Companies

Yue Yuen posts lower first-half revenue and profitability

Aug 20, 2026 Hong Kong

The Hong Kong-based group reported a decline in revenue and profitability in the first half, as lower footwear shipments, production inefficiencies and higher labour costs weighed on its manufacturing business

During the first half of the 2026 financial year, Yue Yuen reported an unaudited consolidated revenue of 3.97 billion US dollars, a 2.2% decrease compared to the same period in the last financial year.

Revenue from footwear manufacturing (including athletic and outdoor shoes, casual shoes, and sports sandals) decreased by 4.8% year-on-year during the period, reaching 2.48 billion US dollars. The group noted that the 6.4% decrease in shoe shipments was partially offset by a 1.6% increase in the average selling price.

The group’s total revenue from the manufacturing business (including footwear, soles, components, etc.) was 2.67 billion US dollars in the period, representing a 4.7% decrease compared to the first half of 2025.

In the first six months of the year, Yue Yuen reported a 23.3% fall in manufacturing gross profit to 380.3 million US dollars, with the margin narrowing by 3.4 percentage points compared to the same period a year ago to 14.3%. Lower sales volumes, production inefficiencies and higher labour costs impacted the business performance.

Group-wide, gross profit declined by 10.3% to 823.6 million US dollars, with the gross margin falling to 20.7%, compared to the first half of 2025.

Meanwhile, revenue attributed to Pou Sheng increased by 3.5% to 1.26 billion US dollars in the first half of the year. In reporting currency, revenue fell by 2.1% year-on-year to 8.96 billion Renminbi, primarily due to Pou Sheng’s ongoing efforts to boost sales efficiency and implement fully integrated, one-stop operations.

The subsidiary’s first half gross profit margin increased by 0.4 percentage points year-on-year to 33.9%, supported by effective inventory ageing optimisation and stringent discount management.

In the six-month period up to the 30^th of June, the profit attributable to owners of the company amounted to 72.0 million US dollars, a decrease of 57.9% compared to 171.2 million US dollars recorded in the same period of the previous year.

“While intensifying macroeconomic uncertainties weighed on our operational performance”, acknowledged Lu Chin Chu, Chairman of the group, “we are proactively transforming these short-term challenges into catalysts for long-term growth”. “Leveraging our long-established core competitive edges and deep-rooted brand partnerships, we will continue to enhance our corporate resilience to seize new opportunities arising from market evolution”.

Image Credits: Ryan Kwok on Unsplash

Hong Kong Companies Footwear Quarter Results Results Yue Yuen