B Mirror Report: MK Footwear PLC, listed on the SME platform of the stock market, has signed a major export agreement with China’s Xinjiang Aoqiya Sports Company Limited, aiming to generate up to $10 million in annual revenue.

In a disclosure to the Dhaka Stock Exchange on Monday (March 24), the company stated that on the same day it signed a production and supply agreement with the Chinese firm. Under this agreement, Xinjiang Aoqiya Sports will place orders for at least 1 million pairs of shoes annually, which will be manufactured according to mutually agreed designs and specifications.

The company expects that through regular yearly purchase orders, the agreement could generate between $8 million and $10 million in export earnings per year.

To meet demand, MK Footwear will allocate dedicated production capacity for the buyer. The agreement includes provisions related to product quality assurance, production schedules, payment terms, and other commercial matters.

Company officials said that successful implementation of the deal would strengthen their export operations and support future business expansion.

Following the announcement, MK Footwear’s share price on the SME platform rose by 2% to BDT 85.90, indicating positive investor sentiment.

Meanwhile, the company’s financial performance has also improved in the 2024–25 fiscal year. During this period, its revenue reached BDT 787.9 million, and net profit increased by 116% to BDT 87.6 million.

However, a significant portion of the profit growth came from stock market investments. The company earned BDT 63.7 million by selling shares of Legacy Footwear that were previously purchased at a lower price.

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