Zhongjie-KY Turns Profitable in Q2 2026, Still Reports H1 Loss of NT$0.35 Per Share

Shoe manufacturer Zhongjie-KY (6965-TW) released its latest financial results today (28), reporting a return to profitability in the second quarter of 2026. The company posted a quarterly net profit of NT$46.03 million, turning from a loss in Q1, though down 77.72% year-on-year. Earnings per share (EPS) were NT$0.30. For the first half of 2026, the company reported a net loss of NT$54.17 million, or NT$0.35 per share.

Zhongjie-KY’s Q2 2026 revenue reached NT$5.663 billion, with a gross margin of 12.77%, up 2.72 percentage points quarter-on-quarter and 1.05 percentage points year-on-year. The quarterly net profit of NT$46.03 million marked a turnaround from Q1, though it declined 77.72% compared to the same period last year. EPS stood at NT$0.30.

For the first half of 2026, revenue totaled NT$10.448 billion, with a gross margin of 11.55%, down 0.88 percentage points year-on-year. The company incurred a net loss of NT$54.17 million, shifting from profit to loss compared to the same period last year. Loss per share was NT$0.35.

Looking ahead, despite a conservative outlook for full-year operations, Zhongjie-KY stated it will continue steadily advancing its long-term strategy of multi-country production capacity deployment, aiming to seize market opportunities quickly when industry dynamics shift and establish medium- to long-term competitive advantages.

Although consumer demand remains sluggish and customer orders are relatively conservative, Zhongjie-KY noted that through active efforts to secure new clients and orders, its consolidated revenue in Q2 2026 reached NT$5.66 billion, up 8.4% year-on-year. Sport shoe revenue rose 9% year-on-year, accounting for 70% of Q2 revenue, while casual shoe revenue increased 3% year-on-year, representing 29% of total revenue.

Benefiting from improved capacity utilization and optimized product mix, Zhongjie-KY reported a gross margin of 12.77% in Q2 2026, up 4.7% year-on-year, with an operating margin of 2.7%. The company continues to advance its internal management optimization program, 'StridePlus,' to strengthen cost structure and operational efficiency.

In terms of capacity planning, despite global supply chain challenges, Zhongjie-KY is steadily expanding production capacity in Vietnam, India, and Indonesia. Indonesia is a key focus this year, with the new plant in East Java having broken ground in late October last year and progressing according to plan. The India plant is also expected to gradually increase capacity with new customer orders. The company’s four major production bases enable more flexible capacity allocation, helping it seize opportunities amid global supply chain restructuring and continue expanding market share and partnership scale.

Founded in 1983, Zhongjie-KY is a leading global footwear manufacturer with over 40 years of experience. Since its inception, it has been a key partner to the international sports brand New Balance and has successfully entered the supply chains of high-end Chinese sports brands under Anta (ANTA), including FILA, Descente, and LI-NING, becoming a core supplier for joint development.