Yue Yuen Industrial Holdings Ltd, which sources 20 percent of the worlds athletic footwear, warned investors that it saw a significant downturn in the first quarter ended March 31.
Based on the unaudited consolidated management accounts of the Group, the performance of the Group in the first three months ended 31 March 2013 has demonstrated a significant downturn year on year and therefore the Groups results are expected to be adversely and materially affected for the first interim period, the Hong Kong listed company announced. To deal with the change in operating results of the company, the Board will continue to undertake various production efficiency implementations and try every means to contain the rising costs with the aim to improving its business. Shareholders of the company and potential investors are advised to exercise caution when dealing in the shares of the company.
The company, which manufactures in mainland China, Vietnam and Indonesia, attributed the change in operating results to rising input costs affecting manufacturing operations; relocation and allocation of production capacity for the manufacturing operations which affected operating efficiency and thus operating profit; and a significant portion of last years net profit was derived from non-recurrent and one-off items.
The Board will continue to undertake various production efficiency implementations and try every means to contain the rising costs with the aim to improving its business, the company stated in its May 5 announcement.
Yue Yuen expects to publish its audited financial statements for the quarter May 14 and release results for the first half of the year in August.
