Can The Clothing Brand "Do Not Work Properly" Continue To Develop?

YOUNGOR announced that the company will focus on the main garment industry, and choose to deal with existing financial equity investment projects.

It is reported that the financial assets involved are as high as 10 billion.

YOUNGOR is the leader of the domestic shirt industry, but in the A share market, the listed company has many names such as "stock king" and "stock god".

In the industry view, YOUNGOR investment business trader style is flicker, logic is difficult to understand.

But in the past 20 years, earnings have been good, even with property and clothing as the "three carriages" of listed companies.

The announcement means that in the 20 year, "YOUNGOR" seems to want to wash hands and not play A shares.

Interestingly, the first trading day after YOUNGOR gold basin wash hands, A shares suffered thousands of shares down.

It is worth noting that on the one hand, YOUNGOR does not play the financial equity investment in the non main sector, but on the other hand, it is overweight the real estate business.

In February 2019, YOUNGOR purchased 3 plots in Cixi at a cost of 390 million yuan. In March 2nd, YOUNGOR was competing for 2 yuan in Qilihe District, Lanzhou, Gansu, at a price of 450 million yuan.

In 2018, YOUNGOR also successfully bid for the Tianjin billion high building at a price of 1 billion yuan.

The main business is mediocre.

For YOUNGOR's main industry, its data have no ups and downs in investment business.

The revenue of YOUNGOR's clothing sector has been maintained at around 4 billion yuan since its decline in 2012, and finally exceeded 5 billion in 2018. The net profit from 2012 to 2018 averages about 6-8 billion yuan, which is relatively stable.

However, the GY brand, which is highly regarded by YOUNGOR, is not ideal.

In 2016 and 2017, YOUNGOR's important strategic brand GY revenue was 152 million 800 thousand yuan and 152 million 600 thousand yuan respectively.

In the three quarter of 2018, the GY brand only achieved 1 million 780 thousand yuan in revenue, accounting for only 5.7% of the first three quarters of its revenue.

In the 2018 annual report, YOUNGOR no longer disclosed the income of GY brand.

As for the reasons for focusing on the main industry, YOUNGOR's announcement has pointed out that, based on the capital market value system, diversified companies are usually given lower valuations.

Li Ziru, YOUNGOR's real controller, once said publicly that "YOUNGOR is bigger and clothing is the core."

Obviously, YOUNGOR, like most capitalists, cares about valuation.

But in today's environment, if YOUNGOR completely divest financial investment, it will still have a long way to go.

In 2018, YOUNGOR held a press conference in Ningbo Fashion Festival to announce: "YOUNGOR has built the world's only hemp whole industrial chain.

This may also become the bottom line for YOUNGOR to return to its main business.

In addition, in order to focus on its main business, YOUNGOR recruited Hangzhou commercial legend Ma Qi Hua as its director and general manager of YOUNGOR fashion Holdings Limited.

Crazy about real estate

Although it has to withdraw from the non principal business financial investment business, its main business is also mediocre, but YOUNGOR seems to have a special preference for the last carriage - real estate.

Statistics show that as early as 1992, YOUNGOR began to set foot in the real estate sector.

Earlier, the real estate industry experienced an explosive development and became the main force for YOUNGOR's revenue generation.

Data show that from 2014 to 2016, its real estate business achieved operating income of 10 billion 699 million yuan, 9 billion 483 million yuan and 9 billion 882 million yuan respectively, accounting for 72.14%, 69.14% and 69.81% of YOUNGOR's overall revenue respectively.

However, in 2017, its real estate business became a drag on the overall performance of the company.

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 first time in the company's revenue share that was lower than that of the garment industry in recent years, resulting in a 33.94% year-on-year decline in YOUNGOR's revenue last year.

The profit of related real estate business is less than 40% of total profit, but the net profit of YOUNGOR belonging to shareholders of listed companies is up to 91.95% year-on-year.

In this regard, YOUNGOR will reduce revenue decline as a cyclical factor.

In 2017, the delivery area of YOUNGOR real estate decreased by 450 thousand and 600 square meters compared with the same period last year, and the carrying income decreased by 5 billion 264 million yuan compared with the same period last year.

At the same time, its quarterly report 2018 revealed that during the reporting period, the net cash flow of the real estate sector was -1.82 billion yuan. At the same time, due to the lack of centralized delivery projects, the real estate sector's operating income in the reporting period was only 319 million yuan, a sharp decrease of 85.21% over the same period last year.

However, this did not hinder YOUNGOR's real estate enthusiasm.

In March 2, 2019, YOUNGOR announced that it had won the right to use state-owned construction land in the GQ1811-1 and GQ1811-2 plots of Qilihe District, Lanzhou, Gansu, at a price of 450 million yuan, respectively, for commercial land and residential land.

Just a week ago, YOUNGOR also won the right to use state-owned construction land in the I201801#, I201802# and I201803# plots of Changchang River in Changhe Town, Cixi City, at a price of 390 million yuan, for the purpose of urban residential land (ordinary commercial housing).

In April 2018, YOUNGOR successfully bid for the Tianjin billion high building at a price of 1 billion yuan.

In November 2017, YOUNGOR invested 999 million to establish Hongyi equity investment with Hongyi capital to invest in new strategic investment industries including financial services, and real estate mergers and acquisitions business.

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.

It is worth noting that in September 2018, YOUNGOR invested more than 1 billion of its investment in the United States to become its cornerstone investor.

Before that, YOUNGOR basically maintained the way of developing and acquiring property independently, and the behavior of large capital investment in housing enterprises was relatively rare.

The relevant people believe that, to a certain extent, YOUNGOR's real estate business is shifting from development to investment as the real estate business is dragging down its overall performance.

No A shares.

YOUNGOR once again issued a statement on its strategic adjustment. The company will no longer carry out the financial equity investment in the non principal sectors, and choose to deal with existing financial equity investment projects.

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

That is to say, the financial assets that YOUNGOR has to sacrifice for strategic pformation will be as high as 30 billion yuan.

As early as in 2018, YOUNGOR began to lay the foundation for its sell-off of financial assets, and opened the selling and selling mode.

Looking at YOUNGOR's investment records, it was discovered that in 1999, YOUNGOR began to set foot in financial investment.

In the 1999-2005 year, it was the test year for YOUNGOR to invest in stocks. During the period, YOUNGOR gradually invested in CITIC Securities, Guang Bo shares, yeco Technology (later renamed the hemp industry, LIAN Electronics) and Ningbo bank.

And its investment income is considerable.

But the real expansion of YOUNGOR wallet is CITIC Securities.

However, Cheng also defeated Xiao He, Xiao He, whose late citic securities holdings had dragged down their overall performance.

YOUNGOR wants to focus on its main business, but its clothing business performance is very stable. From 2012 to 2018, net profit averaged around 6-8 billion yuan.

Therefore, in today's environment, if YOUNGOR completely divest financial investment, there will be a long way to go for a smooth garment business as a profit growth point.

In the increasingly fierce competition of clothing market, the two way of comprehensive development of single value and multiple elements has been going through the trial of the market. Whether it is investment acquisition or selling pfer is ultimately looking for new profit growth point.