Zhejiang Sunrise Garment Group Co Ltd

Shengtai Group released its 2026 half-year report. First-half net profit attributable to the parent was 160 million yuan, up 413.5% year on year. Operating revenue was 1.8 billion yuan, up 0.6% year on year. Net profit attributable to the parent excluding non-recurring items was 11.1 million yuan, down 59.9% year on year. Net operating cash flow was 265 million yuan, down 40.3% year on year. In the second quarter, net profit attributable to the parent was a loss of 5.15 million yuan, down 147.5% year on year. The company is mainly engaged in the cultivation of cotton and flax, spinning, production and sales of textile fabrics and garments. During the reporting period, it completed construction of a 125,900-spindle smart spinning project and put it into production, and plans to acquire equity in a Vietnamese flax textile company.

Sunrise Group announced that its controlling shareholder, Ningbo Sunrise Textile, increased its holdings of the company's A-shares by a total of 4.13 million shares through centralized competitive bidding from June 30, 2026 to July 20, 2026, accounting for 0.74% of the company's total share capital, with a total investment of 23.88 million yuan. The share increase plan has not yet been fully implemented, and Ningbo Sunrise will continue to increase its holdings as planned. In the first quarter of 2026, Sunrise Group achieved revenue of 904 million yuan and net profit attributable to the parent company of 165 million yuan.

Sunrise Group's wholly-owned overseas subsidiary HAI MINH plans to acquire a 58% stake in Golden Eagle held by Zhejiang Golden Eagle Co., Ltd. for USD 13.34 million. Prior to the acquisition, Sunrise Group already indirectly held a 42% stake in Golden Eagle through its wholly-owned subsidiary Xinma Garment Co., Ltd. Upon completion of this acquisition, the company will indirectly hold a 100% stake in Golden Eagle, making it a wholly-owned overseas sub-subsidiary and consolidating it into the financial statements. In the first quarter of 2026, Sunrise Group achieved revenue of RMB 904 million and net profit attributable to the parent of RMB 165 million.

Sunrise Group disclosed an earnings forecast, expecting net profit attributable to the parent for the first half of 2026 to be between 150 million yuan and 180 million yuan, a year-on-year increase of 380.66% to 476.79%. Deducted non-recurring net profit is expected to be between 10 million yuan and 15 million yuan, a year-on-year decline of 45.79% to 63.86%. The company stated that the significant growth in net profit attributable to the parent was mainly due to the disposal of equity in a non-core subsidiary during the period, generating substantial asset disposal gains that boosted profit. The decline in deducted non-recurring net profit was because the Henan smart textile project is still in its ramp-up phase, with returns insufficient to cover current costs and period expenses. Based on the closing price on July 14, Sunrise Group's current price-to-earnings ratio is approximately 18.26 to 21.94 times, price-to-book ratio is about 1.32 times, and price-to-sales ratio is about 0.96 times.