Wed, Jul 10, 2019 - Page 12 News List

Fulgent revenue soars on orders from major clients

By Kwan Shin-han  /  Staff reporter

Shoemaker Fulgent Sun International Holding Co (鈺齊國際) yesterday reported that revenue in the first half of this year rose 23.98 percent annually to NT$5.93 billion (US$190.24 million), thanks to growing orders from its major customers.

“We expect sales in the second half of the year to outpace the first half as we add production lines in Vietnam, Cambodia, Taiwan and China to increase our capacity while broadening our customer base,” a public relations official told the Taipei Times by telephone.

As demand continues to outpace supply, Fulgent Sun plans to boost its annual capacity by 20 percent this year, with the utilization rate at the company’s six plants expected to be near full capacity in the second half, said the official, who asked to remain anonymous.

The pace of expansion would accelerate in the coming years to create economies of scale, he said.

“Some small shoemakers were driven out of business due to difficulties in relocating to countries with lower production costs, while large companies tend to expand their sales channels instead of raising output,” the official said, adding that Fulgent Sun’s strategy is raising output and improving customer “stickiness” to pursue profits.

The company said it would continue to raise the production contribution per employee at its plants through further training and automation.

Fulgent Sun counts The North Face Inc, Timberland LLC, Under Armour Inc and Mammut Sports Group AG among its major customers.

The official declined to specify customers with the largest increase in orders, but said that next year’s Tokyo Olympics and new design trends focusing on fashionable outdoor shoes have boosted orders for sports footwear.

Fulgent Sun shares closed up 1.5 percent at NT$74.6 yesterday. They have climbed 57.72 percent this year.

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