Tue, Nov 25, 2014 - Page 13 News List

Jinli Group to build new plant in Fujian next year

EXPANDING FOR GROWTH:Despite forecasts of slower Chinese economic growth, the fashionwear maker said that demand for its clothing and footwear remains solid

By Amy Su  /  Staff reporter

Fashion wear firm Jinli Group Holdings Ltd (金麗集團控股) yesterday said it is planning to invest in a new plant in China’s Fujian Province next year to support long-term growth.

Jinli Group chairman Chong Chun-lung (莊春龍) made the remarks at an investors’ conference yesterday, after reporting that net profit reached NT$738.15 million (US$23.8 million), or NT$6.1 per share, in the first nine months of the year, an increase of 4.71 percent from the same period last year.

“To foster long-term growth, the group plans to launch a new plant in Zhangzhou in the second quarter next year,” Chong said.

Although many expect China’s economic growth to slow down next year, Jinli Group still anticipates strong demand for its spring and summer collections based on the response from its apparel and footwear agents, Chong said.

Total orders still recorded double-digit growth from the same period last year, with casual wear and shoes posting the strongest increases, Chong said.

The new plant will primarily make footwear, which will play an important role in the company’s long-term growth, he said.

To fund the plant’s construction, the company has issued a total of NT$1.2 billion in corporate bonds this year.

Jinli Group runs two medium-priced casual clothing and shoe brands — G-Apple and e.t — and has 18 distributors that market its products via 800 outlets in China, mainly in third and fourth-tier cities.

Since the majority of consumers in these Chinese cities prefer buying clothes and footwear at brick-and-mortar stores, Chong said the company has no plans as of now to set up an online sales channel.

Consolidated sales in the first 10 months of the year grew 10.9 percent to NT$4.7 billion, from NT$4.24 billion a year earlier, a company filing with the Taiwan Stock Exchange showed.

Jinli shares surged 3.36 percent to close at NT$70.80 yesterday, outperforming the TAIEX, which edged up 0.34 percent.

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