Tue, May 12, 2026, 11:42:00
The capital increase will be carried out through a cash injection rather than a public share offering, Paiho Shih Holdings Corporation said on Friday.
The entire capital injection will be contributed by Paiho Shih Holdings Corporation. Following the transaction, Hong Kong Best Expectation International Trading Limited will hold a 55.49% stake in Paihong Vietnam, while Paiho Shih Holdings Corporation will own the remaining 44.51%.
Paihong Vietnam Co. Ltd. is located in Bau Bang commune, HCMC. Photo courtesy of the company.The additional capital will be used to repay bank loans, helping Paihong Vietnam ease debt pressure, strengthen its balance sheet, and bolster operations.
The move underscores Paiho Shih Holdings Corporation’s efforts to reinforce the financial position of its Vietnam unit as the country remains one of the group’s key manufacturing hubs in Southeast Asia, alongside Indonesia.
According to notes in Paiho Shih Holdings Corporation’s Q1/2025 financial statements, Paihong Vietnam, located in former Binh Duong province (now part of Ho Chi Minh City following a July 2025 administrative merger), mainly manufactures and trades mesh fabrics and other textile materials.
Before the latest capital hike, Paihong Vietnam was wholly owned by Hong Kong Best Expectation International Trading Limited, with the original investment value unchanged at $190 million from the end of 2024. Hong Kong Best Expectation International Trading Limited acquired a 100% stake in Paihong Vietnam from Hon Shin Corp. in June 2022 as part of Paiho’s internal investment restructuring.
Following the $120 million capital increase, Hong Kong Best Expectation International Trading Limited will remain the largest shareholder in Paihong Vietnam, while Paiho Shih Holdings Corporation has shifted from indirect ownership to directly holding a substantial stake in the Vietnam unit.
Paihong Vietnam posted profit of NT$16.26 million ($500,000) in Q1/2025.
Paiho Shih Holdings Corporation is a Taiwanese manufacturer of textile and footwear materials as well as technical fabrics. Its main products include hook-and-loop fasteners, webbings, elastic bands, shoelaces, mesh fabrics, jacquard fabrics, reflective materials and accessories used in apparel, footwear, sportswear, medical products, and consumer goods.
In Vietnam, Paiho operates multiple entities and facilities, notably Paiho Vietnam and Paihong Vietnam, both based in HCMC. The group also runs factories in the city and offices across multiple provinces nationwide.
Unlike Paihong Vietnam, Paiho Vietnam was described in the filing as a manufacturer and processor of hook-and-loop fasteners and various webbings. It posted Q1/2025 profit of NT$176.8 million ($5.63 million).
