DGAP-News

Joyou AG maintains steady growth in H1 2014

DGAP-News: Joyou AG / Key word(s): Half Year Results
Joyou AG maintains steady growth in H1 2014

15.08.2014 / 08:23

---------------------------------------------------------------------

Interim Report Half Year 2014

Joyou AG maintains steady growth in H1 2014

- Group revenues increased by 3.7% in Euro terms or 9.2% in RMB terms in
H1 2014

- International sales grew by 84.4% in Euro terms

- EBIT reached 26.3 million Euros corresponding to an EBIT margin of
14.6%

- Positive outlook confirmed: Revenues to grow by between 5% and 10% in
RMB terms in 2014

Hamburg, August 15, 2014. Joyou AG, a leading bathroom fixtures and
fittings in China, continues its operational and financial growth: In the
first six months 2014, sales revenues increased by 3.7% to 180.2 million
Euros (H1 2013: 173.7 million Euros). Measured in Renminbi (RMB) sales grew
at a higher rate of 9.2% due to the depreciation of the RMB. These results
are in line with the guidance for the full year 2014, which foresees sales
growth amounting to between 5% and 10% in RMB terms.

Although the growth of China's GDP further slowed down to 7.4% (H1 2013:
7.6 %) and the growth rate of house prices declined in the reporting
period, Joyou successfully increase its China domestic sales by 0.5% in
Euro terms or 5.8% in RMB terms, amounting to 168.0 million Euros. Direct
international sales contributed 12.2 million Euros to the total revenues
(H1 2013: 6.6 million Euros). Compared to the previous year's period this
represents an increase of 84.4% in Euro terms and 94.1% in RMB terms. This
substantial growth was mainly caused by an increase of international sales
through Grohe Group companies as well as sales to the Grohe Group.

"The Management Board feels validated in its earlier assessment that its
collaborative business model with the Grohe Group will lead to sustainable,
diversified growth, and that the acquisition of the parent company Grohe
Group by a joint venture vehicle owned by the LIXIL Group and the
Development Bank of Japan in January 2014, will open up further expansion
potential", says Mr. Jianshe Cai, CEO of Joyou AG.

The core growth strategy comprises of international sales, project
development sales and increasing sales per store. Based on these pillars,
the company will continue to build on favorable macro-economic growth
drivers, particularly urbanisation and the growing consumer class in China.

While gross profit increased by 0.8 million Euros to 49.4 million Euros