Bangladesh’s MK Footwear PLC has signed a manufacturing and supply agreement with China-based Jinjiang Akia Sports Co Ltd, securing an export deal expected to generate up to $10 million annually, according to a stock exchange disclosure.
The agreement, signed on March 24, commits the Chinese buyer to placing a minimum annual order of 1 million pairs of footwear, subject to mutually agreed designs and specifications. The export value is projected between $8 million and $10 million per year, to be executed through regular purchase orders across each contract cycle.
To fulfill the order pipeline, MK Footwear will allocate dedicated production capacity, highlighting the scale and long-term nature of the agreement. The contract also includes provisions covering quality assurance, delivery timelines and payment structures, standard for cross-border manufacturing partnerships.
The deal marks a strategic push by the SME-listed company to expand its global footprint at a time when Bangladesh’s broader textile and manufacturing sectors face uneven demand and cost pressures. Industry data shows rising production costs and fluctuating global demand have recently squeezed margins across textile and apparel producers, prompting firms to seek stable export orders and diversified markets.
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Investor sentiment reacted positively to the announcement, with MK Footwear’s share price rising around 2% on the Dhaka Stock Exchange’s SME platform following the disclosure.
The export agreement 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 earnings growth was driven by capital market gains, including profits from the sale of shares in another listed firm.
Founded as a footwear manufacturer with export markets spanning Europe, the United States and Asia, MK Footwear has been positioning itself as a competitive supplier in the global value chain. The latest deal with a Chinese partner—traditionally a dominant player in global footwear manufacturing—signals growing cross-border collaboration and supply chain integration within Asia.
Analysts say the success of the agreement will depend on consistent order execution, quality compliance and the company’s ability to maintain production efficiency amid rising input costs. If implemented as planned, the deal could provide a stable revenue stream and reduce reliance on volatile domestic or spot export orders.
