Yue Yuen to invest in automation to grow profitability
26/03/2018
Revenues were more than $9.1 billion, growth of 7.6% compared to the previous year. Profits were down by 2.9%, however, reaching just under $520 million.
In the course of the year, Yue Yuen factories produced a combined total of 324.6 million pairs of shoes.
In accordance with an announcement the group made in January, it has confirmed its intention to sell its 62.38% share in footwear retail group Pou Sheng, which parent group, Pou Chen, has decided to spin off. At the end of 2017, Pou Sheng had 5,465 directly operated retail outlets in China and 3,313 stores operated by sub-distributors.
“The disposal of Pou Sheng will enable the group to focus more on its core manufacturing segment,” Yue Yuen said, “ensuring that it will remain a global manufacturing leader of athletic and casual-outdoor footwear, while upholding its fundamental principles and core values, as well as its commitment to world-class corporate social responsibility.”
The company said it will continue to focus on providing customers including Nike, adidas, Reebok, ASICS, New Balance, Puma, Under Amour, Converse, Merrell, Salomon and Timberland, with end-to-end manufacturing solutions. It said it will seek to grow profitability through the increased use of automation. Chairman, Lu Chin Chu, said: “We will continue to invest in technology, process re-engineering and other enhancements in order to strengthen our end-to-end capabilities and safeguard our sustainable and steady growth.”
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