The Result Of YOUNGOR'S Return To The Main Industry Is Not Obvious.

YOUNGOR is well known for its clothing brand.

However, at the beginning of the year of the chicken, YOUNGOR zoo was caught in the "tiger bite" storm, and YOUNGOR's identity of another "real estate company" surfaced.

Reporters in-depth study of YOUNGOR's past financial reports found that this has formed a brand clothing, real estate development and financial investment "three feet" pattern of diversified enterprises, the contribution of clothing sector net profit accounted for the proportion of the overall net profit decreased year by year, real estate and investment sector appeared a larger performance phenomenon.

In view of this, YOUNGOR executives have repeatedly declared high profile since 2012, "return to the main business".

According to the insiders, the results of YOUNGOR's "return to the main industry" are not obvious at present.

60% revenue from real estate development investment sector contributed more than half profits

Founded in 1979, YOUNGOR successfully landed on the Shanghai stock exchange in November 19, 1998. It has been the leader of China's garment industry for many years.

It is worth affirming that in recent years, YOUNGOR's operating income and net profit have achieved steady development.

But judging from the composition of performance, the contribution of real estate sector and investment sector is much larger than that of the clothing sector.

To this end, the economic reference Daily carried out an in-depth and comprehensive study of YOUNGOR's latest three years' earnings report.

According to the financial report, from 2013 to 2015, the operating income of YOUNGOR was 15 billion 166 million 875 thousand and 600 yuan, 15 billion 903 million 216 thousand yuan and 14 billion 527 million 392 thousand and 600 yuan respectively. The net profit realized in the current period was 1 billion 359 million 597 thousand yuan, 3 billion 162 million 418 thousand and 700 yuan and 4 billion 371 million 497 thousand and 400 yuan respectively. Net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was 2 billion 466 million 803 thousand and 500 yuan, 1 billion 389 million 761 thousand and 400 yuan and 2 billion 206 million 710 thousand and 800 yuan respectively.

In general, YOUNGOR has developed more steadily in the last three years: its operating income is basically around 15 billion yuan per year, while net profit has shown a rising momentum.

However, the net profit attribution is not ideal enough, fluctuating from top to bottom.

After further research on the detailed composition of YOUNGOR's performance, the reporters found that the three carriages of "brand clothing, real estate development and financial investment" contributed differently, including real estate and investment sectors.

From the perspective of revenue composition, real estate development revenue has basically maintained at around 10 billion yuan in recent three years, accounting for over 60% of revenue.

According to the financial report, from 2013 to 2015, YOUNGOR's real estate development revenue was 9 billion 531 million 952 thousand yuan, 10 billion 698 million 855 thousand and 100 yuan and 9 billion 806 million 520 thousand and 600 yuan respectively.

The brand clothing revenue has basically maintained at about 4000000000 yuan in the past three years, accounting for only about 30% of the current operating revenue.

From the perspective of net profit composition, real estate development and investment sectors contribute more, and more than half of their profits come from investment sectors.

From 2013 to 2015, YOUNGOR realized a net profit of 8 billion 893 million 513 thousand and 100 yuan, of which the net profit contributed by the three major sectors of clothing, real estate and investment amounted to 1 billion 947 million 874 thousand yuan, 2 billion 305 million 740 thousand and 600 yuan and 4 billion 662 million 411 thousand and 400 yuan respectively. The net profit of clothing, real estate and investment accounted for 21.90%, 25.93% and 52.42% of the total net profit.

Long term accused of "not doing business" property and investment performance fluctuations.

Although YOUNGOR has made steady progress over the years, the controversy with its development has never ceased.

As early as 2007, the US Business Week criticized some Chinese listed companies for their main business, and YOUNGOR was listed on the stock market and real estate sector.

For a while, YOUNGOR was even regarded as the most typical sample of the clothing industry.

Some people say that YOUNGOR is the most financial and real estate company in the field of clothing, and is also the best selling company in the capital circle.

Although these statements are somewhat teasing, it is undeniable that YOUNGOR has made some achievements in the field of real estate development and financial investment.

It is reported that YOUNGOR has been involved in real estate development since 1992, and has developed residential, villas, business buildings and other properties in Ningbo, Suzhou and other places.

After 2004, YOUNGOR embarked on the road of rapid expansion of real estate, and frequently paid high prices in the Yangtze River Delta region and became the local "king of land" repeatedly, becoming a strong regional market brand.

Along with the rapid development of the real estate business, YOUNGOR has also received substantial returns.

But YOUNGOR's real estate business is not smooth sailing.

In the environment of tightening macro-control of real estate, YOUNGOR was caught in a sales predicament because of its high cost.

In June 2013, YOUNGOR returned two land to the government, resulting in a 484 million yuan deposit.

YOUNGOR's early start to separate the real estate business from its independent listing has failed for many reasons.

Reporters from the open financial information found that YOUNGOR real estate plate performance is like a roller coaster instability.

According to the latest three years' earnings report, although the annual revenue of YOUNGOR's real estate development is stable at around 10 billion yuan, the net profit contributed by the real estate sector is very unstable, which is 1 billion 166 million 48 thousand and 700 yuan, 122 million 53 thousand and 900 yuan and 1 billion 17 million 638 thousand yuan respectively. The net profit of the real estate sector accounts for 85.76%, 3.86% and 23.28% of the total net profit of the current period respectively.

As early as 2009, the net profit of YOUNGOR's real estate sector has reached 1 billion 191 million 343 thousand yuan.

YOUNGOR's investment business started in 1993 equity investment, YOUNGOR chairman Li Rucheng was once known as "China's Buffett", YOUNGOR was also sealed A shares "stock god".

Since its entry into securities investment in 2007, YOUNGOR's listed companies have covered many fields such as finance, machinery manufacturing, clothing, medicine and so on. Since 2012, YOUNGOR has launched a strategic pformation from financial investment to industrial investment, focusing on big health, big finance, comprehensive group and other fields.

Unfortunately, there are too many uncertainties in the capital market. Although YOUNGOR has made a lot of money in equity investment, there are still some losses in the year.

Financial reports show that in 2014 and 2015, the net profit contributed by the YOUNGOR investment sector amounted to 2 billion 424 million 862 thousand and 400 yuan and 2 billion 726 million 946 thousand and 300 yuan respectively, accounting for 76.68% and 62.38% of the total net profit respectively.

But in 2012 and 2013, YOUNGOR's investment sector lost 230 million 746 thousand and 400 yuan and 489 million 397 thousand and 300 yuan respectively.

Brand clothing net profit ratio decline to return to the main industry, the effect is not obvious.

There is a view in the industry that YOUNGOR's diversified development strategy aims at obtaining investment returns. It can bring greater profits to the company under the environment of slowing economic growth and not yet fully warming the consumer environment. But it also makes YOUNGOR miss the opportunity to continue to grow its main garment industry and become an internationally famous brand.

In fact, YOUNGOR executives have long realized this, and have repeatedly expressed their intention to "return to the main business" and "let the clothing industry run".

For example, Li Rucheng, chairman of YOUNGOR, made a public commitment at the investor communication conference in July 2012. The company will return to the main business of clothing and strictly control the investment in real estate, adjust the scale of investment and concentrate resources on brand clothing.

In recent years, YOUNGOR has persisted in promoting the strategic plan of "pformation from production management to brand operation" in the field of brand clothing, and gradually enhanced brand image and market share.

In 2015, YOUNGOR formulated the "4 1000" strategic development plan, and established 10 million years of active membership of over 1000 yuan in the next five years, and 1000 development goals of 1000 annual sales volume of more than 10 million yuan.

In October 2016, YOUNGOR signed a strategic cooperation agreement with five top European fabric suppliers to jointly build high-end garment and custom brand MAYOR of China's apparel industry. YOUNGOR plans to invest 10 billion yuan in the next 5 years, and strengthen the innovation of new materials, new fabrics, new processes, new brands and new services in the field of clothing, and reinventing YOUNGOR in 5 years.

Objectively speaking, the brand value of YOUNGOR still makes some praise.

According to the 2015 annual report of the national large scale retail business and consumer goods market compiled by the China Federation of Commerce and the China National Business Information Center, the domestic market share of YOUNGOR's main products YOUNGOR shirts and YOUNGOR suits has ranked first in the twenty-one and sixteen years respectively. The market share of business casual wear, jackets and men's trousers is also ranked second, third and fourth respectively, forming an effective supplement.

But from the earnings report, YOUNGOR's "return to the main business" has not yet seen obvious results.

The economic reference daily noted that the net profit of YOUNGOR clothing sector from 2013 to 2015 was only 600 million yuan, and the proportion of the total net profit was 47.34%, 20.64% and 14.90% respectively, showing a decreasing trend year by year. In 2012, the net profit of garment plate accounted for 51.24% of the total net profit.

In addition, the gross profit margin of YOUNGOR's brand clothing has remained at a high level for the past three years, but fluctuated from 2013 to 2015, 63.57%, 68.61% and 64.88% respectively.

Any single industry has its cyclical life. After 20 years of rapid growth after reform and opening up, the domestic garment industry has shown a weak growth trend.

According to the insiders, under the environment of almost all the domestic clothing brands experiencing the cold winter test of retail industry, it is doubtful whether the goal of "five years of reinvention of a YOUNGOR" and "4 1000" can be achieved.