Labor Costs Skyrocketed For 1 Years, 300 Million Yuan And 20% Yuan In China.

August 15, 2016 report: the largest global sport in Hongkong

Class manufacturer

(0551.HK) released its interim results on Friday, with a revenue of $4 billion 280 million 800 thousand during the group period, an increase of 0.83% yen over the same period of 4 billion 245 million 400 thousand dollars a year, while net profit rose 18.28% to 248 million 700 thousand dollars, 15.11 cents, 210 million 300 thousand dollars a year, and 12.77 cents per share.

Yuyuan's revenue growth in the first half of the year was mainly from its retail sales of 29.6%.

In the first half of the year, Baosheng recorded a revenue of 74.017 RMB billion yuan (yuan yuan), which rose 12.3% from 8 billion 312 million 900 thousand yuan a year earlier. In the first half of the year, Baosheng battalion increased 6.8% yuan, up from 1 billion 187 million 200 thousand US dollars in the same period last year to 1 billion 268 million 400 thousand US dollars in the first half of the year. 3813.HK

In the first half of the year, the group operated 5131 direct store / counters and 3091 distributors shops.

Yu Yuan said that despite the slowdown in China's economy, the business environment of sportswear retail business continued to be positive.

As for the manufacturing industry, although Yuyuan operates the most popular sports industry, it is facing adjustment in the first half of the year.

As of the first half of June 30, 2016, Yuyuan's footwear manufacturing revenue recorded a slight decline, with only gross margin being improved.

During the manufacturing period, the income of sports shoes increased by 3% to 2 billion 64 million 800 thousand US dollars, accounting for 48.2%; casual wear shoes / outdoor shoes revenue fell 9.6% to 610 million 500 thousand US dollars, accounting for 14.3%; sports sandals earned 54 million 400 thousand US dollars, up 3.6% percentage points year-on-year; footwear, accessories and other manufacturing revenues plummeted 13% to 283 million 300 thousand dollars, accounting for 6.6%.

It is worth noting that the Yuyuan interim report reveals that China's manufacturing industry continues to be grim. In the first half of the year, Yuyuan's footwear output was only 22% from China, while up to 43% came from Vietnam, and 34% from Indonesia. China's shipments were only at the end of the year, compared with 25% in the same period last year.

Yuyuan is the world's leading sports brand Nike Inc. (NYSE:NIKE) Nike, Adidas AG (ADS.DE) Adidas, New Balance, Puma Puma and Timberland and other more than 60 sporting goods group and brand foundry, its parent company Taiwan Baocheng group (9904.TW) accounts for about 20% of the global mobile footwear production market, with an annual output of more than 300 million pairs.

In 2014, Yuyuan had a massive strike, and at the same time, the cost of manufacturing in China was high, and the Chinese government also supported the pformation of manufacturing industry, causing the manufacturing industry to face multiple difficulties.

In the first half of June 30, 2016, Yuyuan's direct labor cost was 600 million US dollars, up 20% over the same period last year, and the cost of materials was 1 billion 100 million US dollars, a decrease of 15%, compared with 1 billion 300 million US dollars in the same period last year.

During the period, manufacturing revenues were $3 billion, compared with $3 billion 100 million in the same period last year, and 165 million 700 thousand pairs of footwear products, representing an increase of 4.1% cents over 159 million 100 thousand pairs in the same period of 2015, with an average price of 16.48 US dollars, a drop of 4.1% over the same period last year.

In the first half of this year, Yuyuan continued operating business profit of 233 million 700 thousand US dollars, an increase of 11.9% over the same period last year of US $208 million 800 thousand.

Yuyuan intends to send HK $0.40 medium term interest.

Yuyuan group (0551.HK) shares closed up at HK $32.55 on Monday, up 2.52%, while 3813.HK gained 6.67% to HK $2.56.