Yue Yuen Industrial Ltd. reported sales rose 24.4 percent in the six months ended March 31, to US $3.30 billion while net
profit increased 9.2 percent to $230.1 million. Both footwear manufacturing and the retail operations in the Greater China Region saw solid sales growth compared to the same period last year.

For the six month period, the Group’s shoe manufacturing sales increased
by 27.1 percent to $2.34 billion, underpinned by shoe manufacturing
volume that was up by 19.7 percent to 162.8 million pairs, and an
increase of 6.2 percent in the average sales price to US$ 14.35 per
pair. The total number of production lines grew by 10.0  percent to 506
lines for the six months ended 31st March 2011.

Yue Yuen in a statement said shoe manufacturing activity represented 70.8 percent of the Group’s Turnover. It also noted that the Group’s major customers have seen their sales grow in their recent financial year and expect calendar year 2011 also to experience sales growth.

Retail Turnover from the wholesale and retail operations in the Greater China region, represented 21.1 percent of the Group’s Turnover, also grew on a year on year basis as a consequence of the strength in consumer spending in the Greater China region. Retail Turnover increased by 16.8 percent to $695.1 million in the six month period. The Group as of March 31 had 2,765 directly operated retail stores/counters and had 3,282 sub-distributors, giving the Group a total of 6,047 points of sale across the region.

Total Turnover by Product Category

Unaudited Group turnover grew in the month of April 2011 on account of the continuing recovery of the global economy: Group turnover increased by around 26.0 percent year-on-year to approximately $613 million.

Overall, the Group has achieved turnover growth in the seven months ended 30th April 2011, compared to the same period last year, to around $3.9 billion, an increase of just over 24.0 percent. The start up of new production facilities in inland China, Indonesia, Vietnam and Bangladesh, is an incremental process that requires time. In the short term, time and resources need to be set aside to gradually fine tune the production lines and train up new production staff. Increasing wages in China will help maintain consumer spending growth in the Country, which in turn should lead to further sales growth for the Group’s international athletic and casual brand name customers.

Total Turnover by Product Category

Total Turnover by Geographical Market