Fulgent Sun International Holding Co (鈺齊國際), which supplies sports shoes and functional outdoor footwear to global brands, yesterday posted revenue of NT$5.23 billion (US$179.42 million) for the second quarter, up 31.96 percent from NT$3.97 billion a year earlier and its highest for the period in 10 quarters.
While the sharp appreciation of the New Taiwan dollar affected the company’s revenue performance, Fulgent in a statement said the second-quarter figure was 42.67 percent higher than the first quarter’s NT$3.67 billion and was the highest level since the first quarter of 2023, when revenue was NT$5.05 billion.
Cumulative revenue in the first half of this year soared 34.35 percent year-on-year to NT$8.9 billion from NT$6.62 billion in the same period a year earlier on increased output and robust demand, the company said.
Photo: Liao Shu-ling, Taipei Times
Yunlin County-based Fulgent manufactures footwear on an original equipment manufacturing contract basis.
It mainly supplies certified Gore-Tex outdoor shoes, and other outdoor footwear and sports shoes to more than 50 global brand customers, including Li Ning Co (李寧), Nike Inc, Columbia Sportswear Co and Decathlon SA.
The company’s production bases are in China, Vietnam, Cambodia and Indonesia, which all face higher US levies after US President Donald Trump announced his “reciprocal” tariffs on a number of Washington’s trading partners on April 2.
In the first quarter, Vietnam accounted for 64.6 percent of its total capacity, followed by Cambodia at 20.3 percent and China at 15.1 percent, company data showed.
After nearly three months of negotiations, Trump on Wednesday last week announced that the US would impose a 20 percent tariff on Vietnamese goods. On Monday, the US president unveiled the tariff rates for other Southeast Asian countries, including a 36 percent tariff on Cambodia and a 32 percent tariff on Indonesia. China would face 55 percent tariffs following a trade truce with the US, Trump said early last month.
Fulgent said its sales to the US accounted for about 29 percent of its total shipments, but it has faced less pressure from brand customers for tariff sharing.
Instead, brand customers are more concerned about the effects of tariffs on end-market sales, it said.
The order adjustments by brand customers after the tariff dust settles would be less clear in the early stage in the third quarter, as customers are likely to behave more conservative, but orders are expected to gradually recover, SinoPac Securities Investment Service Corp (永豐投顧) said in a note ahead of Fulgent’s sales report.
Revenue for the quarter would still grow from a year earlier, it added.
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