Nike's largest global footwear OEM factory's net profit soared by 140%

Yue Yuen Group shipped 187 million pairs of shoes in the first nine months of this year.

Recently, footwear manufacturing giant Yue Yuen Group released its performance for the nine months ended September 30, 2024. The group achieved operating revenue of 6.075 billion US dollars during the period, an increase of 1.48% year-on-year; the profit attributable to the company's owners was 332 million US dollars, an increase of 140.9% year-on-year.

The announcement stated that during this review period, the operating revenue from footwear manufacturing activities (including sports/outdoor shoes, casual shoes and sports sandals) increased by 8.2% compared to the same period last year to 3.783 billion US dollars.

The group's footwear manufacturing orders strengthened quarter by quarter, driving the increase in footwear shipments during this period to continue to accelerate, rising by 16.2% year-on-year to 187 million pairs.

Due to the high base period effect and changes in the group's product mix, the average selling price decreased by 6.8% to 20.24 US dollars per pair.

The group's sports/outdoor footwear accounted for 85.9% of the operating revenue of footwear manufacturing.

Casual shoes and sports sandals accounted for 14.1% of the operating revenue from footwear manufacturing. If considering the group's consolidated operating revenue, sports/outdoor shoes were the main category of the group, accounting for 53.5% of the total operating revenue, followed by casual shoes and sports sandals, accounting for 8.8% of the total operating revenue.

China customs data shows that in the first half of 2024, China's footwear exports decreased by 5.4% year-on-year to 23.4 billion US dollars, while the volume of footwear exports increased by 3.5% year-on-year to 4.52 billion pairs. In June 2024, the average export price of Chinese shoes and boots was 5.1 US dollars per pair, continuing to decline from 5.5 US dollars per pair at the end of 2023.

Anta won the industry's first place

The 2024 Double 11 battle came to an end, and major platforms announced the relevant sales rankings. Anta Group, with its multi-brand matrix, once again won the first place in the total transaction amount of the sports and outdoor industry.

During the entire Double 11 period, Anta Group's total transaction amount exceeded 11.1 billion yuan. On the Tmall platform, Anta, FILA, and DESCENTE all entered the TOP 10 of the sports shoes and clothing category, and KOLON entered the TOP 5 of the outdoor shoes and clothing category; on the Douyin platform, both Anta and FILA entered the TOP 5 of the sports shoes and clothing category.

"The hot products during Double 11 don't suddenly become hot during Double 11, but have sold very well usually," Wu Tingting said. Within Anta, all products are classified as S (annual sales of more than 1 million pieces), A (annual sales of more than 500,000 pieces), and B (annual sales of more than 300,000 pieces) at the early stage of production and design. At the same time, different brand and channel resources are matched to quickly promote the products to be hot in a short time.