The result of returning to the main business of the local menswear leader Youngor is not obvious

Youngor is known to consumers as a clothing-made brand. However, at the beginning of the Ding Yi Rooster, the Youngor Zoo was caught in the "Tiger Biting" storm, and the identity of another "real estate company" of Youngor emerged.

The reporter in-depth study of Youngor’s financial report found that this diversified enterprise has formed a “three-legged” pattern of brand clothing, real estate development and financial investment. The proportion of net profit contributed by the apparel sector to the overall net profit is declining year by year, real estate and investment sector. There has been a phenomenon of high performance. In view of this, Youngor’s high-level officials have publicly and high-profilely declared “returning to the main business” since 2012. According to industry insiders, from the perspective of performance, the effectiveness of Youngor’s “return to the main business” is not obvious at present.

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

Founded in 1979, Youngor successfully landed on the Shanghai Stock Exchange on November 19, 1998 and has been a leader in the Chinese apparel industry for many years. It is worthy of recognition that in recent years, Youngor's operating income and net profit have achieved steady development. However, from the perspective of performance, the contribution of the real estate sector and the investment sector is far greater than that of the apparel sector.

To this end, the Economic Information Daily conducted an in-depth and comprehensive study of Youngor’s recent three-year financial report. According to the financial report, from 2013 to 2015, Youngor realized operating income of 1,151,668,600 yuan, 1,500,031,600 yuan and 145,273,928 yuan respectively. The net profit realized in the current period was 1,359,579,700 yuan, 3,162,407,800 yuan and 437,149,700 yuan, deducting non-recurrent After the profit and loss, the net profit attributable to shareholders of the listed company was 2,466,803,500 yuan, 1,381,764,000 yuan and 220,671,800 yuan respectively.

Overall, Youngor's development has been relatively stable in the past three years: operating income has remained at around 15 billion yuan per year, while net profit has shown an upward trend. However, the performance of attributable net profit is not ideal, and the fluctuations are large.

The "Economic Information Daily" reporter further studied the detailed composition of Youngor's performance and found that its "brand clothing, real estate development and financial investment" tribute contribution varies, of which the real estate and investment sectors account for a relatively large proportion. From the perspective of revenue structure, real estate development income has remained at around 10 billion yuan in the past three years, accounting for more than 60% of revenue. According to the financial report, from 2013 to 2015, Youngor’s real estate development income was 953,195,200 yuan, 1,106,885,500 yuan and 980,652,600 yuan respectively. The income of branded apparel has remained at more than 4 billion yuan in the past three years, accounting for only about 30% of the current operating income.

From the perspective of net profit composition, the real estate development and investment sectors contribute a lot, and more than half of the profits come from the investment sector. From 2013 to 2015, Youngor realized a total net profit of 889,351,100 yuan, of which the net profit contributed by the three major sectors of clothing, real estate and investment was 194,787,400 yuan, 230,574,600 yuan and 466,241,400 yuan respectively. Clothing, real estate, The net profit of investment accounted for 21.90%, 25.93% and 52.42% of the total net profit, respectively.

Long-term alleged “no business” real estate and investment performance fluctuations

Although Youngor has achieved relatively stable development over the years, the controversy along with its development has not stopped, and “no business” and “contempt of the main business” are the top priorities. As early as 2007, the US Business Weekly criticized some listed companies in China for not doing business. Youngor was listed on the stock market and real estate. For a while, Youngor was even seen as the most typical sample of the clothing industry “not doing business”. Some people say that Youngor is the company that knows the most about finance and real estate in the field of clothing, and is also the company that is best at selling clothing in the capital circle.

Although these statements have a somewhat ridiculous taste, it is undeniable that Youngor has indeed achieved certain 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 various properties such as houses, villas and commercial buildings in Ningbo and Suzhou. After 2004, Youngor set foot on the road of rapid expansion of real estate, and frequently took the land in the Yangtze River Delta and became the local “land king” and became a strong regional market brand. With the rapid development of the real estate business, Youngor has also received a generous return.

But Youngor’s real estate business is not always smooth. In the context of tightening macroeconomic regulation and control, Youngor has been caught in a sales dilemma due to excessive land acquisition costs. In June 2013, Youngor lost a total of 484 million yuan in deposits due to the return of two land to the government. The move that Youngor started long ago to split the real estate business into separate listings was also unsuccessful for various reasons.

The reporter found from the public financial information that the performance of Youngor's real estate sector is as unstable as a roller coaster. In the last three years, the financial report shows that although the annual revenue of Youngor Real Estate Development is stable at around 10 billion yuan, the net profit contributed by the real estate sector is extremely unstable, which is 116,604,870 yuan, 12,205,390 yuan and 1,107,738,800 yuan respectively. The proportion of the overall net profit for the period was 85.76%, 3.86% and 23.28% respectively. As early as 2009, the net profit contributed by Youngor's real estate sector has reached 119,134,300 yuan.

Youngor’s investment business began with an equity investment in 1993. Youngor’s chairman, Li Rucheng, was once known as “China’s Buffett” and Youngor was also listed as a “share god”. Since entering the securities investment in 2007, Youngor's listed companies have covered financial, mechanical manufacturing, clothing, medicine and other fields. Since 2012, Youngor has launched a strategic transformation from financial investment to industrial investment, focusing on big health. , large finance, comprehensive groups and other fields.

Regrettably, there are too many uncertainties in the capital market. Although Youngor earned a lot of money in equity investment, there are still some losses in the year. According to the financial report, the net profit contributed by the Youngor investment sector in 2014 and 2015 was 24,246,240 yuan and 272,694,300 yuan respectively, accounting for 76.68% and 62.38% of the total net profit for the current period. However, in 2012 and 2013, the Youngor investment sector suffered huge losses of 237.764 million yuan and 489.937 million yuan respectively.

The decline in the net profit ratio of brand clothing returns to the main industry is not obvious

There is a view in the industry that Youngor's diversified development strategy is aimed at obtaining investment income, and it can bring greater profits to the company in the context of slowing economic growth and the recovery of the consumer environment. It also made Youngor miss the opportunity to continue to expand the main business of clothing and become an internationally renowned brand. In fact, Youngor’s top management has long realized this, and has repeatedly publicly stated that he wants to “return to the main business” and “let the main business run”.

For example, Young Ruger, chairman of Youngor, publicly promised at the investor communication meeting in July 2012 that the company will return to the main business of clothing, strictly control real estate investment, adjust the scale of investment, and concentrate resources on brand clothing. In recent years, Youngor has adhered to the strategic plan of “transforming from production to operation to brand operation” in the field of branded apparel, and gradually improved its brand image and market share. In 2015, Youngor formulated the “four 1000” strategic development plan and established that in the next five years or so, it will cultivate 10 million active members with annual consumption of more than 1,000 yuan, and build 1,000 annual sales of 1,000. The development goal of the marketing platform of more than 10,000 yuan. In October 2016, Youngor signed a strategic cooperation agreement with the top five fabric suppliers in Europe to jointly build the high-end ready-to-wear and custom brand MAYOR in China's apparel industry. Youngor plans to invest 10 billion yuan in the next five years to strengthen new materials and fabrics for the apparel industry. Innovation in new processes, new brands and new services, rebuilding a Youngor in five years.

Objectively speaking, Youngor’s brand value is still awesome. According to the "2015 National Inspection Report of the Large-scale Retail Enterprises and Consumer Products Market" compiled by the China Business Federation and the China National Business Information Center, the market share of Youngor's flagship products, Youngor shirts and Youngor suits, has been 21 years and 16 years respectively. Ranked first, the market share of business casual wear, jackets and men's trousers also ranked second, third and fourth respectively, forming an effective supplement.

However, judging from the financial report, Youngor’s “return to the main business” has not yet seen obvious results. The "Economic Information Daily" reporter noted that the net profit contributed by Youngor's clothing sector from 2013 to 2015 was only 600 million yuan per year, and accounted for 47.34%, 20.64% and 14.90% of the overall net profit, respectively, showing a year-on-year decline. In 2012, the net profit of the apparel sector accounted for 51.24% of the overall net profit. In addition, Youngor’s branded apparel gross margin has remained at a relatively high level for the past three years, but it has shown a dynamic trend from 2013 to 2015 of 63.57%, 68.61% and 64.88% respectively.

Any single industry has its own cycle life. After more than 20 years of rapid growth before the reform and opening up, the domestic apparel industry has shown a lack of growth. According to industry insiders, in the context of the domestic clothing brands almost all encountering the test of the cold winter of the retail industry, whether the goal of “creating a Youngor for five years” and “four 1000s” can still be realized, and its future concrete results remain to be seen. .

Fun hot text: Guo Degang smashed the shirt, how to wear a V-neck sweater to kill everyone?

Old cadre, Dong Wang Kai, new drama, hit the goods, big PK, who do you prefer?

Kong Liu Li Yifeng loves to wear black cropped trousers? Joker does not make mistakes and shows long legs!

Editor in charge: null

Rayon Good Quality

Rayon Digital Print,Rayon Slub,Rayon Mlifa,Rayon 3068 Print

Shaoxing Shangda Textile Co., Ltd , https://www.shangdatex.com