Yu Yuan Recorded A 1% Decrease In Operating Profit In April Compared With Last Year.

The world's largest

Manufacturer Taiwan

The group's subsidiary Yuyuan Industrial (Holdings) Holdings Limited recorded a record sales of $738 million 200 thousand in April, a 1% decrease compared with $745 million 800 thousand in April 2015.

Yu Yuan's sales in April also reflect that month.

Industry PMI index trend, Caixin manufacturing PMI index in April only recorded 49.4, down 0.3 compared with March, while the China International Statistical Bureau released the Manufacturing Purchasing Managers Index of 50.1, also has 0.1 down.

Yuyuan's slowdown in sales in the first quarter and the retrogression in April should be a watchful move for the sports industry. After the sport lifestyle gradually penetrated into the Chinese middle class, especially with the expansion of the marathon in running, the sports industry in China has been developing rapidly in the past three years, but the 2008 Olympic Games experience is only 8 years old.

According to the PMI index released by Caixin, in April, a number of indexes were weakening. The production index dropped from 50.4 in March to 49.9, the new order index fell from 50.9 to 50; the export orders index decreased from 48.7 in March to 48.6; the employment index dropped from 46.5 in March to 46.1; the raw material inventory index decreased from 49.6 in March to 48; the supplier delivery time index dropped from 49.5 in March to 49.5; only the price index went up, and the purchase price index rose further from the March to the stock price index.

Data from China's National Bureau of statistics also showed that in April, a number of sub indices fell. The production index was 52.2, down 0.1 from last month, but higher than the first quarter average of 0.9 percentage points. The new order index was 51%, down 0.4 percentage points from last month.

The price of raw materials continued to rise, of which the purchasing price index of raw materials was 57.6, up 2.3 from last month, a new high in the past two years.

However, in the first 4 months of 2016, the overall operating profit of Yuyuan still recorded an increase of 2%, to $2 billion 766 million 400 thousand, compared with $2 billion 712 million 500 thousand in the same period last year.

Affiliated Companies Baosheng International Holdings Limited, which operates the Yuyuan group's retail business, recorded a revenue of 245 million 300 thousand US dollars in April, or about 1 billion 587 million 800 thousand yuan, an increase of 9% over the same period in 2015, which has accelerated compared with the first quarter of March. However, it is worth noting that the trend of the Zero selling industry is lagging behind the manufacturing industry.

In the first 4 months of this year, Baosheng's revenue was $865 million 200 thousand, or about 5 billion 677 million 300 thousand yuan, up 7.5% over the same period last year.

Baosheng international is the largest distributor of Adidas AG Adidas group, the world's second largest sporting goods manufacturer in mainland China.

Yuyuan group and Baosheng International reported 10 days respectively, HK $28.30 and HK $2.07, and all of them declined, with Yuyuan dropping 0.18%, while Baosheng dropped 0.95%.