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Yue Yuen Industrial (551) investor relations material
Yue Yuen Industrial H1 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Revenue rose 1.1% year-over-year to US$4,060.1 million for 1H25, driven by manufacturing growth, while retail (Pou Sheng) declined 8.3–8.6% in RMB terms.
Profit attributable to owners declined 7.2% YoY to US$171.2 million, with basic EPS at 10.67 US cents; interim dividend maintained at HK$0.40 per share.
Manufacturing volumes grew 5.0% YoY to 126.7 million pairs, with ASP up 3.2% YoY; profitability pressured by higher labor costs and uneven production.
Retail subsidiary Pou Sheng faced weak consumer confidence and high inventory in China, with online sales showing resilience.
Cash position remained solid at US$882.3 million; free cash flow was negative US$35.6 million for 1H25.
Financial highlights
Group gross profit fell 5.8% YoY to US$918.6 million; gross margin declined to 22.6% (down 1.7pp YoY).
Operating profit dropped 20.2% YoY to US$207.0 million; operating margin decreased to 5.1%.
Recurring profit attributable to owners dropped 9.0% to US$162.8 million; non-recurring profit was US$8.4 million from disposals and fair value gains.
Net cash from operating activities was US$110.4 million, down from US$173.7 million a year earlier.
Interim dividend of HK$0.40 per share declared, unchanged from last year.
Outlook and guidance
Near-term business environment expected to remain unsettled due to tariff challenges, inflation, and global uncertainties.
Focus on diversifying manufacturing capacity, especially in Indonesia and India, and enhancing operational resilience.
Continued investment in digital transformation and SAP ERP system roll-out by end of 2025.
Retail business to maintain refinement strategy amid ongoing market pressures in Greater China.
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