Yue Yuen Industrial reported revenues grew 7.3 percent in the nine months ended June 30, to US$5.56 billion. Earnings were up 12.4 percent to US$387.9 million.
The Group also had non-recurring profit for the period. When aggregating both categories of profit, then the net profit attributable to Owners of the Company for the period amounted to approximately US$427.9 million.
Operations
In the first nine months of the Fiscal Year 2012, the Group's shoe manufacturing turnover grew 5.7 percent to US$3,892.8 million, due to the growth in sales of athletic shoes and casual/outdoor shoes of 5.7 percent and 5.0 percent respectively. Total shoe manufacturing volume fell by 3.0 percent to 241.6 million pairs. The Group's shoe manufacturing turnover grew for the U.S.A and Asia regions, but experienced a modest decline for Europe.
With regards to the retail and wholesale business of sportswear in the Greater China Region, Sales increased by 15.4 percent to US$1,225.9 million in the first nine months of the Fiscal Year 2012, primarily due to factors such as acquisition of the regional retailers, opening of new stores, and promotional sales following by liquidation of inventory.
During the period, the Group's gross profit increased by 10.6 percent to US$1,288.1 million (2011: US$1,164.9 million), primarily due to the trend of price stability for materials and energy units purchased. Some improvement in factory operating efficiency also contributed to the gross profit improvement. Meanwhile, selling, distribution and administrative expenses increased by 12.8 percent to US$870.8 million (2011: US$771.7 million) driven by inflation in the Asia environment, in particular China, leading to rising wages and to higher rental costs. Share of results from associates and jointly controlled entities improved by 63.9 percent to US$76.4 million (2011: US$46.6 million). As a result of the aforementioned items, the Group's net profit attributable to owners amounted to US$427.9 million.
Looking Forward
Lacking a significant economic rally, the European debt crisis continues to strain the global financial market, and US continues to face a relatively high level of unemployment. China has also experienced a flagging economy growth because of the deterioration in export and a weak domestic demand. Amid all of those variable economic aspects, the operating environment ahead is grounded by lots of difficulties and challenges. The Group will do its utmost to cope with the uncertainty under current momentum, and has been committing the majority of its resources to further innovation, increase automation and implement the best practices for sustainable development, in order to look after the best interest for its customers, workers and shareholders. The Group believes, by cooperating together with its customers, it can navigate its way through the on-going turbulence of the global economy.
