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A well-known shoe material major announced, follow up Baocheng, India to build a factory!

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On June 7, the shareholders' meeting of Taiwan Baihe Group, a major Chinese shoe material manufacturer, completed a full re-election of directors, and Chairman Samuel Cheng was re-elected.

Well-known shoe material major Baihe announced

Launched the plan to build a factory in India

After being re-elected, Samson Cheng announced that, in line with the policy of decentralizing the production area risk for American brand customers, B&W Group will start the investment and plant planning in India, and continue to deepen and optimize the regionalized layout of the production base in Southeast Asia.

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

At present, the proportion of revenue accounted for by each production base of the Baihe Group are 40% of the mainland Baihe Industrial (8404), Vietnam Baihe 29%, Taiwan Baihe 18%, Indonesia Baihe 10%, North America Baihe 3%.

The proportion of revenue accounted for by each product is 49.6% for webbing/shoe laces, 14.1% for adhesive tapes, 12.2% for knitted warp knitted tees, 13.3% for elastic tapes, 7.3% for injection tapes, 3.0% for others, and 0.5% for real estate sales.

B&H Group under the period

The other two factories will start operation next year

In addition to the planned plant in India, the new plant in Indonesia will be completed in the fourth quarter to the first quarter of next year, mainly producing webbing, shoelaces, elastic tapes and adhesive tapes, etc. It is expected to be put into operation in 2024, which can increase the production capacity by 25%.

The new plant in Indonesia will be put into production next year for shoe materials and garment materials, and the second plant in Taiwan is expected to be completed in the second quarter of next year, and will be put into dyeing and finishing processes such as yarn, laces and color yarns to accumulate operational growth momentum.

In recent years, the company has gradually increased the product items, production capacity and production capacity in Vietnam and Indonesia, and will continue to see performance in the expansion of other industries and product applications, said Samuel Cheng.

In order to increase the company's revenue, Mr. Cheng said he plans to develop new products this year, including functional adhesive fabrics, imitation carbon fiber CB Corian, environmentally friendly paper fiber laces / plain weave, knitted bull's ear laces, hummingbird functional laces, three-dimensional double knitted laces, wool surface woven fabric label / adhesive webbing, and multi-color pattern reflective film and other products.

Taiwan Hundred and also announced consolidated revenue of NT$958 million in May, down 45.27% year on year, and consolidated revenue of NT$4.784 billion in the first five months, down 39.9% year on year. Looking ahead to the second half of the year, Taiwan Hundred and is expected to turn better month by month.

Last year by the Russian-Ukrainian war, inflation, rising interest rates and other unfavorable factors, Taiwan hundred and costs increased greatly, coupled with real estate sales due to enter the final stage and a significant reduction, making last year's revenue and profits fell compared to 2021.

Taiwan Baihe Vice President Ye Guizhu pointed out that Indonesia Baihe new factory is scheduled to be put into operation next year, the products are mainly shoe materials and garment materials.

Taiwan Baihe also provides aerospace, medical, electronics, navigation products, virtual reality (VR) and augmented reality (AR) manufacturers with the necessary accessories.