MK Footwear secures $10m export deal with Chinese firm

MK Footwear PLC has signed a major export agreement with China-based Jinjiang Akia Sports Co Ltd aiming to boost its international business with an estimated annual export value of up to $10 million.

In a disclosure filed with the Dhaka Stock Exchange today (24 March), the SME-listed company said it entered into a manufacturing and supply agreement with the Chinese firm on 24 March. Under the deal, Jinjiang Akia Sports has committed to placing a minimum annual order of 1 million pairs of footwear, subject to mutually agreed designs and specifications.

The company expects the agreement to generate between $8 million and $10 million in export revenue annually, to be executed through regular purchase orders each contract year.

To meet the anticipated demand, MK Footwear will allocate dedicated production capacity for the buyer. The agreement also includes standard provisions covering quality assurance, production timelines, payment terms, and other commercial conditions.

Company officials said the deal is expected to significantly strengthen its export pipeline and support future business growth, provided that purchase orders are executed successfully and contractual obligations are met.

Following the announcement, MK Footwear's share price rose by 2% to Tk85.90 on the SME platform, reflecting positive investor sentiment.

The development comes amid improving financial performance for the company. In the fiscal year 2024–25, MK Footwear reported revenue of Tk78.79 crore, while net profit surged 116% to Tk8.76 crore.

However, a significant portion of the profit growth was driven by gains from stock market investments. The company earned Tk6.37 crore by selling shares of Legacy Footwear, which it had acquired earlier at a lower cost.

Earlier, MK Footwear declared a 12% cash dividend for shareholders other than sponsors and directors for the year ended 30 June 2025.