SUN JADE VIETNAM FOOTWEAR LIMITED

SUN JADE Vietnam Footwear: Stable Foundation, But Facing Headwinds

SUN JADE VIETNAM FOOTWEAR LIMITED (CÔNG TY TNHH GIẦY SUN JADE VIỆT NAM), founded in April 2008, has long been a well-established player in Vietnam’s footwear export sector. Based in Le Mon Industrial Park, Thanh Hoa City, and backed by UNITEDWELL TRADING LIMITED from Hong Kong, SUN JADE has built a solid operational presence with over 9,000 employees, extensive production facilities, and nearly two decades of experience in manufacturing and processing footwear for global export.

Financially, SUN JADE presents a mixed picture in 2023. The company reported USD 66.28 million in total sales, a sharp decline of 15.53% compared to the previous year. This downturn is concerning, especially when viewed against the backdrop of rising production costs and global inflation. However, despite the revenue drop, the company managed to post a net profit of USD 1.74 million, reflecting only a 12.12% decrease from 2022. This shows that while the top line has weakened, SUN JADE remains profitable and is likely taking steps to protect margins.

Total assets in 2023 climbed to USD 77.95 million, a 5.73% year-on-year increase, suggesting ongoing investment in infrastructure or equipment. More impressively, owner’s equity grew by 10.23%, reaching USD 70.41 million, which indicates a healthy capital structure and sustained shareholder support. The company also reported a robust working capital of USD 31.98 million, reinforcing its ability to meet short-term obligations and withstand external shocks.

Yet, the downward trajectory in both sales and profits for two consecutive years (2022 and 2023) signals a potential need for business model adaptation or market diversification. In 2021, SUN JADE recorded revenues of over USD 75 million and a profit of nearly USD 2.9 million. Since then, despite growing equity, the company has been unable to maintain the same revenue momentum. This slowdown could stem from reduced orders, shifts in client demand, or competitive pressures from lower-cost producers in neighboring countries.

SUN JADE’s registered business activities also include real estate development and property trading, in addition to its core footwear manufacturing. While such diversification could provide future growth avenues, it may also indicate a strategic shift away from sole reliance on the manufacturing sector in response to tightening conditions in global apparel supply chains.

The company is led by Chairman and General Director Mr. Chang Chih Pan, a Taiwanese national, who also holds leadership positions in other large footwear firms across Vietnam. His leadership adds operational credibility, particularly in maintaining compliance, efficiency, and international client relationships.

In summary, SUN JADE VIETNAM FOOTWEAR LIMITED remains a financially stable and operationally sound enterprise in Vietnam’s competitive footwear manufacturing landscape. However, its recent decline in revenue and profits should not be overlooked. To maintain its relevance and regain growth, the company may need to invest in innovation, diversify its customer base, and consider moving up the value chain toward higher-margin, sustainable footwear products.