YUE YUEN IND (00551) announced its interim results, with a profit attributable to shareholders of $71.998 million, a decrease of 57.9% year-on-year. The interim dividend is HK$0.4.

YUE YUEN IND (00551) announced its interim results for the six months ending June 30, 2026, with revenue reaching USD 3.972 billion, a year-on-year decrease of 2.2%. Profit attributable to the company's owners was USD 71.998 million, a year-on-year decrease of 57.9%; basic earnings per share were 4.49 cents; and the interim dividend was HKD 0.4. Affected by macroeconomic uncertainties, tariff policies, and inflation risks, terminal stockpiling demand remained conservative, and brand customers placed orders more cautiously, leading to increased fluctuations in order demand during this period, putting pressure on the Group's manufacturing business revenue. At the same time, the Group's manufacturing gross profit margin continued to be constrained due to rising costs and declining production efficiency. Alongside the Group's long-term capacity layout, the new factory areas are continuously ramping up, leading to a year-on-year increase in the number of people in the manufacturing business. Furthermore, various regions have seen wage increases, while the cost reductions associated with overtime and other inefficiencies have not met the established targets, collectively pushing up overall labor and production costs. In addition, the overlap of major holidays across the Group's three manufacturing locations in the first quarter of 2026 posed various challenges for production scheduling. The monthly order fluctuations from the second quarter's factories have become increasingly unpredictable and difficult to manage, and geopolitical uncertainties and supply chain disruptions have further caused interference. Although the Group has actively coordinated order rhythms to alleviate related impacts, each manufacturing location still faced uneven capacity loads during this period, affecting overall production efficiency.