In the first nine months of the year, Yue Yuen's revenue totalled 6.97 billion US dollars, up by 8.2% as compared to revenue of 6.44 billion US dollars in the same period of last year.

Footwear Manufacturing Activity

As of the 30^th of September, the group's footwear manufacturing activity (including athletic/outdoor shoes, casual shoes and sports sandals) generated a revenue of 4.39 billion US dollars, which indicates an increase of 33%, on a comparable basis to the same months of 2021.

The company observed that the volume of shoes shipped during this period grew by 19.0%, reaching 213.0 million pairs, due to "solid global demand for its footwear products, on top of a low-base effect following disruptions to its Vietnam operations in the third quarter of 2021".

In addition, the average selling price rose by "a robust" 11.8% to 20.61 US dollars, as compared to the first nine months of the previous year, "led by resilient demand for the Group’s high-end footwear, as well as its ongoing efforts to refine its product mix by obtaining more high value-added orders".

Manufacturing Business Overall

In the first nine months of 2022, Yue Yuen's manufacturing business (including footwear, as well as soles, components and others) revenue amounted to 4.79 billion US dollars, increasing by 31.1%, on a comparable basis to a similar period of last year.  

Pou Sheng

The group's retail subsidiary revenue declined by 21.8% in the first three quarters of the year, totalling 2.18 billion US dollars, as compared to revenue of 2.79 billion US dollars in the same period of the prior year; in local currency, it decreased by 20.1%. According to the company, this result was caused by "volatile foot traffic in the shopping venues and cities where Pou Sheng operates following COVID-19 lockdowns, disrupted logistics and last-mile delivery, and control measures introduced by local governments in different parts of mainland China".

Outlook

Yue Yuen said that it remains "cautiously optimistic about the long-term development of its manufacturing business", despite the unstable global macroeconomic environment fuelled by rising inflation, interest rate hikes and other uncertainties.

"This could result in slower global demand and less visibility, which together with rising inventory levels, may hamper the stability of the Group's manufacturing business in the coming months", added the Hong Kong-based company, which underlined that short-term risks persist, including the possibility of further lockdowns in mainland China due to COVID-19 pandemic and potential logistical bottlenecks.