Everest Textile Co., Ltd. (1460) convened a regular 2020 shareholders' meeting today (June 15)


2020/6/19

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.