Bags / Shoes & Accessories

According to Huacheng Import and Export Data Observation, in 2022, the revenue and profit of shoe manufacturers Baocheng (9904), Fengtai (9910), and Zhiqiang KY (6768), which benefited from deferred orders and customers' active replenishment, reached record highs.

However, sports brand customers have been conducting inventory adjustments since Q4 2022, and shoe manufacturers have indicated that the order atmosphere they are currently experiencing is still conservative. Under the uncertainty of demand growth this year (2023), capital expenditure plans will be more carefully evaluated, as reported by Huacheng Import and Export Data Observation.

For Fengtai, the company maintains its long-term target of annual growth of 7-10%, but with regard to the expansion rate in 2023, the company indicates that it is likely to be lower than the average level, and capital expenditure will not recover too quickly in the short term unless it sees a significant rebound in consumption power.

According to Huacheng Import and Export Data Observation, Fengtai currently has a production capacity distribution of 9% in China, 14% in Indonesia, 51% in Vietnam, and 26% in India.

The operation headquarters of Zhiqiang KY Group is located in Taichung City, Taiwan, China, China, with six factories in Vietnam and Cambodia.

The project of a new factory in Indonesia with high market attention is continuing, and it is expected that the factory will be completed in the second half of 2023. However, the company said that it will observe the demand in the future to determine whether the machine will be stationed. Based on the current orders, it is still sufficient to rely on the production capacity of Vietnam and Cambodia to support it. Huacheng Import and Export Data Observation Report.

As for Baocheng's lack of clear figures on the expansion direction for 2023, the company emphasizes that it will continue to pay attention to changes in the external operating environment, appropriately expand production capacity, and maintain maximum flexibility in capacity allocation.

According to the legal person's estimation, Baocheng will produce about 270 million pairs of shoes in 2022, and its production base will be located in Changhua, Taiwan, Chinese Mainland, Vietnam and Indonesia. The company will continue its diversified layout strategy. At present, the latest plan is for the evaluation of the establishment of factories in "India". The company emphasizes that this plan is still in the initial evaluation stage, and it will take time before it really starts mass production. Huacheng Import and Export Data Observation Report.