Yue Yuen Group interim profit down 57.94% to US$71.998 million, revenue falls 2.16%, maintains HK$0.4 dividend

Yue Yuen Group announced its interim results for the six months ended June 30. During the period, profit attributable to shareholders was US$71.998 million, down 57.94% year on year; basic earnings per share were 4.49 US cents, and the company maintained an interim dividend of HK$0.4 per share. Revenue for the period was US$3.972 billion, down 2.16% year on year. Overall gross margin fell 1.9 percentage points to 20.7%, while manufacturing gross margin declined 3.4 percentage points to 14.3%, mainly due to operating deleverage from insufficient scale, uneven capacity utilisation across manufacturing facilities caused by volatile short-term order demand, which affected manufacturing efficiency, coupled with higher labour and overhead costs that pushed up unit costs for footwear manufacturing.