Yue Yuen, the Chinese footwear manufacturer, reported sales rose
15.4% in its fiscal year ended Sept. 30, to U.S. $5.79 billion while net profits increased by 3.2% to $479.5 million.
Basic earnings per share at U.S. $ 29.08
cents, increased by 3.3% compared to last year's figure.
Yue Yuen said its Directors have resolved to recommend the payment of a final
dividend of HK 56 cents per share, an increase of 1.8% compared to FY2009.
(Interim dividend in FY2010: HK 34 cents per share vs FY2009: HK 34 cents per
share). The total dividend for the year will be HK$0.90 per share, an
increase of 1.1% compared to FY2009.
Footwear manufacturing activity for the Group picked up
significantly compared to last year's level. Footwear industry growth
and its consolidation in sourcing activities and a steady improvement in
consumer spending, encouraged the Group's brand name customers to place
more orders for production.
Sales to the Group's largest geographic market, Asia, grew at
moderate pace of 15.1% compared to last year's and the second largest
market, the U.S.A., was able to return to a pre-crisis level of sales
with year on year growth at 11.4%. The European market, which
experienced more difficult circumstances during this financial period,
still managed a very modest level of growth at 5.6% year on year.
Smaller markets did well as certain brand name customers were able to
grow their market share very rapidly after implementing well designed
Total Turnover by Geographical Market
Sales of athletic shoes, the key product category for the Group,
experienced 13.1% year on year growth. The Group's major customers not
only designed athletic shoes featuring innovative technology and eye
catching patterns, but also pursued marketing strategies that provided a
spectrum of price points to satisfy the broadest range of customers
possible. Retail sales grew as China continued to experience solid GDP
growth and consumers in China maintained their preference of purchasing
athletic footwear and apparel of well known brand name.
Total Turnover by Product Category
The total number of directly operated counters/stores in China
under the Group stood at about 3,956 by the end of September 2010. In
addition, there were approximately 4,218 sub-distributors in the Greater
During the year under review, the Group increased the number of
production lines by 8.75% to 460. These new lines were allocated among
its three key production bases: China, Indonesia and Vietnam.
Turnover jumped in the first quarter of fiscal 2011 due to higher
growing demands served only by limited manufacturing capacity
expansions. For the three months ended December 2010, the Group turnover
stepped up by around 28% year-on-year to approximately US$1.69 billion.
Imbalanced global economic revivals have caused appreciations of
major Asian currencies against US Dollar. As a result, inflations in
these heavy manufacturing-reliance countries push labor cost up. The
rising crude oil price has a negative impact on raw material prices. The
Group has been working hand in hand with its customers to manage these
In view of the growing purchasing power in the China market, the
Group is looking forward to benefiting from it by carefully managing its