DGAP-News: Joyou AG / Key word(s): 9-month figures Joyou AG further improves its results in 9M 2014 14.11.2014 / 08:40 --------------------------------------------------------------------- Interim Report Q3 2014 Joyou AG further improves its results in 9M 2014 - Group revenues rose to 288.9 million Euros and grew by 8.0% in Euro terms or 10.7% in RMB terms compared to the first nine months 2013 - International sales increased by 99.0 % up to 21.5 million Euros - EBIT reached 43.5 million Euros corresponding to an EBIT margin of 15.0% - Positive outlook for 2014 confirmed: Revenue growth to reach upper end of the 5% to 10% guidance in RMB terms Hamburg, November 14, 2014. Joyou AG, a leading bathroom fixtures and fittings supplier in China, continues to improve its financial results: During the first nine months 2014, sales revenues increased by 8.0% to 288.9 million Euros (9M 2013: 267.5 million Euros). Measured in Renminbi (RMB) sales grew at a higher rate of 10.7%. These results are well in line with the guidance for the full year 2014, which foresees sales growth amounting to between 5% and 10% in RMB terms. On the basis of the 9M 2014 results the Management Board now expects growth to reach the upper end of the guidance. International sales contributed 21.5 million Euros to the total revenues of Joyou (9M 2013: 11.1 million Euros), representing an increase of 99.0%. This substantial growth resulted from international sales through Grohe Group companies as well as sales to the Grohe Group itself. "According to our core growth strategy we steadily expand our international sales and develop our domestic market both in project business and our network of franchised retail stores. Based on these pillars, the company will be able to benefit from the favourable macro-economic growth drivers, particularly urbanisation and the growing consumer class in China", says Mr. Jianshe Cai, CEO of Joyou AG. During year the group added 51 new franchised stores to its sales network, comprising 4,167 shops by the end of September 2014. While gross profit increased by 5.5 million Euros to 79.4 million Euros compared to the first nine months 2013, gross margin saw a slight decrease by 0.1 percentage points to 27.5%. The decrease is mainly due to the increase international sales, and their corrsponding lower margins. EBIT grew by 5.8% to 43.5 million Euros year-on-year whilst EBIT margin declined by 1.8 percentage points to 15.0% compared to 9M 2013. This is a result of decreased gross margin and increased operational expenses. Group net profit showed strong gains of 49.6% as it grew from 16.2 million Euros to 24.2 million Euros. The main reasons for this development is mainly the non-occurrence of one-off revocation of preferential tax rate that was booked in the second quarter of 2013. Cash flow from operating activities increased significantly from 20.9 million Euros to 23.8 million Euros year-on-year. During the first nine months 2014 Joyou continued to expand the production facilities including an upgrade of the Luncang brassware and plastic facility and the second Meiyu ceramics facility; the latter's first kiln started initial commercial production in August 2014. Accordingly, investments grew by 32.9% to 31.7 million Euros. Joyou AG maintained its strong financial position: Equity summed up to 414.8 million Euros at the end of September 2014 (December 31, 2013: 360.2 million Euros) representing a stable equity ratio of 62.2%. Cash and cash equivalents increased from 128.0 million Euros at the end of 2013 to 185.0 million Euros as of September 30, 2014. The full Q3 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, [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. --------------------------------------------------------------------- 14.11.2014 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: [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 --------------------------------------------------------------------- 297180 14.11.2014