Yue Yuen's Casual/Outdoor Footwear Business Sets Pace in 2013

Yue  Yuen  Industrial  (Holdings)  Limited reported sales  of  athletic  shoes  and  casual/outdoor  shoes  were  up  by  2.7 percent  and  9.7 percent  respectively  in 2013. 

Total sales of the Group rose 4.1 percent  for  the  period  to  approximately $7,582.5  million.  Recurring operating  profit amounted to $430.8 million. The Group also had non-recurring operating profit of $3.9 million for the period. When  aggregating  both  categories of profit, the net profit attributable to shareholders for the fiscal year 2013  amounted  to approximately $434.8 million. 

 

 

Total shoe manufacturing volume was up by 1.1 percent to 313.4 million pairs for the twelve month period.

 

 

Total Turnover by Product Category

	2013 (audited)	% of revenues	2012  (pro forma)	% of revenues	% Change
Athletic Shoes	3,813.3	50.3	3,711.3	51.0	2.7
Casual/Outdoor  Shoes	1,356.8	17.9	1,237.3	17.0	9.7
Sports Sandals	86.2	1.1	89.7	1.2	(3.9)
Retail Turnover	1,726.6	22.8	1,659.5	22.8	4.0
Soles, Components & Others	599.6	7.9	582.8	8.0	2.9
Total Turnover	7,582.5	100.0	7,280.6	100.0	4.1

  
With  regards  to  the  retail  and  wholesale  business  of  sportswear  in  the  Greater  China  region,  sales  increased  by  4.0 percent  to   $1,726.6  million  in  2013  compared  to   $1,659.5  million  recorded  in  the  same  period  last  year. 

The   Group’s gross profit declined by 0.8 percent to $1,646.6   million.  When  looking  at  the underlying   business   units,   gross profit   for   the   manufacturing   operations   involving  international  performance  brands  contracted  due  to  rising wage  costs  as  well  as  the  reduction  in  operating  efficiency  due  to  the  relocation  and   allocation   of production   capacity.   When   viewed   by   each   quarter,   during   the   twelve   month   period  manufacturing operations  exhibited  a  trend  of  improving  gross  margin.  Pou  Sheng  had  a  gross  profit  decline  of  0.7 percent  to   $513.8  million  mainly  due  to  the  significant  deterioration  in  the  manufacturing  sales  to  the  domestic brands  and  the  discounting  activities  in  retail  operations  to  drive  sales  volumes. 

Group selling  &  distribution  expenses  and  Administrative  expenses  was  almost  unchanged  compared  to  the  same  period  last  year.  For  the  manufacturing  operations,  the  sum  of  these  items  increased  by  4.8 percent   partly   due   to   increased   personnel   expenses   compared   to   the   same   period   last   year,   whereas   for   Pou  Sheng  the  sum  of  these  items  declined  by  3.8 percent  when  compared  with  the  same  period  last  year  due  to  cost  control  measures.  Since  the  underlying  inflation  in  both  industries  is  significant,  managements  in  both  of  the business  units  have  been  working  hard  to  control  expenses. 

At   the   Group   level,   share  from Affiliates and Jint Ventures declined by 44.0 percent  to $48.8   million.   For   the   manufacturing   operations,  share   of   A&JV   fell   partly   due   to   the   recognition  of  a one-time   loss   of    $23.2   million   due   to   the   change   of  shareholding  in  Symphony  Holdings  Limited.  For  Pou  Sheng,  share  of  loss  from  A&JV  declined  by  47.8 percent  to  a  loss  of   $5.9  million  compared  with  a  loss  of   $11.4  million  in  the  same  period  last  year. 

 

The board proposed a final dividend of HK$0.75 per share. Combined with the interim dividends declared earlier, the total dividends paid per share for fiscal year 2013 amounted to HK$1.10, compared to HK$ 1.25 for the 15 months ended Dec. 31, 2012.

 

 

About Yue Yuen:

Yue Yuen Industrial (Holdings) Limited is an investment holding company. The Company, along with its subsidiaries, is principally engaged in manufacturing, marketing and retailing of athletic footwear, athletic style leisure footwear, casual and outdoor footwear. The Company operates in two segments: manufacturing segment, which manufactures and sells footwear products, and retailing segment, which engages in the retail and distribution of sportswear products. During the fiscal year ended September 30, 2011, the Company produced 326.6 million pairs of shoes. On 1st April, 2011, the Company acquired 75% equity interest in Yi Sheng Leather Co., Ltd. The Company’s subsidiaries include A-Grade Holdings Limited, Bangladesh Pou Hung Industrial Ltd, Baosheng Daoji (Beijing) Trading Company Limited, Baoxin (Chengdu) Trading Company Limited, Bestful Properties Limited and Champolian Investments Inc., among others.