Yue Yuen reports strong revenue growth from core manufacturing & retail sales in china during Q1

14 Jun '05

3 min read

Largest footwear manufacturer Yue Yuen Industrial (Holdings) Limited announced its unaudited consolidated results for the six months ended 31st March, 2005. Turnover rose year-on-year by 17.4% to US$1,477.9 million and net profit fell year-on-year by 3.8% to US$152.3 million for the six months ended 31st March, 2005. Earnings per share declined by 4.1% to 9.4 U.S. cents compared with 9.8 U.S. cents for the same period last year.

The net profit would have increased by 15.4% for the first half of fiscal year 2005 when not taking into account the US$26.3 million contribution from disposal of investment securities for the corresponding period last year.

The Board of Directors has resolved to declare an interim dividend of HK$0.27 per share, an increase of 8% from HK$0.25 per share last year.

Operations
During the period, the Group recorded strong revenue growth from its core manufacturing operation and retail sales in greater China. The operating environment for footwear manufacturing remained difficult due to the increase in crude oil prices and labor costs in the Pearl River Delta region. The Group has kept up the effort to contain the increase in overall production overheads and selling and administrative expenses but the market resistance remained strong. In addition, the moderate rise in the average selling price could only partially offset the general increase in material prices.

Total number of shoes produced during the period increased year-on-year by 11.4% to 90.4 million pairs compared with 81.2million pairs last year. The various product categories faced balanced growth. There was encouraging growth in all major markets by geographical distribution and sales to North America were particularly strong.

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