Zhongjie lost 0.23 yuan per share in the third quarter due to weak consumer sentiment

Shoemaker Zhongjie Holdings (6965) announced today that its consolidated revenue in the third quarter was 5.42 billion yuan, an annual increase of 0.6%. Due to the weak terminal consumption boom and related expenses related to the adjustment of production capacity structure, the operating profit in the third quarter decreased from the same period last year to only 5.51 million yuan. The after-tax loss was 36 million yuan, and the loss per share was 0.23 yuan.

Zhongjie said that in the third quarter, sports shoe revenue decreased by 13% year-on-year, accounting for 71% of revenue in the third quarter; casual shoe revenue increased by 61% year-on-year, accounting for 28% of revenue.

The gross profit margin in the third quarter was 11.2%, an increase of 1.4 percentage points from the same period last year. However, the operating profit of the industry was 5.51 million yuan, a year-on-year decrease of 85.7%, and the operating profit rate was only 0.1%. The company continues to promote the "StridePlus" internal management optimization plan to strengthen cost structure and management efficiency.

Zhongjie said that although the overall operating outlook for this year is conservative, the company has actively adjusted its strategy and shifted its focus to high-margin products and profit quality. With the optimization of product structure and the increase in the proportion of high-margin products, gross profit margin is expected to gradually improve in 2027, which is enough to alleviate the initial impact of the new plant in Indonesia starting production and maintain overall profit stability.

In terms of production capacity planning, Indonesia is the focus of this year's advancement. The new factory in East Java started construction at the end of October last year and continues to proceed as planned. The Indian factory is also expected to gradually increase its production capacity as it welcomes new customers. The layout of four major production bases allows for more flexible production capacity, which helps the company seize opportunities under the restructuring of the global supply chain and continue to expand market share and cooperation scale.