Yue Yuen Industrial (F.Y. 2024-2025)

Executive Summary

Yue Yuen Industrial is the world’s largest manufacturing company. The company operates in athletic, outdoor, casual, and sports footwear. The company supplies to leading global brands such as Nike, Adidas, Asics, New Balance and Salomon. The company also operates in a major sportswear retail business. During 2025, the company’s net profit had declined. The company also faced challenges such as uncertainty in tariffs, geopolitical pressure, and etc. The company is expanding its global production footprint with Indonesia, Vietnam, and China. The company has strengthened its focus on sustainability by promoting low-carbon production, renewable energy, and ESG. The company won the S&P Global Sustainability Yearbook (China) 2025 and maintained a strong sustainability rating.

Company Overview

Yue Yuen Industrial is the world’s largest manufacturing company. The company operates in athletic, outdoor, casual, and sports footwear. It was established in 1988. The company supplies to leading global brands such as Nike, Adidas, Asics, New Balance and Salomon. The company is also known for its product quality, innovation, design capabilities, and large-scale manufacturing operations. Yue Yuen also owns Pou Sheng International Limited is one of the largest sportswear retail and distribution networks in China. The company provides end-to-end solutions that deliver the highest value to the sports industry.

Industry Overview

Yue Yuen operates in the global footwear and sporting goods industry. This industry is one of the fastest growing consumer sectors increasing by health awareness, rising participation in sports activities, urbanization, and change in lifestyles. The company’s demand is growing for athletic and casual footwear. Consumers are increasingly adopting to athleisure product where sports footwear is used not only for sports but also for daily wear, fashion, and etc. The company’s industry is supported by major leading international brands such as Nike, Adidas, Asics, New Balance and Salomon. Technology and digital transformation is important for this industry.

Financial Performance

Particulars	2025	2024
Revenue	8,031,354	8,182,161
Cost of sales	(6,203,550)	(6,189,451)
Gross profit	1,827,804	1,992,710
Other income	107,012	122,713
Selling and distribution expenses	(780,541)	(838,163)
Administrative expenses	(562,215)	(553,395)
Other expenses	(156,173)	(177,427)
Finance costs	(53,166)	(63,339)
Share of results of associates	53,230	54,081
Share of results of joint ventures	16,663	24,352
Other gains and losses	13,211	10,565
Profit before taxation	465,825	572,097
Income tax expense	(70,429)	(147,444)
Profit for the year	395,396	424,653

Source: Annual Report of Yue Yuen International 2025

Key Financial Ratio

Particulars	2025	2024
Return on Equity (ROE)	8.3%	8.8%
Gearing ratio	15.4%	15.4%
Dividend per share	1.30	1.30

Source: Annual Report of Yue Yuen International 2025

SWOT Analysis

Strengths

1.The company has a strong brand image.

2. The company has a strong focus on innovation, sustainability, etc.

3. The company has a strong international market.

Weaknesses

1. The company highly depends on international footwear brands.

2.The company’s net profit has declined.

Opportunities

1.The company’s demand is growing for the footwear industry.

2.The company’s demand is growing for sustainable and eco-friendly products.

Threats

1.The company has strong competition.

2. There can be economic slowdown and uncertainty in the market.

3.Changes in raw material prices.

Conclusion

Yue Yuen Industrial is the leading manufacturer of athletic, outdoor, casual, and sports footwear. During 2025, the company’s revenue has declined. The company also faced challenges such as uncertainty in tariffs, geopolitical pressure, and etc. The company has a strong reputation for quality, innovation, and etc. Yue Yuen Industrial is well-established for future growth.