Yue Yuen fiscal first quarter sales increased 17.6% to $878.0 million and net profit increased by 16.0% to $85.9 million for the period. Due to the adoption of new Hong Kong Financial Reporting Standards, however, net profit was restated to $74.0 million from $77.1 million and the net profit growth would have been 11.4% year-on-year before restatement.

The Group reported encouraging results for the period in light of sustained sales growth. Total footwear production amounted to 49.5 million pairs, an increase of 6.2% compared with the corresponding period of the previous year. Turnover from wholesales and retail operations in the Greater China region jumped 142% to $65.1 million, as a result of blooming domestic consumption in China. By the end of 2005, the Group operated over 600 shops/counters in the mainland China.

Following a strong performance in the first quarter of 2006, the group continued to record turnover growth in the first two months of the second quarter, with aggregate revenue amounting to $553.2 million, a rise of 18.8% over the same two month period last year. The continued growth in the core manufacturing business as well as the increased contributions from wholesales and retail operations underpinned the Group’s operating performance.

Yue Yuen Industrial Ltd.
2006 First Quarter Sales Breakdown
(in $ millions) 2006 %/ttl 2005 %/ttl Change
Category Breakdown
Athletic $521.5 59.4% $476.0 62.3% 9.6%
Casual & O/D $151.7 17.3% $120.0 15.7% 26.4%
Sport Sandals $20.1 2.3% $14.6 1.9% 37.7%
Soles/Comps $106.2 12.1% $100.9 13.2% 5.3%
Apparel $65.1 7.4% $26.9 3.5% 142%
Retail $13.4 1.5% $8.0 1.0% 67.5%
Geographic Breakdown
United States $318.8 36.3% $289.1 37.8% 10.3%
Canada $20.5 2.3% $13.7 1.8% 49.6%
Europe $254.1 28.9% $219.5 28.7% 15.8%
So. America $19.9 2.3% $16.4 2.1% 21.3%
Asia $237.4 27.0% $187.3 24.5%
Share This