Yue Yuen Industrial(00551.HK): Profit Warning – Interim Profit Expected to Slump 55% to 60%

NewTimeSpace News: On 24 July 2026, Yue Yuen Industrial(00551.HK) issued a profit warning, forecasting its interim profit to decline by roughly 55% to 60% year-on-year.

The Group stated that the profit decline mainly stems from shrinking sales volume amid weak market demand. Revenue from its manufacturing division fell 4.7% year-on-year, bringing adverse impacts from operating deleveraging due to insufficient production scale and tariff concessions. Costs of labour and manufacturing overheads have risen on the back of ramp-up phases for newly built production facilities and wage hikes across all operating regions. In addition, overlapping long public holidays across its three major manufacturing hubs together with volatile orders have disrupted production scheduling, leading to uneven capacity utilisation across factories and higher unit costs for footwear manufacturing.

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