Kuan Hsing Q3 Revenue Expected to Reach New High; Chairman: Growth This Year to Outperform Previous Years

Kuan Hsing-KY (4439-TW), a short-fiber fabric manufacturer, achieved record revenue in the second quarter. Chairman Lin Jinmao stated that current order visibility remains at a six-month level, and the momentum of the peak season will continue into the third quarter, with revenue expected to achieve double-digit growth and reach a new single-quarter high. The outlook for the second half of the year is positive, and overall growth this year is expected to outperform previous years.

Kuan Hsing reported June revenue of NT$860 million, a record high for the month, representing a 9.3% increase month-on-month and a 28.2% increase year-on-year. Second-quarter revenue reached NT$2.33 billion, a record high in the company's history. First-half revenue totaled NT$4.147 billion, the second-highest for the period, up 11.7% year-on-year.

Lin Jinmao stated that Kuan Hsing started with sport fabrics and has expanded its customer base in line with the trend of sportswear becoming fashion-oriented, extending from pure sports brands to fashion brands such as Gap and Old Navy. Combined with a new strategy of vertically integrating downstream apparel manufacturing, the company's long-term goal of offering full-range, multi-site, one-stop services is gradually taking shape.

Lin noted that the utilization rate at the Vietnam plant has increased this year, with average monthly production capacity reaching 2.5 million pounds. It is expected to reach full capacity at 4 million pounds next year. Capital expenditures in the second half will remain stable, focusing on maximizing the efficiency of existing capacity. As global supply chain diversification continues to gain momentum, the company's advantages in Southeast Asia will enable it to capture brand clients' orders shifting production.

The Vietnam plant's average monthly production capacity has reached 2.5 million pounds and is expected to reach full capacity of 4 million pounds within the next one to two years. Capital expenditures in the second half will remain stable, with a focus on maximizing the efficiency of existing capacity. Amid the ongoing trend of global supply chain diversification, the company's leading position in Southeast Asia will allow it to meet brand clients' demand for shifting production bases.