Yuyuan Shoes Half Year Revenue Increased By Nearly 10%

Yuyuan industries listed on the main board of Hongkong disclosed that in the first 6 months of fiscal year 2012 (Note: the calculation method of Hong Kong listed companies fiscal year is different from the mainland, that is, October 2011 to March 2012), Yuyuan industry realized sales of over 3 billion 600 million US dollars, up nearly 10% compared with the same period last year.

Footwear production fell

Yuyuan industry's performance report shows that the company realized during the reporting period.

About $3 billion 614 million, an increase of 9.5%; net profit of $278 million, an increase of 21.2%.

In terms of business, the total turnover of Yuyuan Industrial footwear manufacturing business increased by 9.4% to 2 billion 557 million US dollars, but the total output of footwear decreased by 1.2% to 160 million pairs.

Yuyuan industry said revenue growth was mainly driven by the acquisition of regional retailers, new stores, and the promotion of inventory clearance.

Yuyuan Industrial performance report shows that gross profit increased by 10.1% during the reporting period, mainly due to the stable spot price of raw materials and energy costs and a certain increase in operational efficiency.

But at the same time, the inflation environment of several important production bases of Yuyuan industry increased wages, increased rental costs, and increased sales, distribution and administrative expenses by 13.6%.

Sales focus on mainland China

Yuyuan industry is the largest in the world.

It has 460 production lines, with 226, 114 and 120 production lines in mainland China, Indonesia and Vietnam.

Yuyuan group's main production base in the mainland of China is located in Huang Jiang and Gao Gao, Dongguan, and Zhongshan, Zhuhai.

At present, Yuyuan industry has about 180 thousand employees in the mainland of China. In the face of the rising cost of labor, Cai Yuen, chairman of Yuyuan, has introduced two main measures. "The first is to further increase the proportion of overseas production. After a few years, the proportion of the mainland's capacity has dropped from about 40% to 50% to about 1/3. Second is to speed up the establishment of factories in the inland provinces and enhance the management efficiency to reduce costs."

However, Yuyuan industry said that with the rapid development of the mainland's economy, the mainland will become a target selling point.

At present, Yuyuan industry now has nearly 4000 direct outlets and shops in the mainland, and in the 2012 fiscal year it also acquired retail business in Shanghai.

Yuyuan industry during the reporting period

The turnover in major markets has increased, with the largest increase in the mainland and South American markets.