Jiuxing Holdings Ltd., the world's largest fashion shoe manufacturer, reported revenue of $762.4 million in the first half of the fiscal year, up 5.7% from $721.4 million in the same period last year.
Thanks to the surge in demand for men's shoes and footwear (36.6% increase in manufacturing revenue), manufacturing revenue increased by 4.2% in the first half of the year, from $698.2 million to $727.5 million in the same period last year.
Shipments rose by 6.3% to 27 million pairs, but the average price of footwear fell by 1.9%, from $27.1 per pair in the same period last year to $26.6, mainly due to changes in customer portfolio.
Fashion shoes still make the biggest contribution, accounting for 36% of the group's revenue, leisure shoes and fashion sports shoes contributed 29.3% and 28.8% respectively. Regionally, North America, the largest market, contributed 47.1% of the group's revenue, followed by Europe, which accounted for 29.7%, and China, which accounted for 13.5%.
Jiuxing Holdings said in its earnings report that low wage growth and low inflation in most export markets continued to restrain consumer desire and customer confidence, affecting the group's future demand planning, and the external environment was difficult to change in the second half of the year, so management decided to limit output growth and continue to reduce the number of employees to control production capacity and costs.
As of June 30, the total number of employees in the group was 67,000, a significant decrease of 4,000 from 71,000 as of December 31, 2016.
In addition, in the second half of the year, the Group will further expand the manufacturing capacity of high-speed growth fashion sports shoes, or adjust the existing capacity. A new factory focusing on fashion sports products will be put into operation in Vietnam, reflecting the group's accelerated transfer of production base to Southeast Asia.
At present, the Group's manufacturing industry is located in Guangdong, Hunan, Guangxi, Vietnam, Indonesia and Bangladesh, and has established strongholds in the Philippines and Myanmar.
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