Yue Yuen Industrial (Holdings) Limited  reported total sales  rose  1.4 percent  for  the  six months ended June 30  to  approximately  $3.70 billion. 

Recurring  operating  profit  was  down  22.6 percent  to  $190.6  million.  The  Group  also  had  non-recurring  profit  for  the  quarter  of  roughly $3.9 million, down from $25.8 million including an $18.8  million one-­time gain arising within the joint venture category. The  net  profit  attributable  to  owners  of  the  company  for  the  first  half  of  the  Fiscal  Year  2013  amounted to  approximately  $194.4  million.
 
The board  declared  an  interim  dividend  of  HK$0.35  per  share,  no  change  compared  to  the  first  six  months  of  fiscal  2012, which ended March 31, 2012.

Sales of athletic shoes and casual/outdoor shoes were up by 1.5  percent and 5.3  percent respectively. Total shoe manufacturing  volume  was  almost  unchanged  at  158.7  million  pairs  made  for  the  period.
 
With  regards  to  the  retail  and  wholesale  business  of  sportswear  in  the  Greater  China  Region,  sales  increased  by  2.9 percent  to $856.9  million  in  the  six  months  period  compared  to  $832.8  million  recorded  in  the  same  period  last  year,  due  to  factors  such  as  strategies  to  improve  sales  efficiency  per  shop  and  selectively  using  discount  pricing  to  reduce  inventory. 
 
Gross profit 
 
During the period, the Groupfs gross profit declined by 8.3  percent to $778.7 million. When looking at the  underlying business units, gross profit for the manufacturing operations involving international performance  brands declined as consequence of rising wage costs as well as the lower operating efficiency due to the  relocation and allocation of production capacity. Pou Sheng had a gross profit decline of 6.6 percent to $249.4  million on account of the fall in the manufacturing sales to the domestic brands and discounting activities to  bring  down  the  inventory  level. 
 
Selling, distribution and  administrative  expenses 
For the Group, the sum of Selling & distribution expenses and Administrative expenses is very similar to the  amount incurred in the same period last year. For the manufacturing operations, the sum of these items  increased  by  5.8 percent  compared  to  the  same  period  last  year,  whereas  for  Pou  Sheng  the  sum  of  these  items  fell  by  7.4  percent when compared with the same period last year. Given the underlying inflationary pressures in both  businesses,  expenses  were  diligently  managed.  
 
Results  from  associates  and  joint  ventures 
At  the  Group  level,  Share  of  A&JV  fell  by  51.2 percent  to  $  24.2  million.  For  the  manufacturing  operations,  Share  of  A&JV also experienced a decline due to the recognition of a one-­]time gain of $ 18.8 million in the same  period  last  year.  For  Pou  Sheng,  share  of  loss  from  A&JV  was  reduced  by  19.0 percent  to  a  loss  of  $  3.5  million.