Yue Yuen has embarked on a joint venture with Upmax Investments to produce casual and safety footwear. Coming in with a 45 percent stake, the huge Chinese shoe company will handle the project’s financing and information technology, while the manufacturing will be done by Golen Chang, a subsidiary of Upmax.
In its 3rd quarter ended June 30, Yue Yuen had strong growth, especially in Asia. The company’s total revenues rose by 12 percent to $859.0 million, but the increased cost of materials and higher wages caused a lower 10 percent growth in net income to $84.0 million. For the first three quarters of 2005, Yue Yuen’s total sales improved by 15 percent to $2.34 billion, but there was a 6 percent drop in net profit to $236.3 million.
In Asia, the company’s revenues increased by 21 percent to $621.1 million for the first nine months. At this rate, Yue Yuen’s Asian market could transcend Europe in size and be second only to the USA in a year’s time. Asia currently represents 27 percent of Yue Yuen’s total sales, as against 28 percent for Europe.