The company attributed this decline to weakness in its manufacturing business as a result of softer global demand for footwear.

Profit attributable to company owners was down by 52.2% year-on-year to US$83.6 million, while profit attributable to owners of the manufacturing business fell by 67.7% to US$56 million.

Revenue from the company’s footwear manufacturing business fell by 18.1% in the first half to US$2.38 billion. Footwear sales volume was down by 23.8% to 109.8 million pairs while the average selling price was up by 7.5% to US$21.67 per pair.

Revenue from the manufacturing business (which includes footwear, soles and components) was down by 19.3% to US$2.57 billion.

Meanwhile, revenue from retail subsidiary Pou Sheng was up by 4% to US$1.58 billion. At the end of the period, Pou Sheng had 3,723 directly operated retail outlets across Greater China, a net closure of 370 stores in line with the company’s streamlining strategy.

Chairman Lu Chin Chu said: “Despite the destocking cycle being experienced by the global footwear industry across the board, we have been able to defend our profitability to a certain extent thanks to the milestones we had already reached as part of our multi-year capacity allocation and digital transformation strategies.

“This fuels our optimism about the long-term prospects of our manufacturing business. The streamlined business structure, store refinements, omni-channel investments and our expanding alliances with brand partners will allow our retail business to further safeguard its long-term competitive edge.”