DGAP-News: Joyou AG maintains steady growth in H1 2014

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 14.6% - 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 www.joyou.com. 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 Ian M. Oades, tel.: +86-595-8618 8887, ir@joyou.net Kirchhoff Consult AG Jens Hecht, tel.: +49 40 60 91 86 0, jens.hecht@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 materialise 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. --------------------------------------------------------------------- 15.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Joyou AG Gasstraße 18, Haus 6 A 22761 Hamburg Germany E-mail: ir@joyou.net,andreas.friedemann@kirchhoff.de 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 --------------------------------------------------------------------- 282450 15.08.2014