XiDeLang Holdings Ltd,a Bursa Malaysia Main Market-listed sports shoe company, has announced that its wholly-owned subsidiary, HongPeng Fujian Shoes & Garments Co., Ltd has signed a Memorandum of Collaboration with Global Int’l Footwear (Hong Kong) Co Ltd, to improve the operational efficiencies of both companies as well as enhance its business growth.
Through the collaboration, HongPeng is expected to receive original design manufacturer (ODM) production orders from Global Int’l Footwear of not less than 160 million renminbi (equivalent to approximately RM99.23 million) in value for a period of 24 months.
Established in 1988, HongPeng is a footwear and apparel manufacturing company with extensive internal capabilities and expertise on footwear product development and production management. It has been recognised as the authorised production partner by multiple international brands, having operated with advanced shoe production lines that meet international standards.
Meanwhile, Global Int’l Footwear is an experienced player in the footwear industry, specialising in high-end footwear range and having possession of better brand resources. The company has a long collaboration relationship with some renowned international brands such as ARMANI and DIADORA.
Commenting on the signing of MOC, XiDeLang Group Managing Director and Chief Executive Officer Ding PengPeng said: “By entering into the MOC, XiDeLang will be able to leverage on Global Int’l Footwear’s strengths to further facilitate market penetration and expansion of the Company. In return, Global Int’l Footwear will optimise the competitive advantages of XiDeLang to further enhance its market competitiveness. This will yield a win-win situation for both parties and I look forward to working together.”
“We foresee good demand for our products, not only in Malaysia, but regionally. This is part of our strategies to strengthen our presence and market reach of our products across export markets. This partnership will certainly establish a dedicated management team to intensify efforts of growing the ODM business. In addition, this collaboration will complement the businesses of both parties and nurture further business potentials and collaborations in the future,” he added.
He said through this collaboration, Global Int’l shall place orders of not less than 160 million renminbi (equivalent to approximately RM99.23 million) in value over a period of 24 months for the ODM production, which shall further strengthen the orders of XiDeLang during its current financial year.
XiDeLang Holdings Ltd is an investment holding company, whereby through its subsidiaries, the company is engaged in the design, manufacturing, and marketing of sports shoes within the People’s Republic of China. XiDeLang is also involved in the designing and marketing of sports apparels, accessories and equipment. For the financial year ended December 31, 2016, XiDeLang recorded a net profit of RM6.93mil and a revenue of RM503.83mil.