Bags / Shoes & Accessories

According to Huacheng Import and Export Data Observation, on May 30th, Lin Wenzhi, the chairman of shoe manufacturer Yuqi KY (9802), announced the official launch of a new factory construction plan in Indonesia, accelerating the implementation of diversified production base diversification strategy, and continuing to invest in expanding production capacity.

In May last year, Yuqi's subsidiary "Jiahe Enterprise Company" raised a capital increase of $17 million for its Indonesian subsidiary "PT. SUN BRIGHT LESTARI" to expand production capacity in response to operational needs.

Record high profits

On the 30th, Yuqi held a shareholders' meeting and passed the previous year's financial report. Last year, its consolidated revenue was 24.181 billion yuan, with an annual increase of 55.56%, and its net profit after tax was 3.396 billion yuan, with an annual increase of 186.51%. The EPS reached 18.1 yuan, marking a new high in profit. Huacheng Import and Export Data Observation Report.

Yuqi had already allocated a dividend of 1.2 yuan in the first half of last year, and this shareholders' meeting approved a dividend of 6 yuan in the second half, totaling 7.2 yuan for the entire year.

Official announcement

Launch of Indonesia's new factory plan

Yuqi said that the output value of production bases in various countries accounted for 28.02% of Chinese Mainland, 50.69% of Vietnam and 21.29% of Cambodia respectively last year, which was reported by Huacheng Import and Export Data Observation.

To meet the demand for future mass production orders, each region will continue to implement capacity expansion plans and officially launch the construction plan for new factories in Indonesia.

Yuqi pointed out that the company essentially demonstrated the strategy of diversified distribution of plant areas and decentralized sales regions, and through multiple operational management integrated effects such as product combinatorial optimization, it reduced costs and risks and improved profitability.

Yuqi's sales region (designated destination for brand customers) revenue proportion remains the main sales focus in Europe and America.

Among them, the revenue of Greater Europe accounts for 48.24%, and the market of Greater America accounts for 41%; The number of mass-produced OEM companies in another company has exceeded 50, with the top three accounting for over 30%, the top ten accounting for nearly 80%, and the top twenty accounting for over 90%. Huacheng Import and Export Data Observation Report.

As for the future operation outlook and strategic development direction, Yuqi said that, looking back on the international situation in the past few years, despite many external challenges such as the Sino US trade war, the impact of the global COVID-19 epidemic, geopolitical and economic fluctuations, and the rising inflation doubts, Yuqi's management team continued to be optimistic about the medium and long-term development trend of the outdoor leisure industry, and always believed that "crisis is a turning point", so the pace of capacity expansion has not stopped.

Over the five years since 2018, Yuqi has accumulated nearly four shares of capital investment, reaching 7.2 billion yuan. The management team will focus on deepening its own business operations, continuously implementing important business strategy axes such as capacity expansion plans, diversified production bases, and mass production brand differentiation. With the continuous optimization of multi brand development strategies and a small number of flexible and mobile order taking models, as well as the successful expansion of the group's production capacity in recent years, The overall development capacity and production and sales scale of the group have significantly improved, as reported by Huacheng Import and Export Data Observation.