Fulgent Sun International (Holding), a prominent player in the outdoor shoe OEM industry, has disclosed its financial results for the fourth quarter of 2023, revealing a complex performance amid fluctuating market conditions. The company’s self-consolidated revenue for the quarter stood at 3.681 billion yuan, marking a modest quarterly increase of 3.89% but a significant annual decline of 40.79%.
The net profit after tax was reported at 63 million yuan, experiencing a steep quarterly fall of 81.40% and an annual plummet of 89.54%, resulting in earnings per share of 0.33 yuan. Yuqi-KY attributes this decline in part to the sharp depreciation of the US dollar against both the RMB and the New Taiwan dollar during the quarter, adversely impacting the company’s profit margins due to foreign exchange effects.
Despite these challenges, the company observed an improvement in its gross profit margin and operating profit rate compared to the third quarter of last year, recording figures of 17.75% and 8.56% respectively.
For the full year of 2023, Fulgent Sun International’s cumulative consolidated revenue reached 16.893 billion yuan, down 30.14% annually. The operating gross profit and industry operating profit also saw significant yearly decreases of 42.81% and 53.09%, respectively. The after-tax net profit for the year was 1.497 billion yuan, a decline of 55.91%, though the earnings per share of 7.87 yuan were noted as the second highest in the company’s history.
Geographically, the production in Vietnam, Cambodia, and China contributed 49.87%, 25.38%, and 24.75% respectively to the total output value in 2023. Sales regions, particularly Greater Europe and the American market, remained key for Fulgent Sun, accounting for 48.27% and 36.59% of the revenue, solidifying these regions as primary markets for outdoor sports and leisure products. Despite the turbulent economic environment, Fulgent Sun continues to navigate the complexities of the global market, maintaining its position in key regions while adapting to currency and market fluctuations.
