Bags / Shoes & Accessories

On June 7th, the shareholders' regular meeting of Taiwan Baihe Group, a major Chinese shoe material manufacturer, completed a comprehensive election of directors, and Chairman Zheng Senmei was re elected.

After being re elected, Zheng Senmei announced that in line with the policy of diversifying production regional risks for American brand customers, Baihe Group will launch a plan to invest in India and establish factories, continuously deepening and optimizing the regional layout of Southeast Asian production bases.

Baocheng and Hongfu, the world's top two shoe manufacturers, announced to invest in India this year. The industry said: "This reveals that the general direction of the global shoe industry has been set!" And with the big factories taking the lead, KY (6768), the leading ambition of Football boot, also said that it plans to set up factories in India. Baihe is the first big shoe material factory to announce its follow-up.

According to Huacheng Import and Export Data Observation, currently, the production bases of Baihe Group account for 40% of revenue in mainland China, 29% in Vietnam, 18% in Taiwan, 10% in Indonesia, and 3% in North America, respectively.

The proportion of various products in revenue is 49.6% for woven/shoelaces, 14.1% for adhesive buckles, 12.2% for knitted warp knitted twigs, 13.3% for elastic bands, 7.3% for injection bands, 3.0% for others, and 0.5% for real estate sales. Huacheng Import and Export Data Observation Report.

Baihe Group Phase II

Two other factories will be put into operation next year

In recent years, Baihe has been actively expanding its factory and production. In addition to planning to establish a factory in India, the new factory located in Indonesia will be completed from the fourth quarter to the first quarter of next year, mainly producing webbing, shoelaces, elastic belts, and buckle belts. It is expected that after production in 2024, it can increase production capacity by 25%.

On the 7th, Zheng Senmei, Chairman of Baihe Group, stated that Taiwan's Baihe Military Branch will carry out new production capacity layout. Indonesia's Baihe new factory can start production of shoe and garment materials next year. Taiwan's Baihe Second Factory is expected to be completed in the second quarter of next year and will invest in dyeing and finishing processes such as yarn, ribbon, and colored yarn, accumulating operational growth momentum.

Zheng Senmei said that in recent years, the company has gradually increased its product categories, production capacity, and production capacity in Vietnam and Indonesia. In addition, it will continue to see performance in expanding other industries and expanding product applications. Huacheng Import and Export Data Observation Report.

In order to increase the company's revenue, Zheng Senmei stated that he plans to develop new products this year, including functional adhesive fabric, carbon fiber imitation CB Kori board, environmentally friendly paper fiber shoelaces/flat woven fabric, knitted cow ear wearing rope straps, hummingbird functional shoelaces, three-dimensional double-layer knitted belts, woolen woven fabric label/adhesive belt, and multi-color pattern reflective film.

Taiwan Baihe also announced a self closing consolidated revenue of 958 million yuan in May, a year-on-year decrease of 45.27%. In the first five months, the consolidated revenue was 4.784 billion yuan, a year-on-year decrease of 39.9%. Looking ahead to the second half of the year, Taiwan's Baihe Appraisal is expected to improve month by month, according to Huacheng's import and export data observation report.

Last year, affected by the Russo-Ukrainian War, inflation, interest rate rise and other adverse factors, Taiwan Baihe's costs increased significantly. In addition, real estate sales decreased significantly as it entered the final stage, which led to a decline in profits last year compared with 2021.

Taiwan's Baihe Vice President Ye Guizhu pointed out that Indonesia's Baihe new factory is scheduled to start production next year, with products mainly made of shoe and clothing materials.

Taiwan Baihe also provides accessories required by aerospace, medical, electronic, navigation products, virtual reality (VR) and Augmented reality (AR) manufacturers, and Huacheng Import and Export Data Observation Report.