Jiuxing Holding Co., Ltd. is a world-famous footwear manufacturer. It was listed in Hong Kong in 2007, mainly engaged in the development, manufacturing and sales of footwear products. Customers include Nike, endmar, Clarks, Merrell, Rockport and other global leading sports brands and leisure shoe companies.
In 2019, Jiuxing holdings achieved a revenue of $1544.8 billion, a total of 59.4 million pairs of shoes and shoes, and a net profit of $95.92 million.
In the current tide of China's capacity transfer to Southeast Asia, Jiuxing holdings also joined the camp of capacity transfer.
As early as 2016, Jiuxing holding's footwear manufacturing has begun to shift to Southeast Asia. In recent years, Jiuxing Holdings has further reallocated its domestic production capacity to Southeast Asia and strengthened the production of new factories in Vietnam to improve production efficiency.
In 2019, nine Xing holdings closed three factories in Chinese mainland. According to Macquarie report, it is estimated that Jiuxing holdings will have a high one-time expenditure of about US $50 million in 2020. After this round of plant closures, there will be three factories left in the mainland to cope with sporting goods and high-end customers.
In April 2020, Jiuxing holdings released its 2019 financial report, which disclosed that up to now, 70% of the company's manufacturing capacity is located outside China. The company said it is now moving towards the final stage of its capacity to move from Chinese mainland to Southeast Asia, and will add a new site in Indonesia in 2020. This is part of the strategy to continuously improve profit margins and will continue to maintain strict cost control measures.
However, while transferring production capacity and improving profit margin, Jiuxing holdings, under the impact of the epidemic since the outbreak in January this year, revenue, sales volume and average selling price in the first quarter all fell by 16.4%, 13.4% and 3.7% respectively. In its first quarter report, Jiuxing Holdings said it would focus on implementing various internal measures to ensure stable operation and improve the group's manufacturing efficiency and cost control to meet external challenges.
Contact person: Qiu Hongbo
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