Footwear Manufacturer Yue Qi-KY Reports Self-Compiled H1 Net Profit of NT$357 Million, Down 35%, EPS NT$1.78

Footwear manufacturer Yue Qi-KY (9802-TW) announced its latest self-compiled financial results today (22nd). In the second quarter of 2026, the company achieved a net profit of NT$179 million, up 0.35% quarter-on-quarter but down 40.76% year-on-year, with a quarterly earnings per share (EPS) of NT$0.89. For the first half of 2026, the net profit reached NT$357 million, down 35.3% year-on-year, with an EPS of NT$1.78.

Yue Qi-KY's revenue for the first half of 2026 amounted to NT$8.933 billion, up 0.37% year-on-year. Vietnam's revenue share reached 65.98%, making it the largest production region. The company expects its overall performance in the second half of 2026 to surpass the first half.

In Q2 2026, Yue Qi-KY recorded revenue of NT$5.259 billion, with a gross margin of 13.94%, down 1.91 percentage points quarter-on-quarter and 4.55 percentage points year-on-year. The quarterly net profit was NT$179 million, with an EPS of NT$0.89.

From January to June 2026, cumulative revenue reached NT$8.933 billion, with a gross margin of 18.73%, down 4.01 percentage points year-on-year. Net profit was NT$357 million, with an EPS of NT$1.78.

Q2 2026 revenue of NT$5.259 billion marked the highest quarterly revenue in three and a half years, up 43.1% from Q1’s NT$3.675 billion. Cumulative H1 revenue of NT$8.933 billion was nearly flat compared to last year’s NT$8.900 billion. The company estimates Q1 2026 as the lowest point for the year, with production and sales scaling up from Q2 onward. Based on recent mass production order trends and capacity expansion plans, Yue Qi-KY maintains its positive outlook that 2026’s total output value will grow year-on-year, with stronger momentum expected in the second half.

H1 2026 net profit was NT$357 million, with an EPS of NT$1.78. Excluding non-operating foreign exchange impacts (affecting EPS by -NT$0.11), the core EPS would be NT$1.89. Key financial ratios show an operating gross margin of 14.72%, operating profit margin of 5.03%, and operating expense ratio tightly controlled at 9.69% through rigorous lean management, indicating solid core business fundamentals.

Regarding OEM brands, the group serves over 50 mass production brands, with the top three accounting for nearly 50% of revenue, the top ten exceeding 80%, and the top twenty surpassing 90%. The multi-brand order strategy remains unchanged. By country production share: Vietnam 65.98%, Cambodia 20.15%, China 11.56%, and Indonesia 2.31%. By sales region (brand customer designated destination), H1 revenue was dominated by Greater Europe at 46.43%, followed by the Americas at 35.45% (with the U.S. at 25.48%), and Greater Asia at 17.15%.

Since mid-2024, Yue Qi-KY has accelerated the optimization of its global production capacity. To meet customer demand and provide stable, reliable commitments, new facilities in Vietnam and Indonesia began pilot mass production in the second half of 2025. After slowing recruitment and production ramp-up during Q1 due to traditional Lunar New Year holidays, the company has actively increased production and sales scale in Q2. The new factories’ capacity contribution in Q2 has significantly increased compared to Q1.

Looking ahead, Yue Qi-KY states its highest mission is to become a world-leading footwear manufacturer. In addition to deepening relationships with existing international brands, the company will actively develop and attract new global brand partners. With stable and continuous capacity expansion, this will add growth momentum to overall operations and lay a solid foundation for long-term, stable development.