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Fuxing CEO Hong: Margin discipline matters more than revenue
On many pieces of clothing, and likely every bag you own, there is a zipper.
Somewhere along the chain of suppliers that brought this unassuming but essential part to market, there is a good chance that it is from a factory in Jinjiang, Fujian.
Fuxing China Group has been making zippers since 1992 and has grown to become the world' s fourth-largest zipper manufacturer by sales value, according to the 2023 edition of the Euromonitor Report.
The group supplies to more than 1,600 customers across China, including Peak, Erke, Septwolves, 361° , Li-Ning, Samsonite, Beneunder and Northpole China, among others. The company has been listed on the Singapore Exchange since 2007.
For most of that time, Fuxing has operated exactly as its product does &mdash reliably, without drawing much attention to itself.
Then in FY2025, several key developments marked a turning point, setting the stage for its next phase of growth.
CEO Shaolin Hong describes a business at an inflexion point: " In recent years, we have undertaken various initiatives to streamline non-core operations, enhance productivity, and strengthen margins across our business segments."
For the first time since 2011, it has announced a dividend of RMB0.15 ($0.028) per share and a dividend policy to pay at least 15% of its net profit attributable to shareholders over the next three years.
From scarce resources to global supplier
Fuxing was founded by Hong' s father, Hong Qingliang, in the early years of China' s economic opening. Resources were scarce, but that did little to hold back his ambition.
" My father built a livelihood from scratch," Hong says. " He didn' t just start a factory."
He describes his father' s approach as a &ldquo first-mover spirit&rdquo &mdash a willingness to act before the path was clear. That instinct, Hong says, is part of what he brings to the business today, alongside a recognition that the environment he navigates is radically different from 1992.
Jinjiang, where the group is headquartered, is known in China as the birthplace of some of its most successful consumer brands. Brands like Anta and 361° both started there.
For Fuxing, being embedded in this cluster has been a strategic asset.
" Our proximity to the big consumer brands creates a cluster effect," Hong says. " We benefit from a specialised labour pool, faster supply chains, and enhanced ability to align our products with market trends in real time."
Not just a zipper
The competitive landscape for zipper manufacturers is defined by one name: YKK, the Japanese manufacturer that dominates the premium end of the global market and supplies most of the world' s luxury and high-performance brands.
Against this backdrop, Fuxing continues to strengthen its competitive position by focusing on quality, branding, innovation, and integrated manufacturing capabilities.
Building on its technical expertise and supported by an in-house R& D team of nearly 20 professionals, the Group places strong emphasis on product and technical enhancement, to drive continuous innovation in both product performance and manufacturing efficiency.
Quality control remains a core priority across all production processes: the Group obtained various domestic and international quality certifications, which included ISO 9001:2015 Quality Management System Certificate, ISO 45001:2018 Occupational Health and Safety Management System Certificate, ISO 14001:2015 Environmental Management System Certificate and Global Recycled Standard Certificate (GRS 4.0), among others, ensuring consistency and reliability across its product range.
Building on its technical expertise and manufacturing depth, Fuxing has developed a comprehensive portfolio of innovative zipper solutions used across a wide range of applications, including apparel, footwear, bags, and outdoor equipment.
" We don' t just sell a zipper," he says. " We help our customers design the fastening solution that fit their design concepts, delivering both functionality and design intent."
Its proprietary &ldquo 3F&rdquo brand continues to gain recognition for reliability and value, reinforcing Fuxing&rsquo s position as a competitive and increasingly differentiated player in the global zipper industry.
" We look at how to reduce their assembly time or waste, enabling faster time-to-market and strengthening relationships without compromising our margins."
Looking ahead, Hong says the group' s growth priorities include increasing direct-to-brand sales, new product innovation, and deepening its existing customer relationships.
" We want to enhance our responsiveness to market demand," he says, " and harness new opportunities as they emerge."
Right now, Fuxing operates through four segments: zipper manufacturing, processing services, raw material trading, and a small real estate operation in Xiamen, where the group retains two floors of its Fuxing International Centre for rental income.
Strong underlying asset base with net asset per share of $5.40
For shareholders who have held Fuxing shares through the years, the most significant announcement from FY2025 might not be the profit number. Instead, it is the dividend.
Fuxing is proposing a final dividend of RMB15 cents per share for the year, the first payment to shareholders since 2011.
Alongside it, Fuxing also announced a new dividend policy: at least 15% of net profit distributed for the next three years, with shareholders able to choose between cash and/or new shares.
" We have reached a major milestone," Hong says.
The company' s net asset value per share stands at approximately RMB29.60 &mdash around $5.40 &mdash against recent share prices of $0.40 to $0.70. Hong frames this gap as an unrecognised value.
" We want investors to see the underlying strength of our financial position," he says.
Targeting revenue growth and margin expansion
Looking ahead, Hong is aiming for revenue growth and margin expansion through enhanced operational efficiency, leveraging automation and digitisation across its operations, and strengthening direct-to-brand sales.
&ldquo Digitalisation and automation will be key drivers of our margin expansion,&rdquo he says, as the Group advances its transition from a traditional manufacturer to a more agile, brand-aligned partner.
By embedding greater efficiency and responsiveness across its operations, the Group aims to strengthen its competitive positioning and harness higher-value opportunities.
After all, zippers are not something most people think about &mdash until they stop working. Hong&rsquo s ambition is for Fuxing to move beyond that invisibility and be on investors' minds a great deal more.
About Fuxing China Group
Established in 1993, Fuxing China Group is the fourth-largest zipper manufacturer globally by sales value. Over the past 30 years, the Group has built strong integrated manufacturing capabilities, developed its proprietary &ldquo 3F&rdquo brand, and established a solid market reputation alongside a diversified customer base in the PRC.
Serving over 1,600 customers and trusted by renowned brands such as Peak, Erke, 361° , Li-Ning, Samsonite, Reebok, Joma, Ellesse, Meituan, Sela, Bosideng and Northpole China, the group&rsquo s zipper products are widely used in apparel, footwear, bags and camping equipment.
With strong emphasis on quality assurance and research and development, the Group has obtained various international certifications in recognition of its quality standards and innovation capabilities.
Looks interesting..
Joelton ( Date: 23-May-2026 11:30) Posted:
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Fuxing CEO Hong: Margin discipline matters more than revenue
On many pieces of clothing, and likely every bag you own, there is a zipper.
Somewhere along the chain of suppliers that brought this unassuming but essential part to market, there is a good chance that it is from a factory in Jinjiang, Fujian.
Fuxing China Group has been making zippers since 1992 and has grown to become the world' s fourth-largest zipper manufacturer by sales value, according to the 2023 edition of the Euromonitor Report.
The group supplies to more than 1,600 customers across China, including Peak, Erke, Septwolves, 361° , Li-Ning, Samsonite, Beneunder and Northpole China, among others. The company has been listed on the Singapore Exchange since 2007.
For most of that time, Fuxing has operated exactly as its product does &mdash reliably, without drawing much attention to itself.
Then in FY2025, several key developments marked a turning point, setting the stage for its next phase of growth.
CEO Shaolin Hong describes a business at an inflexion point: " In recent years, we have undertaken various initiatives to streamline non-core operations, enhance productivity, and strengthen margins across our business segments."
For the first time since 2011, it has announced a dividend of RMB0.15 ($0.028) per share and a dividend policy to pay at least 15% of its net profit attributable to shareholders over the next three years.
From scarce resources to global supplier
Fuxing was founded by Hong' s father, Hong Qingliang, in the early years of China' s economic opening. Resources were scarce, but that did little to hold back his ambition.
" My father built a livelihood from scratch," Hong says. " He didn' t just start a factory."
He describes his father' s approach as a &ldquo first-mover spirit&rdquo &mdash a willingness to act before the path was clear. That instinct, Hong says, is part of what he brings to the business today, alongside a recognition that the environment he navigates is radically different from 1992.
Jinjiang, where the group is headquartered, is known in China as the birthplace of some of its most successful consumer brands. Brands like Anta and 361° both started there.
For Fuxing, being embedded in this cluster has been a strategic asset.
" Our proximity to the big consumer brands creates a cluster effect," Hong says. " We benefit from a specialised labour pool, faster supply chains, and enhanced ability to align our products with market trends in real time."
Not just a zipper
The competitive landscape for zipper manufacturers is defined by one name: YKK, the Japanese manufacturer that dominates the premium end of the global market and supplies most of the world' s luxury and high-performance brands.
Against this backdrop, Fuxing continues to strengthen its competitive position by focusing on quality, branding, innovation, and integrated manufacturing capabilities.
Building on its technical expertise and supported by an in-house R& D team of nearly 20 professionals, the Group places strong emphasis on product and technical enhancement, to drive continuous innovation in both product performance and manufacturing efficiency.
Quality control remains a core priority across all production processes: the Group obtained various domestic and international quality certifications, which included ISO 9001:2015 Quality Management System Certificate, ISO 45001:2018 Occupational Health and Safety Management System Certificate, ISO 14001:2015 Environmental Management System Certificate and Global Recycled Standard Certificate (GRS 4.0), among others, ensuring consistency and reliability across its product range.
Building on its technical expertise and manufacturing depth, Fuxing has developed a comprehensive portfolio of innovative zipper solutions used across a wide range of applications, including apparel, footwear, bags, and outdoor equipment.
" We don' t just sell a zipper," he says. " We help our customers design the fastening solution that fit their design concepts, delivering both functionality and design intent."
Its proprietary &ldquo 3F&rdquo brand continues to gain recognition for reliability and value, reinforcing Fuxing&rsquo s position as a competitive and increasingly differentiated player in the global zipper industry.
" We look at how to reduce their assembly time or waste, enabling faster time-to-market and strengthening relationships without compromising our margins."
Looking ahead, Hong says the group' s growth priorities include increasing direct-to-brand sales, new product innovation, and deepening its existing customer relationships.
" We want to enhance our responsiveness to market demand," he says, " and harness new opportunities as they emerge."
Right now, Fuxing operates through four segments: zipper manufacturing, processing services, raw material trading, and a small real estate operation in Xiamen, where the group retains two floors of its Fuxing International Centre for rental income.
Strong underlying asset base with net asset per share of $5.40
For shareholders who have held Fuxing shares through the years, the most significant announcement from FY2025 might not be the profit number. Instead, it is the dividend.
Fuxing is proposing a final dividend of RMB15 cents per share for the year, the first payment to shareholders since 2011.
Alongside it, Fuxing also announced a new dividend policy: at least 15% of net profit distributed for the next three years, with shareholders able to choose between cash and/or new shares.
" We have reached a major milestone," Hong says.
The company' s net asset value per share stands at approximately RMB29.60 &mdash around $5.40 &mdash against recent share prices of $0.40 to $0.70. Hong frames this gap as an unrecognised value.
" We want investors to see the underlying strength of our financial position," he says.
Targeting revenue growth and margin expansion
Looking ahead, Hong is aiming for revenue growth and margin expansion through enhanced operational efficiency, leveraging automation and digitisation across its operations, and strengthening direct-to-brand sales.
&ldquo Digitalisation and automation will be key drivers of our margin expansion,&rdquo he says, as the Group advances its transition from a traditional manufacturer to a more agile, brand-aligned partner.
By embedding greater efficiency and responsiveness across its operations, the Group aims to strengthen its competitive positioning and harness higher-value opportunities.
After all, zippers are not something most people think about &mdash until they stop working. Hong&rsquo s ambition is for Fuxing to move beyond that invisibility and be on investors' minds a great deal more.
About Fuxing China Group
Established in 1993, Fuxing China Group is the fourth-largest zipper manufacturer globally by sales value. Over the past 30 years, the Group has built strong integrated manufacturing capabilities, developed its proprietary &ldquo 3F&rdquo brand, and established a solid market reputation alongside a diversified customer base in the PRC.
Serving over 1,600 customers and trusted by renowned brands such as Peak, Erke, 361° , Li-Ning, Samsonite, Reebok, Joma, Ellesse, Meituan, Sela, Bosideng and Northpole China, the group&rsquo s zipper products are widely used in apparel, footwear, bags and camping equipment.
With strong emphasis on quality assurance and research and development, the Group has obtained various international certifications in recognition of its quality standards and innovation capabilities.
Fuxing Accelerates Direct-to-Brand Strategy with an Expanding Portfolio of International and Domestic Brand Owners
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Growing roster of global and domestic brands underscores increasing customer trust and confidence, which validates Fuxing&rsquo s direct-to-brand sales strategy.
-
The new brands span sportswear, lifestyle, workwear, performance apparel and outdoor segments, enhancing revenue diversification and margin resilience.
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Direct engagement with brand owners expected to drive higher value-added opportunities and support long-term sustainable growth.
Fuxing Posts Strong Net Profit Growth to RMB20.5 Million for FY2025 with Net Asset Value per Share of RMB29.60 Proposed Dividends of RMB 15 cents per Share
&bull While revenue dipped in FY2025 mainly due to lower sales in the Group&rsquo s zipper segment, gross profit increased 8% to RMB49.5 million with a higher gross profit margin of 7.4% that was mianly driven by its Processing segment.
&bull Sustained positive operating cash flow, with net cash of RMB44.3 million from operating activities in FY2025 and cash and cash balances increasing to RMB191.9 million as at 31 December 2025.
&bull Total equity increased to RMB598.0 million with net asset per share of RMB 29.60 (est. S$5.40) as at 31 December 2025.
&bull In view of the Group&rsquo s improved profitability in FY2025, the Board has proposed a final dividend of RMB0.15 cents per ordinary share for FY2025, subject to shareholders&rsquo approval at the forthcoming Annual General Meeting.
&bull Targeting revenue growth and margin expansion through enhanced operational efficiency, utilising greater automation, and increased direct-to-brand sales.
Commenting on the Group&rsquo s FY2025 results, Mr Hong Shao Lin, Chief Executive Officer of Fuxing, said: &ldquo Following the streamlining of non-profitable operations, our underlying business performance underscores the effectiveness of our automation and digitalisition initiatives, operational optimisation measures and disciplined financial management, which have collectively strengthened efficiency and enhanced margins.
Coupled with sustained positive operating cash flow, the Group reduced its bank borrowings that has further reinforced our balance sheet.
With improved financial agility, we are well-positioned to pursue our organic initiatives while continuing to deliver long-term value to our shareholders.&rdquo
On the proposed dividend, Mr Hong added, &ldquo We firmly believe that delivering consistent returns is integral to long-term value creation for shareholders, hence this proposed dividend marks an important milestone for the Group.
As we continue to strengthen our earnings base and enhance cash flow generation, we aim to balance capital returns to shareholders while continuing to invest in future growth opportunities.&rdquo
Fuxing China withdraws secondary listing application on Nasdaq
Fuxing China Group will not proceed with its secondary listing application on the Nasdaq, the Mainboard-listed company announced on Nov 24.
According to the group, the proposed transaction was aborted as it experienced a prolonged delay in obtaining the requisite approval from the China Securities Regulatory Commission (CSRC) for the American Depositary Shares (ADS) offering. There is also no certainty of the approval being granted, the group adds.
The transaction was also cancelled following Nasdaq&rsquo s recent proposed amendments to its listing rules, which include stricter and additional requirements for companies with businesses mainly administered in China.
The group also cited the additional financial and administrative resources in complying with the relevant US securities laws as one of the reasons behind the cancellation
As at its announcement on Nov 24, the underlying shares have been transferred back to the group and held as treasury shares, have been cancelled.
All costs and expenses incurred in connection with the proposed transaction have been borne by the group&rsquo s executive chairman, Hong Qing Liang, and would have been repayable upon the successful completion of the secondary listing. With the group&rsquo s decision to cancel the proposed transaction, repayment to Hong will be waived in full.