Everest
Textile Co., Ltd. (1460) convened a regular 2020 shareholders' meeting
today (June 15) and admitted to approve the 2019 annual accounts. Last
year 2019 due to the US-China trade war, the supply chain reorganization
caused some orders to be lost, which affected the brand's order
placement; while the three new factories (US, Haiti, Ethiopia) have
started operations, but the performance has not well. It shows that the
combined revenue in 2019 was NT$ 8.864 billion, a decrease of 5.7% over
the previous year, with a net loss of NT$272 million after tax and a
loss of NT$0.56 per share.
Many cities and countries around the world
have gone into lockdown because of the COVID-19 pandemic. it has affected the supply chain production and demand.
Brands
and retail customers have cut orders or asking on hold delivery, making
the company's performance in the first and second quarters
unsatisfactory.
The
second quarter of April is the lowest point, it will improve month
after month, like the hook curve of NIKE. There are three main reasons:
(1) Brands and retailers have begun to place new orders. (2) The
equipment and management manpower of the oversea 3 factories are
complete, and will contribute revenue and profit in the next half year.
(3) Epidemic prevention products have become a new opportunity for
Everest's six global factories, bringing transformation benefits. The
company internally estimates that the third quarter revenue will return
to last year's level, and the fourth quarter will have a better "annual
increase" performance, which is a rare vision in the textile industry
this year.
This
time COVID-19 epidemic is a crisis brought by God, but it is a
once-in-a-lifetime turning point. Since its establishment, Everest has
been guided by innovation. The textile industry thinks of "Everest", it
symbolizes the word "innovation". Therefore, according to the needs of
epidemic prevention, we quickly used the energy of the existing 105
technical platforms to develop high-tech masks and fabrics for
protective clothing within a week. Now Everest's Ethiopia garment
factory has become the leader of the local national team of
anti-epidemic products. The Everest's North Carolina fabric factory also
provides fabrics for anti-epidemic clothing and masks to supply the
local short-chain manufacturing needs of the US market, highlight the
importance of the North Carolina factory and create the irreplaceable
value of the combat supplies needed by the United States. All these have
witnessed Everest's vision of the global layout three years ago, and
now the Group's six factories around the world have cooperated with each
other to win the future.
Looking
to the future, in addition to reducing operational risks and
implementing more sustainable management, Everest's six global factories
can be restructured under the industrial chain restructuring caused by
the US-China trade war and the COVID-19 epidemic. Let global customers
more recognize the integrated advantages of the regional manufacturing
and short-chain revolution of Everest's global layout; and continue to
improve product development and customer service, let the group leapfrog
and achieve the vision of sustainable operation.