News / Taiwan / cnyes
Shoemaker Zhong Jie-KY Targets Indonesia and India for Expansion to Boost 2027 Margins
Consumer Non-Durables · Apparel/Footwear · cnyes · 2026-09-10
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Footwear manufacturer Zhong Jie-KY plans to prioritize production expansion in Indonesia and India, aiming to improve margins by 2027 through product mix optimization.
What Happened
Production Expansion Strategy: Zhong Jie-KY is prioritizing Indonesia and India as key hubs for its global production footprint, aiming to increase its capacity share in Southeast Asia and India to over 60% by 2027. The company noted strong interest from international outdoor footwear clients for its Indonesian capacity, while its Indian facility continues to scale up under solid order support.
Profitability Optimization: In response to sluggish consumer demand and a conservative outlook for the second half of 2026, the company is shifting its focus from revenue scale to high-margin products and profit quality. Through the "StridePlus" management initiative, the firm aims to optimize labor allocation and resource management to improve overall operating margins.
Financial Outlook: While the company reported a loss for the first half of 2026, it expects the benefits of its strategic shift to materialize in 2027, helping to offset the initial costs of new plant operations. The firm remains committed to its long-term goal of reaching 80 million pairs in annual shipments by 2034, with 2026 capital expenditures projected between $20 million and $28 million.
Recent Performance: Zhong Jie-KY posted second-quarter 2026 revenue of NT$5.66 billion and a net profit of NT$46.03 million, marking a return to profitability for the quarter. Despite the first-half loss, the company is actively adjusting its sales and production strategies to secure more concrete long-term client orders and strengthen its competitive position in the global supply chain.