Footwear Enterprises Yuyuan Industrial Tax Revenue Net Profit Fell 3%

Yuyuan industry (0551), which manufactures footwear for Nike and Adidas-SalomonAG, said that the world cup and Mainland consumer income increased, with a turnover of $1 billion 8 million in April and May, an increase of 17.6% over the same period last year.

In addition, the 6 month turnover ending March 31st this year increased by 4.3% to 2 billion 655 million US dollars compared with the same period last year. However, the rise in tax expenditure dragged down the net profit by 3.2% to 210 million 800 thousand dollars, and the earnings per share were 12.8 cents, down 3% compared to the same period last year, sending the medium-term interest rate of HK $0.34 per share, unchanged from last year.

Yuyuan pointed out that the orders from the leading footwear brand customers were stable, plus the strong orders from new customers, the total output of footwear was 136 million pairs, an increase of 4.7% over the same period last year, while the total production line at the end of March increased to 445.

As for the retail business which accounts for 22% of Yuen yuan's total turnover, Yuyuan said that the turnover of the business increased by 25.4% to 590 million US dollars compared with the same period last year, and the number of direct retail outlets in the mainland increased to 4311.

The rise in tax expenditure dragged down the net profit. The Yuyuan board of directors held that the group did not carry out any sales or production activities in Hongkong without paying the profits tax in Hongkong and had objected to the Inland Revenue Department of Hongkong on the assessment.