Zhejiang Semir Garment Co Ltd: A Mid-Year Financial Overview

In the dynamic world of textiles and apparel, Zhejiang Semir Garment Co Ltd, a prominent player in the consumer discretionary sector, has recently released its mid-year financial report for 2025. The company, listed on the Shenzhen Stock Exchange, has seen a mix of growth and challenges in its latest financial performance.

Financial Highlights

Zhejiang Semir Garment Co Ltd reported a net profit of 3.25 billion CNH for the first half of 2025, marking a significant 41.17% decrease compared to the same period last year. Despite this decline in profitability, the company’s revenue tells a different story. The total operating revenue reached 61.49 billion CNH, reflecting a modest year-over-year growth of 3.26%.

Operational Insights

The company’s operational performance reveals a nuanced picture. While the operating revenue increased, the net profit took a hit due to rising costs. The operating costs were reported at 32.77 billion CNH, up by 2.13%, and other expenses surged by 22.35%, totaling 22.76 billion CNH. These cost pressures have evidently impacted the bottom line, leading to the substantial drop in net profit.

Asset and Cash Flow Analysis

From an asset perspective, Zhejiang Semir Garment Co Ltd’s total assets stood at 171.41 billion CNH at the end of the reporting period, with accounts receivable amounting to 9.40 billion CNH. However, the company faced challenges in cash flow management, as the net cash flow from operating activities was negative, at -2.77 billion CNH.

Market Position and Outlook

Despite the financial headwinds, the company’s overall financial health over the past five years has been robust, characterized by strong growth, operational, and profitability capabilities, along with good asset quality and solvency. The company’s focus remains on casual wear and children’s apparel, with its main operations based in Wenzhou, China.

Upcoming Events

In response to the financial results, Zhejiang Semir Garment Co Ltd has announced the convening of its 2025 First Extraordinary Shareholders’ Meeting. This meeting is expected to address strategic decisions and future directions in light of the current financial performance.

Conclusion

As Zhejiang Semir Garment Co Ltd navigates through the challenges of rising costs and competitive pressures, its ability to leverage its strong market position and operational capabilities will be crucial. Investors and stakeholders will be keenly watching the company’s strategies to enhance profitability and sustain growth in the coming quarters.