YOUNGOR Announced That It Would No Longer Carry Out Financial Equity Investment. After The "Stock Market King", It Should Concentrate On Selling Clothes.

YOUNGOR group Limited by Share Ltd (hereinafter referred to as YOUNGOR) announced in April 29th that in order to achieve the goal of maximizing the value, the company intends to make a major adjustment to the development strategy, and will further focus on the development of the main garment industry in the future. Besides strategic investment and continuing investment commitments, the company will no longer carry out the financial equity investment in the non main sector, and take the opportunity to deal with the existing financial equity investment projects.

According to introduction, in 1999, YOUNGOR first set foot in financial investment, both for policy reasons and for industrial development and diversification strategy.

In the past 1999-2005 years, YOUNGOR has invested in CITIC Securities, Guang Bo shares, yeco Technology (later renamed the hemp industry, LIAN Electronics) and Ningbo bank.

In 2005, the split share structure reform was completely rolled out, and the capital market entered a rapid development period. The market value of financial assets held by YOUNGOR increased rapidly, which once exceeded 20 billion yuan.

After comprehensively studying the capital demand of the existing business development and the development prospect of the capital market, YOUNGOR put forward the development strategy of "three carriages" in 2007, and prudently explored the investment business on the basis of the steady development of clothing and real estate business.

In the next 12 years, YOUNGOR witnessed the rapid development of the capital market, and experienced the ups and downs of the investment return, which brought the complexity of the valuation judgment to investors and the uncertainty of the future.

Moreover, based on the capital market value system, diversified companies are usually given lower valuations.

Therefore, in order to achieve the goal of maximizing the value of the company, the company intends to make the above adjustment on the occasion of YOUNGOR 40th anniversary.

The announcement shows that as of the end of 2019 3, YOUNGOR invested 39 projects, with an investment cost of 30 billion 455 million yuan and a final face value of 32 billion 20 million yuan.

YOUNGOR announced that, in addition to fulfilling its original investment commitments, according to different investment characteristics, the stock items of financial equity investment should be selected by different strategies such as two market reduction, agreement pfer, withdrawal after expiration and exit after listing.

YOUNGOR said:

1, the company has implemented the new accounting standards since January 1, 2019. It has designated financial assets other than long-term equity investments as "financial assets measured in fair value and whose changes are included in other comprehensive income". Its value fluctuations and disposal do not affect the current profits and losses. Only the dividend income can be included in the current investment income, thereby affecting the current profits and losses;

2, the Bank of Ningbo, as a strategic investment project held by the company for a long time, will provide a stable return for the company. Therefore, the implementation of "no longer new and accelerated disposal of financial equity investment scheme" will not have a significant impact on the company's investment income; moreover, in the process of disposing of the financial equity project, the company will gradually recover the funds, which will help the company to further strengthen the main garment industry and improve the overall profitability of the company.

Based on the strategic thinking that YOUNGOR has clearly focused on the main garment industry, in order to reduce the impact of capital market volatility on the uncertainty of the company, investors and capital markets have a clearer and clearer understanding of the company, and the company intends to no longer add financial equity investments in non main sectors, and take the opportunity to deal with existing financial equity investment projects, concentrate resources and tap the potential, and strive to promote YOUNGOR's clothing industry to a new level, creating greater value for investors.

Public information shows that YOUNGOR is a diversified, progressive and growing international group based on the three major sectors of brand clothing, real estate development and financial investment. The data obtained from the first textile network show that in 2018, YOUNGOR realized operating income of 9 billion 635 million yuan, down 2.07% compared to the same period last year; net profit attributable to shareholders of listed companies increased by 3 billion 677 million, up 1139.14% over the same period last year; net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was 3 billion 99 million yuan; basic earnings per share were 1.03 yuan, and 10 shares were offered a cash dividend of 5 yuan (including tax) and an increase of 4 shares.

During the reporting period, YOUNGOR's main business includes brand clothing, real estate development and investment business, and the main business mode of the company has not been adjusted.

The company's fashion apparel sector finished business revenue of about 5 billion 644 million yuan, an increase of 13.22% over the same period last year. The net profit attributable to shareholders of listed companies was 830 million yuan, an increase of 9.34% over the same period last year.

The real estate sector completed operating income of 3 billion 991 million yuan, down 17.79% from the same period last year, and realized a net profit of 1 billion 49 million yuan attributable to shareholders of listed companies, down 14.51% from the same period last year.

The investment income of the investment business reached 3 billion 207 million yuan, an increase of 5.25% over the same period last year, and the net profit attributable to shareholders of the listed company was 1 billion 798 million yuan, an increase of 3 billion 487 million yuan over the same period last year.