YUE YUEN IND (00551.HK) issues profit warning: 9M profit attributable to owners seen down 50%-55%

NewTimeSpace News: On October 26, 2026, Yue Yuen Industrial (Holdings) Limited (YUE YUEN IND, 00551.HK) issued a profit warning, expecting profit attributable to owners for the nine months ended September 30, 2026 to decrease by approximately 50% to 55% from about US$278.7 million a year earlier.

The decline was mainly due to multiple challenges in the manufacturing business: weak demand reduced sales scale, while rising costs and production efficiency pressure weighed on gross margin. Manufacturing revenue fell 3.8% year on year. A stronger pull-forward of orders in the third quarter narrowed the decline from the first half, but was insufficient to offset the operating deleverage from the smaller scale, and tariff-sharing measures also hurt profitability.

In addition, average headcount rose year on year amid wage increases across sites, while progress in cutting overtime and other non-value-added costs fell short of expectations. Overlapping long holidays at three major production sites and greater order volatility left capacity utilisation uneven across plants, pushing up unit shoemaking costs. The company expects to announce its unaudited nine-month results on November 12.