Mr Lee Yi Nan, executive director of Yue Yuen Holding Limited, the largest branded athletic and casual footwear manufacturer in the world, has said that Yue Yuen has improved its performance and that the number of orders it is receiving continues to grow. He said that overall business is forecast to grow 10-15% in the second quarter and by 30-40% in greater China.

Mr Lee said that the situation is improving, although in 2005 the gross profit rate fell 0.82% to 23.05%, and that in future Yue Yuen would increase production efficiency and cut costs. It also plans to seek more cooperation with other companies.

He said so far the gross profit rate of its retail and wholesale businesses was around 35-40% whilst that the manufacturing business reported a 23% gross profit rate.

Concerning the proposed import duties currently being discussed by the EU on Chinese-made shoes, he said that Yue Yuen may shift some orders to their facility in Indonesia and Vietnam if necessary. He added that the export price of shoes made in Yue Yuen was relatively high and the likelihood of being investigated was very small. Mr .Lee stated that he felt optimistic over this issue because he believed China would negotiate with EU to seek a solution to current concerns.