YOUNGOR Business Is Forced To Main Garment

Clothing, real estate and investment have been likened to the three carriages of YOUNGOR.

However, the strict regulation and control of the real estate market and the sluggish investment market are causing the two of these three carriages to gradually lose their feet.

YOUNGOR group's annual report 2011 showed that the company's performance fell sharply last year, with a total revenue of 11 billion 539 million yuan, down 20.49% compared to the same period last year, and net profit of 1 billion 763 million yuan, down 34.03% compared to the same period last year.

YOUNGOR said that the company's performance was poor, the reduction of financial investment business, the reduced investment income of the sale of financial assets and the reduction of real estate delivery.

In addition to Li Rucheng, chairman of the board, YOUNGOR Group executives appear to varying degrees of all holdings of the company's stock liquidation move.

Analysts pointed out that this is due to the lack of confidence in the performance of the company.

YOUNGOR subsequently made strategic adjustments, saying that it will carry out the development strategy of brand clothing as the main business in the future.

YOUNGOR three carriages lose their main income

In 2012, YOUNGOR released its annual financial report in 2011. Data show that YOUNGOR has 24704 employees in 2011, while YOUNGOR's 2010 financial report shows 41903 employees.

Accordingly, media reports said YOUNGOR laid off 17 thousand and 200 people in 2011.

In response, YOUNGOR issued a notice that the report was inconsistent with the facts. The total number of incumbency employees announced in the YOUNGOR annual report in 2010 was 41903, including the number of employees of the new Malaysia Apparel Group (Hongkong) Limited company. However, YOUNGOR's pfer of 100% of the new Ma clothing to Shengzhou last year.

Technology limited, so the new Ma clothing staff no longer count the total number of employees in YOUNGOR.

The YOUNGOR layoffs or "Oolong" incident, but YOUNGOR can not be denied is a sharp decline in the company's performance last year, YOUNGOR Group annual report 2011 shows that during the reporting period, the company achieved a total revenue of 11 billion 539 million yuan, down 20.49% compared to the same period, net profit of 1 billion 763 million yuan, down 34.03% compared to the same period.

In addition, NetEase finance found that the performance of YOUNGOR in the four quarter of last year can be found in every quarter of the year. The performance of YOUNGOR has been deteriorating. Data show that in the fourth quarter of 2011, the company realized revenue of 3 billion 510 million yuan, down 47% compared to the same period last year, and realized a net profit of 525 million yuan, down 71% compared to the same period last year.

For the sharp decline in its performance last year, YOUNGOR said in its annual report that the company has voluntarily reduced the export business of garment manufacturers, and reduced the delivery of completed real estate projects during the period, resulting in a decrease in operating income.

However, net profit fell year by year because of the reduction of financial investment business, the decrease of investment income from the sale of financial assets and the reduction of real estate delivery.

In recent years, YOUNGOR group has been wearing clothing, real estate,

The "three carriages" have been relished by the outside world.

Public information shows that YOUNGOR started in 1979 as a garment industry and is currently one of the leading enterprises in China's apparel industry. YOUNGOR said on its official website that the group has been ranking the top four in sales and profits in China's apparel industry for the past two consecutive years.

The main products of YOUNGOR shirts and Western-style clothes are always the first to keep the market share.

But YOUNGOR's clothing sector only achieved 6 billion 197 million yuan in revenue last year, 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.

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In terms of real estate business, YOUNGOR began to set foot in real estate development in 1992. In Ningbo, Suzhou and other places, the company developed East Lake gardens, East Lake Xinyuan, urban forest, Suzhou future city, Seaview Garden, Qian Lake Beverly and so on, and accumulated 3 million square meters of property such as residential, villas, business buildings and so on. In 2009, YOUNGOR's real estate business accounted for 42% of the total revenue of the company. In 2010, the contribution of YOUNGOR's real estate industry to total business revenue was as high as 47%, and its contribution rate was almost half.

However, NetEase finance understands that due to the severe regulation of real estate in 2011, YOUNGOR has lost 3 billion 234 million yuan in real estate deliveries due to project cyclical factors, and its revenues and operating profits have dropped by 46.94% and 32.12% respectively.

Among them, the real estate tourism development business achieved 3 billion 636 million yuan, 46.94% lower than that in the same period in 2010, and net profit of 5.72 million yuan, down 15.86% from the same period.

The rate of cash recovery slowed down, the inflow decreased by 2 billion 526 million yuan over the previous year, while the payment of land, works and taxes and fees outflows increased by 2 billion 304 million yuan over the previous year.

In addition, in 1993, the financial investment business in the field of financial investment in 1993 declined more obviously. Once the "investment king" and "additional investment", the net profit of financial investment last year reached 487 million yuan, a decrease of 758 million yuan compared with 1 billion 245 million yuan last year, a decrease of 60.90%.

This shows that the shrinkage of the stock index is obviously a heavy blow to YOUNGOR, which has huge financial assets.

YOUNGOR secretaries staff told NetEase finance that although the scale of investment reduced the risk to a certain extent, the downtrend of A shares still had a certain impact on financial investment business, especially to the overall performance of the company.

Executives collectively sell shares and cash companies called their "personal behavior".

For the "three carriages" in the performance of quagmire, it is difficult to extricate themselves, YOUNGOR group external propaganda manager Yu Cheng told NetEase finance that YOUNGOR encountered some "problems" last year, but in her view, the clothing sector is still the biggest "flash point" of YOUNGOR group last year. "Last year, domestic sales of clothing rose by 25%, which is a big increase." but when NetEase asked why the garment sector went to the same period, the export business fell 22.13% compared to the same period last year.

To this, some analysts pointed out to NetEase finance that this is simply "nonsense". "No clothing company can take the initiative to abandon the existing market, especially overseas market."

He pointed out that the reason why YOUNGOR's clothing sector appeared to be a year-on-year decline in foundry export business was related to the overall downturn in overseas market economy.

For the bad performance of YOUNGOR last year, YOUNGOR chairman Li Rucheng has been prepared for psychological preparation. He once openly told the media last year that YOUNGOR was a very tough year in 2011. Two of the three carriages were trapped.

But Li Rucheng, chairman of the board, has been psychologically prepared, but can not reduce the panic of other top executives in YOUNGOR for declining performance. Data show that except for Li Rucheng, almost all of YOUNGOR's top executives are liquidate YOUNGOR shares held in the two tier market.

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Jiang Qun, the vice-chairman and general manager of the company, the chairman of Ningbo YOUNGOR Real Estate Co., and the chairman of Suzhou YOUNGOR Fortune Palace Investment Co., Ltd., respectively, sold 130 thousand shares in February and May respectively.

Li Rugang, the current Vice Chairman of the group and chairman of Ningbo YOUNGOR Fashion Co., Ltd., also cash in the 2 million 340 thousand shares of YOUNGOR stock held in May this year.

In addition, it includes the incumbent company director and general manager of Suzhou YOUNGOR rich palace Investment Co., Ltd.

Many executives of Xu Qigang, deputy director general of Limited by Share Ltd group of YOUNGOR group, also realized that all the 600 thousand ultra shares held by the company in February of this year coincide.

For a stock sale of YOUNGOR's high-level collective sell-off, a staff member of YOUNGOR group's secretaries general told NetEase finance that this is just a high-level personal behavior. He also stressed that "this is a personal freedom act within the scope permitted by relevant state laws."

In this regard, some analysts pointed out to NetEase finance that the recent stock selling of YOUNGOR group's recent collective sell-off is nothing more than worrying about the recent sharp decline in YOUNGOR's performance, which has affected the company's share price and led to a certain move in the market value of its holdings. "This also reveals that the company's top executives have no confidence in the performance of YOUNGOR in the future, and the realization of stock liquidation has become the only way."

As for the "three carriages" and two "horse stumble", YOUNGOR group also held a shareholders' meeting and brand clothing special exchange meeting in April 20th this year, and communicated with shareholders and investors about the company's 2011 Annual Report performance and future development strategy.

It clearly pointed out that the development strategy of brand clothing industry will be launched in the future, and that because the real estate business is subject to macroeconomic regulation and control, the annual goal of this year's real estate business segment is to achieve the balance of cash flow. In addition, the proportion of financial investment will be gradually reduced.

Clothing can hardly become a "straw" to invest in agriculture or to open up new growth points.

Although the industry is optimistic about YOUNGOR's return to the main garment industry, and said that this is YOUNGOR's current inevitable choice.

However, there are still many people in the industry questioned YOUNGOR's return to the main garment industry can stimulate YOUNGOR's low performance.

Market analyst Ma Gang believes that YOUNGOR's return strategy is expected to have little effect in the short term. "On the whole, the clothing industry itself belongs to a slow hot industry, the garment industry is facing great changes, the development of the men's clothing market itself is sluggish, the shops rent is higher, and the quality of the phenomenon is serious. The main problems have been perplexing the development of China's men's wear brand. In addition, influenced by the intensification of international competition and the impeding of foreign trade, it is still difficult to rely on the main garment industry to reverse the current decline of YOUNGOR in a short time."

NetEase financial research also found that although the scale of YOUNGOR's clothing business is large, in addition to the surge in revenue brought by the new Malaysia group in 2008, it has been in a low growth range for nearly three years.

Data show that the growth rate of net profit of YOUNGOR's clothing sector is higher than that of YOUNGOR, of which the net profit of 2010 is 2.9 times that of 2007, and that of Hinur is 2 times, that of the wolf is 3.17 times, while that of YOUNGOR is only 1.58 times, and the growth rate of revenue and profit is at the end.

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Data showed that as of the end of the first quarter of 2012, YOUNGOR's inventory was 23 billion 703 million yuan, up nearly 400 million yuan from the end of 2011, accounting for nearly 80% of current assets.

In addition, the company's net profit in the first quarter of this year was 256 million yuan, down 34.27% compared with the same period last year. From the current data, the development strategy of the brand clothing industry is not obvious.

In this regard, the industry pointed out to NetEase finance, YOUNGOR's real estate and investment before the business has greatly dragged down the current YOUNGOR business, YOUNGOR wants to change the current situation, relying solely on the clothing sector is far from enough.

Management seems to think so. In April of this year, YOUNGOR group announced that its wholly owned subsidiary YOUNGOR Investment Co., Ltd. invested 829 million 500 thousand yuan to purchase 75 million shares of Jin Zhengda stock held by German investment and development limited company at the price agreement of 11.06 yuan per share, accounting for 10.71% of total equity of Jin Zhengda.

It is reported that Shandong Hefei Zhengda ecological engineering Limited by Share Ltd is a national key high-tech enterprise engaged in R & D, production and marketing of compound (mixed), slow release controlled release fertilizers and other new fertilizers, and Asia's largest production base for slow and controlled release fertilizers.

Founded in 1998, the company has a total assets of 3 billion yuan, an annual capacity of 2 million 700 thousand tons, and a sales income of 4 billion 160 million yuan in 2009.

For this outward investment, although YOUNGOR group said in its announcement that the source of external investment is the company's own funds, it has no impact on the company's profit this year.

Liu Xinyu, a YOUNGOR secretaries, also stressed repeatedly that when she interviewed the reporter, "this is just a financial investment. What YOUNGOR really wants to do is clothing industry".

But insiders know that

The analysis pointed out that in recent years, the main business of YOUNGOR group has already turned garment business into real estate business. However, affected by the downturn of the housing market, YOUNGOR's current performance is worrying. "Although the clothing business can bring some cash flow to YOUNGOR, in the short run, it is still necessary to support other cash business to twist the current downturn in market performance. As a large agricultural country, agricultural fertilizer enterprises will only bring some help to YOUNGOR to alleviate the pressure of the current market."