YOUNGOR: Will Expand The Scale Through Acquisition And Merger

Profit 10 million dollars

After reviewing YOUNGOR's previous announcement, YOUNGOR bought 70 million new Malaysia clothing and new Malaysia International respectively three years ago for $70 million and $50 million respectively.

Among them, the new Malaysia clothing mainly sells and produces shirts, T-shirts and trousers, and has many production plants in Hongkong, Sri Lanka, Philippines and the mainland of China.

The new Malaysia International is an American asset related to new Malaysia costumes. It also includes intangible assets such as big customer, management team and logistics marketing network of new Malaysia clothing.

YOUNGOR sells new horses this time

For this sale, YOUNGOR said that it is conducive to the realization of the strategic goal of "brand pformation" from the production and operation to brand operation, and the gross profit margin of the company's brand clothing business will further improve, which is conducive to the healthy and sustainable development of the company.

YOUNGOR securities staff told the China Securities Journal reporter that the sale of the new Malaysia clothing OEM business, which made small profits and the bottom of gross profit margin, was more conducive to YOUNGOR's concentrated resources and energy to do well in the brand clothing industry. YOUNGOR has increased the gross profit margin of brand clothing in recent years by promoting brand strategy, improving and enhancing channel construction and logistics construction, adjusting product mix and enriching product lines.

"In 2010, the gross domestic product rate of YOUNGOR's domestic apparel reached 63%, which was much higher than that of many international first-line brands, much higher than the domestic gross domestic product margins."

The source said.

The personage also pointed out that the current profit of YOUNGOR clothing plate mainly comes from the contribution of brand clothing, the profit of new horse business is less than 2%, and with the appreciation of RMB and the increase of labor cost, this business does not have sustainable profitability and development space.

Therefore, the sale is conducive to the realization of the strategic goal of "brand pformation from production management to brand operation".

Li Rucheng: broad space for development

For YOUNGOR's vision and planning for the clothing industry, YOUNGOR Group Chairman Li Rucheng also said that YOUNGOR is pforming from a production and marketing enterprise to a brand oriented enterprise. The company is also considering a higher level of industrial upgrading. It should turn from technology intensive to art and creative enterprises, and build YOUNGOR from a garment factory to a cultural and artistic world created by creativity. "YOUNGOR should no longer follow the trend of consumption, but lead the trend and create a trend."

Based on this, the company accelerated the brand development strategy of clothing, its MAYOR, YOUNGOR, GY, hemp, CEO and Hart Schaffner Marx six brands further deepened and deepened, and completed the re distribution of sales channels.

YOUNGOR will gradually reduce the OEM export share with low gross profit margin and more resources. The brand clothing assets of the company will be further optimized, and the marginal benefit of clothing will be further highlighted.

Li Rucheng also said that there is still a big gap between YOUNGOR and some famous international brands, indicating that the company's development space is still very broad. In the future, it will expand the scale through the acquisition and merger of new Ma international platform and resources.