DGAP-News: Joyou AG: Strong growth in 2010
(firmenpresse) - DGAP-News: Joyou AG / Key word(s): Final Results
Joyou AG: Strong growth in 2010
20.04.2011 / 08:01
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- Sales increased by 43% to EUR 246.6 million and net income by 49% to EUR
33.2 million
- More than 1,000 store openings across China
- Positive outlook
Frankfurt am Main, 20 April 2011. Joyou AG, a leading bathroom solution
supplier in China, can look back on a successful year 2010. The company
exceeded financial projections and outpaced the Chinese sanitary ware
market. With sales of EUR 246.6 million, representing a growth rate of 43%
compared to 2009, Joyou reinforces its position as the market leader in
China. EBIT grew by 12.3% to EUR 43.7 million, representing an EBIT margin
of 17.7%. Net income increased by 49% to EUR 33.2 million.
'Joyou's strong sales growth reflects the substantial and qualitative
expansion of the distribution network. In 2010, Joyou opened more than
1,000 new stores across China and we made significant investments in
strengthening our brand', states Jianshe CAI, CEO of Joyou AG. About 70% of
the new outlets are exclusive stores, selling only Joyou branded products.
A total of 39 new flagship stores were opened. As of December 2010, the
retail network comprised 3,596 Joyou branded stores and 143 Grohe branded
stores. The dynamic expansion and Joyou's brand building strategy were
associated with increased spending on store openings and marketing.
According to BSRIA's 'China Bathroom Study' 2011, Joyou is the leading
single-brand manufacturer of bathroom, kitchen and other faucets in China
both in terms of revenues and market share. The statistics indicate that
Joyou has expanded its market share in faucets to 11.8% as at the end of
2010, having grown from 11.5% at the end of 2009, and 8.1% at the end of
2008. This reaffirms Joyou's strong market positioning and business
strategy.
An important milestone in 2010 was the successful initial public offering
at the Prime Standard of the Frankfurt Stock Exchange in March 2010. Joyou
is one of the first Chinese sanitary ware companies to be listed on the
Prime Standard in Germany.
The IPO significantly strengthened Joyou's financial position. Including
the increase in retained earnings, equity increased to EUR 243.1 million as
at 31 December 2010 (31 December 2009: EUR 65.9 million), representing an
equity ratio of 71.6%.
Further milestones were the acquisition of a 100% stake in the Yongsheng
Galvanization plant and the opening of Joyou's 1,200 sqm projects
exhibition office in Beijing.
Strategy and Outlook
The development of the Chinese sanitary ware market is primarily driven by
the construction industry both as a result of new construction activity and
renovations. The Chinese market for sanitary ware has grown significantly
over the last few years and Joyou expects this growth to continue in the
foreseeable future.
To reap the benefits of these stable prospects, Joyou intends to continue
to expand its network both in number and market influence. Joyou will not
only increase the number, but also expand the size of many stores in
strategic locations, and remodel many existing stores. Furthermore, Joyou
will expand its product offering and shift from outsourced production to
own manufacturing.
An important part of Joyou's growth strategy is the strategic cooperation
with Grohe. Joyou believes that this partnership will both lead to
increasing sales volumes asseen in the second half of 2010, and continue
to create value in other areas such as component sourcing, technology and
skill transfer. Grohe's increased equity participation is expected to
support growth both locally and internationally.
On the basis of an attractive general economic environment and a continuing
robust development of the Chinese sanitary ware industry, Joyou expects
dynamic growth to continue in 2011. The Group has set its guidance for full
year 2011 at sales of EUR 300 million to EUR 320 million and an EBIT of EUR
53 million to EUR 56 million. These expected results are based on an
exchange rate of 1 EUR = 9 RMB.
The full Annual Report 2010 of Joyou AG is available on the website at
www.joyou.com.
About Joyou
Joyou (ISIN DE000A0WMLD8, WKN A0WMLD, Ticker Symbol JY8) designs, produces
and sells faucets and other sanitary ware products in China under its brand
name 'Joyou' and is also engaged as a OEM/ODM-manufacturer for
international brands and trading companies in the United States and Europe
as well as other emerging markets. In 2010 Joyou was one of the leading
single-brand manufacturers of bathroom, kitchen and other faucets in China
in terms of revenues (according to BSRIA's China Bathroom Study 2011).
Joyou has established an extensive distribution network in China with 3,596
retail points of sales as of 31 December 2010.
Joyou's operating facilities are based in Nan'an near Quanzhou in Fujian
Province in China. Joyou's five main product groups sold in its own brand
business are bathroom faucets, kitchen products, shower products as well as
other bathroom products and other faucets and sanitary hardware. In 2010,
Joyou realised group revenues of EUR 246.6 million, an operating profit
(EBIT) of EUR 43.7 million and a net profit of EUR 33.2 million.
For further information, please contact:
Joyou AG
Westhafentower, Westhafenplatz 1,
60327 Frankfurt am Main
Ian M Oades, tel.: +49 69 710 456 346 or +86 595-8618 8883, ir(at)joyou.net
Kirchhoff Consult AG
Jens Hecht, tel.: +49 40 60 91 86 0, jens.hecht(at)kirchhoff.de
or visit the company website at: http://www.joyou.com
Disclaimer concerning prognoses
This communication contains forward-looking statements. Forward-looking
statements are statements that are not historical facts instead they
reflect Joyou's current views and expectations and the assumptions
underlying them about future events. Forward-looking statements are subject
to many risks and uncertainties. If any of such risks and uncertainties
materialize or if the assumptions underlying any of Joyou's forward-looking
statements are proving to be incorrect, Joyou's actual results may be
materially different from those expressed or implied by such
forward-looking statements. Joyou does not intend or assume any obligation
to update these forward-looking statements. Any forward-looking statement
speaks only as of the date on which it is made.
End of Corporate News
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Language: English
Company: Joyou AG
Westhafentower, Westhafenplatz 1
60327 Frankfurt am Main
Deutschland
E-mail: ir(at)joyou.net
Internet: www.joyou.de
ISIN: DE000A0WMLD8
WKN: A0WMLD
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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120799 20.04.2011
Datum: 20.04.2011 - 08:01 Uhr
Sprache: Deutsch
News-ID 33841
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