According to the Zhitong Finance App, Yuyuan Group (00551) announced results for the nine months ended September 30, 2026, with operating revenue of US$5.889 billion, down 2.1% year on year; profit attributable to company owners was US$134 million, down 51.9% year on year.
Looking back at this period, the Group's gross profit fell 10.7% to US$1,224.6 billion, while overall gross margin fell 2.0 percentage points to 20.8%. The gross profit of the manufacturing business fell 21.7% to US$606 million, while the gross margin of the manufacturing business fell 3.4 percentage points to 14.9% compared to the same period last year. This decline is mainly due to the decline in the scale of the manufacturing business due to operational anti-leverage effects, as well as fluctuations in order demand, compounded by unstable supply chain delivery, resulting in uneven production capacity loads in the Group's manufacturing plants, which in turn affects production efficiency. Furthermore, labor and manufacturing costs are rising, along with rising oil prices, driving up the cost of raw materials and jointly boosting the unit cost of shoe manufacturing.
It is worth noting that it mainly benefited from the good results of pre-order delivery in the third quarter. Coupled with continuous optimization of production capacity scheduling, it helped improve production efficiency month-on-month. At the same time, direct labor costs were effectively reduced through strict control of manpower allocation and overtime hours, driving the manufacturing business's gross margin to 16.1% in a single quarter, a marked recovery from 14.3% in the first half of the year.
For its part, Baosheng's gross margin increased 0.5 percentage points to 34.0% during the period, thanks to improvements in storage age optimization and strict discount control.