Revenue growth for Yue Yuen

Hong Kong
Published:  28 March, 2016

The Hong Kong headquartered Taiwanese footwear manufacturer has recorded a 5.3% growth in revenue for 2015 compared with the previous year.

Total revenue for Yue Yuen Industrial Holdings in financial 2015 was US$8,435 million. Net profit attributable to owners increased 17.9% to around US$390 million, compared with US$331 million in 2014.

For the year ended December 31, 2015, excluding all items of non-recurring operating in nature, the recurring operating profit decreased to US$405.5 million, from US$430.5 million the previous year.

According the company’s report, non-recurring operating loss amounted to US$15.3 million, including a combined impairment loss of US$22.2 million on amounts due and investment in joint ventures, property, plant and equipment. This was partly offset by non-recurring operating gains, including US$5.1 million gain on fair value changes on consideration payable for acquisition of business and US$3.2 million gain on disposal of joint ventures.

The revenue for the Group’s footwear manufacturing activity is said to have increased moderately in 2015, +3.4%; attributed to the increase in production volume. Gross profit margins for the manufacturing business were impacted by increased input costs, primarily rising compensation for workers, but were partly offset by a reduction in material costs due to commodity price trends.

During 2015, the Group produced a total of 317.5 million pairs of

shoes, up from 307.1 million in 2014. A breakdown of the Group’s shoe production volume by locations was 25% in China, 42% in Vietnam, 32% in Indonesia and 1% in other countries.

Athletic shoes accounted for 47.6% of total revenue; representing 73.4% of total footwear manufacturing revenue, followed by casual/outdoor shoes, 24.9%.