YOUNGOR, Which Made 12 Million Of Its 2 Billion 500 Million Financial Assets, Made A Net Profit Of 1 Billion 800 Million In 2018.

The YOUNGOR group Limited by Share Ltd (hereinafter referred to as YOUNGOR) issued a notice on the night of March 5th, saying that the company sold CITIC shares (Stock Code: HK00267) from December 20, 2018 to March 6, 2019, and the paction amount was 1 billion 140 million yuan. The company used the idle investment funds to purchase structured deposits. During the period, the accumulated amount of structured deposits was redeemed at the expense of 1 billion 417 million yuan. The total amount of pactions handled by the company in dealing with financial assets amounted to 2 billion 557 million yuan, accounting for 10.49% of audited net assets at the end of 2017, resulting in an investment income of 16 million 5 thousand and 200 yuan and a net profit of 12 million 3 thousand and 900 yuan (Unaudited), accounting for 4.05% of the audited net profit in 2017.

YOUNGOR is a diversified, progressive and growing international group based on three major sectors, namely, brand clothing, real estate development and financial investment. The financial investment sector of the company has been pformed from financial investment to industrial investment since 2012, focusing on the fields of big health, big finance and comprehensive group.

At present, the company's investment business is mainly divided into two categories: strategic industrial investment and financial investment.

GF Securities analyst Mi Hanjie said earlier that the investment sector is an effective complement to YOUNGOR's existing business, YOUNGOR's clothing sector is relatively stable, and major capital expenditure projects are less, so it has a strong cash flow generation capability.

The real estate sector of the company has gradually pformed from rough development to intensive farming. In the land reserve, it will become more prudent, so as to enhance the cash flow rate of the real estate sector. YOUNGOR's investment sector can rely on the cash flow advantages of the company's clothing and real estate business and rely on the company's industrial resources advantages to develop new growth points for the company.

As early as 2015, YOUNGOR subscribed for CITIC shares and bought CITIC shares from the two market. At the same time, it reduced shares of Ping An, Pudong Development Bank and Jin Zhengda, and generated an investment income of 2 billion 305 million yuan, an increase of 825 million yuan over the same period last year, an increase of 55.74%.

According to the earnings report, YOUNGOR expects to have a business income of about 9 billion 296 million yuan in 2018, a decrease of about 5.52% over the same period last year, and a net profit of about 3 billion 664 million yuan attributable to shareholders of listed companies, representing an increase of about 1134.72% over the same period last year. The investment income of the investment business is about 3 billion 285 million yuan, representing an increase of about 7.81% over the same period last year. Net profit attributable to shareholders of listed companies is about 1 billion 837 million yuan, representing an increase of about 3 billion 526 million yuan over the same period last year.

According to the data obtained by reporters, as of the first half of 2018, YOUNGOR completed its operating income of 3 billion 585 million yuan, and realized a net profit of 1 billion 488 million yuan attributable to shareholders of listed companies. It was mainly affected by the real estate project's concentrated delivery in the second half of the year and the provision of 297 million yuan for the impairment of the assets of CITIC shares, representing a decrease of 33.59% and 27.28% respectively over the same period last year.

According to the sub sector, the textile and garment sector achieved a business income of 2 billion 821 million yuan, an increase of 13.03% over the same period last year, and a net profit of 606 million yuan attributable to shareholders of listed companies, an increase of 35.73% over the same period last year.

The real estate sector completed operating income of 763 million yuan, a decrease of 73.70% over the same period last year, and a net profit of 130 million yuan attributable to shareholders of listed companies, a decrease of 71.44% over the same period last year.

Net profit attributable to shareholders of listed companies reached 752 million yuan, down 34.26% from the same period last year.

(1) accounting for long-term equity investment assets such as Ningbo bank and Zhejiang Merchants Property Insurance by equity method, resulting in an investment income of 753 million yuan, an increase of 261 million yuan over the same period last year.

(2) the acquisition of financial assets and dividends and purchase of financial products earned 645 million yuan, an increase of 68 million 507 thousand yuan over the same period last year.

(3) disposal of financial assets such as Shanghai Pudong Development Bank, Ningbo bank convertible bonds, CITIC shares and other financial assets, resulting in an investment income of 421 million yuan, representing a decrease of 391 million yuan over the same period last year.

Reporters learned that during the reporting period, YOUNGOR invested 1 billion 119 million yuan to increase 65 million 914 thousand and 100 shares of Bank of Ningbo and invested 925 million yuan to participate in 9 new projects, such as China integrity credit reporting Co., Ltd. and Beijing intelligent image information management consulting Co., Ltd. as at the end of the reporting period, the company invested a total of 29 billion 25 million yuan, and the book value at the end of the month was 29 billion 666 million yuan, with a market value of 31 billion 612 million yuan.

Mi Hanjie believes that considerable investment returns are inseparable from the direction of YOUNGOR's investment pformation and the correct investment philosophy. From the perspective of observation, YOUNGOR's advantages in the investment sector are mainly two points. First, the company's clothing and real estate sector has strong cash flow capability, can make use of its own funds to invest, hold strong capabilities, and the two is the company's major investment in big health, big financial field, and the direction of the company's pformation coincide, and it is possible to form synergy with the company's original business sector in the future.

YOUNGOR has said in its 2018 semi annual report that China's economy has entered a new normal. The slowdown of economic growth will affect the consumption capacity to a certain extent, which will adversely affect the profitability of the company. The investment business of the company will adhere to the development thinking of "developing and stabilizing simultaneously", paying close attention to the macro-economy, rationally configuring and adjusting the structure of financial assets, grasping the cyclical market opportunities, and exploring the investment direction of cultivating new industries.