Everest Textile Co (宏遠興業), which makes fabrics and garments, yesterday said it expects net income to increase by 89 percent this year from NT$229.73 million (US$7.62 million) last year as the company steps into production of knitted fabrics.
The company has set a target of posting earnings per share of NT$1 this year, up from NT$0.53 last year.
To support its new business, the company plans to spend NT$120 million this year to purchase 100 machines to make knitted fabrics, company manager Nana Liu (劉美那) said.
The goal is to be producing 600 tonnes of knitted fabrics a month by the end of the year, up from 100 tonnes a month, Liu said.
Last quarter, Everest’s knitted fabrics passed Lululemon Athletica Inc’s tests and the company is likely to supply spring and summer wear to the Canadian company next year, according to people familiar with the matter.
The people, who asked not to be named, said the company plans to allocate more than 30 percent of its knitted fabrics capacity to Lululemon in the future.
In order to become a supplier for Lululemon, Everest has developed a yarn dye technology that can be applied to nylon 66 yarns, the people said, adding that the company can currently dye 20 tonnes of yarn a day.
Everest has also received knitted fabric orders from North Face Inc, Columbia Sportswear and Decathlon Group, Liu said.
Orders from Decathlon, the company’s fourth-largest client, are to rise to 3 million yards this year from 2 million yards last year, while orders from North Face and Columbia, its second and third-largest clients respectively, will remain flat from last year, she said.
Everest president Roger Yeh (葉清來) said sales of knitted fabrics would account for 25 percent of the company’s revenue this year, up from 10 percent last year.
Because of rising sales of knitted fabrics, the company’s gross margin is set to increase to 20 percent this year, from 15.75 percent last year, Yeh said.
The company’s revenue may grow by 10 percent to 15 percent this year from NT$7.64 billion last year, he said.
In addition to rising orders for knitted fabrics, orders for woven fabrics from Lululemon would rise to 2 million yards this year from 1.6 million yards last year, and orders for woven fabrics from Abercrombie & Fitch Co would rise to 3 million yards this year from 2 million yards last year, the company said.
“The firm has been providing woven fabrics to Lululemon for five years,” Yeh said.
About 70 percent to 80 percent of woven fabrics used by Lululemon are from Everest, according to the company.
However, orders of woven fabrics from Nike Inc, the company’s largest client, will decline to 12 million yards from more than 13 million yards last year, the company said, adding that these orders produce a lower gross margin.
Sales to the company’s top three clients accounted for about 55 percent of its revenue last year, Yeh said.
Yeh said the company aims to expand its own apparel brand Eversmile’s outlets to 120 this year, up from 80.
Everest aims to increase the revenue of its apparel shops to NT$25 million this year, from NT$17 million last year, Yeh said.
The company has a factory in Thailand, which accounts for 15 percent of its total capacity, but its operations have not been affected by the imposition of martial law, Yeh said.
Last quarter, the company posted a profit of NT$77.67 million, or earnings per share of NT$0.18, up from NT$75.16 million, or NT$0.17 per share, the previous year, a company filing to the Taiwan Stock Exchange showed.
Manufacturers are on a mission to produce desperately needed medical ventilators for the COVID-19 pandemic, even if it means converting assembly lines now making auto parts. Along with a shortage of masks and gloves, the spread of COVID-19 to almost every corner of the globe has highlighted a great need for specialized machines that help keep severely afflicted patients alive. “As the global pandemic evolves, there is unprecedented demand for medical equipment, including ventilators,” GE Healthcare chief executive officer Kieran Murphy said. The group has hired more workers and is making ventilators around the clock. Swedish group Getinge AB is also ramping up output
Facing the rapidly evolving global COVID-19 pandemic, Citibank Taiwan Ltd (台灣花旗) has proactively taken precautionary measures. “The health and safety of our colleagues and their families, as well as our clients and the communities we serve, are of the utmost importance. We continue to take proactive measures to preserve their well-being while we maintain our ability to serve our clients,” Citibank Taiwan chairman Paulus Mok (莫兆鴻) said in a statement yesterday. “We have local and regional contingency plans in place, and we have well-established business continuity plans for the firm. We are monitoring the situation closely, adjusting our operations accordingly,
UPGRADE AND TRANSFORM: Although the cross-strait trade deal might remain, the Ministry of Economic Affairs said businesses should prepare for any disruptions Taiwan might face a decline in foreign trade with China if the cross-strait Economic Cooperation Framework Agreement (ECFA) ends this year, Minister of Economic Affairs Shen Jong-chin (沈榮津) said yesterday. The agreement, which was signed and put into effect in 2010 to reduce trade barriers across the Taiwan Strait, is expected to end this year, despite not having an exact termination date. “We have not received notification [from China] that it wishes to terminate ECFA,” Shen told reporters prior to attending a meeting at the Legislative Yuan. “Even if we are notified, the agreement would only cease after six months.” While acknowledging the
GoShare, an electric scooter sharing service provider with Gogoro Inc (睿能創意), plans to expand to Tainan next quarter in a strategic alliance with Aeon Motor Co (宏佳騰). The company currently offers its services in Taipei and Taoyuan. “Tainan is very popular among tourists. The city receives an average of 22.94 million tourists every year,” GoShare head Henry Chiang (姜家煒) told a news conference yesterday in Taipei, citing Tourism Bureau statistics. “Besides, the city has a long history of riding scooters,” he said. Each household owns an average of 2.5 scooters, he added. “Expanding presence” is one of four strategies GoShare is adopting for this