YUE YUEN IND (00551) reported profit attributable to shareholders of US$134 million for the first three quarters, down 51.9% year-on-year.

YUE YUEN IND (00551) announced its results for the nine months ended September 30, 2026, with revenue of US$5.889 billion, down 2.1% year-on-year; profit attributable to owners of the company was US$134 million, down 51.9% year-on-year. Reviewing the period, the Group's gross profit fell 10.7% to US$1.2246 billion, while overall gross margin declined 2.0 percentage points to 20.8%. Gross profit from the manufacturing business fell 21.7% to US$606 million, while the manufacturing business's gross margin declined 3.4 percentage points year-on-year to 14.9%. The decline was mainly due to operating deleverage resulting from the reduced scale of the manufacturing business, as well as fluctuating order demand, which, combined with unstable supply chain lead times, led to uneven capacity utilization across the Group's manufacturing plants, thereby affecting production efficiency. In addition, rising labor and manufacturing overhead costs, together with higher oil prices pushing up raw material costs, jointly drove up unit costs for footwear manufacturing. Notably, mainly benefiting from the better-than-expected results of pull-forward orders in the third quarter, along with continued optimization of capacity scheduling, production efficiency improved sequentially, while strict control of staffing levels and overtime hours effectively reduced direct labor costs, driving the manufacturing business's gross margin for the quarter up to 16.1%, a marked recovery from 14.3% in the first half of the year. At Pou Sheng, benefiting from successful inventory age optimization and strict discount control, its gross margin rose 0.5 percentage points to 34.0% during the period.