Yue Yuen Industrial (Holdings) Limited (the “Company”, Stock Code: 00551) disclosed its unaudited consolidated results for the nine months ended September 30, 2025. Profit attributable to owners of the Company was US$278.7 million, compared to US$331.7 million for the same period in 2024.
Revenue declined slightly by 1.0% year-on-year to US$6,017.4 million, down from US$6,075.3 million. The gross profit margin was 22.8%, representing a 1.4 percentage point decrease, while total gross profit decreased to US$1,371.4 million. The Company attributed the soft results to factors including uneven production leveling, rising labor costs, and fluctuations in consumer sentiment.
Footwear manufacturing revenue (including athletic/outdoor shoes, casual shoes, and sports sandals) rose by 4.6% to US$3,956.1 million. During the nine months, the Company shipped 189.4 million pairs, an increase of 1.3%, with the average selling price up 3.2% year-on-year to US$20.88 per pair. Overall, manufacturing revenue (including soles and components) reached US$4,231.7 million, representing a 2.3% increase.
Revenue at retail subsidiary Pou Sheng International (Holdings) Limited (“Pou Sheng”) decreased year-on-year by 7.9% to US$1,785.7 million, reflecting weaker foot traffic and elevated industry inventory levels in mainland China. Despite the decline, management noted that Pou Sheng’s online channels maintained resilience.
Selling and distribution expenses declined by 7.2% to US$579.4 million, while administrative expenses rose 2.2% to US$425.2 million. Combined, these costs represented 16.7% of total revenue. The share of results of associates and joint ventures was US$55.7 million, compared with US$58.4 million in the same period last year.
Management noted that the Group remains optimistic about the long-term sportswear market, citing continued global “athleisure” trends, upcoming major sporting events, and ongoing partnerships with international brand customers. The Company is monitoring broader macroeconomic conditions, tariff-related uncertainties, and geopolitical factors. Diversification measures, including expanding capacity in Indonesia and India, are underway to manage currency, labor, and infrastructure risks. The Group expects that disciplined workforce planning, cost controls, and ongoing automation efforts will help maintain operational resilience in the coming quarters.