DGAP-News: Joyou AG / Key word(s): Half Year Results Joyou AG maintains steady growth course and improves balance sheet structure in H1 2013 15.08.2013 / 08:00 --------------------------------------------------------------------- Interim Report H1 2013 - Group Revenues increased by 7.8 per cent to 173.7 million Euros - In line with growth strategy: International Revenues grew by 25.0 per cent - EBIT Margin remains on constant level at 16.4 per cent - Financing Structure improved: New loan of 100 million US dollars - Positive Outlook: Further growth expected Hamburg, August 15, 2013. Joyou AG, a leading bathroom solutions provider in China, in the first half of 2013 managed to continue its operational and financial growth whilst also improving its balance sheet structure - all achieved despite a challenging economic environment. Sales revenues increased from 161.2 million Euros in the previous year's period to 173.7 million Euros, which was an increase of 7.8 per cent in Euro terms and 6.8 per cent in Renminbi terms. This was driven by sales increases in nearly all product segments. In line with the company's growth strategy, international sales increased remarkably by 25.0 per cent to 23.5 million Euros, primarily due to the cooperative efforts between Joyou and Grohe. Joyou's gross profit reached 48.6 million Euros in the first half of 2013, compared to 46.4 million Euros in the previous year's period. The gross margin declined by 0.9 percentage points to 27.9 per cent, which was a result of the lower margins on increased international sales. Operating profit (EBIT) amounted to 28.5 million Euros, representing an increase of 7.1 per cent over the previous year. Hence, EBIT margin remained on a constant level at 16.4 per cent after 16.5 per cent for the first six months of 2012. This was in part a result of a decrease in overall selling & distribution and administration expenses as a percentage of sales, which compensated for the decrease in gross margin. Reported net income of 13.2 million Euros was impacted by a retrospective revocation of the high-tech tax rate of one of Joyou's subsidiaries from 2010 and 2011. Further, Joyou improved its financing structure through a new syndicated loan of 100 million US dollars (approximately 72.6 million Euros) that will be used mainly to support the ongoing expansion of the company's production facilities, and to redeem short-term credit facilities. With an equity position of 362.9 million Euros as of 30 June 2013, representing an equity ratio of 73.3 per cent, Joyou has a robust balance sheet and strong debt capacity. Positive Outlook: Further growth expected despite challenging industry environment The economic environment for Joyou and the industry as a whole remains challenging - nationally from the restrictive measures around the construction industry in China, and internationally due to the general economic turmoil. However, the management still gives a positive outlook forecast stretching into 2013, and expects Joyou to continue its growth trajectory. Based on the core growth strategy - international sales, project development sales and increasing sales per store - Joyou will continue to build on favourable underlying macro-economic growth drivers, particularly urbanisation and the growing consumer class in China. The management plans to further enhance the network of franchised retail stores as well as deepen the relationship and further intensify its joint activities with the company's parent company Grohe Group. The full Interim Report H1 2013 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 mainly sells products for the entire bathroom solution 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 2011 Joyou was one of the leading single-brand manufacturers of bathroom, 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 over 4,000 retail points of sales as of 31 December 2012. Joyou's operating facilities are based in Nan'an near Quanzhou in Fujian Province in China. Joyou mainly sells under its own brand nameand has the following nine product groups in its business portfolio: Bathroom Faucets, Kitchen Products, Shower Products, Ceramics and Bathtubs, Bathroom Cabinets, Bathroom Accessories, Other Faucets and Sanitary Hardware, Copper and Semi-Finished Components, GroheProducts. In 2012, Joyou realised group revenues of 329.6 million Euros, an operating profit (EBIT) of 50.8 million Euros and a net profit of 39.8 million Euros. For further information, please contact: Joyou AG Winterstraße 4-8 22765 Hamburg Ian M. Oades, tel.: +86-595-8618 8887, [email protected] Kirchhoff Consult AG Jens Hecht, tel.: +49 40 60 91 86 0, [email protected] 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. End of Corporate News --------------------------------------------------------------------- 15.08.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's 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 Winterstraße 4-8 22765 Hamburg Germany E-mail: [email protected] 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 --------------------------------------------------------------------- 226019 15.08.2013