Yue Yuen's first quarter sales increased 15.8% year-on-year to $746.4 million and net profit fell 17.9% year-on-year to $77.1 million. However, when not taking into account the $23.4 million contribution from disposal of investment securities for the corresponding period of the previous year, the Group recorded a 9.4% year-on-year increase in net profit for the first quarter of fiscal year 2005.
During the period, the Group continued to achieve encouraging revenue growth. Total shoe production
amounted to 46.6 million pairs, an increase of 10.8% compared with the corresponding period of the
previous year. In addition, there was an increase in average unit selling price year-on-year, and steady sales
growth in athletic shoes and casual/outdoor shoes.
The Group continues to record strong sales growth for the first two months of 2005, with aggregate revenue
of $465.5 million, an increase of 17.8% year-on-year. The growth is mainly due to organic growth of the
core footwear manufacturing business and a surge in contributions from our China retail operation.
“The operating environment remains challenging in light of fluctuations in raw material prices. The
management has initiated measures to address this issue vigorously, “said Mr. Tsai Chi Neng, Chairman of
the Group.
