Yue Yuen Industrial 2018 Annual Results

22 March 2019

Disclaimer

Yue Yuen and Pou Sheng have taken every reasonable care in preparing this presentation. However, please be

reminded that the information, materials, opinions and statements contained or referred to in this presentation are all

provided on an "as is" basis. None of the aforesaid information, materials, opinions and statements constitutes or will

be viewed as investment advice or an offer, or a solicitation, recommendation or suggestion by Yue Yuen or Pou Sheng

to deal in any investment products including securities, or other financial products and instruments.

If there is any forward-looking statements contained or referred to in this presentation, these forward-looking

statements are based on current expectations and assumptions, of which many are beyond our control. In addition,

these statements are subject to a number of risks, uncertainties and factors and if any of these risks or uncertainties

materialize, or if underlying expectations not occur or assumptions prove incorrect, actual results, performance or

achievements of Yue Yuen and/or Pou Sheng may vary materially from those described explicitly or implicitly in the

relevant forward-looking statement. Neither Yue Yuen nor Pou Sheng intends or assumes any obligation, to update or

revise these forward-looking statements in light of any difference from those anticipated.

Yue Yuen and Pou Sheng including their respective subsidiaries, associated or affiliated companies, or any of their

respective directors, employees, agents, representatives or associates accepts no liability for and shall not be

responsible or liable for any loss or damage of whatever kind or nature, directly or indirectly, arising from action taken,

or not taken, in reliance on, or resulting from access to or use of the aforesaid information, materials, opinions and

statements (including forward-looking statements, if any) contained or referred to in the presentation.

2

Company Profile

Founded in 1988, and listed on the HKEx in 1992 (551.HK)

Core Businesses: Footwear manufacturing and Pou Sheng (3813.HK)

Manufacturing – Predominately athletic and casual / outdoor shoes

Pou Sheng – Sportswear retail & sports services in the Greater China Region

A yield play with solid performance – committed to driving return and value for shareholders

FY18 Revenue by Business Segments

FY18 Total Revenue US$ 9,695.3 million

*Revenue from Texas Clothing Holding Corp. (“TCHC”) Group, a subsidiary of Yue Yuen since April 7, 2017

44.5% 35.7%

16.9% 2.9%

45.6% 36.9%

14.4% 3.1%

Vietnam Indonesia PRC Others*

Shoe Production Volume by Location

FY17 FY18

2.8%

3.8%

* Bangladesh, Cambodia, Myanmar and Mexico

# YoY change in production volume

FY18: 326.0 mn vs. FY17: 324.6 mn pairs

7.1%

-14.0%

5% (FY17: 7%)

Casual/ Outdoor

Soles, Components & Others

Athletic

Sports sandals

35% (FY17: 30%)

11 % (FY17: 13%)

1% (FY17: 1%)

44% (FY17: 46%) Retail

3

4% (FY17: 3%)

Apparel Wholesale *

Source: Company audited financial statements and management accounts * FY18 Total Dividend: HK$ 1.5/share (Total ordinary dividend for FY17 was HK$1.5/share, including HK$1.1/share final dividend and HK$0.4/share interim dividend)

Revenue (USD ’mn)

Profit attrib. to owners (USD ’mn)

307.1

9,695.3

74%

65% 56%

61%

101%

1.15 1.2

1.4 1.5 1.5

2014 2015 2016 2017 2018

Payout ratio*

HK$ per share*

Dividend* (HK$/Share)

Payout Ratio

101%

$1.5

Prod. Vol. (’mn Pairs)

ASP (USD)

$16.53

326.0

17.53 17.25 16.88 16.87 16.53

307

318

322 325

326

2014 2015 2016 2017 2018

Avg. selling price

Production volume

331 390 535 519

307

8,013 8,435 8,481

9,121

9,695

2014 2015 2016 2017 2018

Profit attrib. to owners

Revenue

2018 Financial Performance Overview

4

Our Growth Strategy

Speed

Sustainability

Flexibility

Innovation

Quality

Design

OEM / ODM

Material

Process

Equipment

Apparel

Accessories

Footwear

Retail

Values

5

Directions

4

Segments

3

End to End Platform

2

World’s Leading Sporting Goods

MFG Platform

1

5

6

Growing Investment in MFG Excellence

Around 60% of CAPEX in FY2018 was for ME and New Projects MFG Capex ME & New Projects Capex

45% 43%

57% 52% 59%

60%

2014 2015 2016 2017 2018 2019F

500

60% 45%

250

Corporate Social Responsibility

7

Our parent company Pou Chen Group received Fair Labor Association (FLA) accreditation in June, 2018, as a result of our efforts and commitments in promoting workplace standards, responsible production as well as factory condition improvement.

The Only FLA Accredited Footwear OEM/ODM

A Top-ranking Responsible Investment Target

Pou Chen and Yue Yuen are constituents of world-famous Environmental, Social and Governance (ESG) indexes, including the FTSE4Good Emerging Index and the MSCI World ESG Leaders Index.

Our Focus on Sustainability

Employee Relations

Compliance

Education Implementation Communication Risk Control

ESH & ESG

FY 2018

Group and Operation Highlights

Revenue

RMB 22.7 bn + 20.4%

OP Margin

4.3% RMB 966.9 mn

+ 25.5%

Pou Sheng

Revenue

US$ 9,695.3mn + 6.3%

GP Margin

20.7% US$ 1,299.6 mn

- 5.8%

Production Volume

326.0mn pairs

ASP

US$ 16.53

Profit Attrib. to Owners

US$ 307.1 mn - 40.9%

Group

Group excl. PS* * Group excl. PS used in this presentation, unless otherwise specified, includes manufacturing business and TCHC Group

Operating Profit

US$ 498.6 mn - 16.7%

Key Financial Highlights for FY2018

9

4,203.8

1,192.2

78.8

2,775.4

253.7 617.5

4,267.7

1,031.0 91.8

3,421.7

392.1 491.0

Athletic Casual/Outdoor

SportsSandals

Retail ApparelWholesale*

Others**

FY17 FY18

23.3%

20.5% 54.6%

1.5%

(US$’ mn) FY18 Shoe Production Revenue by Product Categories

Casual/Outdoor

Sports sandals

Athletic

79%

19%

2%

13.5%

16.5%

Shoe Production

Rev: US$ 5,390.5 mn

Volume 0.4%

ASP 2.0%

* TCHC Group (since April 7, 2017)

** Soles, Components & Others

Y-o-Y Revenue by Product Category

10

Shoe Production Volume by Region

11

FY18 Production Volume: 326.0 mn pairs

China

Indonesia Vietnam

37%

46%

14%

FY18 Manufacturing Revenue by Destination Location

12

US 31.3% FY17: 32.4% YoY: -6.7%#

Europe 30.2% FY17: 28.7% YoY: +1.3%#

China 13.3%

FY17: 12.1% YoY: +5.5%#

Others* 25.3%

FY17: 26.7% YoY: -8.7%#

FY18 MFG Revenue: US$ 5,881.5 mn FY17 MFG Revenue: US$ 6,092.3 mn

# YoY changes in revenue amount * Others include Rest of Asia, South America, Canada, Australia and Other Area

Manufacturing Operation Efficiency Indicator

13

795.3

822.5

986.5

982.1

1,031.6

2014 2015 2016 2017 2018

Pairs per person during the year

Productivity – Pairs per person during the year

5.0%

PPH Index – Pairs per person per hour from 2014 (index from 100) to 2018

2014 2015 2016 2017 2018

PPH Index

100.0 104.4 115.6 122.2 133.3

Manufacturing Operation Efficiency Indicator

14

307.1

317.5

322.0 324.6

326.0

386.1K

386.0K

326.4K

330.5K

316.0K

2014 2015 2016 2017 2018

Production Volume 'mn MFG Employees

Productivity – Pairs of shoes produced vs MFG employees from 2014 to 2018

0.4%

4.4%

15

YY Group Financial Highlights

(US$’000)

FY 2018 FY 2017 Y-o-Y

Revenue 9,695,282

9,121,426

6.29%

Gross Profit 2,446,058 2,351,146 4.04%

Gross Profit Margin 25.23% 25.78% -0.55pp

Operating Profit 498,591 598,632 -16.71%

Operating Profit Margin 5.14% 6.56% -1.42pp

Profit attrib. to Owners 307,116 519,226 -40.85%

Profit attrib. to Owners Margin 3.17% 5.69% -2.52pp

Non-recurring Profit (Loss) attrib. to Owners

(18,542) 18,397 N/A

Recurring Profit attrib. to Owners 325,658 500,829 -34.98%

Source: Company accounts Please refer to the announcement on the HKEx website for the audited consolidated income statements of FY2018 & FY2017 For more detail, please refer to Appendix

Source: Company accounts (figures rounded) Please refer to the announcement on the HKEx website for the audited consolidated income statements of FY2018 & FY2017

(US$’mn) FY 2018 FY 2017

Depreciation & Amortization 337.6 304.0

EBITDA 825.9 893.0

Capital Expenditure 494.4 552.6

Product Development 205.9 210.2

31 December 2018 31 December 2017

Total Borrowings 2,123.9 1,963.3

Net Borrowings 1,272.5 926.5

Total Debt to Equity 46.7% 42.0%

Net Debt to Equity 28.0% 19.8%

Quick Ratio (X) 1.1 X 1.3 X

Current Ratio (X) 1.9 X 2.0 X

FY 2018 FY 2017

Total Debt to EBITDA (X) 2.6 X 2.2 X

Net Debt to EBITDA (X) 1.5 X 1.0 X

Financial Ratios

16

1,036.8 851.4

17

YY Group Sources and Uses of Fund

(US$’mn)

Cash from Operation

+584.5 -494.4

CAPEX Disposal of Equity Investment

Net bank Borrowings

Beginning Cash 1 Jan 18

Ending Cash 31 Dec 18

+50.6

+52.4 +44.2 -20.3

Others FX Effect

-312.1 -90.3

Cash Dividend

Share Buyback

Return to Shareholders

US$402.4 mn

YY Group ROE & ROA Trend

4.8

6.4

5.8

6.5

7.6

7.4

6.6

5.3

4.1

7.5

9.9

8.7

9.4

11.3 11.3

12.1

10.0

7.4

FY14 1H15 FY15 1H16 FY16 1H17 FY17 1H18 FY18

ROA ROE

(%)

Remark: ROE=Profit attributable to owners of the company/ (Total Equity - Minority Interests); half year data is on LTM basis ROA=Net Profit / Total Asset; half year data is on LTM basis

18

YY Group GPM Analysis

19

(%)

18.7 18.9 18.9 19.7 19.8 20.2 20.3 20.9 21.0

20.8 20.7

21.0

18.7

18.8 19.3 19.5

22.3 22.6 22.7 23.4

24.4 24.7 24.8 25.1

25.0

25.4 25.4 25.8

25.2 25.0 25.0

25.2

30.9 32.2 32.5

33.3

34.9 35.6 35.8 35.5

33.6

34.6

34.5

35.0

33.8 33.5 33.1

33.5

1Q15 1H15 9M15 FY15 1Q16 1H16 9M16 FY16 1Q17 1H17 9M17 FY17 1Q18 1H18 9M18 FY18

MFG Group PS

Group excl. PS Note: The figures in the following slides cover the core manufacturing and other operations of the consolidated entity of Yue Yuen Group, and are for

analytical purposes only (prepared using the management accounts)

21

(US$’000) MFG only

FY 2018 FY 2017 Y-o-Y FY 2018 FY 2017 Y-o-Y

Revenue 6,273,625 6,346,026

-1.14% 5,881,494 6,092,328

-3.46%

Gross Profit 1,299,557 1,379,472 -5.79% 1,149,027 1,277,811 -10.08%

Gross Profit Margin 20.71% 21.74% -1.03pp 19.54% 20.97% -1.43pp

Operating Profit 351,760 484,299 -27.37% 323,361 467,041 -30.76%

Operating Profit Margin 5.61% 7.63% -2.02pp 5.50% 7.67% -2.17pp

Profit attrib. to Owners 256,035 482,959 -46.99% 240,038 466,997 -48.60%

Profit attrib. to Owners Margin 4.08% 7.61% -3.53pp 4.08% 7.67% -3.59pp

Group excl. PS Financial Highlights

Source: Company management accounts For more detail, please refer to Appendix

7.8

0 0 0 0 0 0 0 0

4.1

FY17 FY18

22

Manufacturing – Net Profit Margin

(%)

Material

+0.7

-0.9

Overhead

-1.3

Labor Product Mix

Wage Inflation

-0.6

Hedging Loss

Fair Value & Realized

Borrowing

Finance Cost

Others

-0.5 -0.4

Reduction of FX Gains

-0.5 -0.2

SG&A

Deleverage

Other Income

26.5% 27.1%

24.9% 26.1%

48.6% 46.8%

23

Manufacturing – COGS Decomposition and Y-o-Y

Cost Amount Y-o-Y

Labor

2.8%

Material

5.3%

Overhead

0.7%

GPM 21.0%

GPM 19.5%

% of COGS % of COGS

FY18 FY17

18.7

19.1

18.9

21.9

19.8

20.5 20.5

22.8

21.0

21.6 21.6

22.7

20.1 19.9

21.4

21.3

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18

Gross Profit Margin

(%)

GP Margin % - MFG only

2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18

20.7 20.4 21.8 18.7 18.9 20.2 20.3

24

Group excl. PS GP Margin Trend

5.3

6.1

3.7

6.8

5.9

7.5

6.7

9.8

6.9

7.1

8.0

8.4

6.0

4.7

5.2

6.5

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18

Operating Profit Margin

OP Margin % - MFG only

2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18

7.2 7.8 8.6 5.7 4.8 4.8 6.7

25

(%)

Group excl. PS OP Margin Trend

MFG only

(US$’mn) FY 2018 FY 2017 FY 2018 FY 2017

Depreciation & Amortization 260.6 240.2 194.4 233.7

EBITDA 603.0 715.8 508.5 692.0

Capital Expenditure 411.1 467.3 405.2 463.0

31 Dec 2018 31 Dec 2017 31 Dec 2018 31 Dec 2017

Total Borrowings 1,619.5 1,577.1 1,525.6 1,492.5

Net Borrowings 874.5 597.8 787.7 520.9

Total Debt to Equity 42.6% 39.7% 41.1% 38.3%

Net Debt to Equity 23.0% 15.1% 21.2% 13.4%

FY 2018 FY 2017 FY 2018 FY 2017

Total Debt to EBITDA (X) 2.7 X 2.2 X 3.0 X 2.2 X

Net Debt to EBITDA (X) 1.5 X 0.8 X 1.5 X 0.8 X

Return on Owner’s Equity 6.8% 12.2% 6.5% 12.1%

Return on Asset 3.8% 7.2% 3.7% 7.2%

Source: Company management accounts (figures rounded)

26

Group excl. PS Financial Ratios

27

Manufacturing Operation Efficiency

57

49

2017 2018

28

52

Trade Receivable Days

60

30

78 82

Inventory Days

Trade Payable Days

Working Capital Days

Pou Sheng International Note: The figures in the following slides are based on Pou Sheng’s

management accounts and announcements, and Pou Sheng adopts RMB as its reporting currency

Pou Sheng Key Business Activities

Retail Business

Leading distributor of footwear, apparel & accessories for international brands in the Greater

China region

A key partner to Nike and adidas

Sells through directly operated stores, or on a wholesale basis to sub-distributors, online & offline

Store locations include department stores, shopping malls, sports cities, street level & outlets

Brand licensee business

Sport Services Platform

Provides full range of sports services

Products + Services

364 + 1

Online & Offline

Mainland China & Taiwan

29

Directly Operated Stores

Sub-Distributor Stores Mono Brand Stores

Multi-Brand Stores

YY Sports Outlets: New shopping experience for fast growing

brands

Omni-Channel Strategy Across China

Brick and Mortar Stores

Online Stores

Retail Network

YYsports.com

Rockport.com

3rd party: T-Mall, JD, etc. B2B services

Covers 300 cities in the Greater China

B2C

B2B

30

Distinguished Partners and Events

31

32

RMB'mn US$'000

FY 2018 FY 2017 Y-o-Y FY 2018 FY 2017 Y-o-Y

Revenue 22,677

18,833

20.41% 3,421,657 2,775,400

23.29%

Gross Profit 7,599 6,594 15.24% 1,146,501 971,674 17.99%

Gross Profit Margin 33.51% 35.01% -1.50pp 33.51% 35.01% -1.50pp

Operating Profit 967 770 25.58% 145,887 113,513 28.52%

Operating Profit Margin 4.26% 4.09% +0.17pp 4.26% 4.09% +0.17pp

Profit attrib. to Owners 543 394 37.82% 81,913 58,110 40.96%

Profit attrib. to Owners Margin 2.39% 2.09% +0.30pp 2.39% 2.09% +0.30pp

Source: Based on Pou Sheng’s announcement on the HKEx website for the audited consolidated income statements of FY2018 & FY2017 For more detail, please refer to Appendix

Pou Sheng Financial Highlights

30.9

33.4

33.2

35.8

34.9

36.3

36.2

34.8

33.6

35.6

34.5

36.3

33.8 33.3

32.2

34.6

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18

Gross Profit Margin

Pou Sheng GP Margin Trend

(%)

33

3.5

5.8

4.3

2.9

6.6 7.2

5.5

3.5

4.5

6.1

2.9 2.8

4.6 4.9

3.0

4.5

1Q15 2Q15 3Q15 4Q15*1Q16*2Q16*3Q16* 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18

Operating Profit Margin

* The figures have been restated due to the application of merger accounting

34

(%)

Pou Sheng OP Margin Trend

(RMB’mn) FY 2018 FY 2017

Depreciation & Amortization 510 433

EBITDA 1,483 1,197

Capital Expenditure 532 576

31 December 2018 31 December 2017

Total Borrowings 3,531 2,642

Net Total Borrowings 2,800 2,155

Total Debt to Equity 50.2% 41.0%

Net Debt to Equity 39.8% 33.5%

FY 2018 FY 2017

Total Debt to EBITDA (X) 2.4 X 2.2 X

Net Debt to EBITDA (X) 1.9 X 1.8 X

Return on Owner’s Equity 7.9% 6.2%

Return on Asset 4.2% 3.6%

35

Source: Internal analysis report (figures rounded)

Pou Sheng Financial Ratios (in RMB)

Operation Efficiency

149

2017 2018

16

149

Based on RMB

27

15

36

28

161 161

Trade Receivable Days

Inventory Days

Trade Payable Days

Working Capital Days

Pou Sheng Store Performance

Number of Stores

Directly Operated Sub-Distributors Total Stores

As at December 31, 2017 5,465 3,313 8,778

Net New Store + / (-) 183 238 421

As at December 31, 2018 5,648 3,551 9,199

2018 1Q 2Q 3Q 4Q Full Year

Directly Operated Stores 10.1% 2.2% 8.9% 8.7% 7.4%

Same Store Sales Growth (SSSg)

37

Appendix

Shareholding Structure

39

Pou Chen (9904.TT)

Yue Yuen Industrial (Holdings) Ltd. (551.HK)

62.32%

50.97%

* As at December 31, 2018

100%

Manufacturing and Others Pou Sheng (3813.HK)

Started first overseas production in South China

Established production bases in Vietnam & Huangjiang, China

Established production bases in Mexico

Established production bases in eastern and inland China

Began operations at the new headquarters in Taichung, Taiwan

Established production bases in Bangladesh & Cambodia

Established production bases in Myanmar

1988

1992

1994

1998

2001

2002

2006

2008

2009

2014

2015

Expanded into retail business in China

Brand licensee for Hush Puppies in Taiwan

Pou Sheng International listed on HKEX (3813.hk)

Brand licensee for Pony in Taiwan & China

Yue Yuen

Pou Sheng

2012 New CEO on board

Yue Yuen Industrial listed on HKEX (551.hk)

Yue Yuen Industrial founded

2019

Parent Pou Chen Group is accredited by FLA

Company Milestones

40

2018

Parent Pou Chen Group’s 50th Anniversary

Sales channels reached 9,199

Revenue

In US$’mn

Profit Attrib. to Owners

In US$’mn

Pou Sheng

Group excl. PS

The above figures of Pou Sheng exclude profit attributable to “Non-YY” shareholders (i.e. the 37.7% minority interests)

Pou Sheng

Group excl. PS

51.08

256.04

36.27

482.96

-40.9%

FY17 FY18

2,775.40

6,346.03

+6.3%

FY17 FY18

3,421.66

6,273.63

+23.3%

+40.8%

-47.0%

Revenue & Profit Attributable to Owners

41

-1.1%

Source: Company accounts Please refer to the announcement on the HKEx website for the audited consolidated income statements of FY2018 & FY2017

YY Group Financial Highlights

FY 2018 FY 2017 Y-o-Y

US$'000 % US$'000 % + / -

Revenue 9,695,282 100.00 9,121,426 100.00 6.29%

Cost of Sales (7,249,224) -74.77 (6,770,280) -74.22 7.07%

Gross Profit 2,446,058 25.23 2,351,146 25.78 4.04%

SG&A (1,818,348) -18.76 (1,621,919) -17.78 12.11%

Other Income & Expenses, net (129,119) -1.33 (130,595) -1.44 -1.13%

Operating Profit 498,591 5.14 598,632 6.56 -16.71%

Share of Results of A&JV 39,480 0.41 64,586 0.71 -38.87%

Finance Cost & Other Gains/(Losses) (98,507) -1.02 (27,918) -0.31 252.84%

Income Tax (98,448) -1.01 (85,967) -0.94 14.52%

Profit for the Period 341,116 3.52 549,333 6.02 -37.90%

Profit attrib. to Owners 307,116 3.17 519,226 5.69 -40.85%

42

43

Group excl. PS Financial Highlights

FY 2018 FY 2017 Y-o-Y

US$'000 % US$'000 % + / -

Revenue 6,273,625 100.00 6,346,026 100.00 -1.14%

Cost of Sales (4,974,068) -79.29 (4,966,554) -78.26 0.15%

Gross Profit 1,299,557 20.71 1,379,472 21.74 -5.79%

SG&A (779,464) -12.42 (735,595) -11.59 5.96%

Other Income & Expenses, net (168,333) -2.68 (159,578) -2.52 5.49%

Operating Profit 351,760 5.61 484,299 7.63 -27.37%

Share of Results of A&JV 39,620 0.63 65,112 1.02 -39.15%

Finance Cost & Other Gains/(Losses) (75,898) -1.21 (10,963) -0.17 592.31%

Income Tax (58,996) -0.94 (50,277) -0.79 17.34%

Profit for the Period 256,486 4.09 488,171 7.69 -47.46%

Profit attrib. to Owners 256,035 4.08 482,959 7.61 -46.99%

Source: Company management accounts

44

Group excl. PS Financial Highlights – MFG only

FY 2018 FY 2017 Y-o-Y

US$'000 % US$'000 % + / -

Revenue 5,881,494 100.00 6,092,328 100.00 -3.46%

Cost of Sales (4,732,467) -80.46 (4,814,517) -79.03 -1.70%

Gross Profit 1,149,027 19.54 1,277,811 20.97 -10.08%

SG&A (658,261) -11.19 (652,819) -10.71 0.83%

Other Income & Expenses, net (167,405) -2.85 (157,951) -2.59 5.99%

Operating Profit 323,361 5.50 467,041 7.67 -30.76%

Share of Results of A&JV 39,620 0.67 65,112 1.07 -39.15%

Finance Cost & Other Gains/(Losses) (70,626) -1.20 (7,786) -0.13 807.09%

Income Tax (51,866) -0.88 (52,158) -0.86 -0.56%

Profit for the Period 240,489 4.09 472,209 7.75 -49.07%

Profit attrib. to Owners 240,038 4.08 466,997 7.67 -48.60%

Source: Company management accounts

Pou Sheng Financial Highlights (in RMB)

FY 2018 FY 2017 Y-o-Y

RMB’mn % RMB’mn % + / -

Revenue 22,677 100.00 18,833 100.00 20.41%

Cost of Sales (15,078) -66.49 (12,239) -64.99 23.20%

Gross Profit 7,599 33.51 6,594 35.01 15.24%

SG&A (6,913) -30.49 (6,052) -32.13 14.23%

Other Income & Expenses, net 281 1.24 228 1.21 23.25%

Operating Profit 967 4.26 770 4.09 25.58%

Share of Results of A&JV (1) -0.00 (4) -0.02 -75.00%

Finance Cost & Other Gains/(Losses) (144) -0.64 (109) -0.58 32.11%

Income Tax (261) -1.15 (242) -1.29 7.85%

Profit for the Period 561 2.47 415 2.20 35.18%

Profit Attrib. to Owners 543 2.39 394 2.09 37.82%

Source: Based on Pou Sheng’s announcement on the HKEx website for the audited consolidated income statements of FY2018 & FY2017

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Pou Sheng Financial Highlights (in USD)

FY 2018 FY 2017 Y-o-Y

US$’000 % US$’000 % + / -

Revenue 3,421,657 100.00 2,775,400 100.00 23.29%

Cost of Sales (2,275,156) -66.49 (1,803,726) -64.99 26.14%

Gross Profit 1,146,501 33.51 971,674 35.01 17.99%

SG&A (1,038,884) -30.37 (886,324) -31.93 17.21%

Other Income & Expenses, net 38,270 1.12 28,163 1.01 35.89%

Operating Profit 145,887 4.26 113,513 4.09 28.52%

Share of Results of A&JV (140) -0.00 (526) -0.02 -73.38%

Finance Cost & Other Gains/(Losses) (21,665) -0.64 (16,135) -0.58 34.27%

Income Tax (39,452) -1.15 (35,690) -1.29 10.54%

Profit for the Period 84,630 2.47 61,162 2.20 38.37%

Profit Attrib. to Owners 81,913 2.39 58,110 2.09 40.96%

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Source: Internal analysis report (figures rounded); various accounting reclassification and adjustments are made to some of the figures when consolidating Pou Sheng numbers into the Yue Yuen Group in order to comply with the requirements of accounting standards

Thank you

Q&A