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DGAP-News Joyou AG maintains steady growth in H1 2014

Nachrichtenquelle: EQS Group AG
15.08.2014, 08:23  |  659   |   |   

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

- 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
compared to the first six months 2013, gross margin saw a slight decrease
by 0.5 percentage points to 27.4%. The main reason for this development is
due to the fact that international sales have lower gross margins. EBIT
decreased by 7.5% to 26.3 million Euros year-on-year. EBIT margin reached
14.6%, a decline of 1.8 percentage points compared to H1 2013. This is a
result of decreased gross margin and increased operational expenses,
especially selling and distribution expenses.

The net profit showed significant gains of 13.5%: It grew from 13.2 million
Euros to 14.9 million Euros mainly due to a one-off tax expenses recorded
in the second quarter of 2013. Cash flow from operating activities
increased significantly from 17.3 million Euros to 27.1 million Euros in
the reporting period 2014.

Furthermore Joyou continued to invest in the production facilities. The
investments include the upgrading of the Luncang brassware facility, the
second Meiyu ceramics facility, the Luncang plastics facility and expansion
of the Yongsheng galvanisation plant.

Overall, Joyou AG maintained its strong financial position: Equity summed
up to 370.1 million Euros at the end of June 2014 (December 31, 2013: 360.2
million Euros) representing a stable equity ratio of 66%. Cash and cash
equivalents increased from 128.0 million Euros at the end of 2013 to 136.3
million Euros as of June 30, 2014.

The full H1 2014 report of Joyou AG is available on the website at

About Joyou

Joyou AG (ISIN DE000A0WMLD8, WKN A0WMLD, Ticker Symbol JY8) is a leading
manufacturer and supplier of bathroom fixtures and fittings. Based in
Fujian Province, China, Joyou sells its products under the "JOYOU" brand
name in its domestic market and selected international markets.
Internationally, Joyou is also a private label supplier for international
brands and trading companies around the world. In 2012 Joyou was the
leading single-brand manufacturers of bathroom faucets in China in terms of
revenues (according to BSRIA's China Bathroom Study 2013). Joyou has
established an extensive distribution network in China with over 4,100
individual franchised retail stores as of 31 December 2013.

For further information, please contact:

Joyou AG
Gasstraße 18, Haus 6A
22761 Hamburg
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