PRESS RELEASE

Yue Yuen Announces 9 Months 2013 Results

? Turnover up 3.2 % to US$ 5,559 million compared to the same period last year

? Gross profit was down 3.4 % to US$ 1,182 million

? Recurring operating profit attributable to Owners of the Company was down 10.6 % to US$ 291.7 million

? Non-recurring operating profit attributable to Owners of the Company for the period amounted to US$

38.8 million

? Total net profit attributable to Owners of the company amounted to US$ 330.5 million, down 5.7 %

compared to US$ 350.4 million in the same period last year
(Hong Kong, 12 November 2013) - Yue Yuen Industrial (Holdings) Limited ("the Group", stock code: 551) today announced its unaudited consolidated results for the first nine months of Fiscal Year 2013 from 1st January 2013 to 30th September 2013.
Total turnover of the Group rose 3.2 % for the period to approximately US$ 5,559.5 million. Recurring operating profit to Owners was down 10.6 % to US$ 291.7 million. The Group also had non-recurring profit for the nine months of roughly US$ 38.8 million, of which US$ 30.2 million was derived from the disposal of a property holding subsidiary. For the same period last year, the non-recurring profit was US$ 24.3 million, which includes a US$ 18.8 million one-time gain arising from the joint venture category. Please refer to the announcement for further details. The net profit attributable to Owners of the Company for the first nine months of the Fiscal Year
2013 amounted to approximately US$ 330.5 million.

Business Review

Revenue

Total Turnover by Product Category

For the nine months ended 30th September,

2013

2012

(all figures rounded to millions)

US$ millions

%

US$ millions

%

%change

Athletic Shoes

2,808.5

50.5

2,713.0

50.4

3.5

Casual/Outdoor Shoes

982.0

17.7

920.8

17.1

6.6

Sports Sandals

58.2

1.0

66.5

1.2

(12.5)

Retail Sales - Shoes, Apparel &

Leasing

1,273.3

22.9

1,243.1

23.1

2.4

Soles, Components & Others

437.5

7.9

441.9

8.2

(1.0)

Total Turnover

5,559.5

100.0

5,385.3

100.0

3.2

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Sales of athletic shoes and casual/outdoor shoes were up by 3.5 % and 6.6 % respectively year over year. Total shoe manufacturing volume was up by 2.0 % at 230 million pairs for the nine month period.
With regards to the retail and wholesale business of sportswear in the Greater China Region, sales increased by
2.4 % to US$ 1,273.3 million in the nine month period compared to US$ 1,243.1 million recorded in the same
period last year, as a result of new policies to improve sales efficiency per shop and effective management of inventories through selective discounting.

Gross Profit

During the period, the Group's gross profit declined by 3.4 % to US$ 1,182.4 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 nine month period manufacturing operations exhibited a trend of improving gross margin. Pou Sheng had a gross profit decline of
5.7 % to US$ 372.2 million mainly due to the significant decline in the manufacturing sales to the domestic brands and the 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 was almost unchanged compared to the same period last year. For the manufacturing operations, the sum of these items increased by
7.9 % partly due to relocation expenses compared to the same period last year, whereas for Pou Sheng the sum of these items fell by 5.3 % when compared with the same period last year. The management of both business units have controlled expenses well given that underlying inflation in both industries is significant.

Share of results from Associates and Joint Ventures (" Share of A&JV ")

At the Group level, Share of A&JV declined by 30.9 % to US$ 44.1 million. For the manufacturing operations, Share of A&JV also fell 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 came down by 53.7 % to a loss of US$ 3.6 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

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Consolidated Income Statement

For the nine months ended 30th September, 2013

2013

(unaudited)

9 months

2012

(unaudited)

9 months

US$'000 US$'000

Turnover 5,559,511 5,385,271

Cost of sales (4,377,156) (4,161,970)

Gross profit 1,182,355 1,223,301

( % of turnover ) 21.27% 22.72%

Other income 134,799 109,723

Selling and distribution expenses (456,932) (466,904)

Administrative expenses (414,936) (390,073) Other expenses (158,332) (137,414) Finance costs (19,252) (28,333)

Fair value changes on derivative financial instruments 6,662 (18,007) Fair value changes on consideration

payable for acquisition of business 306 (2,309)

Gain on disposal of subsidiaries 33,103 5,761

Impairment losses on investments in associates and

joint ventures - (9,345) Impairment losses on amounts due from joint ventures (4,865) - Impairment loss on consideration receivable for

disposal of properties (3,433) - Share of results of associates 30,307 31,239

Share of results of joint ventures 13,780 32,560

Profit before taxation 343,562 350,199

Income tax expense (18,634) (12,188)

Profit for the period 324,928 338,011

( % of turnover ) 5.84% 6.28%

Attributable to:

Owners of the Company 330,526 350,413

( % of turnover ) 5.95% 6.51%

Non-controlling interests (5,598) (12,402)

324,928 338,011

By Category:

Recurring operating Profit 291,688 326,077

( % of turnover ) 5.25% 6.05% Non-recurring operating profit/(loss) 38,838 24,336

Net Profit attributable to Owners of the Company 330,526350,413

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distributed by