Hong Kong, 11 March 2026 — Yue Yuen Industrial (Holdings) Limited (00551) reported its audited results for the year ended 31 December 2025.
Revenue and Profitability • Group revenue edged down 1.8% to US$8.03 billion, reflecting softer demand and a high comparison base. • Profit attributable to shareholders declined 2.9% to US$381.08 million; recurring profit dipped 3.1% to US$366.75 million. • Basic earnings per share decreased 2.5% to 23.76 US cents. • Gross profit fell 8.3% to US$1.83 billion, trimming the gross margin by 1.6 ppts to 22.8%.
Segment Performance • Manufacturing revenue (footwear, soles & components) rose 0.5% to US$5.65 billion; shipments slipped 1.2% to 252.2 million pairs, while average selling price improved 3.7% to US$21.00. • Retailing revenue (Pou Sheng) declined 7.0% to US$2.38 billion amid subdued consumer sentiment in Mainland China; digital sales contribution exceeded 30%.
Cost Structure and Expenses • Manufacturing cost of goods sold increased 2.5% to US$4.62 billion on higher labour expenses and capacity ramp-ups; main materials were broadly flat at US$2.00 billion. • Selling & distribution expenses fell 6.9% to US$780.54 million (9.7% of revenue). • Administrative expenses inched up 1.6% to US$562.22 million (7.0% of revenue). • Other expenses dropped 12.0% to US$156.17 million after an US$8.9 million reversal of Indonesian tax-penalty provisions. • Net finance costs declined 16.1% to US$53.17 million.
Cash Flow and Balance Sheet • Operating cash inflow reached US$591.17 million; free cash inflow stood at US$265.27 million. • Cash and equivalents, including time deposits, totalled US$851.23 million; bank borrowings were US$788.69 million, giving net cash of US$62.54 million and a gearing ratio of 15.4%. • Current ratio remained comfortable at 2.1. • Capital expenditure expanded to US$325.90 million, mainly for manufacturing upgrades and new facilities in Indonesia and India.
Dividend • A final dividend of HK$0.90 per share is proposed, unchanged year-on-year and payable on 23 June 2026. Including the interim HK$0.40, full-year payout remains HK$1.30, representing a 70% payout ratio.
Operational Highlights • Manufacturing headcount increased 4.3% to approx. 276,800, while groupwide employees totalled about 294,900. • Indonesia, Vietnam and Mainland China accounted for 54%, 32% and 9% of total shoe shipments respectively. • Geographic revenue mix: Mainland China 39.0%, U.S. 20.0%, Europe 19.1%, other Asia 15.0%, others 6.9%.
Outlook Management expects ongoing tariff pressures, inflation and geopolitical uncertainties to keep demand volatile in 2026. Yue Yuen will continue diversifying capacity—new plants in Central Java commenced operations in 3Q 2025 and construction in India is progressing—and advance its digital manufacturing initiatives (SAP ERP, OCP, MES, DRS, AI-driven tools) to enhance responsiveness and cost efficiency. Pou Sheng will press ahead with retail refinement and omnichannel expansion in Greater China. The group aims to preserve cash discipline and stable dividends while navigating near-term headwinds and supporting long-term growth.