HONG KONG Aug 14 Chinese shoe manufacturer Yue
Yuen Industrial Holdings Ltd posted a 48 percent fall
in first-half net profit as it booked provisions to improve
employee benefits - steps it has taken after it suffered from a
major strike earlier this year.
The strike was one of China's biggest this year, with
thousands of Yue Yuen workers only agreeing to go back to work
after the footwear maker for companies such as Nike Inc
and Adidas pledged to meet some of their demands for
"The recent events that have affected the manufacturing
operations in the first six months of 2014 underscore the near
term challenges in the business and for the industry in
general," Chairman Lu Chin Chu said in a filing to the Hong Kong
Net profit slid to $101.4 million, down from $194.45 million
in the same period a year earlier. Revenue rose 6.8 percent to
Labor activism has surged in China in recent months as
slowing economic growth and rising costs have squeezed companies
in industrialised areas like the Pearl River Delta in southern
Guangdong province, home to Yue Yuen's factories.
Yue Yuen, which is controlled by Taiwan-listed Pou Chen Corp
, said it would reallocate production capacity across
Asia to offer customers different input cost structures.
The company had about 417,000 staff as of end June 2014.
(Reporting by Donny Kwok; Editing by Edwina Gibbs)