"Our performance in the first half of the year was within expectations as we continued to implement and benefit from our margin-accretive strategies. While external pressures this year have turned out to be higher than expected, we have weathered the storm well so far as a result of our strategy to enhance our customer portfolio with focus on Sports and Luxury categories, alongside a strong recovery in our Fashion category", commented Mr. Chi Lo-Jen, Chief Executive Officer of the Group.

In the first half of 2022, Stella's consolidated revenue totalled 827.2 million US dollars, reflecting an increase of 18.9%, as compared to a 695.5 million US dollars revenue in the same period of last year. The group attributed this growth to the increased orders within the manufacturing business, as the shipment volume was up by 9.4% to 29.0 million pairs in this period, led by the Fashion, Sports, and Luxury footwear segments.

The average selling price per pair increased by 7.8% in the first semester of the current year to 27.8 US dollars from 25.8 US dollars in the first half of the last year, due to higher raw material costs and changes in the group's product and customer mixes.

In the first six months of the year, the group's operating profit rose by 89%, reaching 68.6 million US dollars, on a comparable basis to an operating profit of 36.3 million US dollars in the same period of 2021.

As of the 30^th of June, Stella posted a net profit of 60.2 million US dollars, as compared to a net profit of 32.2 million US dollars in the first half of the prior year.

Full Year Outlook

The group is "cautiously optimistic" for the remaining year due to the current "rapidly changing macroeconomic and geopolitical environment", while sticking to its major long-term capacity expansion plans, such as the ramp-up of a new facility in Solo, Indonesia, as well as the investment in other manufacturing facility in Indonesia for Stella’s major Sports costumers.

"As inflation and higher interest rates start to impact consumer sentiment, demand for some of our products may be less promising in the subsequent months when compared to plans set at the beginning of the year. But the long-term fundamentals of our business remain strong and we are constantly improving our long-term cost base and operational efficiency. We also look forward to introducing additional manufacturing capacity next year in a competitive manner, allowing us to continue growing with our customers", concluded Mr. Lawrence Chen, Chairman of the Group.