How Will YOUNGOR Return To The Garment Industry?

In the sluggish property market and stock market, coupled with the sluggish clothing industry, YOUNGOR is almost frozen on many fronts.

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It is widely believed that this is YOUNGOR's breakthrough, but YOUNGOR director Liu Xinyu told reporters that "this is just a financial investment". Kim Jong two's shareholders had the intention to sell shares. YOUNGOR thought the price was more appropriate, so they bought shares.

In fact, what YOUNGOR really wants to do is the clothing industry.

Fertilizer is not straw.

Kim Jong Da is in

YOUNGOR announced its 2011 financial report shortly before announcing its investment.

The report shows that the company achieved 11 billion 539 million yuan of revenue last year, down 20.49% compared to the same period last year, and the net profit attributable to shareholders of listed companies was 1 billion 763 million yuan, down 34.03% compared with the same period last year. At the end of 2011, the company's earnings per share were 0.79 yuan, down 34.03% compared to the same period last year.

For the reasons for the sharp decline in performance, YOUNGOR's earnings explanation is that the company has voluntarily reduced the export of garment manufacturers, and reduced the delivery of completed real estate projects during the period, resulting in a decrease in operating income. The net profit decline was due to the reduction of investment income from the financial investment business and the decrease in real estate delivery due to the reduction of investment income from the sale of financial assets.

Why should we make foreign investment in the case of a sharp decline in performance? YOUNGOR announcements explain that the board of Directors believes that Jin Zhengda's internal control system is sound, corporate governance structure is perfect, and its main business indicators such as scale of operation and growth are in the same industry leading level.

Liu Xinyu denied that YOUNGOR's investment in chemical fertilizer is to cope with the downward pressure on performance. She told our reporter that YOUNGOR's clothing industry has been very stable, and the real estate business is cyclical, and this year there will be improvement.

"When the economy is in a downward channel, the first thing that diversified enterprises should do is to strip off the less well run industries, but under such circumstances, YOUNGOR has entered agriculture again, and I have really pinched them for them."

Marketing expert Li Zhiqi believes that the investment cycle of agriculture is very long and the return is slow. If we invest in order to improve the company's financial situation, it will be very difficult to achieve results in the short term.

The main business is in full retreat.

Although Liu Xinyu is very calm about the current operation of YOUNGOR, his earnings report shows that YOUNGOR's three main businesses are cold and their performance is declining.

During the reporting period, the YOUNGOR apparel sector achieved a business income of 6 billion 197 million yuan, an increase of only 1.61% over the same period last year.

Among them, the OEM export business achieved revenue of 2 billion 321 million yuan, down 22.13% compared to the same period last year.

With the strict regulation and control policy of the real estate market continuing to ferment, YOUNGOR's real estate business is also facing difficulties.

This reporter learned that the development of YOUNGOR's real estate is mainly concentrated in the Yangtze River Delta region mainly based on Ningbo, Suzhou, Hangzhou and Shanghai.

According to incomplete statistics, the commercial residential area of the 4 main cities in 2011 decreased by 15%, 23%, 53% and 24%, respectively.

Although YOUNGOR actively promoted its real estate projects and slowed down its investment in the land market, its real estate tourism development business only achieved 3 billion 636 million yuan in the reporting period, 46.94% lower than the same period last year, and realized net profit of 572 million yuan, a decrease of 15.86% over the same period last year.

As for financial investment, Liu Xinyu said that there were also reasons for going on this road.

YOUNGOR separately issued CITIC Securities and Bank of Ningbo in 1999 and 2004. After the split share structure reform in 2005, the profits of the two companies exceeded 10 billion yuan.

So, by the time of 2006, YOUNGOR decided to make financial investment as an industry.

"In the past few years, financial investment has really contributed to our performance. Even now, this piece is worth 20 billion.

But we realized from last year that the volatility of financial investment is relatively large, and the company's performance is affected more obviously.

In 2010, equity investment contributed more than 1 billion 200 million yuan to the company's performance, but last year it was only 480 million yuan, and the company's performance was seriously damaged.

Because it is difficult for investors to judge the valuation of our financial investment industry, leading to a good investment performance before us, it has little impact on the price of the two tier market, but once our investment performance is bad, the share price of the two tier market will be more impacted, leading to the fact that our valuation level will not go up.

Liu Xinyu said.

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How much did YOUNGOR's financial investment business lose last year? The annual report shows that during the reporting period, YOUNGOR's investment in private placement and PE totaled nearly 2 billion 950 million yuan, but its net profit was only 487 million yuan, a decrease of 758 million yuan over the previous year and a drop of 60.90%.

"The reason why YOUNGOR's previous earnings report is good is mainly from the investment in finance and real estate, and its main clothing business has been in an awkward position of big but not strong."

Li Zhiqi believes that YOUNGOR's ideas on financial investment are too fragmented, and its concern and devotion to the main business is not as good as before.

Farewell to "financier" status

In fact, the diversified investment of Chinese clothing listed companies is very common.

YOUNGOR is just a typical example.

As mentioned earlier, YOUNGOR's investment in clothing, real estate and finance has been on the strength of three feet.

Li Zhiqi believes that the main industries chosen by YOUNGOR are very vulnerable to the influence of macro-control policies, and its investment in the agricultural sector is highly speculative. The span is too large. YOUNGOR must think about the next step. If it can not restrain the impulse of blind expansion, the enterprise will be dangerous in the long run.

Is YOUNGOR going to be lost in diversification? Liu Xinyu said: "we have come to realize that as a listed company, it is not appropriate to focus on financial investment, so we decided to gradually fade out of the financial sector and invest more in our main business.

But fading away from the financial sector is not an overnight move. It will take several years to complete.

Now YOUNGOR has about 10000000000 assets in the field of financial investment, and we will adjust our pace according to the market situation.

"Since last year, we have increased investment in the field of clothing, for example, the acquisition and acquisition of exclusive stores, the integration of minority shareholders, and internal integration are all things we are doing.

In the past, we spent about four or five billion a year on the integration of exclusive stores. Last year, we invested 8 hundred million of our stores, which is two times the previous one.

Liu Xinyu said.

Careful investors will find that in November 7, 2011, YOUNGOR announced that its wholly owned subsidiary, new Ma clothing International Co., Ltd. was going to sign a share pfer agreement with the related party Zou's International Limited company. The price of the net assets of the 14 companies of Ningbo YOUNGOR shirts Co., Ltd. was priced in 2010, and the purchase of Zou's international 25% stake in the 14 companies, the total purchase price was 753 million yuan.

"Acquisition of these joint ventures can enhance the performance of our clothing sector."

Liu Xinyu introduced that YOUNGOR had established many joint ventures with Zou's international market, and now they want to withdraw from their investment. Just as YOUNGOR wants to make bigger and stronger clothing brands, after many consultations, the two sides took stock acquisition.

But Li Zhiqi's question is: why should YOUNGOR invest in fertilizer if it wants to return to its main business?

It is worth mentioning that when Liu Xinyu said that YOUNGOR should return to its main business, he also told our reporter: "we are more interested in machinery, medicine, financial resources and other fields."