Chung Jye Investment Holding 2Q26 Investor Conference Press Release
September 10, 2026
Chung Jye Investment Holding Co., Ltd. (TWSE: 6965) convened its 2Q26 institutional investor conference today. The Group stated that although the operational outlook for the second half of this year remains conservative, the company is actively adjusting its strategy to focus on high-margin products and earnings quality. Driven by product mix optimization and an increasing share of higher-margin offerings, gross margin is expected to gradually improve in 2027, mitigating the initial impact from the ramp-up of the new Indonesian facility and maintaining overall profitability. Concurrently, the Group will accelerate the balanced deployment of its global production footprint and actively secure tangible, committed medium-to-long-term orders from brand partners.
Looking ahead to the second half of this year, consumer sentiment remains sluggish and clients remain cautious in placing orders, resulting in a conservative order outlook for 2H. To build a solid foundation for next year and medium-to-long-term growth, the company is comprehensively restructuring its production and sales strategies—shifting from pursuing utilization rates and top-line scale to prioritizing high-margin products and bottom-line quality. In the Chinese market specifically, greater emphasis is being placed on elevating the proportion of high-margin items. As 2H continues to be a strategic adjustment phase, optimization benefits are projected to yield more tangible results starting next year. Additionally, Chung Jye will advance its “StridePlus” operational optimization initiative across human resources allocation, customer resource management, and strategic plant planning to systematically improve operating profit margin.
Looking toward 2027, under the new quality-first strategy, the company is adopting stricter order screening criteria, taking a prudent view of overall revenue volume. However, supported by product portfolio optimization and increased high-margin product mix, 2027 gross margin is expected to steadily improve, moderating the initial cost pressures of the new plant in Indonesia and sustaining steady profitability. Furthermore, customer inquiries regarding manufacturing capacity in Southeast Asia and India have surpassed expectations. Chung Jye is accelerating its balanced global footprint, anticipating that Southeast Asia and India combined will account for over 50% of total capacity in 2027, with a target exceeding 60%. Across facilities: the India plant is backed by strong customer demand and accelerating expansion; the new Indonesian plant has secured explicit medium-to-long-term cooperation intentions from key partners; and the Vietnam facility is actively in discussions with prospective brand partners.
In medium-to-long-term strategic planning, the Group continues advancing balanced multi-regional capacity allocation, aiming for Southeast Asia and India capacity to account for over 70% over the medium to long term. Chung Jye’s robust balance sheet provides solid support for capital expenditure programs, securing long-term competitive advantages. Simultaneously, by securing committed medium-to-long-term orders, the Group aims to establish a more resilient, diversified customer portfolio, expand international market share, and cultivate core accounts to support a balanced multinational footprint and continuously enhance profitability.
Liu An-Che, Chairman of Chung Jye Group, remarked: “Current consumer demand and industry climate remain subdued. Rather than waiting passively, Chung Jye has chosen to take proactive measures, pivoting its strategic core from chasing revenue volume toward deeply cultivating profit quality. Meanwhile, customer demand for Southeast Asian and Indian capacity has exceeded expectations, clearly demonstrating Chung Jye’s strong competitive positioning in the global supply chain. Accordingly, we are accelerating balanced global capacity deployment. Coupled with our aligned production and sales strategy, Chung Jye’s medium-to-long-term earnings structure will become significantly more resilient and advantaged.”
Regarding capacity planning, 2026 CapEx is estimated between US$20 million and US$28 million. The primary operational focus this year is the Indonesia facility: the East Java plant commenced construction in late October 2025, progressing as planned with shipments slated to begin in early 2027. The Bac Kan plant in Vietnam began production in 3Q25 with 2025 capacity of ~112k pairs of knit uppers; small-batch assembled shoe shipments began in December 2025, and 2026 assembled shoe volume is projected at 320k pairs. In India, production reached ~600k pairs last year and is expanding; welcoming new customer accounts, 2026 output is estimated between 1.3 million and 1.5 million pairs, projected to reach 2.4 million pairs in 2027.
Looking at long-term vision, Chung Jye targets annual shipments exceeding 80 million pairs within a decade (by 2034), doubling scale alongside steady profit growth. Concurrently, Return on Equity (ROE) remains the core operational metric, combining nimble decision-making to balance profit margins and asset efficiency, aiming for a long-term ROE exceeding 20%, outpacing the industry average.
Despite the macroeconomic slowdown and conservative ordering, Chung Jye’s active pursuit of new clients and fresh orders propelled 2Q26 consolidated revenue to NT$5.66 billion, up 8.4% YoY. Benefiting from recovering capacity utilization and product portfolio optimization, 2Q gross margin reached 12.8%, up 1.1 and 2.7 percentage points compared to 2Q25 and 1Q26, respectively. 2Q operating income reached NT$151 million, up 4.7% YoY, with an operating margin of 2.7%. The company continues implementing its internal “StridePlus” management optimization program to strengthen cost structure and operational efficiency. 2Q net income attributable to owners of the parent was NT$47 million, with an EPS of NT$0.30.
| NT$ Million | 2Q26 | 1Q26 | 2Q25 | QoQ | YoY | 1H26 | 1H25 | YoY |
|---|---|---|---|---|---|---|---|---|
| Revenue | 5,663 | 4,785 | 5,223 | 18% | 8% | 10,448 | 11,331 | -8% |
| Gross Profit | 723 | 481 | 612 | 50% | 18% | 1,204 | 1,408 | -14% |
| Operating Income | 151 | -81 | 145 | - | 5% | 71 | 333 | -79% |
| Net Income Attributable to Owners of Parent | 47 | -101 | 207 | - | -77% | -54 | 391 | - |
| EPS (NT$) | 0.30 | -0.64 | 1.33 | - | -77% | -0.35 | 2.60 | - |
| Gross Margin | 12.8% | 10.1% | 11.7% | 11.5% | 12.4% | |||
| Operating Margin | 2.7% | -1.7% | 2.8% | 0.7% | 2.9% | |||
| Net Margin | 0.8% | -2.1% | 4.0% | -0.5% | 3.4% |
About Chung Jye Investment Holding
Founded in 1983, Chung Jye Investment Holding Co., Ltd. is a global leading footwear manufacturing partner to New Balance, ANTA (FILA, Descente), and LI-NING. With over 40 years of footwear engineering and service expertise, the company listed on the Taiwan Stock Exchange (TWSE: 6965) in March 2025.
Disclaimer
This press release may contain forward-looking statements subject to risks and uncertainties. Actual results may differ materially from those projected. Except as required by law, the company undertakes no obligation to update forward-looking statements in light of new information or future developments.