Yue Yuen to invest in more automation
13/08/2018
It reported revenue for the first six months of 2018 of almost $4.8 billion, an increase of 7.2% compared to the same period last year. Profits on those revenues reach $1.2 billion, which represents an increase of 5.3%.
Revenues from making athletic shoes as an outsource manufacturing partner of major brands fell by 3.6% to just under $2 billion. Yue Yuen earned $522.3 million from making other outdoor and casual shoes, a decline of 8.2% compared to the same months in 2017.
Much of Yue Yuen’s growth in the first half of the year came from an increase in revenues at Pou Sheng, its retail subsidiary, which grew by 27.1% to $1.75 billion.
Commenting on the first half results, chairman, Lu Chin Chu, said: “We faced unprecedented headwinds during the first half of the year, which resulted in more volatile monthly revenues, much lower order visibility, as well as operating de-leverage within the manufacturing business. To address these ongoing challenges, we will continue increasing automation levels, investing in new technology and enhancing operational efficiency to provide our brand customers with end-to-end solutions, while safeguarding our solid long-term profitability and returns to shareholders.”
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