Does YOUNGOR Need To Sell Its Son In Strategic Pformation?

In view of its good prospects for the hemp industry, yeco technology announced in January this year that it has gradually stripped traditional textile businesses from upgrading and upgrading to hemp and new materials. The Chinese name of the company changed from "Ningbo Yi Ke hi tech Industrial Limited by Share Ltd" to "hemp industry investment Limited by Share Ltd", and the corresponding English name and business scope have also been changed.

After only 4 months, YOUNGOR sold the "shell resources" of the hemp industry to LIAN electronics, with a shareholding ratio falling to 13% and losing control rights.

The hemp industry has shifted from the new material industry to the electronic technology industry.

To some extent, YOUNGOR's move has been seen as a mark of pformation.

As for the reasons for the failure of the hemp industry pformation, the restructuring plan shows that due to the lack of market promotion and market acceptance, the profitability of listed companies is not good enough due to the insufficient utilization of capacity.

Data show that in the past 2012-2014 years, the revenue of hemp industry was 390 million yuan, 420 million yuan and 400 million yuan respectively, while the net profit was 9 million 300 thousand yuan, 9 million 500 thousand yuan and 6 million yuan respectively.

If the main business is weak and the prospects are not good enough, it is probably a good choice for YOUNGOR to give up the position of the real controller.

Times weekly reporter contacted YOUNGOR group secretaries Liu Xinyu, the other side said it was inconvenient to answer relevant questions.

"YOUNGOR has been seeking diversified development and unwilling to focus on the main garment industry. It is already late when it is pformed into hemp industry, and the flax industry is invested high and the demand for capital is large. The domestic flax industry is not mature enough to get through the whole industry chain, so there has been no fundamental breakthrough."

Tao Wensheng, partner of Peking University Consulting Management Group, said to the times weekly reporter.

In fact, YOUNGOR has been seeking diversified pformation over the years.

In 1992, YOUNGOR entered the real estate business.

In 1999, YOUNGOR invested 320 million yuan to become one of the main sponsors of CITIC Securities.

Currently formed

Real estate, financial investment and three carriages keep abreast of the situation.

On the way to pformation, YOUNGOR also suffered great ups and downs.

In the first 10 months of 2011, YOUNGOR took part in the private placement of more than 10 listed companies, of which 8 were losing money. The net profit of that year was 487 million yuan, down 60% from the same period last year. In 2012, the investment business suffered another "Waterloo", with a net profit loss of 231 million yuan.

and

Because of the influence of national regulation policy, it has also declined rapidly.

In 2011, YOUNGOR's real estate business achieved a revenue of 3 billion 636 million yuan, a year-on-year drop of 46.94% and a net profit drop of 15.86%.

Since then, due to tight funding chain, YOUNGOR real estate projects began to sell at a reduced price and face the embarrassment of land withdrawal.

In 2013,

Playing the slogan of returning to the main industry, at the same time, it also indicated that it would pform from production and operation to brand operation. However, in the general situation of the clothing industry, YOUNGOR was not able to be independent. In 2014, the inventory was over 1 billion yuan, and the pformation results were not obvious.

Nevertheless, in March of this year, YOUNGOR still hung out the investment strategy of pforming "big health + venture capital".

At a meeting of investors at YOUNGOR, Li Rucheng said that in the foreign investment of 4 billion 500 million yuan, 2 billion yuan would be used to increase Hongkong's financial projects, create a financial holding platform, invest 1 billion yuan in the health industry fund, and invest 1 billion 500 million yuan in equity.

"Financial investment has a certain impact on YOUNGOR's operation. Both PE and pre-IPO are long-term investments. Long-term occupation of funds affects cash flow, and the failure of listed companies to abandon the hemp industry can supplement cash to some extent."

Tao Wensheng analysis said, "YOUNGOR has refused to carry out substantive pformation and upgrading of the garment industry, and Li Rucheng did not want to make a difference in the garment industry. But other industries in pition are not successful, and cash flow is urgently needed to become a reality".