DGAP-News: Joyou continues strong growth
(firmenpresse) - DGAP-News: Joyou AG / Key word(s): Half Year Results
Joyou continues strong growth
24.08.2011 / 08:00
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- Revenues increased by 34.4% to EUR 137.9 million
- EBIT grew by 26% to EUR 20.9 million
- Deepened cooperation with Grohe
Frankfurt am Main, 24 August 2011. Joyou AG, a leading bathroom solution
supplier in China, reports a very successful business development in the
first six months of 2011. On a year-on-year comparison, revenues increased
from EUR 102.6 million by 34.4% to EUR 137.9 million. EBIT increased by 26%
to EUR 20.9 million (H1 2010: EUR 16.6 million), which represents an EBIT
margin of 15.1%. Net profit grew by 84.1% to EUR 12.7 million, bringing the
net profit margin to 9.2%.
Measured in RMB, revenues increased even stronger by 37.9%. This increase
resulted from a significant sales increase in Shower Products, Ceramics and
Bathtubs and Bathroom Cabinets. It was slightly offset by decreased sales
in Bathroom Accessories and slow growth of Other Faucets and Sanitary
Hardware. The gross margin increased slightly to 27.9% in the first half of
2011, the EBIT margin was impacted by increasing administrative costs,
especially increasing expenditure on research and development, and costs of
running a public company, such as costs related to the Grohe tender offer.
As a result, EBIT margin came down one percentage point to 15.1%, from
16.1% in the same period 2010.
Retail network for Joyou and Grohe Asian Product Line further expanded
In the first half of 2011, Joyou executed on its strategy of focusing its
growth in smaller and medium-sized cities, increasing sales per store and
strengthening the Joyou brand. The company opened 177 additional stores and
is fully on track to meet its guidance of a total of 300 stores openings in
2011 with growth primarily coming from store like-for-like sales growth.
Joyou's distribution network comprised 3,773 Joyou branded sales outlets as
of 30 June 2011. An integrated team of Joyou and Grohe opened / equipped
291 stores with the Asian Product Line, for which Joyou is the master
distributor.
Successful R&D: lower-cost, lead-free brass production process
As a result of Joyou's R&D efforts, the company developed a lower-cost,
lead-free brass production process in cooperation with Fujian University of
Technology. This represented a major break-through in the field of
high-tech production and eco-friendly sanitary products and further
strengthened Joyou's position as a leading innovative and environmentally
conscious sanitary ware manufacturer.
Deepened cooperation with Grohe
Joyou deepened its relationship with the anchor investor Grohe in regard to
product management in the last six months. 'Our production team has been to
Grohe's factories for training and Grohe's engineers and senior production
managers have been working in our Luncang facility to improve process
scalability and sustainability on a regular basis. Our image clearly
benefited from a tightened cooperation with Grohe', states Jianshe Cai, CEO
of Joyou AG.
Grohe Asia AG, the non-operating subsidiary of Grohe Holding GmbH, has
changed its name to Joyou Grohe Holding AG subsequent to the share transfer
from Jianshe CAI and Jilin CAI. The new name reflects the shared
participation in the holding company of 49.99% held by Jianshe CAI and
Jilin CAI and 50.01% held by Grohe Holding GmbH. Joyou Grohe Holding AG
owns 57.2% ofJoyou AG.
Outlook confirmed
The management of Joyou again confirmed the positive outlook and the
guidance for full year 2011 with sales of EUR 300 million to EUR 320
million and an EBIT of EUR 53 million to EUR 56 million. But, due signs of
slower growth of the Chinese economy and especially due to the increased
spending on R&D, Joyou expects EBIT to move toward the lower end of the
guidance.
The full H1 2011 Report 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 3,773
retail points of sales as of 30 June 2011.
Joyou's operating facilities are based in Nan'an near Quanzhou in Fujian
Province in China. Joyou's nine main product groups sold in its own brand
business are Bathroom Faucets, Kitchen Products, Shower Products, Ceramics
and Bathtubs, Bathroom Cabinets, Bathroom Accessories, Other Faucets and
Sanitary Hardware, Copper and Semi-Finished Components, Grohe Business. 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
Germany
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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