YUE YUEN INDUSTRIAL (HOLDINGS) LIMITED 
By PRESS RELEASE
Yue Yuen Announces 2013 First Half Results
? Turnover up 1.4 % to US$ 3.7 billion compared to the same period last year
? Gross profit was down 8.3 % to US$ 778.7 million
? Recurring operating profit attributable to Owners of the Company was down 22.6 % to US$ 190.6 million
? Non-?recurring operating profit attributable to Owners of the Company for the period amounted to US$ 3.9
million
? Total net profit attributable to Owners of the company amounted to US$ 194.4 million, down 28.5 %
compared to US$ 272.1 million in the same period last year
(Hong Kong, 13 August 2013) - Yue Yuen Industrial (Holdings) Limited ("the Group", stock code: 551) today announced its unaudited consolidated results for the first half of Fiscal Year 2013 from 1stJanuary 2013 to 30th June 2013. The fiscal period is now from 1stJanuary to 31stDecember.
Total turnover of the Group rose 1.4 % for the period to approximately US$ 3,699.3 million. Recurring operating profit was down 22.6 % to US$ 190.6 million. The Group also had non-?recurring profit for the quarter of roughly US$ 3.9 million: for the same period last year, this amount was US$ 25.8 million, which includes a US$ 18.8 million one-?time gain arising within the joint venture category. Please refer to the announcement for further details. The net profit attributable to Owners of the Company for the first half of the Fiscal Year 2013 amounted to approximately US$ 194.4 million.
The Board is pleased to declare an interim dividend of HK$ 0.35 per share, no change compared to the first six
months of fiscal 2012 ending 31stMarch, 2012.
Revenue
Total Turnover by Product Category For the six months2013 | 2012 | ||||
(alllfigureslroundedltolmillions)l | |||||
US$ millions | % | US$ millions | % | %change | |
Athletic Shoes | 1,901.1 | 51.4 | 1,873.9 | 51.3 | 1.5 |
Casual/Outdoor Shoes | 616.3 | 16.7 | 585.6 | 16.1 | 5.2 |
Sports Sandals | 47.1 | 1.3 | 59.5 | 1.6 | (20.9) |
Retail Sales - Shoes, Apparel & | 856.9 | 23.1 | 832.8 | 22.8 | 2.9 |
Leasing | |||||
Soles, Components & Others | 277.9 | 7.5 | 297.5 | 8.2 | (6.6) |
Total Turnover | 3,699.3 | 100.0 | 3,649.3 | 100.0 | 1.4 |
Sales of athletic shoes and casual/outdoor shoes were up by 1.5 % and up by 5.3 % respectively. Total shoe manufacturing volume was almost unchanged at 158.7 million pairs made for the period.
With regards to the retail and wholesale business of sportswear in the Greater China Region, sales increased by
2.9 % to US$ 856.9 million in the six months period compared to US$ 832.8 million recorded in the same period last year, due to factors such as strategies to improve sales efficiency per shop and selectively using discount pricing to reduce inventory.
During the period, the Group's gross profit declined by 8.3 % to US$ 778.7 million. When looking at the underlying business units, gross profit for the manufacturing operations involving international performance brands declined as consequence of rising wage costs as well as the lower operating efficiency due to the relocation and allocation of production capacity. Pou Sheng had a gross profit decline of 6.6 % to US$ 249.4 million on account of the fall in the manufacturing sales to the domestic brands and discounting activities to bring down the inventory level.
Selling & distribution expenses and Administrative expenses
For the Group, the sum of Selling & distribution expenses and Administrative expenses is very similar to the amount incurred in the same period last year. For the manufacturing operations, the sum of these items increased by 5.8 % compared to the same period last year, whereas for Pou Sheng the sum of these items fell by
7.4 % when compared with the same period last year. Given the underlying inflationary pressures in both businesses, expenses were diligently managed.
At the Group level, Share of A&JV fell by 51.2 % to US$ 24.2 million. For the manufacturing operations, Share of A&JV also experienced a decline due to the recognition of a one-?time gain of US$ 18.8 million in the same period last year. For Pou Sheng, share of loss from A&JV was reduced by 19.0 % to a loss of US$ 3.5 million.
Yue Yuen Industrial (Holdings) Limited
www.yueyuen.com
Jerry Shum
Investor Relations Director
Tel: 3183 0888
Fax: 3183 0808
E-?mail: jerry.shum@yueyuen.com
Forlthelsixlmonthslendedl30thlJune,l2013l
2013
(unaudited)6 months
2012
(unaudited)6 months
US$'000 US$'000
Turnover 3,699,323 3,649,333
Cost of sales (2,920,673) (2,800,363) Gross profit 778,650 848,970
(l%loflturnoverl)l 21.05%l 23.26%l
Other income 86,746 80,519
Selling and distribution expenses (301,797) (313,247) Administrative expenses (271,083) (263,193) Other expenses (101,837) (90,557) Finance costs (13,452) (18,656)
Fair value changes on derivative financial instruments | 183 | (16,204) |
Gain on disposal of subsidiaries | -? | 5,761 |
Fair value changes on consideration | ||
payable for acquisition of business Impairment losses of investments in an associate and joint | (361) | (1,542) |
ventures | -? | (7,497) |
Impairment losses on amounts due from joint ventures | (2,443) | -? |
Share of results of associates | 16,455 | 16,150 |
Share of results of joint ventures | 7,717 | 33,358 |
Profit before taxation 198,778 273,862
Income tax expense (8,489)(10,442)
Profit for the period 190,289 263,420
(l%loflturnoverl)l 5.14%l 7.22%l
Attributable to:
Owners of the Company 194,446 272,108
(l%loflturnoverl)l 5.26%l 7.46%l
Non-?controlling interests (4,157) (8,688)
190,289 263,420
BylCategory:l l l
RecurringloperatinglProfitl 190,568l 246,311l
(l%loflturnoverl)l 5.15%l 6.75%l
Non-?recurringloperatinglprofit/(loss)l 3,878l 25,797l
NetlProfitlattributableltolOwnersloflthelCompanyl 194,446l 272,108l
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