DGAP-News: Joyou AG / Key word(s): Final Results Joyou AG's diversified growth strategy resulted in a successful year 2013 31.03.2014 / 07:25 --------------------------------------------------------------------- Annual Results 2013 Joyou AG's diversified growth strategy resulted in a successful year 2013 - Group revenues increased by 8.6% to 357.8 million Euros in 2013 - International sales grew by 28.7% - EBIT grew from 50.8 million Euros to 53.2 million Euros corresponding to an EBIT margin of 14.9% - Positive outlook: Revenues to grow by between 5% and 10% in 2014 Hamburg, March 31, 2014.Joyou AG, a leading bathroom solution supplier, continued its robust grow path in 2013. Sales revenues went up by 8.6% to 357.8 million Euros (2012: 329.6 million Euros), corresponding to a 9.0% growth rate in RMB terms. International sales were the main growth driver and were supported by robust domestic revenue growth. International sales increased by 28.7% year-on-year to 41.2 million Euros. Joyou products are now sold in every continent of the world - a result of the collaborative efforts with Grohe Group. LIXIL Corporation, Japan's largest company for building materials and housing equipment and one of the new owners of Grohe Group (invested jointly with the Development Bank of Japan), offers further growth opportunities last but not least because of the wide distribution network in Asia and abroad. In the domestic market China Joyou also showed robust growth and increased revenues by 6.4%, thereby contributing 316.7 million Euros to overall group revenues. Along with the positive sales development, Joyou AG improved its operating profit (EBIT), which grew at a rate of 4.6% to 53.2 million Euros. EBIT was impacted by a lower gross margin for the international business. Within the one-year period the EBIT-Margin decreased by 0.5 percentage points to 14.9%. In the group balance sheet, equity summed up to 360.2 million Euros at the end of 2013 (December 31, 2012: 341.5 million Euros) representing an equity ratio of 68.2%. The cash flow from operating activities grew significantly from 28.4 million Euros in 2012 to 36.1 million Euros in 2013 mainly due to a successful inventory reduction programme, while cash flow from investing activities remained stable at 37.4 million Euros (2012: 38.3 million Euros). Thus, as budgeted, free cash flow was slightly negative during the financial year 2013. Positive outlook for 2014 In 2014 Joyou will continue to focus its investments on the production facilities. "In the current year we plan to invest on the expansion and upgrading of our production facilities. Together with an enhanced distribution network and the strategic cooperation with Grohe and LIXIL, we are confident to achieve a bigger market share in the sanitary-ware industry around the globe", says Mr. Jianshe CAI, CEO and Chairman of Joyou's Management Board. For the year 2014 Joyou expects solid growth of the consolidated revenues amounting to between 5% and 10% in RMB terms. The company anticipates gross margin to decline due to increasing international sales which have lower gross margins. This decline will also impact the operating profit margin in the 2014 financial year. As certain financing and one-off tax items that negatively affected profitability in 2013 are not expected to recur in 2014, Joyou expects a substantial growth of the net profit compared to 2013, and also its earnings per share. The full annual report 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, as well as Joyou branded international sales. In 2012 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 2013). Joyou has established an extensive distribution network in China with over 4,100 franchised retail stores as of 31 December 2013. Joyou's operating facilities are based in Nan'an near Quanzhou in Fujian Province in China. Joyou mainly sells under its own brand name and 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, Grohe Products. In 2013, Joyou realised group revenues of 357.8 million Euros, an operating profit (EBIT) of 53.2 million Euros and a net profit of 24.3 million Euros. For further information, please contact: Joyou AG Gasstraße 18, Haus 6A 22761 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 --------------------------------------------------------------------- 31.03.2014 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 Gasstraße 18, Haus 6 A 22761 Hamburg Germany E-mail: [email protected],[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 --------------------------------------------------------------------- 260513 31.03.2014