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Taifu Maintains Cautious Outlook, Focuses on High-End Textile Transformation
Process Industries · Textiles · economic_daily · 2026-09-01
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Textile manufacturer Taifu reports a cautious outlook for the second half of the year due to weak demand and inflationary pressures.
What Happened
Cautious Operational Outlook: Taifu stated that geopolitical tensions, rising oil prices, and weak terminal demand have slowed order intake for the second half of the year. Despite a narrowing net loss of NT$49.68 million in the first half, the company continues to face significant operational headwinds.
Cost Pass-Through Challenges: Chairman Chuang Yao-ming noted that rising raw material costs are difficult to pass on to customers due to sluggish demand. The textured yarn business has been particularly hard hit, significantly impacting margins, and order momentum remains uncertain in the near term.
Product Upgrade Strategy: To move away from low-price competition, Taifu is shifting its focus toward high-end protective workwear and industrial fabrics. The company is also leveraging R&D to launch functional textiles like ElasLana, aiming to improve its product mix through higher value-added offerings.
Long-term Strategic Focus: Taifu has identified composite materials as a key area for long-term growth and is strengthening its end-to-end differentiation capabilities. By adjusting its product structure, the company hopes to mitigate the impact of raw material price volatility and navigate the current industry downturn.