Yue Yuen Industrial (Holdings) Limited reported sales for the nine months ended June 30 rose 4.8% to $3.8 billion. Profits decreased year on year by 17.2% to $362.8 million. Excluding non-recurring  items, recurring  profit  attributable  to  equity  holders increased by 9.5% to $341.2 million.

The non-recurring items include the  fair value  changes  and  last  year’s  gain  on  deemed  disposal  of  subsidiaries, The fair value changes were recognized in accordance with  accounting  standards  arising  from  the  mark-to-market  valuations  of  certain  derivative  financial  instruments.  The  gain  on  deemed  disposal  of  subsidiaries was  recognized  on  the  spin-off  of  Pou  Sheng International (Holdings) Limited  in June  last year. Total  footwear production volume  for  the  nine-month  period  amounted  to  193.1  million  pairs,  a  decrease  of  1.3%  compared  with  the  corresponding period last year.  
During the period under  review,  the global economy was weak and consumer spending was slower than the same period last year. The company’s major customers were affected by the lower consumer spending  but  did  not  see  the  dramatic  declines  in  consumption  experienced  by  other  consumer  product  sectors. The company’s  largest  geographic market, Asia,  continued  to  exhibit  stable  sales
growth. Sales  for  the U.S. market still had mild growth. South America  the  fastest growing market grew by 27.5% year on year. When viewed by product category,  the  largest category athletic shoes had  almost  the  same  level of  turnover when  compared with  last  year. Casual Shoes  sales were  up 12.7% year on year compared to flat growth in financial year 2008. Retail Sales, encompassing both shoes and apparel, grew at a 20.6% compared  to earlier years. Since  the company’s customers are market leading brand name companies, management feels the company can continue to operate with stability during the current global economic weakness.