How Long Can YOUNGOR Remain?

The stock market of listed companies has been criticized as "doing nothing", but YOUNGOR has made a good profit.

YOUNGOR announced in the evening of November 27th that from the beginning of the year to November 27, 2015, the company's investment in proceeds from the sale of the sale of financial assets amounted to 1 billion 962 million yuan, with a net profit of 1 billion 472 million yuan.

Data show that the company's net profit in 2014 was 3 billion 162 million yuan.

By the end of the three quarter of 2015, the balance of YOUNGOR's available financial assets amounted to 26 billion 508 million yuan, a substantial increase from 10 billion 91 million yuan at the beginning of the year.

The outcome of YOUNGOR killed most of the market investors.

Under the changing environment of the overall economic environment, how to adjust the company's operating structure and adapt to the new normal economic situation and regain the vitality of production and operation is a difficult problem before the traditional industry companies.

And how far is YOUNGOR's return to its main business in the capital market?

YOUNGOR's "three carriages"

The development of YOUNGOR can be described as a typical example of "industrial excellence and investment".

YOUNGOR started its apparel industry in 1979. Since its listing in 1998 on the Shanghai Stock Exchange [micro-blog], its main business is from early clothing,

Business has gradually extended to real estate. In recent years, it has gradually shifted investment focus to equity investment, and finally formed a pattern of "three carriages" of brand clothing, real estate development and investment.

In real estate business, YOUNGOR started earlier.

Since 1992, YOUNGOR has begun to set foot in the development of real estate, and its real estate business has risen rapidly.

Data show that in 2009, YOUNGOR's real estate business accounted for 42% of its total revenue. In 2010, the data reached 47%, and its contribution rate was almost half.

This year's China Daily shows that YOUNGOR's real estate sector's revenue is 6 billion 200 million yuan, far exceeding the 2 billion 200 million yuan for the same period of the clothing sector.

Investment business, relying on Kai Shi investment, YOUNGOR has repeatedly attacked in the capital market.

In recent years, YOUNGOR has made a lot of money in the investment field.

In 2009, YOUNGOR took part in the fixed investment increase of 9 listed companies, all floating profit, and equity investment net profit surged by 404.71% over the same period.

In 2010, the net profit of financial investment business was 1 billion 245 million yuan.

In the Daniel market in 2007, YOUNGOR's investment income rose by an astonishing 5110.92%.

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Slowdown in main garment industry

Compared with the other two "horse drawn" achievements, as YOUNGOR's original industry

Plate, in recent years affected by the overall downturn in the apparel industry, is extremely struggling.

According to the annual report, in 2012, YOUNGOR brand clothing plate still achieved revenue of 4 billion 83 million, an increase of 11.37% over the same period last year, and net profit increased by 18.47% over the same period last year.

By 2013, the net profit of the brand clothing sector dropped by 21.37% over the same period last year.

In 2014, the sales of branded apparel business decreased by 3.21% compared with the previous year.

This year's report shows that in the first half of this year, YOUNGOR's apparel sector achieved a business income of 2 billion 400 million yuan, down 1.06% from the same period last year.

On the other hand, the number of stores in YOUNGOR has declined for the first time in recent years.

It has been pointed out that YOUNGOR's diversified development strategy aims at gaining investment returns, and on the one hand, it brings greater profits. Under the environment of slowing economic growth and not yet fully warming the consumer environment, it has effectively kept the company's profits. On the other hand, YOUNGOR has missed the opportunity to develop diversified clothing categories and become a large garment group.

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In addition, this year YOUNGOR's series of "cash in" behavior is also particularly eye-catching.

In the two reduction of extensive shares, cash nearly 300 million yuan, YOUNGOR in May and its holdings of hemp industry control rights handed over, and once again cash in 125 million yuan.

Performance depends on "speculation".

Turning forward YOUNGOR's financial data, YOUNGOR has gained considerable investment in recent years.

Take 2014 as an example, the company achieved a net profit of 1 billion 462 million yuan by selling some of the available financial assets such as CITIC Securities and Industrial University.

This year, A shares experienced ups and downs from May to July, and YOUNGOR still had a big buying move.

Between May 19th and July 13th this year, YOUNGOR once again bought for sale financial assets such as Shanghai Pudong Development Bank and CITIC stock, with a total paction value of 2 billion 498 million yuan, accounting for 15.12% of audited net assets at the end of last year.

Today, YOUNGOR, a "stock god", has its main business in its financial statements.

The contribution to the overall profit of the company is gradually reduced, and the sideline industry has acted as a performance manager.

Return to main business or meet bottlenecks

YOUNGOR's real estate business is showing signs of weakness.

The semi annual report showed that the net profit of the YOUNGOR real estate plate fell 18% in the first half of this year, due to the increase of the rigid cost of land and labor and the adjustment of product structure.

Under pressure, YOUNGOR chairman Li Rucheng has repeatedly expressed his willingness to pay more attention to the main business.

"In China, financial investment is a new industry, YOUNGOR can participate, but can not be the main industry to do, coupled with real estate regulation over the years, in this case, we must" return to the core ", the original is three legs at the same time walking, now is the clothing industry, and the other two industries as deputy.

In March of this year, YOUNGOR still hung out the investment strategy of pforming "big health + venture capital".

At the beginning of May, YOUNGOR formulated an increase of not more than 5 billion yuan to invest in the O2O marketing platform project (3 billion), the YOUNGOR Hunchun clothing production base project (500 million), the Suzhou Purple Jade Garden Project (450 million) and the Ming Zhou Watertown neighbourhood two phase project (400 million), and its large layout O2O shows the determination of pformation.

However, YOUNGOR's return to its main business is faced with variables. A key question is whether YOUNGOR's return to the main business can keep pace with the pace of development. Enterprises seek diversification and speed up the development of enterprises in the market, while excessive diversification will inevitably affect the main business and disperse the energy of enterprises.