YOUNGOR: Both Clothing Sector Revenue And Gross Margins Decline

In the A share market,

It is a magical existence.

However, judging from the semi annual report disclosed recently, YOUNGOR "

These three carriages are not stable.

Both clothing sector revenue and gross margin declined.

On the evening of August 31st, YOUNGOR disclosed its semi annual report. During the reporting period, the company achieved operating income of 8 billion 667 million yuan, down 0.53% from the same period last year, and realized net profit of 3 billion 71 million yuan, an increase of 5.78% over the same period last year.

Among them, the apparel sector achieved 2 billion 214 million yuan in the first half of the year, down 7.2% from the same period last year, with a net profit of 395 million yuan, which shrank by 21.91% compared with the same period last year.

For the reasons for the decline in the income of the clothing sector, YOUNGOR Securities Department staff said in an interview with reporters, mainly affected by the warm winter, before and after the Spring Festival, a larger decline in income.

In addition, YOUNGOR continues to push forward the "big store strategy". Due to the continuous growth of rigid cost during the construction period and cultivation period, the profit level of garment business has become a drag.

Reporters noted that in the first half of 2016, the sales cost of YOUNGOR was 747 million yuan, up 3.55% compared with the same period last year.

In terms of marketing channels, YOUNGOR contributed most of its revenue to self-management.

Revenue declined, with a shrinkage of 6.51% and 7.01% respectively. It is understood that this is the first time that the business has declined in recent years. The income of franchise and group buying channels continued to decline by two figures, falling 12.21% and 23.85% respectively.

It is gratifying to note that YOUNGOR's online revenue doubled.

In addition to the sharp decline in revenue, YOUNGOR apparel business gross margin performance also disappointed investors.

Data showed that the gross profit margin of YOUNGOR's clothing sector in the first half of the year was 65.08%, down 2.85 percentage points over the same period, and the YOUNGOR staff told reporters that it was mainly caused by "price reduction to stock".

Half year report shows that as of June 30th, the book value of YOUNGOR clothing business was 1 billion 687 million yuan, a decrease of 193 million yuan compared with the beginning of the year.

In addition, the number of YOUNGOR entities stores has also declined.

According to the China Daily, as of June, there were 3230 sales outlets in YOUNGOR, a decrease of 7 compared with the beginning of the year.

In the past financial reports, the majority of YOUNGOR's stores are expanding.

Investment CITIC shares float 3 billion 400 million yuan three stakes or break the main business pattern

YOUNGOR's investment business can be accelerated as compared with the garment industry.

In recent years, YOUNGOR has gained the reputation of "investment bigwigs" in recent years.

According to statistics, YOUNGOR invested 12 billion 316 million yuan in total investment in 2007-2015 years, accounting for nearly 40% of the total profit in the current period.

YOUNGOR's first half year's "stock speculation" proceeds

The semi annual report that YOUNGOR has just disclosed shows that as of June 30th, the company held 13 stocks including CITIC shares, Bank of Ningbo, LIAN electronics, Shanghai Pudong Development Bank and Jin Zhengda, with a total book value of 25 billion 397 million yuan. According to the investment cost of 23 billion 800 million yuan, YOUNGOR's stock float surplus is 1 billion 597 million yuan, of which the holding value of CITIC stock is 14 billion 23 million yuan at the end of the term, compared with the initial investment cost of 17 billion 406 million yuan, YOUNGOR investment CITIC shares float 3 billion 384 million yuan.

In addition, YOUNGOR's stock in the first half of the year was reduced and cash in the stock exchange, which resulted in a loss of 2 billion 292 million yuan.

With the shrinking of the income of clothing and investment sectors, benefiting from high housing prices, YOUNGOR real estate business achieved 6 billion 344 million yuan in the first half of the year, a slight increase of 2.29%, and a net profit of 1 billion 169 million yuan, an increase of 163.34% over the same period last year.

However, YOUNGOR chairman Li Rucheng said in an interview with media reporters at the beginning of the year that he wanted to "return to the main garment industry". This may mean that the main business pattern of YOUNGOR's clothing, investment and real estate "three pillars" will be broken.