Companies

Yue Yuen profit rises by more than 40% in 2024

Mar 14, 2025 Hong Kong

The Hong Kong-based group ended the year with a 3.7% increase in revenue and a significant 42.8% rise in profits over the previous year, driven by solid performances from its manufacturing businesses

“In 2024, the rebound in global demand for manufactured footwear products greatly benefited our footwear manufacturing business, as brand customers prioritize strategic supply chain partners with strong development capabilities. Building on the strong momentum achieved in 2024, we remain dedicated to executing our strategies to further strengthen the long-term profitability of both our manufacturing and retail businesses, powered by our ongoing digital transformation and our unwavering dedication to advancing smart manufacturing and retail excellence”, commented Lu Chin Chu, Chairman of Yue Yuen.

Full Year Results

In 2024, the company’s revenue amounted to 182.2 million US dollars, an increase of 3.7% on a comparable basis to the previous year. The volume of shoes shipped increased by 16.9% to 255.3 million pairs as order fulfilment strengthened quarter-on-quarter and the average selling price decreased by 5.1% to 20.25 US dollars, with the decline slowing each quarter.

The footwear manufacturing business (including athletic/outdoor shoes, casual shoes and sports sandals) contributed 169.0 million US dollars to the total revenue, up by 11.0% year-on-year, and the manufacturing business as a whole (not only footwear, but also soles, components and others) contributed 620.8 million US dollars, up by 11.1% year-over-year.

On the contrary, Yue Yuen’s retail subsidiary, Pou Sheng, recorded a full year revenue decrease of 9.5% to 2.56 million US dollars, as compared to the financial year 2023. This decline was mainly due to an increasingly dynamic retail environment in Mainland China, where a significant decline in store traffic and a significant decline in same-store sales impacted overall sales.

The company’s gross profit grew by 3.5% year-on-year in 2024 to 1.99 billion US dollars, with the overall gross margin improved to 24.4%. Manufacturing gross profit also increased by 14.9% year-on-year to 1.12 billion US dollars, with the manufacturing gross profit margin increasing by 0.7 percentage points to 19.9%. This performance was driven by strong footwear demand, which supported capacity utilisation, production efficiencies and new capacity additions.

In the twelve months to December last year, Yue Yuen reported a profit attributable to owners of the company of 392.4 million US dollars, an increase of 42.8%, as compared to a profit attributable to owners of 274.7 US dollars million in the previous year.

The group’s financial position also remained solid with a decrease of 22.1% in total bank borrowings, while maintaining net cash at 185.9 US dollars.

Image Credits: bady abbas on Unsplash

Hong Kong Companies Footwear Results Year Results Yue Yuen