YOUNGOR Desalination Financial Investment Business In The First Half Net Profit Slightly Increased

On the evening of August 27th,

(600177, share bar) (600177.SH) released the first half of 2012 earnings report, the company's return as the three carriages based clothing industry, driving the company's performance growth, real estate sales performance is good, dilute the financial business, reduce financial investment, reduce risk, so that the company's performance in the first half of the year is good.

The results showed that the company achieved operating income of 5 billion 427 million yuan, an increase of 0.69% over the same period last year, and net profit attributable to shareholders of listed companies was 883 million yuan, an increase of 5.41% over the same period last year, and the basic earnings per share were 0.40 yuan.

The net cash flow from operating activities was 1 billion 772 million yuan, an increase of 4 billion 368 million yuan over the same period last year, -25.95 billion yuan.

The main reason is that the company paid 3 billion 505 million yuan of land in the same period last year.

During the reporting period, the company's apparel business achieved a profit of 2 billion 339 million yuan, a decrease of 21.26%, and a net profit of 526 million yuan, an increase of 30.21% over the same period last year.

As the brand clothing section completed the acquisition of 25% stake in the 14 holding companies during the reporting period, the net profit realized will no longer eliminate minority shareholders' profit or loss.

During the period, there were 257 new outlets in the company. As of the end of June, there were 2525 retail outlets.

The company's real estate development business achieved a revenue of 2 billion 561 million yuan during the period, an increase of 46.51% over the same period, and a net profit of 380 million yuan, an increase of 1110.01% over the same period last year.

The sharp increase is due to the increase in operating income and the increase in gross margin of delivery projects.

The company's financial investment business realized a total profit of 349 million yuan, down 62.30% compared to the same period last year, and the financial loss and management cost decreased by 15.62% compared with the same period last year, resulting in a loss of 1 million 722 thousand and 900 yuan in the whole sector.

On the eve of the earnings announcement, it was reported that YOUNGOR and Kay stone investment collapsed, and the shareholding structure would be adjusted.

In 2009 and 2010, YOUNGOR commissioned Kay stone investment as its asset investment management consultancy agency to achieve the growth of fixed investment and PE investment, and has made huge gains in the past two years.

However, since 2011, YOUNGOR financial

Net profit fell 487 million yuan, investment projects losses.

Li Rucheng, chairman of YOUNGOR, has repeatedly expressed his intention to return to the main garment industry and weaken the financial investment business.

According to the news, this is the source of investment losses are too large, as a controlling shareholder of Kai Shi investment YOUNGOR and Kai Shi investment may break.

Kay Stone Investment Authority Chen Jiwu said that YOUNGOR did not divest completely, Kai Shi was only carrying out the equity adjustment.

However, it can be seen that YOUNGOR is playing down its financial business and returning to its main business, which will reduce the impact of investment losses on the company's performance.

In August 28th, CICC released a research report that the company plans to gradually shrink its financial investment business and increase the proportion of small family housing.

Garment export business has almost completely ceased, and textile business is shrinking every year.

The company concentrates on the brand clothing industry, and expects annual average growth rate to exceed 20%.

Each sub brand has fine positioning and no duplication, and GY and HSM are developing more rapidly this year.

Real estate revenue growth is expected to be relatively fast in the second half of the year, and real estate revenue will be around 5 billion yuan a year.

Maintain "recommended" rating.

In August 28th,

Down 2.79%, to close at 7.32 yuan.