNY 10.2 billion, an increase of 12.2% year-on-year, gross profit of CNY 3.175 billion, gross profit margin of 30.88%, net profit of CNY 2.416 billion, and a net profit rate of 22.7%.