Yue Yuen Industrial (Holdings) Limited Overview
Yue Yuen is the world's largest original-equipment and original-design manufacturer of branded athletic, athleisure, casual and outdoor footwear. In FY2025 it shipped 252.2 million pairs at an average selling price of US$21.00, mainly from Indonesia (54% of volume), Vietnam (32%) and mainland China (9%). Its manufacturing arm makes shoes for Nike, adidas, Asics, New Balance and Salomon, and generated US$5.65bn of revenue in FY2025. Five customers account for 58% of group sales, and the largest alone accounts for about 24%. A second engine is Pou Sheng International, a separately listed, majority-owned subsidiary that operates one of Greater China's largest multi-brand sportswear retail networks (3,310 directly operated stores at end-2025; RMB17.1bn revenue). The group is 51%-controlled by Taiwan's Pou Chen. Its investment case rests on scale, development capability and a diversified Asian footprint, against sharp near-term pressure from tariffs, labour inflation and weak China retail.
Company's own description (AR2025, paraphrased). Yue Yuen describes itself as the world's largest manufacturer of athletic, athleisure, casual and outdoor footwear. It cites a diversified base of brand customers and production sites, and long-standing relationships with leading international brands including Nike, adidas, Asics, New Balance and Salomon. Its stated strengths are responsiveness, flexibility, innovation, design and development capability, and quality. Through its listed subsidiary Pou Sheng it also operates one of the largest and most integrated sportswear retail networks in Greater China.
The mission statement has two halves. The first is to build a smart, technology-based footwear manufacturing operation that offers innovative solutions to international brand customers. The second is to become a fully integrated sporting-goods retailer in Greater China, giving brand customers an end-to-end platform. The vision is to provide end-to-end solutions of the highest value to the sports industry while supporting healthy lifestyles.
The Directors' Report defines principal activities as:
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manufacturing and sale of footwear products;
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retail and distribution of sportswear and footwear;
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provision of large-scale commercial space to retailers and distributors, under the retail operation.
Business model.
Source: AR2025 MD&A and Directors' Report.
Revenue-type mix. Effectively 100% product revenue. There is no subscription or licensing revenue of note. Pou Sheng earns concessionaire commissions and rental income from commercial space, but these are not broken out separately in the sources reviewed (n/d).
End-markets served. Global performance and athleisure footwear: running, basketball, training, lifestyle sneakers, outdoor/trail (Salomon), plus casual shoes and sports sandals. The China sportswear retail market is served through Pou Sheng. By customer delivery, FY2025 revenue was 39.0% PRC (which includes all Pou Sheng revenue), 20.0% US, 19.1% Europe, 15.0% other Asia and 6.9% others.
Independent characterisation. Yue Yuen is best understood as a capacity-and-capability utility for the top tier of global sportswear brands, attached to a cyclical China retail operation. Manufacturing profit is a function of four things:
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volume (brand order allocation);
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mix and ASP (premium and complex models);
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utilisation and "production leveling" (smooth loading across factories);
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labour cost inflation in Indonesia and Vietnam.
Unlike brand owners, Yue Yuen has limited pricing power. In 2H 2025 it began "tariff sharing", absorbing part of US reciprocal-tariff costs for brand customers, which signals bargaining weakness. Its scale gives it a seat at the table for allocation decisions, and its development centres embed it in customers' design processes. Pou Sheng contributes around 30% of revenue but a much smaller share of profit: RMB210.8m attributable in FY2025, against US$362.7m from manufacturing. It operates in an over-stored, promotion-heavy Chinese sportswear channel.
Strategy
Stated strategic themes (AR2025 Chairman's Statement and MD&A, paraphrased):
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Diversified footprint with flexible allocation. Demand-driven production planning, agile capacity allocation, deeper local supply chains, and expansion into Indonesia and India where labour supply and infrastructure support growth. Ramp-up timing will be adjusted to brand demand.
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Manufacturing excellence and digital transformation. Build on the completed SAP ERP and OCP rollouts; integrate MES; broaden DRS; deploy AI agents for dynamic production allocation; build a site visualisation management module.
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Value plus volume. Pursue higher-quality orders and a premium product mix, capitalising on the athleisure trend through integrated development (automation plus R&D).
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Retail refinement (Pou Sheng). Dynamically manage the physical and online footprint, diversify channels and brands, broaden categories, and build an integrated "one-stop" retail operation. Digital sales already exceed 30% of revenue.
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Sustainability. A 46.2% GHG reduction target by 2030 versus a 2019 baseline, low-carbon production and green energy, collaboration with brand partners, and FLA accreditation.
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Shareholder returns. A relatively stable long-term dividend; the payout was held at 70% in FY2025.
Initiatives in the last 24 months.
Medium-term financial targets and guidance. Yue Yuen does not publish numeric revenue or margin guidance. Its stated policies are a dividend payout of about 70% and a "comfortable" gearing level. For 2026, management guided only qualitatively:
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order demand would stay volatile;
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Q1 2026 would face holiday-overlap scheduling problems;
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2H 2026 would remain unsettled, with limited visibility on near-term orders (H1 2026 outlook).
Products & Services
Yue Yuen does not sell products under its own consumer brands. The "portfolio" is therefore the set of manufacturing categories, customer programmes and retail formats. Model-level allocation (which brand models are made in which factories) is not disclosed by Yue Yuen or its customers (n/d).
5.1 Manufacturing business
Volume and ASP history:
Sources: AR2022, AR2024, AR2025, and WorldFootwear (FY2021). FY2023 ASP is derived from FY2024's reported −5.1% change. For FY2022 volume, AR2022 says 272.7m; one WorldFootwear article says 272.2m. The filing figure is used.
5.2 Digital manufacturing platforms (internal capabilities)
5.3 Retail business (Pou Sheng)
Pou Sheng revenue in RMB: FY2024 RMB18,453.9m; FY2025 RMB17,132.1m (−7.2%); H1 2026 RMB8.96bn (−2.1%).
Product Portfolio
| Product line | Description and capabilities | Target customers | Scale (FY2025) | Pricing model |
|---|---|---|---|---|
Athletic/Outdoor Shoes | Performance running, basketball, training, football and lifestyle sneakers; outdoor and trail footwear. High-complexity uppers, cementing and stitching, foam midsole integration. | Nike, adidas, Asics, New Balance, Salomon (named) and other global sportswear brands | US$4,435.0m; 83.7% of footwear manufacturing revenue | Per-pair FOB pricing negotiated by season and model. Group ASP US$21.00/pair. Tariff-sharing concessions since 2H 2025. |
Casual Shoes & Sports Sandals | Casual and lifestyle footwear, slides and sandals | Same brand customers plus casual and lifestyle brands (individual customers n/d) | US$861.6m; 16.3% of footwear manufacturing; +12.6% YoY | Per-pair contract pricing |
Soles, Components & Others | Outsoles, midsoles, components and other materials sold to third parties | Footwear assemblers and brands | US$351.7m; −22.2% YoY | Per-unit B2B pricing |
Product development services (embedded) | Dedicated, independent development centres for each major brand customer covering product shaping, sampling, digitalisation, process engineering and efficiency projects. FY2025 spend: US$145.9m. | Major brand customers | Not separately invoiced (n/d) | Recovered through product pricing (n/d) |
Connected-party supply | Supplies leather, moulds, production equipment and tools, finished and semi-finished shoes, QC tools and consulting to the PCC group | Pou Chen group | FY2026 annual cap US$7.149m | Pricing policy per connected-transaction agreement |
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Shoe volume shipped (million pairs) | 238.3 | 272.7 | 218.3 | 255.3 | 252.2 |
Average selling price (US$ per pair) | 18.68 | 20.93 | 21.34 | 20.25 | 21.00 |
| Platform | Function | Status | Source |
|---|---|---|---|
SAP ERP | Enterprise resource planning | Full rollout completed | AR2025 |
One Common Platform (OCP) | Group-wide common operating platform | Full rollout completed | AR2025 |
Manufacturing Execution System (MES) | Shop-floor execution and integration | Being integrated | AR2025 |
Digital Reporting System (DRS) | Real-time data reporting and visual monitoring of key equipment | Being broadened | AR2025 |
AI pilot agents | Production scheduling optimisation and dynamic allocation | Pilot stage | AR2025 |
Eco-intelligent management system | Management of energy, materials and environmental factors | Operational | AR2025 |
| Offering | Description | Scale and metrics | Source |
|---|---|---|---|
Directly operated stores | Multi-brand and single-brand sportswear stores across Greater China, operating under banners including YY Sports. The strategy prioritises larger-format, experience-driven stores. | 3,310 stores at 31 Dec 2025 (net −138 YoY); 3,110 at 30 Jun 2026 (net −200 vs year-end) | AR2025; SGB Online |
Digital and e-commerce | Third-party marketplace storefronts, multi-storefront model, in-house livestreaming, influencer and content e-commerce | Digital sales above 30% of Pou Sheng revenue in FY2025; livestream sales up more than 70% | AR2025 |
Instant retail | Store-to-door fulfilment using intelligent product-to-store matching | Not quantified (n/d) | AR2025 |
Sub-distributor (wholesale) channel | Sales to downstream distributors | Declined substantially in FY2025 (amount n/d) | AR2025 |
Concessionaire commissions and commercial space | Commissions from concession sales; leasing of large-scale commercial space | — | AR2025 Directors' Report |
Brand portfolio | International and domestic sportswear brands. Nike and adidas are widely reported as core partners; the full brand matrix is not listed in the excerpts reviewed. | — | — |
Financial Narrative
All figures are US$ m unless noted. The company standard is HKFRS. Blank cells = n/d or not verifiable.
Table 6.1 — Income statement
Sources and notes:
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FY2025 and FY2024 are from AR2025 and the FY2025 results announcement. FY2024 profit for the year is per SGI Europe's reproduction of the FY2025 results table. FY2024 EBIT of US$572.1m is per SGI Europe, which gives a comparative of US$390.2m for FY2023; that figure equals reported FY2023 PBT, so the SGI definition is unclear.
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FY2022 and FY2023 come from the FY2023 final results announcement (HKEX, 13 Mar 2024).
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FY2021 gross profit (US$2.05bn, 24.0% margin) is per WorldFootwear. FY2021 S&D (US$1.19bn) and share of associates/JVs (US$11.8m) are per SGB Online's coverage of FY2022 results. The FY2023 associate/JV share is the sum of US$47.7m and US$14.5m.
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EPS and DPS are from the AR2025 five-year charts.
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Core operating profit is derived as gross profit − S&D − administrative expenses + other income − other expenses. It excludes other gains/losses, associates and finance costs.
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FY2025 PBT of US$465.8m is derived as profit for the year (395.4) plus tax (70.4). AR2025 cites US$456.9m when excluding Indonesian tax-dispute items: of the US$12.3m of 2024 penalties, US$8.9m was reversed in 2025.
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Diluted EPS is not separately disclosed. No options are outstanding, so diluted EPS is effectively equal to basic.
Table 6.2 — Margins (%)
Derived from Table 6.1. Company-reported: S&D+admin 17.0% (FY2024) and 16.7% (FY2025).
Revenue CAGR FY2021–FY2025: −1.5% a year (derived: 8,533 → 8,031.4). Manufacturing revenue CAGR is about +3.5% a year (derived). Pou Sheng USD revenue CAGR is about −9.9% a year (derived).
Table 6.3 — Balance sheet (US$ m)
Sources: AR2025. Lease liabilities are from the FY2023 results announcement (the line item shown there).
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Long-term borrowings are derived from AR2025's statement that about 63% of bank borrowings are long-term.
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Bank balances include deposits with original maturity over three months: US$217.3m in FY2025 and US$186.3m in FY2024.
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No assets were pledged.
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Goodwill and intangibles are n/d in the excerpts reviewed.
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Total assets at FY-end are n/d. At 30 Jun 2026, total assets were US$7,577.1m and total liabilities US$2,528.7m (FilingReader summary of the interim filing).
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Equity attributable to owners was US$4,442.4m at 30 Jun 2025 (interim 2025).
Table 6.4 — Cash flow (US$ m)
Sources: AR2025.
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Company-defined FCF does not equal OCF minus capex. AR2025 attributes part of the FY2025 capex increase to payments for projects settled in the prior year.
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Dividends are derived as HK$1.30 per share paid in each calendar year (prior-year final HK$0.90 plus current interim HK$0.40) × 1.6046bn shares ÷ 7.78. The actual cash-flow line is n/d in the excerpts.
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In FY2025 the share award trustee bought 2.18m shares (~US$3.7m) for employee awards. This was not a buyback for cancellation.
Table 6.5 — Ratios
ROA, ROIC, asset turnover and the cash conversion cycle cannot be computed reliably without year-end total assets, invested capital and working-capital detail. These are n/d in the sources retrieved.
Table 6.6 — Interim and quarterly trajectory (US$ m)
Sources: H1 2025 interim announcement (HKEX); 9M 2025 announcement (HKEX); Q1 2026 per WorldFootwear and SGB Online; H1 2026 per the interim announcement as summarised by RTTNews, FilingReader, Quartr and WorldFootwear. For H1 2026, operating profit was US$112.0m (−45.9%), EBITDA US$167.7m (−37.1%), basic EPS 4.49 US cents (RTTNews cites 4.48), and period-end cash US$815.9m.
Commentary on trends and drivers.
Revenue: Over five years, group revenue has been flat to down. FY2021–FY2022 were disrupted by Vietnam's 2021 lockdowns and a post-COVID restocking surge. FY2023 brought an industry-wide destocking that cut manufacturing revenue 18%. FY2024 rebounded on volume. FY2025 held flat on mix. The flat headline hides a structural divergence. Manufacturing revenue has grown from about US$4.9bn to US$5.65bn, while Pou Sheng's USD revenue has fallen from about US$3.6bn to US$2.4bn. The fall in Pou Sheng reflects China's consumption slowdown, RMB weakness and deliberate store rationalisation.
Profitability: Attributable profit rose from US$115m (FY2021) to a peak of US$392m (FY2024). FY2025 dipped to US$381m, cushioned by one-offs: US$14.3m of non-recurring gains and a US$20.4m reversal of Indonesian tax expense. The inflection came in 2026:
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Q1 2026 profit fell 53.6% to US$35.2m.
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H1 2026 profit fell 57.9% to US$72.0m.
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Manufacturing profit attributable in H1 2026 fell 67.9% to US$49.8m.
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Pou Sheng's H1 2026 profit rose 29.9% to RMB243.7m on cost discipline.
Management's explanations in the July 2026 profit warning were:
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volatile, cautious brand ordering under tariff and inflation uncertainty (manufacturing revenue −4.7%);
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operating deleverage;
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tariff-sharing concessions;
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rising headcount in new plants;
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wage inflation;
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overlapping long holidays in China, Vietnam and Indonesia in Q1 (Lunar New Year and Ramadan);
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highly uneven factory loading.
Balance sheet: The balance sheet is conservative. Net cash fell to US$62.5m at FY2025 from US$185.9m a year earlier, as capex stepped up for the Indonesia and India builds, and gearing has stayed around 15%. All manufacturing bank debt is floating-rate USD. Equity has grown steadily, and the dividend has been held at a 70% payout.
Cash flow: OCF improved to US$591.2m in FY2025. FCF fell 18.6% to US$265.3m on capex of US$325.9m. In H1 2026 FCF was positive at US$40.2m. SGB Online describes the H1 2025 comparative as an outflow of US$35.6m, while Quartr's summary implies an inflow. The interim filing should be consulted to resolve this.
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View Subscription PlansFinancial Detail
Revenue by Segment
| Category (USD Mn) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Athletic/Outdoor Shoes revenue | — | — | — | 4,403.6 | 4,435.0 |
Casual Shoes and Sports Sandals revenue | — | — | — | 765.4 | 861.6 |
Footwear manufacturing revenue (total) | 4,451 | 5,706.6 | 4,660 | 5,169.0 | 5,296.6 |
Soles Components and Others revenue | 466 | 497 | 400 | 451.8 | 351.7 |
Manufacturing business revenue (total) | 4,917 | 6,204 | 5,060 | 5,620.8 | 5,648.3 |
Pou Sheng retail revenue | 3,616 | 2,766 | 2,830 | 2,561.4 | 2,383.1 |
Group revenue | 8,533 | 8,970.2 | 7,890.2 | 8,182.2 | 8,031.4 |
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View Subscription PlansRevenue by Segment (%)
| Category (% of total) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Athletic/Outdoor Shoes share | — | 53.8 | 55.2 |
Casual Shoes and Sports Sandals share | — | 9.4 | 10.7 |
Soles Components and Others share | 5.1 | 5.5 | 4.4 |
Pou Sheng share | 35.9 | 31.3 | 29.7 |
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View Subscription PlansSegment Margins & Growth (%)
| Category (YoY %) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Footwear manufacturing revenue growth | 28.2 | -18.4 | 10.9 | 2.5 |
Manufacturing business revenue growth | 26.2 | -18.4 | 11.1 | 0.5 |
Pou Sheng revenue growth in USD | -23.5 | 2.3 | -9.5 | -7.0 |
Athletic/Outdoor Shoes growth | — | — | — | 0.7 |
Casual Shoes and Sports Sandals growth | — | — | — | 12.6 |
Soles Components and Others growth | — | — | — | -22.2 |
Results by Segment and Segment Margins & Growth (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Manufacturing gross profit (USD Mn) | 759 | 1,140 | 975 | 1,117 | 1,030.0 |
Manufacturing gross margin (%) | 15.4 | 18.4 | 19.2 | 19.9 | 18.2 |
Pou Sheng gross margin (%) | 35.5 | 35.9 | — | 34.2 | 33.5 |
Profit attributable from manufacturing (USD Mn) | — | — | — | 349.8 | 362.7 |
Pou Sheng profit attributable to its owners (CNY Mn) | — | — | — | 491.4 | 210.8 |
Income Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (USD Mn) | 8,533 | 8,970.2 | 7,890.2 | 8,182.2 | 8,031.4 |
Revenue growth (%) | 1.0 | 5.1 | -12.0 | 3.7 | -1.8 |
Gross profit (USD Mn) | 2,050 | 2,137.2 | 1,925.3 | 1,992.7 | 1,827.8 |
Selling and distribution expenses (USD Mn) | 1,190 | 988.5 | — | 838.2 | 780.5 |
Administrative expenses (USD Mn) | — | — | — | 553.4 | 562.2 |
Other income (USD Mn) | — | — | — | 122.7 | 107.0 |
Other expenses (USD Mn) | — | — | — | 177.4 | 156.2 |
Core operating profit derived (USD Mn) | — | — | — | 546.4 | 435.9 |
Operating profit EBIT as reported by SGI Europe (USD Mn) | — | — | — | 572.1 | — |
EBITDA (USD Mn) | — | — | — | 899.7 | 779.1 |
Share of associates and JVs (USD Mn) | 11.8 | 62.6 | 62.2 | 78.4 | 69.9 |
Finance costs bank borrowings (USD Mn) | — | — | — | 52.8 | 44.6 |
Finance costs lease liabilities (USD Mn) | — | — | — | 9.9 | 8.3 |
Profit before tax (USD Mn) | — | 413.3 | 390.2 | — | 465.8 |
Income tax expense (USD Mn) | — | — | — | — | 70.4 |
Profit for the year incl NCI (USD Mn) | — | 293.2 | 309.2 | 424.7 | 395.4 |
Profit attributable to owners (USD Mn) | 115.1 | 296.3 | 274.7 | 392.4 | 381.1 |
Recurring profit attributable (USD Mn) | — | — | — | 378.6 | 366.8 |
Basic EPS (US cents) | 7.15 | 18.41 | 17.05 | 24.37 | 23.76 |
Dividend per share (HKD) | 0.20 | 1.10 | 0.90 | 1.30 | 1.30 |
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View Subscription PlansMargin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%) | 24.0 | 23.8 | 24.4 | 24.4 | 22.8 |
Core operating margin derived (%) | — | — | — | 6.7 | 5.4 |
EBITDA margin (%) | — | — | — | 11.0 | 9.7 |
Pre-tax margin (%) | — | 4.6 | 4.9 | — | 5.8 |
Net margin attributable (%) | 1.3 | 3.3 | 3.5 | 4.8 | 4.7 |
S&D plus admin as % of revenue | — | — | — | 17.0 | 16.7 |
Balance Sheet and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Total equity (USD Mn) | — | — | 4,914.4 | 5,111.0 |
Bank balances and cash (USD Mn) | — | — | 943.2 | 851.2 |
Total bank borrowings (USD Mn) | — | — | 757.3 | 788.7 |
Long-term bank borrowings derived (USD Mn) | — | — | — | 497 |
Short-term bank borrowings derived (USD Mn) | — | — | — | 292 |
Lease liabilities (USD Mn) | 113.3 | 89.2 | — | — |
Net cash (USD Mn) | — | — | 185.9 | 62.5 |
Net debt excl leases (USD Mn) | — | — | -185.9 | -62.5 |
Current assets (USD Mn) | — | — | 3,844.9 | 3,865.1 |
Current liabilities (USD Mn) | — | — | 1,769.8 | 1,819.2 |
Working capital derived (USD Mn) | — | — | 2,075.1 | 2,045.9 |
Gearing bank debt to equity (%) | — | — | 15.4 | 15.4 |
Distributable reserves of the Company (USD Mn) | — | — | — | 2,038.2 |
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View Subscription PlansCash Flow
| Metric | FY2024 | FY2025 |
|---|---|---|
Operating cash flow net of tax (USD Mn) | 537.1 | 591.2 |
Capital expenditure total (USD Mn) | 211.3 | 325.9 |
Capex manufacturing (USD Mn) | 159.8 | 292.0 |
Capex Pou Sheng (USD Mn) | 51.5 | 33.9 |
Free cash flow (USD Mn) | 325.8 | 265.3 |
Net cash used in investing (USD Mn) | 58.5 | 310.6 |
Net cash used in financing (USD Mn) | 631.0 | 409.7 |
Dividends to Yue Yuen shareholders derived (USD Mn) | 268 | 268 |
Share buybacks for cancellation (USD Mn) | 0 | 0 |
Margin Analysis (%) and Financial Ratios (x)
| Ratio | FY2024 | FY2025 |
|---|---|---|
ROE company-reported (%) | 8.8 | 8.3 |
Current ratio (x) | 2.2 | 2.1 |
Debt to equity bank debt (%) | 15.4 | 15.4 |
Net debt to EBITDA (x) | -0.21 | -0.08 |
Interest coverage core op profit to finance costs derived (x) | 8.7 | 8.2 |
Dividend payout ratio (%) | 70 | 70 |
Effective tax rate excl tax disputes (%) | 20.4 | 19.9 |
Income Statement and Margin Analysis (%) (H1 2025–H1 2026)
| Metric | H1 2025 | 9M 2025 | FY2025 | Q1 2026 | H1 2026 |
|---|---|---|---|---|---|
Revenue (USD Mn) | 4,060.1 | 6,017.4 | 8,031.4 | 1,990 | 3,972.3 |
Gross profit (USD Mn) | 918.6 | 1,371.4 | 1,827.8 | 431.8 | 823.6 |
Gross margin (%) | 22.6 | 22.8 | 22.8 | 21.7 | 20.7 |
Profit before tax (USD Mn) | 221.3 | 357.1 | 465.8 | — | — |
Profit attributable to owners (USD Mn) | 171.2 | — | 381.1 | 35.2 | 72.0 |
Shoe volume (million pairs) | 126.7 | — | 252.2 | — | 118.6 |
ASP (US$ per pair) | — | — | 21.00 | — | 20.95 |
Region (USD Mn) Overview
| Region (USD Mn) | FY2025 |
|---|---|
PRC revenue | 3,132 |
United States revenue | 1,606 |
Europe revenue | 1,534 |
Other Asian countries revenue | 1,205 |
Others revenue | 554 |
Region (% of Revenue) Overview
| Region (% of revenue) | FY2025 |
|---|---|
PRC share | 39.0 |
United States share | 20.0 |
Europe share | 19.1 |
Other Asian countries share | 15.0 |
Others share | 6.9 |
Production country (% of pairs shipped)
| Production country (% of pairs shipped) | FY2024 | FY2025 |
|---|---|---|
Indonesia share | 54 | 54 |
Vietnam share | 31 | 32 |
Mainland China share | 11 | 9 |
Other countries share (Bangladesh, Cambodia, Myanmar) | 4 | 5 |
Share Price History
| Date | Price (HKD) | Context | Source |
|---|---|---|---|
~8 May 2025 | 11.66 | Market cap HK$18.7bn | Simply Wall St |
13 Mar 2025 | 13.04 | Share award grant date close | AR2025 |
1 Jun 2025 | 11.82 | Share award grant date close | AR2025 |
Early 2026 | 17.95 | Market cap HK$28.8bn | AlphaSpread |
12 Mar 2026 | ~16.19 | Fell more than 10% after FY2025 results | etnet |
Jun 2026 | ~12.60–12.70 | Post-Q1 warning | etnet |
24 Jul 2026 | 13.69 | Market cap HK$21.97bn | Shenzhen Commercial Daily |
27 Jul 2026 | 13.81 | — | etnet |
12 Aug 2026 | 13.64 | Results day, −1.87% | RTTNews |
Valuation Snapshot
| Metric | Value | Basis |
|---|---|---|
Market cap | HK$21.9bn / ~US$2.81bn | 1,604.56m shares |
Trailing P/E | ~9.9x | TTM attributable profit of about US$281.9m (FY2025 381.1 − H1 2025 171.2 + H1 2026 72.0) → EPS ~17.6 US cents |
P/E on FY2025 | ~7.4x | EPS 23.76 US cents |
EV/EBITDA (FY2025) | ~3.6x | EV ≈ market cap − net cash US$62.5m (NCI and leases ignored) ÷ EBITDA US$779.1m |
EV/Sales (FY2025) | ~0.34x | — |
P/B | ~0.6x | Versus equity attributable to owners of about US$4.4bn (Jun 2025) |
Trailing dividend yield | ~9.5% | HK$1.30 ÷ 13.64 |
Peer comparison | (AlphaSpread snapshot) | — |
Dividend
| Dividend | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total DPS (HKD) | 0.20 | 1.10 | 0.90 | 1.30 | 1.30 |
Interim DPS (HKD) | — | — | — | 0.40 | 0.40 |
Final DPS (HKD) | — | — | — | 0.90 | 0.90 |
Analyst Conclusions
Management guidance (H1 2026 announcement and AR2025).
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The 2H 2026 operating environment is expected to stay unsettled. Inflation and macro uncertainty are weighing on consumers, sentiment may fluctuate, and visibility on near-term orders has not improved.
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Priorities: cost control, digital transformation, disciplined workforce and capacity planning, ramp-up of Indonesia and India aligned to demand, and Pou Sheng retail refinement.
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No numeric guidance is given.
Consensus expectations. Current consensus is n/d. In March 2025 Simply Wall St summarised consensus as revenue growth of about 4% a year over three years. That view predates the 2026 profit warnings and is likely stale.
Year-to-date trajectory.
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Revenue for January–August 2026 was US$5,217.3m (−3.1%); manufacturing was −5.0% YTD.
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August manufacturing fell only 1.6%, suggesting the June–July trough (−11.8% in June) may be easing.
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Pou Sheng fell 9.0% in RMB in August, so retail is not yet stabilising.
Bull case
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Cyclical trough in manufacturing margin. H1 2026 manufacturing gross margin of 14.3% sits well below the FY2022–FY2024 range of 18–20% (Table 4.4). If orders normalise and production leveling improves, margin reversion on about US$5.5bn of revenue would add several hundred basis points to group EBIT.
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Deep value with balance-sheet protection. The stock trades at about 0.6x book and about 3.6x FY2025 EV/EBITDA, with net cash. The historic 9.5% yield is backed by PCC's apparent preference for a stable dividend.
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Structural beneficiary of supply-chain diversification. 86% of volume is already in Indonesia and Vietnam, and India is coming online, well placed for brands' China-exit and tariff-mitigation strategies (AR2025 export data).
Bear case
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Margin damage may be structural. Tariff sharing, wage inflation and the cost of running more countries could permanently lower manufacturing margins below 18%. Manufacturing profit attributable fell 67.9% in H1 2026.
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Dividend at risk. H1 2026 EPS of about HK$0.35 did not cover the HK$0.40 interim dividend. If 2H 2026 does not recover, the full-year payout would exceed 100% and net cash (already down to US$62.5m at FY2025) would erode further while capex continues.
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Retail drag and customer risk. Pou Sheng is shrinking (stores down about 10% in 18 months). The largest customer (about 24%) faces its own turnaround, and US tariff escalation (June 2026 reports) could trigger further reallocation and pricing demands.
Key catalysts and monitorables (next 12 months).
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Monthly revenue prints (around the 10th of each month), especially manufacturing YoY and Pou Sheng RMB trends.
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9M 2026 results, expected around mid-November 2026, and any further profit warnings.
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FY2026 results (around March 2027), including the final dividend decision and whether the 70% payout is maintained.
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US tariff developments affecting Indonesia, Vietnam and India.
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India plant timing and Central Java utilisation.
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Adjudication of the Indonesian tax disputes (US$97.8m of receivables).
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Customer order commentary from Nike, adidas and others.
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Pou Sheng store count and margins under its new management.
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Renewal of PCC connected-transaction agreements, which expire 31 Dec 2026.
Analyst verdict. Yue Yuen enters late 2026 at a point where its two defining traits pull against each other. Its industrial franchise is undiminished: it is the largest and most geographically diversified maker of branded athletic footwear, embedded with every major brand through dedicated development centres, financed conservatively and widely respected for labour and ESG standards. Those attributes earned a record FY2024 and a resilient FY2025, when premium mix lifted ASP to US$21.00 even as volume dipped.
2026, however, has exposed how thin the economics of contract manufacturing become once volume falters. A 4.7% decline in manufacturing revenue, compounded by tariff concessions, wage inflation, ramp-up costs and poorly balanced factory loading, cut first-half manufacturing profit by two-thirds and group profit by 58%. The burden is falling almost entirely on the manufacturing side. Pou Sheng, despite shrinking sales, has improved profit through cost discipline, but it is too small to offset that hit.
The valuation already discounts much of this. At about HK$13.6 the shares trade near 0.6x book and roughly 10x depressed trailing earnings, with a historic yield above 9%. The core question for investors is whether H1 2026 is a cyclical trough or a reset to a lower margin structure.
The evidence is mixed. August data hints at moderating manufacturing declines, and the historic margin range of 18–20% shows what normalised loading can deliver. Against that, tariff sharing appears sticky, and multi-country expansion structurally adds overhead. Dividend coverage is now the clearest near-term tension: management held the interim dividend despite earnings not covering it.
On balance, Yue Yuen screens as a cyclical value candidate with credible recovery optionality, but conviction requires evidence of margin repair in the 9M and FY2026 prints. Until then, the risk/reward is best described as balanced, with an income-supported floor. The decisive variables are utilisation, US tariff policy and the order trajectory of its largest customers.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Age (AR2025) | Board tenure | Prior and other roles | Education |
|---|---|---|---|---|---|
Lu Chin Chu | Chairman, Executive Director | 72 | ED and Chairman since 26 Mar 2014 (also ED 1996–2011) | Joined PCC 1977; PCC President and director; head of PCC real-estate department; director of Wealthplus and Win Fortune; director of San Fang Chemical (TWSE). Formerly NED of Prosperous Industrial and Luen Thai. | MBA, National Chung Hsing University |
Tsai Pei Chun, Patty | Managing Director, ED (functions as CEO) | 46 | ED since 18 Jan 2005; MD since 28 Jun 2013 | Joined PCC 2002; PCC director; NED of Pou Sheng; formerly director of Mega Financial Holding. Member of the nomination committee. | BS Economics (Finance), Wharton |
Chou Wei-Te | Executive Director | 58 | Since 1 Jun 2025 | PCC Vice President, finance and accounting; ED of Eagle Nice (HKEX) since 30 Jun 2025 | Master's in Shipping Management; BA Accounting |
Lin Cheng-Tien | Executive Director | 66 | Since 20 Mar 2015 | PCC Senior EVP responsible for production, sales and marketing for certain brand customers; joined PCC 1990 | Footwear manufacturing, South Fields College (UK) |
Liu George Hong-Chih | Executive Director | 53 | Since 28 Jun 2013 | PCC VP (business development and production for major brands). Previously Bain & Company; Morgan Stanley 2000–2010 (Executive Director); CICC MD and head of HK investment banking. | MBA Wharton; BA Yale |
Chau Chi Ming | Executive Director and CFO | 62 | ED and CFO since 11 Aug 2025; joined group 1993 | NED of Prosperous Industrial; former head of PCC investment management and acting head of strategy; former company secretary | BBA, CUHK; HKICPA, FCCA |
Wong Hak Kun | INED; Chair of Audit & Risk Management and Remuneration Committees | 69 | Since 1 Jun 2018 | Retired Deloitte China partner and Managing Partner of Audit & Assurance; INED of Haier Smart Home, GAC, Lung Kee and Hangzhou SF Intra-city | BSocSc, HKU; HKICPA, ACCA, CIMA |
Ho Lai Hong | INED; Chair of Nomination Committee | 68 | Since 24 May 2019 | Former GM/Alternate Chief Executive, Mizuho Bank HK; currently ED and CEO of Texwinca Holdings | MBA, PolyU |
Lin Shei-Yuan | INED | 63 | Since 12 Nov 2021 | Former head of corporate and institutional banking, ANZ Taiwan; Standard Chartered Taiwan; Citibank Taiwan | MBA, Boston University |
Dr Yang Ju-Huei (Steffi Yang) | INED | 49 | Since 1 Jun 2023 | Associate Professor, CTBC Business School; ED of New Generation Youth Think Tank; former director of CTBC Investment | PhD Economics, Cambridge (Gates Scholar) |
Board of Directors — Song Wan Fan, Johnny
| Name | Role | Age | Joined group |
|---|---|---|---|
Song Wan Fan, Johnny | VP, business development and production for major brands (PCC) | 68 | 2015 (PCC since 1995) |
Tsai Wen Tsung | AVP, financial management HK and Macau | 58 | 2014 |
Lin Wang Chyan | Executive AVP, overseas administration and operational support | 60 | 2021 |
Yau Suet Fong, Christina | Director, Accounting and Special Projects | 65 | 1993 |
Chua Chun Po | Director, Financial Reporting | 46 | 2014 |
Wang Chi, Olivia | Director, Investor Relations and ESG communication | 45 | 2017 |
Ng Yin Ling, Jennifer | Director, Legal; Company Secretary | 52 | 2021 |
Directors' Shareholdings
| Director | Award date | Awarded shares |
|---|---|---|
Lu Chin Chu | 13 Mar 2025 | 70,000 (vested 1 Jun 2025) |
Chan Lu Min (retired) | 13 Mar 2025 | 94,000 |
Lin Cheng-Tien | 13 Mar 2025 | 33,000 |
Shih Chih-Hung (resigned) | 13 Mar 2025 | 20,000 |
Liu George Hong-Chih | 13 Mar 2025 and 1 Jun 2025 | 75,000 and 80,000 (the latter vesting to 31 May 2027) |
Chou Wei-Te | 1 Jun 2025 | 80,000 (vesting to 31 May 2027) |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
14 Apr 2025 | Pou Sheng: Yu Huan-Chang and Wang Jun resign all positions | Retail restructuring |
22 Apr 2025 | Pou Sheng: Chiu Hui-Yao becomes NED and Chairman; Chang Su-Ching becomes ED and CEO | New retail leadership |
1 Jun 2025 | Chan Lu Min retires as ED; Chou Wei-Te appointed ED | Board refresh |
11 Aug 2025 | CFO Shih Chih-Hung resigns; Chau Chi Ming appointed ED and CFO | No disagreement with the board disclosed |
22 May 2026 | AGM: Lu, Wong and Yang retire by rotation; Chou and Chau stand for election | — |
Major Shareholders
| Holder | Shares | % | Source |
|---|---|---|---|
Pou Chen Corporation (indirect) | 824,143,835 | 51.36 | AR2025 |
— of which Wealthplus Holdings | 773,156,303 | 48.18 | AR2025 |
— of which Win Fortune Investments | 50,987,532 | 3.18 | AR2025 |
Silchester International Investors | Added 1.31m shares (~HK$20.9m) on or around 19 Mar 2026; total stake n/d | — | etnet (Mar 2026) |
Other institutional holders (top 10) | n/d. No other holder appears on the SFO s.336 register above 5%. | — | AR2025 |
Directors (aggregate, Yue Yuen shares) | ~1.78m shares (Lu 603,000; Liu 760,000; Lin 334,000; Chou 80,000) | ~0.11 | AR2025 |
Competitive Landscape
Key Competitors
| Competitor | Listing | Segment overlap | Key customers (public) | Positioning vs Yue Yuen |
|---|---|---|---|---|
Feng Tay Enterprises | TWSE: 9910 | Athletic footwear manufacturing | Nike (dominant) | Smaller, highly Nike-concentrated, efficient Nike partner. Feb 2026 revenue NT$5.81bn (−12.3%) per LeatherBiz; annual revenue n/d. |
Pou Chen Corporation | TWSE: 9904 | Parent; consolidates Yue Yuen | Same | Not a competitor but the controlling entity |
Huali Industrial Group | SZSE: 300979 | Athletic footwear manufacturing | Nike, Deckers (Hoka), Vans, On (reported) | Fast-growing Chinese/Vietnamese supplier with premium valuation (AlphaSpread: P/E ~15.9x, EV/EBITDA ~11.3x) |
Chang Shin | Private (Korea) | Nike footwear | Nike | Large private Nike supplier in Vietnam and Indonesia |
Taekwang Industrial | KRX (parent) | Nike footwear | Nike | Vietnam-based Nike supplier |
Hwaseung Enterprise | KRX | adidas footwear | adidas | adidas specialist |
Lai Yih Footwear | TWSE (listed 2023) | Athletic and outdoor footwear | Nike, Asics, outdoor brands (reported) | Vietnam-centred mid-size supplier |
Fulgent Sun International | TPEx: 9802 | Outdoor and athletic footwear | Outdoor brands | Outdoor niche competitor to Salomon-type programmes |
Stella International | HKEX: 1836 | Fashion and casual footwear | Premium fashion brands | Overlaps in casual and lifestyle |
Shoetown, Freetrend and other Taiwanese OEMs | Private | Athletic footwear | Nike, adidas | Capacity competitors in Indonesia and Vietnam |
Key Competitors — Topsports International
| Competitor | Listing | Positioning |
|---|---|---|
Topsports International | HKEX: 6110 | Largest Nike/adidas multi-brand retailer in China; Pou Sheng's closest analogue |
Anta Sports (own DTC retail) | HKEX: 2020 | Brand-owner retail; takes share from international brands |
Li Ning (own retail) | HKEX: 2331 | Domestic brand DTC |
Xtep / 361° / Hongxing Erke | HKEX / private | Value domestic brands |
Nike and adidas direct (DTC, e-commerce) | — | Brands' own channels compete with wholesale partners |
Tmall / JD / Douyin marketplaces | — | Channel competition and platform power |
Peer Comparison FY2025
| Company | Market cap | P/S (x) | P/E (x) | EV/EBITDA (x) |
|---|---|---|---|---|
Yue Yuen | HK$28.8bn | 0.5 | 10.8 | 7.1 |
Nike | US$82.8bn | 1.8 | 32.8 | 21.4 |
Asics | ¥3.1tn | 3.8 | 31.1 | 17.9 |
Deckers | US$15bn | 2.8 | 14.4 | 9.5 |
Skechers | US$9.5bn | 1.0 | 14.3 | 7.8 |
Huali Industrial | CNY54.5bn | 2.2 | 15.9 | 11.3 |
