Kuang Long's Q2 Profit Rebounds, Boosting H1 EPS to NT$1.39; July Revenue Rises

Kuang Long (8916-TW), a leading manufacturer of outdoor functional apparel, has released its latest financial results. In the second quarter of 2026, the company achieved a post-tax net profit of NT$181 million, marking its best quarterly performance in the past three quarters. This represents a 5.96-fold sequential increase and a 79.3% year-on-year growth, with earnings per share (EPS) reaching NT$1.21. The results highlight the effectiveness of Kuang Long’s strategy to expand diversified revenue sources.

For the first half of 2026, Kuang Long posted a post-tax net profit of NT$208 million, up 36.2% year-on-year, with EPS reaching NT$1.39.

In July 2026, the company recorded revenue of NT$903 million, up 17.3% month-on-month and 4.1% year-on-year. Cumulative revenue from January to July 2026 totaled NT$4.625 billion, down 6.9% year-on-year.

Breaking down July’s performance by business segment: apparel revenue reached NT$512 million, up 7.1% month-on-month but down 18.1% year-on-year. The year-on-year decline is primarily due to an exceptionally high base in the same period last year, when customers front-loaded orders amid the U.S. tariff grace period. This year, shipment delays occurred due to factory scheduling, vessel arrangements, and customer payment timing.

Feather product revenue reached NT$225 million, up 17.4% month-on-month and 61.0% year-on-year. Home textile revenue hit NT$163 million, up 69.5% month-on-month and 66.1% year-on-year, driven by restocking orders and recovering pull-through demand from key clients.

Kuang Long’s Q2 2026 revenue totaled NT$2.275 billion, down 6.4% year-on-year. Gross margin stood at 14.4%, a 2.5 percentage point decline from the same period last year. The margin pressure stemmed from rising down raw material costs, low capacity utilization in the home textile segment leading to fixed cost absorption, and a lower mix of high-margin down jackets and GORE-type products in the apparel portfolio.

However, profit rebounded in Q2 due to gains from the disposal of the Kondo Building in Tokyo and revenue recognition from the Huashan Yidi real estate project. As a result, H1 2026 net profit reached NT$208 million, up 36.2% year-on-year, with EPS at NT$1.39.

Kuang Long noted that the July performance in down and home textiles reflects restocking and pull-through demand recovery from major clients, while the apparel segment was affected by the high base and short-term shipment timing differences. As the industry enters the traditional peak season, the company will steadily advance production and delivery in line with customer demand, while enhancing core business profitability through product mix optimization, improved capacity utilization, and operational efficiency improvements.