(Hong Kong, 7 September 2011) - Yue Yuen Industrial (Holdings) Limited ("the Group", stock code: 551) today announced its unaudited consolidated results for the nine months ended 30th June 2011. Total turnover of the Group rose 23.4% year on year to approximately US$ 5,185.8 million, and net profit attributable to owners of the Company increased by 1.2% year on year to approximately US$ 350.0 million.

Operations

Both footwear manufacturing and the retail operations in the Greater China Region continued to experience sales growth compared to the same period last year. Shoe manufacturing activity represents 71.1% of the Group's Turnover. The Group's larger customers saw good sales growth in the first nine months of the Group's fiscal year 2011 and in general expect that the calendar year 2011 sales growth will finish as a positive figure. For the nine month period, shoe manufacturing sales increased by 25.8% to US$ 3,684.4 million underpinned by shoe manufacturing volume that was up by 17.0% to 249.1 million pairs, and an increase of 7.6% in the average selling price per pair.

The Group has established new production facilities in the inland provinces of China and other areas. The new locations have created short term operating challenges as many new employees need a period of elaborate training. Wage increases in China and other areas were experienced during the operating period as a result of governments' employment policies.

Retail Turnover from the wholesale and retail operations in the Greater China region, representing 20.5 % of the Group's turnover, continued its growth trend on a year on year basis as a consequence of the buoyant economy in the Greater China region. Retail Turnover increased by 18.1% to US$ 1,062.3 million in the nine month period. The Group as at 30th June 2011, had 2,887 directly operated retail stores/counters and had 3,190 sub-distributors, giving the Group a total of 6,077 points of sale across the region.

Subsequent Information

Group turnover grew modestly in the month of July 2011 on account of the high base comparison: Group turnover increased by around 19.6% year-on-year to approximately US$ 631 million. The Group has achieved turnover growth in the ten months ended 31st July 2011, compared to the same period last year, to around US$ 5.8 billion, an increase of just over 22%.

Yue Yuen Industrial (Holdings) Ltd.
www.yueyuen.com
 

Jerry Shum
Investor Relations Director