Baocheng announces: another 4.5 billion

In recent years, the most concerned topic is the news of the trade war.

As the leader of shoemaking industry, Baocheng Group always attracts people’s attention.
Baocheng, a shoe giant, fears no trade war
The picture was taken at the Italian Shoe Show.

In response to the impact of the US-China trade war, He Mingkun, spokesman for Baocheng, the world’s leading shoemaking industry, pointed out that:

At present, footwear products are not included in the tax increase list. In addition, Baocheng Vietnamese factory accounts for 46% of production, Mainland factory accounts for 14%, Cambodia, Bangladesh and Myanmar factory accounts for 3% in total, because of the global distribution of production bases to disperse risks.

According to foreign media reports, Baocheng said: at present, besides supplying domestic demand market, some shoes made in China are sold to Europe and America, which will accelerate the expansion of manufacturing proportion in Southeast Asia.

So far, Vietnam has become a “safe haven” for cross-strait enterprises as a result of the warming trade war between China and the United States. Because it is located in an important maritime hub on the southeastern peninsula, it has signed many free trade agreements, including the 7th member of the Trans-Pacific Partnership Comprehensive Progress Agreement (CPTPP). Vietnam has been referred to as the beneficiaries of the wave trade war by the Economist Intelligence Unit (EIU). The State Trade Bureau of the Ministry of Economy has pointed out that Viet South has become the “preferred choice” for manufacturing industries to move away from mainland China.
Adidas contributes about 27% of Baocheng’s footwear business revenue.

 

Adidas, an international sports brand, announced its profit in the first quarter of this year. Overall, after-tax net profit in the first quarter of 2019 was 12% higher than market estimates, while revenue was 1.5%.

Due to the acceleration of revenue growth in the second half of the fiscal forecast in 2019, corporate institutions are optimistic that Taiwan’s supply chain Baocheng (9904), Lily and Nanbao will also benefit simultaneously.

Market agencies point out that:
Adidas contributed about 27% of Baocheng’s shoemaking revenue. Baocheng said that customers’strategy of shortening delivery time will still affect the allocation of production capacity. Overall, the second half of the year is better than the first half. Conservatively, it is estimated that the shipment of finished shoes will be flat in 2019. As for ASP, brand manufacturers will actively launch new products to stimulate consumption and the product mix is expected to improve in the year before the Olympic Games. ASP is expected to increase slightly, so overall shoemaking is expected. Revenue will grow in low single digits.
Big hand, Baocheng smashed another 4.5 billion yuan
The picture was taken at the Italian Shoe Show.

Baocheng Industry, the world’s leading shoemaking industry, held a major news conference today (15), saying it would invest about 4.150 billion yuan to subscribe and control 415,000 new capital-raising shares to enrich its working capital and participate in the cash-raising of Nanshan Life.

He Mingkun said that the 20% profit of Baocheng’s share-holding was increased by 350 million yuan in cash in 2018 and 20.4 billion yuan in 2019 respectively by the board’s resolution. The main purpose was to enrich the operating capital by 750 million yuan and participate in the 20 billion yuan increase in Nanshan Life Cash.

He Mingkun pointed out that in 2018, Baocheng Industries recognized Runcheng’s investment and control earnings amounted to NT$4.491 billion, and last year recognized Runcheng’s investment and control earnings accounted for 41%, up 12 percentage points from 29% in 2017.

Baocheng participated in Runcheng’s two cash increase cases, totaling 415,000 new shares subscribed, totaling 4.150 billion yuan. It has 336,900 shares in Runcheng’s investment and control, and still maintains 20% of Runcheng’s investment and control share.


Post time: Jun-12-2019
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