Nike OEM Yuyuan Group's net profit rose in the first quarter, and the average price of each pair of shoes rose by 10.5%.

Yuyuan Group (00551.HK) announced the results announcement for the first quarter of 2022.

In the three months ended March 31, 2022, the company's operating income was 2.394 billion US dollars, down 4% year-on-year. Nevertheless, the profit attributable to owners of the company during the period was $88.576 million, an increase of 3.7% compared with $85.374 million in the same period last year. Among them, the operating income from shoemaking activities (including sports/out shoes, casual shoes and sports sandals) increased by 14.8% year-on-year to US$ 1.394 billion;

The total operating income of the manufacturing business related to soles, accessories and others was US$ 138 million, up by 22.74% year-on-year; Baosheng's share of operating income decreased by 23.5% to $863 million compared with $1.128 billion in the same period last year.

In the first quarter of 2022, the Group's gross profit decreased by 10.5% to US$ 568 million. Among them, the gross profit of manufacturing business increased by 5.7% to US$ 262 million, while the gross profit margin decreased by 1.1% to 17.1%, but increased by 1.1 percentage points compared with the previous quarter, mainly due to better capacity utilization, reaching about 91%.

During the period, the profit attributable to owners of the company was US$ 88.576 million, an increase of 3.7% compared with the US$ 85.374 million recorded in the same period last year. The Group recorded a non-recurring profit of US$ 6.5 million, which was attributable to the gains from changes in the fair value of financial instruments at fair value through profit or loss.