The Shoe Giant Announced Three New Shoe Factories!

On May 31st, the two shoe giants Baocheng and Fengtai are holding their regular shareholders' meeting.

Wang Jianhong, Chairman of Fengtai, revealed that in addition to OEM shoes for Nike, this year's new factories in Vietnam's Binh Thuan Province's Nam Ha Small Industrial Zone and India's Third Industrial Zone will be planned to produce non-"Nike" shoes to drive the group's shoe production capacity, and the buildings of Fengtai's new factory in Indonesia have also been completed.

Looking ahead, Fengtai emphasizes that the focus of factory expansion will be on India, which has a demographic dividend.

Although the international economic situation remains uncertain this year, the management team will continue to invest in technological innovation, process improvement, automation, management, personnel training and environmental protection to enhance competitiveness and meet future challenges, in order to pursue sustainable development and improve business performance, said Mr. Chen Chiu-chi, President of Fengtai.

Pou Chen said that despite the operational pressure, the gross profit margin of the footwear manufacturing business has been improving quarter by quarter through dynamic optimization of capacity allocation and continuous enhancement of production efficiency to effectively offset the negative impact of declining capacity utilization.

Last year, the unstable international situation and inflation affected the purchasing power of consumers and impacted the sales of brand owners, resulting in a decrease in customer orders.

For the footwear industry, the demographic dividend is very important, but this year's boom is not so clear, Fengtai for the second half of the operation is still conservative and cautious, but this year's overall operation should be better than last year.

Baocheng make good use of the manufacturing advantages of various places to build a diversified production base, covering Indonesia, Vietnam, mainland China, etc., will continue to flexibly configure production capacity, and promote the medium- and long-term production capacity layout strategy, including the preparation of a new plant in India, to support the sustainable growth of the footwear manufacturing business.

In terms of this year's outlook, Baocheng said that although the macroeconomic outlook remains uncertain, the company is cautiously optimistic about the recovery trend of its core business as the industry's inventory adjustment has achieved positive results.

In the footwear manufacturing business, Baocheng will continue to invest resources in strategic areas such as digital transformation, and adhere to the flexible and diversified capacity allocation to provide the most valuable all-round solutions in the industry chain. In the sporting goods retailing business, Baocheng will further strengthen its business model and channel portfolio, and expand its strategic partnership with brand partners to promote the continuous improvement of operational efficiency.

Translated with www.DeepL.com/Translator (free version)