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According to Huacheng Import and Export Data Observation, the global shoe leader Baocheng Group originally planned to invest over 5 billion yuan to build an innovative research and development and smart manufacturing base in Taoyuan, but has recently announced the disposal of all land; Furthermore, the entire case is determined to be terminated.

Recently, it was rumored that Baocheng will transfer to India to invest and establish a factory, and the relevant investment plan is expected to be finalized soon.

In this regard, Baocheng stressed that in consideration of risk diversification and medium and long-term capacity planning, the Group continued to promote plant expansion plans in Indonesia, Cambodia and other places in Southeast Asia, and India with demographic dividend is also an option.

According to Huacheng Import and Export Data Observation, Baocheng has found land to establish a factory in India and has entered the relevant operating procedures.

The original plan was to build an intelligent manufacturing base worth 5 billion yuan

Stranded due to the epidemic

At the end of 2017, Baocheng purchased approximately 8868 acres of land near the high-speed railway station in Taoyuan City's Dayuan District for 2.017 billion yuan.

According to Huacheng Import and Export Data Observation, in November 2019, the board of directors of Baojian approved an investment of 3.297 billion yuan for the construction of a factory building project, which is expected to be contracted and started in early 2020.

Unexpectedly, the outbreak of the COVID-19 led to major uncertainties in the global economic outlook. In August 2020, Baocheng announced that the promotion would be postponed. The first phase of the case, together with land and buildings, had a total investment of more than 5.3 billion yuan.

Baocheng, on behalf of its subsidiary Baojian Enterprise, announced the disposal of the above-mentioned 8868 square meters of land, with a total transaction amount of 2.352 billion yuan and an expected disposal benefit of approximately 333 million yuan. Based on Baocheng's 51.11% stake in Baojian, each share can contribute approximately 0.057 yuan in profit, according to Huacheng Import and Export Data Observation.

Baocheng originally purchased land in Taoyuan and planned to expand its operations into the northern region, emphasizing a new operation and talent training base not far from Taoyuan Airport. The group hopes to attract more outstanding talents and strengthen its connection with major international brand customers.

Unexpectedly, the COVID-19 broke out, which severely damaged the global footwear industry, leading to the termination of the case.

The industry has revealed that Baocheng's long-standing smart shoe manufacturing base and "Adidas Innovation Research and Development Center" were originally set to settle here.

Baocheng's revenue kinetic energy recovery in March

The shoemaking business is still undergoing adjustments

In addition, Baocheng announced yesterday that its self closing and consolidated revenue for March was 21.334 billion yuan, a decrease of 3.4% compared to the same period last year, but an increase of 17% compared to the previous month; The cumulative consolidated revenue for the first quarter was 64.366 billion yuan, with a quarterly increase of 2.3% and an annual decrease of 4.3%. The shoe making and channel businesses have made progress compared to the previous month.

Baocheng's important subsidiary, Yuyuan Industrial, which holds 51.11% of the shares, had a self closing revenue of 697 million US dollars (equivalent to NT $21.222 billion) in March, with an annual decrease of 10.0%, including a 21.3% decrease in the shoemaking business; The cumulative revenue for the first quarter was $2.107 billion, a decrease of 12.0% annually, with a decrease of 18.1% in the shoe making business. This was mainly due to the impact of continuous inventory adjustments by brand customers, as reported by Huacheng Import and Export Data Observation.