kopi-C with Fuxing CEO: The part that holds everything together

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 it came from a factory in Jinjiang, Fujian.

Fuxing China Group has been making zippers since 1992, and it has grown to become the world's 4th largest zipper manufacturer in terms of sales value according to a Euromonitor Report (2023 edition).

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, it has operated in exactly the way its product does—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 inflection 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 RMB 15 cents per share, along with a dividend policy to pay at least 15% of its net profit attributable to shareholders for the next 3 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 'first-mover spirit'—a willingness to act before the path was clear. That instinct, Hong says, is part of what he carries into the business today, alongside a recognition that the environment he is navigating 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 the 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 “3F” brand continues to gain recognition for reliability and value, reinforcing Fuxing’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—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 S$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 RMB 15 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 next 3 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 RMB 29.60—around S$5.40—against recent share prices of S$0.40 to S$0.70. Hong frames this gap as 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. 

“Digitalisation and automation will be key drivers of our margin expansion,” 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—until they stop working. Hong’s ambition is for Fuxing to move beyond that invisibility, and to be on the minds of investors a great deal more.

About Fuxing China Group Limited 

Established in 1993, Fuxing China Group Limited is the 4 th largest zipper manufacturer globally in terms of sales value. Over the past 30 years, the Group has built strong integrated manufacturing capabilities, developed its proprietary “3F” 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’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.

About kopi-C: the Company brew

kopi-C is a regular column by SGX Research in collaboration with Beansprout, a MAS-licensed investment advisory platform, that features C-level executives of leading companies listed on SGX. These interviews are profiles of senior management aimed at helping investors better understand the individuals who run these corporations.