YOUNGOR Real Estate Financial Business Has Been Hit By &Nbsp; Can It Return To Clothing Industry?

In the past year, Youngor Only real estate and financial investment businesses have been hit hard, and their position in fund managers has plummeted.

The clothing company, known for its diversity, was most respected in 2011. list The company's ranking dropped to 89, and fund managers increased their "disrespectful" proportion the fastest. Prior to 2010, the company ranked 25 in the same list.

Similarly, why did a company become respected by fund managers in 2010 and become unrespected in 2011? A fund company official told reporters that "for a diversified company like YOUNGOR, we can not simply comment on whether its diversification strategy is good or bad, but we should pay more attention to its investment effect."

Obviously, in 2009 and 2010, equity market Both the real estate business and the financial investment business of YOUNGOR have achieved good returns in the context of taking the bull market with the housing market. Data show that from 2008 to 2010, the main revenue of YOUNGOR's real estate development increased by nearly 50% per year. In 2010, YOUNGOR invested 2 billion 60 million yuan in private placement and PE investment.

Such investment effect not only blocked investors' doubts about YOUNGOR, but also won praise. But in 2011, when the stock market fell and the real estate control double attack, the investment effect of YOUNGOR sharply declined, not only the real estate business was in trouble, but also the financial investment business.

The big drop in investment results is an important reason for fund managers' rapid disrespect for YOUNGOR. Although on the surface, YOUNGOR's investment strategy in 2011 did not change qualitatively on the basis of 2010, and its earnings were related to the changes in the stock market and real estate industry, another fund company official said, "the risk of investing originally is high, the judgement of the stock market trend and the adjustment of the real estate industry are the important criteria for testing YOUNGOR's investment level, but the result is disappointing."

Fund managers in addition to the change of attitude, in 2011, many funds withdraw from the top ten shareholders of YOUNGOR. By the end of 2011, the fund's holdings of the company had dropped from 8% in the previous year to 3%.

Liu Xinyu, YOUNGOR's secretaries general, said in a recent interview with reporters that it was not easy to comment on the results of the fund managers' voting, but the company will adopt a shrinking strategy in real estate and investment business in 2012, concentrating on the main business of men's clothing.

However, the real estate business has accounted for half of the company's main revenue. Equity investment income accounts for 70% of the company's operating profit, and now it's hard to return to the main business.

Financial business quilt

Facing the embarrassment of 2011, Li Rucheng, chairman of YOUNGOR, finally admitted at the end of last year, "2011 was a very tough year for YOUNGOR. Two of YOUNGOR's three carriages were caught." Financial business is one of the two carriages.

The main way for YOUNGOR to intervene in equity investment is to take part in the private placement of listed companies. In September 2008, YOUNGOR invested about 4000000000 yuan to set up Kay stone investment to account for 70% of the company's shares, and the vice president of the former Wells Fargo Fund (micro-blog) Chen Jiwu went to the general manager of Kai Shi investment. At the same time, the two sides signed a financial consultancy agreement, and YOUNGOR began to Commission related party Kai Shi to invest in the company's asset investment management consulting organization.

Since then, YOUNGOR has gone further and further on the path of equity investment. Since 2008, there have been more than 30 YOUNGOR participating in private placement companies. By the end of the two quarter of 2011, YOUNGOR had held 27 shares of A share listed companies. In 2011, the three quarterly report showed that 70% of YOUNGOR's 1 billion 800 million yuan operating profit depended on equity investment income.

According to incomplete statistics, there were 12 cases of YOUNGOR's participation in private placement in 2011, and the total cost was 2 billion 100 million yuan. But in 2011, the A share market was sluggish, and the market value of YOUNGOR's holdings was shrinking and even deep. In 2011, the China Daily reported that stocks such as 8.34,0.00,0.00% and 7.06,0.00,0.00% were already at a loss. Compared with the stock prices of 27 stocks held by YOUNGOR at the end of last year, most of them fell by more than 30% in 2011. This shows that the company's book losses are huge.

"Equity investment is greatly influenced by the stock market, and the uncertainty is very high. This is why YOUNGOR's performance is good news but its share price is the fundamental factor in the downstream industry." A fund insider who retired from YOUNGOR's top ten tradable shareholders in the first quarter of last year said.

The fund manager's criticism is not only the fall of YOUNGOR's financial investment business in 2011, but also YOUNGOR's "no repentance".

In fact, YOUNGOR, which is keen on stocks trading, suffered a crushing defeat in equity investment in 2008. Because in 2007, tasting market in capital market tasted sweet, YOUNGOR bought 13 stocks in 2008, only to see that 11 stocks had suffered from Waterloo, and finally had to cut off their meat. To this end, YOUNGOR was forced to make a loss of 1 billion 300 million yuan in assets impairment, which also led to a 36% decline in net profit in 2008.

The fund companies told reporters that YOUNGOR's financial investment business is like an indefinite closed end fund. Investors give it to it and then invest it in stocks. Investors can not directly redeem shares from listed companies, but only share shares with other investors in the exchange. Moreover, the fund can only see the net value once a quarter, while the ordinary closed-end fund can see the net value at least once a week. Compared with it, it is more difficult for investors to control the "YOUNGOR closed end fund".

The person even said frankly, "YOUNGOR's investment advisory subsidiary, general manager of Kai Shi investment itself is a public offering fund. Investors who like YOUNGOR's investment business might as well buy a real fund." {page_break}

　 　 Real estate industry Drag on

In addition to financial services, YOUNGOR's "two carriages" are also included in the real estate business. Li Rucheng has publicly responded to the company's involvement in the real estate industry more than ten years ago. YOUNGOR's assets are so large that it is impossible to make it bigger in an industry.

Since the introduction of real estate business into listed companies in 2002, YOUNGOR has accelerated the pace of expansion of the real estate industry. In 2004, the proportion of real estate business in the company's overall revenue reached 38%. In 2009, this figure reached 42%. In 2010, YOUNGOR's real estate industry was the most prosperous, contributing 47% of its total revenue.

Like equity investment, the impact of real estate prices on the company's net profit is also obvious. The three quarterly report in 2011 showed that the "three carriages" of clothing, real estate and investment earned 460 million yuan, 230 million yuan and 530 million yuan respectively, and their contributions to net profit were 38%, 19% and 43% respectively. In the first half of 2011, the net profit of YOUNGOR's real estate business fell by 82.3%, only 34 million yuan.

Although YOUNGOR securities officers said that "the impact of macroeconomic regulation and control, real estate sales will indeed slow down, but relatively stable", but Li Rucheng once said that in 2011, the real estate performance due to the most stringent regulation, only accounted for 1/3 of the expected value.

The bigger worry of the real estate recession is that YOUNGOR has too little cash.

Although real estate has always been highly indebted, the comparison between the company and the four real estate companies shows that only the net debt ratio of 11.70,0.00,0.00% and micro-blog exceeds 100%, and other companies remain at a low level. Pauli's cash holdings of 22 billion 50 million yuan are enough to cover the risk position of short-term interest bearing liabilities of 12 billion 430 million yuan, while YOUNGOR's current cash is only 2 billion 270 million yuan, which is far from the short-term interest bearing liabilities of 15 billion 760 million yuan.

Because of the downturn in the real estate market, houses are becoming more and more difficult to sell. If cash is not enough, it is expected that the real estate sales will be reimbursement, but YOUNGOR's advance payments are not optimistic.

The pre-sale data of YOUNGOR's 2010 annual report and 2011 semi annual report showed that the Xixi sunny snow project had been sold at 9.83% at the end of 2010, and the proportion of pre-sale was 13.38% at the end of the first half of 2011. That is to say, half a year sold 3.55%, assuming that it could take 12 years to sell out at this speed.

According to the 2011 China Daily, YOUNGOR's real estate receipts were 10 billion 850 million yuan, while real estate inventories were 21 billion 560 million yuan. In the inventory, 17 billion 40 million yuan is listed as development cost. The estimated total investment in these projects is 25 billion 651 million yuan. Most of the projects are expected to be completed in 1~2 years, with an average life of 1.4 years. That is to say, in the next year and a half, we still need to invest 8 billion 610 million yuan in capital construction.

And the inventory of land to be developed has 3 billion 900 million yuan, according to the real estate development cost of land price and Jian an project cost ratio of 1:1 assumption, still need to spend 3 billion 900 million yuan, these unbuilt projects are expected to start in the next 1 years, according to the assumption of 2 years to complete, that is, 3 billion 900 million yuan in the next 2~3 years of time to pay. Now, in the next year and a half, there will be 8 billion 610 million yuan for the construction safety project to be paid, and the short-term interest bearing liabilities of 15 billion 760 million yuan to be paid in a year, and 3 billion 900 million yuan to be paid in the next 2~3 years, while YOUNGOR's cash is only 2 billion 270 million yuan. If the real estate market continues to slump, the YOUNGOR's financial position will be more intense.

Men's business outlook is unclear.

It is precisely because of two business quilts, YOUNGOR began to consider returning to the main garment industry. Li Cheng Cheng said that in 2011, YOUNGOR real estate was sluggish. The stock market returned to ten years ago, and only clothing made money. In 2012, YOUNGOR decided to focus on the main business of clothing.

In January this year, YOUNGOR opened a world's largest flagship store in the golden section of Yanan Road, Hangzhou, with a building area of more than 10 thousand square meters. At the same time, it opened a "big shop model" operation time, and the 5 major brands were stationed together.

Returning to the main industry of men's clothing will make YOUNGOR regain the growth path. On the surface, YOUNGOR has been the leader of the men's wear industry in China. By the end of 2010, the average market share of YOUNGOR shirts and Western-style clothes has been ranked first in 16 consecutive years and 11 years, but it still faces two difficulties.

First, the brand is too single. YOUNGOR has been playing the world with a single brand and trying to cover all consumer groups. However, with the pursuit of personalized pursuit of fashion consumption, consumers of different age groups began to have diversified demands. Even as the boss of the clothing industry, YOUNGOR also felt the obvious market pressure.

Li Rugang, vice chairman of YOUNGOR, also admitted that "it's very difficult to make the national market by relying on only one brand." In his view, some of the consumer groups in the first tier cities began to prefer foreign brands with higher prices, but in some two or three tier cities, they were not accepted because of the high price of YOUNGOR.

For the potential predicament of YOUNGOR's single brand, Yuan Yue, the chairman of the consulting group, even thought that YOUNGOR's main brand had entered the crisis period. He believes that the main consumer groups of YOUNGOR brand positioning have begun to have other choices with the promotion of consumption level and the promotion of consumer psychology. Their loyalty to the brand has dropped significantly, so the strategy of YOUNGOR brand needs to be adjusted, otherwise the prospect is worrying.

Two, the mode of operation is too traditional. At present, the whole garment industry has already outsourced production and sales. Only when making brand and taking the path of light assets, YOUNGOR chose the opposite business path. It not only has the largest clothing production base in Asia, but also expands in the upstream and downstream of the industrial chain, and the longer the YOUNGOR apparel industry is, the heavier it is.

Coupled with the recent rise in raw material costs and labor costs, the company's clothing revenue and profit growth has slowed down. This can be seen in the comparison between the company and its peers. The net profit of the birds in 010 years is 2.9 times that of 2007, Hinur is 2 times, the seven wolf is 3.17 times, and YOUNGOR is only 1.58 times, and the growth rate of revenue and profit is relatively slow.

In the view of Yang Dayun, an expert committee of China clothing association, YOUNGOR is the earliest clothing brand enterprise in China. The earliest customer group is mainly from the people born in the 40s to 50s of the last century. Now YOUNGOR has to spanform into a generation after 90 or after 85, which is the future of its clothing industry. But at the same time, he said YOUNGOR is very difficult to achieve this spanformation.

However, Li Rugang, vice president of YOUNGOR, who is responsible for the clothing industry, said that the growth of YOUNGOR's clothing business revenue in 2011 will be around 20%, and its profit will also increase by 30%, which will double in 4 years. He believes that from the perspective of macro policy, the spring of industry has arrived. "The house must be restricted, and the car is not environmentally friendly. If you buy a good clothes to wear, you will feel good and environmentally friendly, and you will not buy it."

It is doubtful whether this kind of witticism optimism can really bring YOUNGOR back to its main business.