Chinese shoe manufacturer Stella International Holdings Ltd. has big plans for the back half of 2026.

The Hong Kong-based shoe manufacturer said it is focusing on ramping up three new factories in Indonesia, Bangladesh and Vietnam in 2026 as part of its recently announced three-year plan. Along with its existing factory in Solo, Indonesia, the company expects the new factories to add about “20 million pairs of additional production capacity over the coming years.”

Stella made that disclosure in its first quarter revenue report for the first quarter ended March 31.

The company said revenue grew 2.2 percent to $327.4 million from $320.5 million in the same year-ago period. Revenue was helped by a 3.8 percent uptick in the average selling price per pair to $27.40 versus $26.40 a year ago in the product mix within its sports shoe category.

For the first quarter, the company posted a 1.7 percent decline in shipment volume to 11.9 million pairs from 12.1 million pairs. The company said the decline reflects fewer working days due to the Ramadan celebrations in Indonesia and Bangladesh, which occurred earlier in 2026 versus last year.

“Despite heightened geopolitical uncertainties, our performance in the first three months of 2026 was largely in line with our expectations. We expect demand from our new sports and high‑end fashion customers to remain robust, although we will continue to monitor risks closely,” Chi Lo-Jen, Group CEO, said.

The Group’s chairman, Lawrence Chen, said that the company’s “diversified manufacturing base remains a core differentiator, underpinning both customer retention and new-customer acquisition.”

In addition to shoe production, the company also manufactures leather goods in the handbag and accessories category. The financial information for the first quarter pertains solely to Stella’s footwear manufacturing business.