Zhichang-KY (6768) announced its financial results for the first quarter of 2023 on the 21st, reporting consolidated revenue of NT$6.008 billion, a 15.4% increase from the previous quarter and a 49.8% increase from the same period last year, setting a new record for quarterly revenue. Net income after tax was NT$536 million, up 15.3% quarter-on-quarter and up 58.1% year-on-year, with earnings per share (EPS) of NT$2.71, second only to the NT$3.36 achieved in the third quarter of 2022.

In USD terms, the first quarter consolidated revenue was US$183 million, representing a year-on-year increase of 43.3%, also exceeding the fourth quarter of last year's US$161 million, up 13.4% quarter-on-quarter. Zhichang’s gross profit margin for the first quarter was 20.2%, similar to the same period last year, with gross profit reaching NT$1.216 billion, a 19.2% increase quarter-on-quarter and a 50.3% increase year-on-year. Operating income was NT$612 million, a 36.9% increase from the previous quarter and a 102% increase from the previous year.

Regarding the U.S. tariff issue, Zhichang indicated that customer orders were placed before the tariff issues arose, so the order status remains stable. Although 41% of the shoes are exported to the Americas, only 28% are exported to the United States. Currently, Zhichang maintains a product mix of 80% professional athletic shoes and 20% casual shoes, which has demonstrated considerable resilience during challenging times.

Zhichang expects stable orders for the first half of this year and noted that brand owners have not yet provided formal notifications for orders in the second half, but the previous forecasts align closely with those for the first half. As a leading manufacturer of soccer shoes, Zhichang produces for major international brands such as Adidas and Nike. According to QY Research, the global soccer shoe market is projected to grow at a compound annual growth rate of 5.01% from 2020 to 2026.