Yuyuan Group (00551) announced interim results. Profit attributable to shareholders of US$719.98 million decreased by 57.9% year-on-year, with an interim dividend of HK$0.4

According to the Zhitong Finance App, Yuyuan Group (00551) announced interim results for the six months ended June 30, 2026. The group's operating income was US$3,972 million, a year-on-year decrease of 2.2%; profit attributable to company owners was US$719.98 million, a year-on-year decrease of 57.9%; basic profit per share was 4.49 US cents; and an interim dividend of HK$0.4.

Affected by macroeconomic uncertainty, tariff policies and inflation risks, terminal stocking demand was conservative, and brand customers were more cautious in placing orders. As a result, fluctuations in order demand increased during this period, and the Group's manufacturing business revenue was under pressure.

At the same time, the gross margin of the Group's manufacturing business continues to be limited due to rising costs and declining production efficiency. In line with the Group's long-term production capacity layout, the newly built factory area continued to climb, and the number of people in the manufacturing business increased year-on-year. Coupled with rising wages in various regions, overtime work and other ineffective cost savings have fallen short of the target set, jointly driving up overall labor and manufacturing costs.

Furthermore, in the first quarter of 2026, the Group's three major production areas overlapped, posing many challenges to production schedules, and monthly orders from each factory area in the second quarter became more volatile and difficult to schedule, while uncertainty in geopolitics and supply chains also caused further disruptions. Although the Group has actively coordinated the order schedule to mitigate the related impact, various manufacturing plants continued to face high uneven production capacity loads during this period, affecting overall production efficiency.