Yue Yuen Industrial Issues Major Profit Warning for First Half of 2026

Hong Kong, July 24, 2026 — Yue Yuen Industrial (Holdings) Limited (Stock Code: 00551) has issued a significant profit warning, alerting shareholders and potential investors to an expected steep decline in profits for the six months ended June 30, 2026. The company forecasts a drop of approximately 55% to 60% in profit attributable to owners, compared to the profit of around US\$171.2 million reported for the same period in 2025.

Key Points from the Announcement

• Massive Profit Decline: The Group anticipates its profit will fall by more than half, to between US\$68.5 million and US\$77 million, based on last year’s figures.
• Multiple Headwinds Identified: The profit drop is attributed to various factors, including weak global demand, increased costs, and production inefficiencies.

Detailed Factors Impacting Performance

1. Insufficient Demand and Adverse External Environment:
   • Macroeconomic uncertainties, tariff policy changes, and inflation risks have led to a conservative approach to inventory stocking among end-market customers.
   • Brand customers are placing orders more cautiously, causing volatility and a 4.7% year-on-year decline in manufacturing business revenue.
   • Operating deleveraging and negative impacts from tariff-sharing arrangements further eroded profitability.
2. Rising Labor and Overhead Costs:
   • The Group increased its manufacturing headcount as part of ongoing capacity expansion and new facility ramp-ups.
   • Higher wages across multiple regions, as well as less-than-expected reductions in overtime and other non-value-added costs, have significantly driven up labor and overhead expenses.
3. Production Scheduling Issues:
   • Long holidays overlapping in the Group’s three main production hubs during Q1 2026 complicated scheduling.
   • Order volatility intensified in Q2, making allocation and production leveling more difficult.
   • Geopolitical and supply chain uncertainties further disrupted operations, leading to uneven production and increased unit costs for footwear manufacturing.

Guidance to Shareholders and Investors

• The Group is closely monitoring the global economic and political environment, and will prioritize operational responsiveness to maintain efficiency.
• This profit warning is based on preliminary, unaudited figures. The final, unaudited consolidated results for the period will be announced on August 12, 2026, and may differ from this estimate.
• Shareholders and potential investors are advised to exercise caution when trading Yue Yuen shares, as this significant profit deterioration is likely to affect share value.

Board Statement

The announcement was authorized by the Board of Yue Yuen Industrial (Holdings) Limited, chaired by Mr. Lu Chin Chu. The company’s management includes both executive and independent non-executive directors.

Potential Share Price Impact

• This is a highly price-sensitive disclosure. The anticipated profit decline of 55%–60% is material and may trigger significant movement in the company’s stock price.
• Investors should pay close attention to the results announcement on August 12, 2026, and monitor any further updates from the company.

Disclaimer: This article is for informational purposes only and is based on the company’s preliminary announcement. It does not constitute investment advice. Actual results may differ from the estimates provided above. Investors are urged to review official disclosures and consult with financial advisors before making investment decisions.

裕元工業發出2026年上半年重大盈警

香港，2026年7月24日 — 裕元工業（集團）有限公司（股份代號：00551）發出重大盈警，提醒股東及潛在投資者，預期截至2026年6月30日止六個月的歸屬權益持有人應佔溢利將大幅下跌55%至60%，相比2025年同期溢利約1.712億美元，預計僅錄得約6,850萬至7,700萬美元。

公告重點

• 盈利大幅下跌： 預期集團盈利按年大減逾一半，主要受到多項不利因素影響。
• 多重挑戰： 包括全球需求疲弱、成本上升及生產效率下降，均對業績造成壓力。

詳細影響因素

1. 需求不足及外部環境挑戰：
   • 受宏觀經濟不明朗、關稅政策及通脹風險影響，下游客戶補貨意慾保守。
   • 品牌客戶下單趨審慎，導致訂單波動，製造業務收入按年下跌4.7%。
   • 業務規模不足及關稅分擔安排進一步削弱盈利能力。
2. 勞工及間接成本上升：
   • 集團因產能部署及新廠投產，製造業務人手按年增加。
   • 各地區工資上升，加上加班及非增值成本減幅不及預期，令整體勞動及間接成本顯著增加。
3. 生產排程失調：
   • 2026年首季三大生產基地假期重疊，令排程困難。
   • 第二季訂單波動加劇，分配及生產均勻性下降，供應鏈及地緣政治因素亦帶來不確定性，導致單位成本上升。

給股東及投資者的指引

• 集團會密切留意全球經濟及政治環境發展，並以靈活應對為經營核心，平衡需求、訂單及人力資源，維持營運效率。
• 本盈警基於初步未經審核數據，最終業績或有調整，2026年8月12日將正式公布半年業績。
• 股東及投資者應審慎處理集團股份，因本次盈警屬高度敏感信息，或會對股價造成重大波動。

董事會聲明

本公告由董事會（主席：呂金柱先生）授權發布，管理層包括多位執行董事及獨立非執行董事。

股價潛在影響

• 本次公告屬高度敏感信息，預期盈利大跌55%–60%或會對股份價格產生重大影響。
• 投資者須密切關注8月12日公布的業績及公司進一步公告。

免責聲明： 本文僅供參考，根據公司初步公告整理，不構成任何投資建議。最終業績或與上述預期有異，投資者應參閱公司正式公告及諮詢專業意見。

View YUE YUEN IND Historical chart here