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Yue Yuen Industrial Faces Revenue Dip Amid Challenges

Yue Yuen Industrial Faces Revenue Dip Amid Challenges

Yue Yuen Industrial (Holdings) ( (YUEIF) ) has released its Q3 earnings. Here is a breakdown of the information Yue Yuen Industrial (Holdings) presented to its investors.

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Yue Yuen Industrial (Holdings) Limited, a leading manufacturer in the footwear industry, specializes in producing athletic, casual, and sports sandals, and operates a significant retail subsidiary, Pou Sheng International, in the Greater China region.

In its latest earnings report for the nine months ending September 30, 2025, Yue Yuen Industrial reported a slight decline in revenue to US$6,017.4 million, a 1% decrease from the previous year, alongside a 16% drop in profit attributable to owners, amounting to US$278.7 million. The company faced challenges such as increased labor costs and geopolitical tensions, impacting its short-term profitability.

Key financial highlights include a 4.6% increase in revenue from footwear manufacturing, driven by a higher average selling price and a premium order mix, despite a 1.3% rise in shipment volumes. However, the retail subsidiary, Pou Sheng, experienced a 7.9% revenue decline due to weak consumer confidence and high inventory levels, although online sales showed resilience.

Looking forward, Yue Yuen Industrial remains optimistic about the sports industry’s growth, supported by upcoming international sporting events. The company plans to enhance its manufacturing capacity in regions like Indonesia and India, while focusing on operational efficiency and adaptability to navigate ongoing economic uncertainties.

Overall, Yue Yuen Industrial aims to balance growth and profitability by leveraging its strategic supplier role and high-end footwear development capabilities, ensuring sustained partnerships with leading international brands.

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