HK Stock Market Move | YUE YUEN IND(00551) falls more than 6% after performance announcement. Annual revenue decreased by 1.8% year-on-year, while net profit dropped by 2.9% year-on-year.

Yue Yuen Industrial (00551) fell more than 6% after the performance report, dropping by 4.97% to HK$17.2 as of the time of publication, with a trading volume of HK$220.617 million. On the news front, Yue Yuen Industrial released its annual results, with operating income of approximately $8.031 billion US dollars, a decrease of 1.8% year-on-year; net profit attributable to owners of the company decreased by 3.1% year-on-year to approximately $367 million US dollars; net profit attributable to owners of the company decreased by 2.9% year-on-year to approximately $381 million US dollars; basic earnings per share were $0.2376, with a proposed final dividend of HK$0.9 per share. The announcement stated that there were significant differences in order fulfillment rates and capacity utilization rates in some manufacturing areas during the period, leading to uneven capacity loads. In addition, the upfront investment in capacity ramp-up and the tariff sharing that started in the second half of the year all had a negative impact on the operational efficiency of the group's manufacturing business. Furthermore, during the current year, the number of employees in the group's manufacturing business increased by 4.3% annually, while wage increases in various regions were in the high single digits, significantly increasing labor costs and further pressuring the short-term profit performance of the group's manufacturing business.