How To Effectively Break Through The Failure Of YOUNGOR'S Real Estate Industry

The real estate industry of YOUNGOR group may face greater pressure in the future.

Recently, YOUNGOR group announced that recently, Beijing Purple Jade Villa Real Estate Development Co., Ltd. (hereinafter referred to as "Purple Jade villa company"), because of the dispute over the exclusive right to use registered trademarks, has taken the YOUNGOR group and its wholly-owned subsidiary, Ningbo YOUNGOR new town real estate Co., Ltd. (hereinafter referred to as "Ningbo YOUNGOR") and Suzhou YOUNGOR North City Real Estate Co., Ltd. (hereinafter referred to as Suzhou YOUNGOR) to the Beijing Higher People's court.

Purple Jade villa company complained that YOUNGOR group and its subsidiaries in Ningbo and Suzhou developed "Purple Jade Garden" and other projects infringing their exclusive rights to register trademarks, and asked the two companies to compensate for economic losses of 300 million yuan and 500 million yuan respectively, while changing the name of the project containing "Purple Jade" and other words, and to cancel all propaganda including "Purple Jade" and other names.

Liu Xinyu, deputy director of YOUNGOR group, said in an interview with the China operation newspaper that the names of some items involved in the proceedings may be adjusted in the near future. However, due to the fact that the lawsuit has not yet been heard in court, it is impossible to judge the impact on YOUNGOR group profits.

Trademark infringement disputes

According to the view of the purple jade villa company, the name and publicity name of the "Purple Jade Garden" real estate project, which is developed by Ningbo YOUNGOR and Suzhou YOUNGOR respectively in Ningbo and Suzhou, is similar to the registered trademark of "Purple Jade" "Purple Jade Mountain Villa PURPLE JADE VILLAS" by the plaintiff, and is similar to the name of the "Purple Jade" series project of the development project, which violates the special rights of the registered trademark.

The purple jade villa company filed a lawsuit request, ordered the Ningbo YOUNGOR to compensate the economic loss 300 million yuan, ordered the Suzhou YOUNGOR to compensate the economic loss 500 million yuan, at the same time requested the two companies to compensate the plaintiff for the cost of the case notarization, travel expenses and other reasonable expenses 26835.5 yuan and 21294.5 yuan respectively.

The villa company also requested that the YOUNGOR group, Ningbo YOUNGOR, Suzhou YOUNGOR and SouFun company immediately stop the infringement on the exclusive right to trademark, including, but not limited to, the "purple flower garden two phase 2", "Purple Jade Garden Flower Garden Eastern District", "Purple Jade Garden West area", "purple purple jade garden" 2 phase "purple purple flower garden 2 phase", "purple purple jade 90", which is used in the development of real estate projects, and cancel all the above names; the soufangfang company revoked all the project information on the website, such as "purple purple garden", "Purple purple flower garden 2 phase", "jade purple 90" and so on. Purple Jade

The reporter learned from the online trademark of the Trademark Office of the State Administration for Industry and commerce that the purple jade villa company has 15 trademarks, such as "Purple Jade", "Purple Jade slow Jiangwan" and "PJV Purple Jade villa PURPLE JADE VILLAS". The commodity / service category includes commercial housing construction, commercial housing sales and real estate leasing, agency, intermediary, evaluation, valuation, management and so on.

Xiong Chao, director of the Trademark Law Affairs Department of Beijing Jingshi law firm, told reporters that the trademark infringement had two constitutive elements in the case: first, whether the purple jade villa company had the exclusive right to use the relevant registered trademarks; second, whether YOUNGOR's adoption of the items containing "Purple Jade" and other names will confuse the consumers.

"Through the trademark registration of Purple Jade villa company, I think the company's exclusive right to enjoy" Purple Jade "and other trademarks can be confirmed. Therefore, judging from the fundamentals, YOUNGOR group and its subsidiaries constitute a relatively large possibility of trademark infringement.

Xiong Chao said at the same time, but purple jade mountain villa company claims that the compensation amount of 800 million yuan is a little high, and the case of "red pot dispute" between JDB and Wang Laoji is not so high.

Xiong Chao said that there are three indicators for determining the amount of compensation for trademark infringement: one is the damage suffered by the obligee because of the infringement; the two is the amount of the compensation according to the infringer's "benefits gained by infringement"; if the above two situations are unable to provide sufficient evidence, the court will make a 1 million yuan cut.

Therefore, if the purple jade villa company claims such a high tort compensation, it should provide a lot of, real and valid evidence to prove the damage suffered by the company, or prove the interests gained by the YOUNGOR group and its subsidiaries due to infringement.

A person in charge of brand promotion department of Purple Jade villa said in an interview with reporters that he could not comment on specific litigation matters.

Decline in real estate revenue dragged down performance

Statistics show that while maintaining the leading role of men's clothing industry, YOUNGOR group has gradually extended its business tentacles to the field of real estate development and investment, and thus has formed a business pattern of brand clothing, real estate development and investment "three carriages" coordinated development.

According to the annual report released by YOUNGOR group, in 2017, the company's operating income was about 9 billion 840 million yuan, down 33.94% compared to the same period last year. The net profit attributable to shareholders of listed companies was about 297 million yuan, compared with 3 billion 685 million yuan in 2016, a drop of 91.95%.

Unlike the rapid growth of brand clothing and investment business, the decline in real estate sector revenue in 2017 has become the main reason for dragging down the company's overall performance.

In 2017, the real estate sector of YOUNGOR group completed its revenue of 4 billion 855 million yuan, a decrease of 52.70% over the same period last year. The real estate development business finished 4 billion 588 million yuan, down 53.57% from the same period last year. The net profit attributable to shareholders of listed companies was 1 billion 227 million yuan, down 18.64% from the same period last year.

Annual report data show that in 2017, YOUNGOR Group real estate plate 3 new projects, the new construction area of 377 thousand and 600 square meters; completion of 2 projects, the completion area of 187 thousand and 800 square meters; 9 projects under construction, the construction area of 986 thousand square meters.

Sales, the company completed the two phase of Ming Zhou, Suzhou Purple Jade Garden Project centralized delivery, the carrying area of 25.66 square million square meters, realized operating income of 4 billion 588 million yuan, due to the cyclical factors of project development, respectively, compared with the same period last year to reduce 63.72%, 53.57%.

YOUNGOR Group real estate plate this year's development situation is also not optimistic.

In April 10th, the company released the first quarter earnings announcement in 2018, saying that the company's performance is expected to increase by about 8 billion 680 million yuan, an increase of about 687.95% compared to the same period last year.

In April 28th, the big reversal came. The company made corrections, saying that the first quarter performance in 2018 was expected to decrease by about 750 million yuan, down 60% from the same period last year.

For the reasons for the reversal of performance, YOUNGOR group said that the real estate sector did not deliver projects in the first quarter of this year, only realized 319 million yuan in operating income and 51 million yuan in net profit, which decreased by 85.21% and 86.61% respectively compared with the same period last year. At the same time, the net profit of the investment industry to shareholders of listed companies was 185 million yuan, which was 473 million yuan lower than that of the same period last year. The main reason is that the investment income from disposal of financial assets decreased by 398 million yuan compared with the same period last year.

Liu Xinyu told reporters that in 2018, because of the cyclical nature of real estate revenue settlement, the first half of this year was relatively small, and the first half of the year could not represent annual performance.

"The second half of this year, Ningbo Ya Ming garden, City sunshine, Suzhou Sun City super high-rise real estate projects will focus on the delivery period. The annual income of the real estate sector is expected to grow by more than 30% over the same period last year."

Liu Xinyu said.

Betting on pension real estate?

In fact, as a "veteran", since the beginning of 1992, YOUNGOR group is in real estate.

For more than 26 years, the company's wholly owned subsidiary YOUNGOR Real Estate Holdings Limited (hereinafter referred to as "YOUNGOR real estate") has been developed in major cities such as Shanghai, Ningbo, Suzhou and Hangzhou in the Yangtze River Delta.

In 2007 ~2010, the real estate sector of YOUNGOR group entered a period of rapid expansion, and a number of "land kings" plots were photographed at high prices in Shanghai, Hangzhou and Suzhou, which laid the foreshadowing for the contraction of the real estate business in the future.

Since then, YOUNGOR has had to shrink the real estate business front by reducing the profit pressure, and gradually fade away from the real estate market by way of land withdrawal and cooperation.

At that time, Li Rucheng, chairman of YOUNGOR group, admitted that the state had been constantly regulating the real estate industry, and the road of real estate was difficult for the company to go through.

The downturn in real estate did not prevent YOUNGOR group from investing heavily. In 2017, when the real estate market began to recover, the company began to actively reserve land resources.

In July 2017, YOUNGOR group announced that it would jointly invest 2 billion yuan with YOUNGOR, a wholly owned subsidiary, to set up Shanghai YOUNGOR Real Estate Development Co., Ltd.

For the purpose of re establishing the real estate subsidiary, YOUNGOR said, "the move is to seize the development opportunities of the national real estate industry, search for quality projects and plots through mergers and acquisitions, expand and strengthen the company's real estate business, and cultivate new profit growth points."

Data show that in 2017, YOUNGOR Group invested 3 billion 986 million yuan to compete for three land in Ningbo and Zhoushan, with an additional land area of 21.24 million square meters.

By the end of 2017, YOUNGOR had 4 land reserves and 403 thousand and 500 square meters of land area, and it planned to develop 617 thousand and 500 square meters of construction area.

In addition, in May 24th this year, in order to promote the pformation of real estate business to new related industries such as health care, pension and healthy towns, YOUNGOR purchased 75 million 96 thousand and 400 acres of medical and health land use rights at 121.989 yuan in Ji Shi Gang Town, Haishu District, Ningbo.

According to the conditions of land pfer, the investment intensity of the project is not less than 21000 yuan per square meter, and the total investment amount is not less than 1 billion 700 million yuan.

It is understood that as early as 2015, YOUNGOR group began to set foot in the field of "big health", and set up the first YOUNGOR health industry fund with a scale of 1 billion yuan, looking for investment projects around the health care industry.

For the reasons for joining the big health field, YOUNGOR group explained: "with the enhancement of China's comprehensive national strength, the improvement of people's living standards and the deepening of the national medical reform, the medical and health industry will have broad prospects for development and huge investment opportunities."

An industry insider who does not want to be named thinks that YOUNGOR group is entering into the medical health industry or intends to pform to the direction of the pension real estate. It depends on differentiated competition to realize the "turning over" of the real estate business, but whether it can kill the siege and turn the real estate sector down is unknown.

Zhang Dawei, chief analyst of Zhongyuan Real estate, said in an interview with reporters that such a "no" for YOUNGOR group.

Mainstream Housing enterprises, the future business pressure may be bigger and bigger.