DGAP-News: Joyou AG / Key word(s): Final Results Joyou AG announces a significant increase of revenues and EBIT in 2014 31.03.2015 / 07:36 --------------------------------------------------------------------- Annual Results 2014 Joyou AG announces a significant increase of revenues and EBIT in 2014 - Sales revenues rose by 11.3% to 398.1 million Euros compared to 2013 - EBIT increased from 53.2 million Euros to 61.4 million Euros, representing an improved EBIT margin of 15.4% (14.9% in 2013) - Considerable investments in production facilities shall secure further growth Hamburg, 31 March 2015. Joyou AG, a leading designer, manufacturer and marketer of bathroom fixtures and fittings in China, achieved a significant increase of its financial results during the year 2014. Year-on-year revenues grew by 11.3% to 398.1 million Euros, measured in Renminbi (RMB) this corresponds to a growth of 11.2%. The Group's EBIT (operating profit) grew at a higher rate of 15.5% to 61.4 million Euros. Full year revenues growth exceeded the latest guidance, which foresaw sales growth at the upper end of the range of 5% to 10% in RMB terms. A decisive driver for the positive development was the successful implementation of the international growth strategy developed jointly with the Grohe Group. Joyou products are now sold in every continent of the world. On this basis and by the acquisition of new clients, international sales increased significantly by 79.5% to 30.0 million Euros. In the domestic market China, Joyou also continued to achieve sustainable growth with sales in China amounting to 368.1 million Euros and surpassing the results of 2013 by 7.9%. Apart from an enhanced distribution network and service-orientated marketing campaigns, further investments into research and design, brand equity and the expansion of the project business led to the improved sales figures. The highest growth rates of the revenues were registered in the products of the following segments: Copper and semi finished products grew by 64.2% compared to 2013, bathroom accessories improved by 24.8%, the sales of ceramics and bathtubs grew by 16.8%, the sales of shower products rose by 13.5%. Whereas Joyou's gross margin remained almost unchanged at 27.6% in the last year (2013: 27.7%), the company's EBIT (operating profit) and net profit grew significantly: Year-on-year EBIT increased by 15.5% to 61.4 million Euros and net profit improved by 13.6% up to 33.7 million Euros in 2014. Hence, the EBIT margin as well as the adjusted net profit margin reached 15.4% and 8.5% respectively. The group's balance sheet shows a sound structure: As of 31 December 2014 total equity amounted to almost 435.0 million Euros. This corresponds to a growth of 20.8% compared to 360.2 million Euros by the end of December 2013. Due to an increase in financial liabilities, the equity ratio decreased from 68.2% to 62.7% year-on-year. In the third quarter of 2014, the company was able to secure a long-term loan facility with a total volume of 300 million US-Dollars and attractive interest rates. Half of the sum was used to refinance existing indebtedness and the other half is intended for further investments in production facilities. Cash and cash equivalents increased from 128.0 million Euros at the end of 2013 by 51.6% up to 194.1 million Euros as of 31 December 2014. Further diversified growth expected in 2015 Maintaining its financial strength is an important part of Joyou's strategy in order to proceed on the path of sustainable growth in the domestic and international sanitary-ware markets. "For the next three years we plan to invest in the expansion as well as the upgrade of our production facilities. Therefore we will use a significant portion of the available funds and cash generated from operation in order to meet the expected demand", says Mr. Jianshe Cai, CEO of Joyou AG. For 2015, Joyou's Management Board expects further growth of the consolidated revenues amounting to between 5% and 10% in RMB terms. The company anticipates a moderate gross margin decline mainly due to rapidly increasing international sales, and also expects the operating profit margin to be affected, however operating profit should show a good increase. The annual report 2014 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 and is also a private label supplier for international brands and trading companies. Since 2011 Joyou has been part of the GROHE Group, the world's leading provider of sanitary fittings. In 2013 Joyou was the leading single-brand manufacturers of bathroom faucets in China in terms of revenues (according to BSRIA's China Bathroom Study 2014). Joyou has established an extensive distribution network in China with over 4,100 individual franchised retail stores as of 31 December 2014. 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 may contain 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. --------------------------------------------------------------------- 31.03.2015 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: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 339591 31.03.2015