YOUNGOR'S Return To The Main Garment Industry Will Continue To Exert Itself In The Long Run.

YOUNGOR (600177.SH), which has been known as "out of business", is still making efforts in the industry. The company announced yesterday that YOUNGOR group's wholly owned subsidiary, Suzhou Lang Yi Da Business Management Co., Ltd. successfully bid for the Tianjin billion high building by 1 billion yuan through online bidding.

"YOUNGOR seems to have a sign of strategic adjustment, after YOUNGOR's real estate business is mainly real estate development and residential sales, and this auction is a commercial real estate project. In the context of tighter regulation of the property market, YOUNGOR's operating income has declined, which has shown signs of a shift in equity long-term investment and a change in real estate business holding or equal emphasis on the two. Yan Yuejin, research director of the think-tank Research Center, told the financial union.

Although Li Rucheng, chairman of YOUNGOR group, said in 2016 that YOUNGOR had to return to the main garment industry. However, judging from the performance of the past two years, the real estate business is still heavily valued by YOUNGOR, and there is a trend of strengthening in some areas.

YOUNGOR's real estate business

It is understood that the acquisition of YOUNGOR billion house in Nankai District, Tianjin, a total of 503 properties, with a total construction area of about 94911 square meters, completed in 2011, including commercial podium, office buildings, apartments, garage and ancillary housing.

A person close to YOUNGOR said, "at present, YOUNGOR has a market value of 30 billion yuan. If we rely solely on clothing business, YOUNGOR will not develop to the present scale. But in terms of risk, clothing business is more stable and real estate investment is more volatile.

The 2017 annual report shows that YOUNGOR's real estate sector finished 4 billion 891 million yuan, down 52.35% from the same period last year, and realized a net profit of 1 billion 268 million yuan attributable to shareholders of listed companies, a decrease of 15.91% over the same period last year.

YOUNGOR said that due to the cyclical factors of real estate business, the area of project delivery in 2017 decreased compared with the same period last year, resulting in a decrease in carry over revenue compared with the same period last year.

Although YOUNGOR started in the clothing industry, it has already started to enter the real estate industry as early as 1992. With the development of the economy, real estate has become a major sector of its business, and has also created a lot of profits for it. Yan Yuejin said to the associated press.

According to incomplete statistics, in 1998-2017 years, YOUNGOR clothing The total net profit is 9 billion 590 million yuan, the total net profit of real estate business is 10 billion 680 million yuan, and the total net profit of investment business is 12 billion 730 million yuan. In terms of profits, investment is the most, followed by property and clothing the least. Li Ru Cheng Shenzhen has considered splitting real estate listings.

In 2016, Li Rucheng said publicly that "if YOUNGOR really wants to be bigger and stronger, clothing is our core. The real estate industry is constantly adjusting and controlling, which is not very clear. This road is very difficult for YOUNGOR to go through, and the opportunity of investment is relatively large. We also do not have a very strong and professional team here.

Although Li Rucheng made the above statement, YOUNGOR did not significantly slow down the pace of expansion in real estate business.

Annual report data show that the company's 2017 annual operating income was 98.94 billion yuan, down 33.58% from last year. Among them, the clothing sector is 4 billion 907 million yuan, and the real estate sector is 4 billion 891 million yuan, accounting for almost half of the annual revenue.

In 2017, YOUNGOR seized three pieces of land, with a total value of 3 billion 990 million yuan. Among them, 1 billion 850 million yuan won the Ningbo Tianshui homestead plot; 12.5 billion yuan won the northern block of Ningbo Beilun new archives archives; at the price of 890 million yuan, it won the right to use state-owned land for construction of Zhoushan 3 (2017).

It is noteworthy that in July 2017, YOUNGOR announced that it would jointly invest 2 billion yuan with wholly owned subsidiary YOUNGOR real estate holdings limited to set up Shanghai YOUNGOR Real Estate Development Co., Ltd.

"This is to seize the development opportunities of the national real estate industry, search for high-quality projects and plots through mergers and acquisitions, and expand and strengthen the company's real estate business, and cultivate new profit growth points." YOUNGOR said.

The net profit fell by 90% last year.

from Annual report data Look, YOUNGOR's performance last year is not optimistic. In addition to the decline in operating income of real estate sector, the loss of investment sector is also relatively large, dragging down the company's overall revenue and net profit.

In 2017, the company achieved a net profit of 355 million yuan, a decrease of 90.36% over the same period last year. The main reason for the decline in net profit is the loss of net profit in investment business.

The annual report shows that the investment income of YOUNGOR's investment business reached 3 billion 24 million yuan, a decrease of 6.23% compared with the same period last year, and the net profit attributable to shareholders of listed companies was -16.72 billion, which was 200.94% lower than that of the same period last year.

YOUNGOR said in its announcement that the decline in net profit from investment business is the result of the provision for impairment of assets in CITIC shares. "In view of the continuous fall in the fair value of CITIC shares for more than 12 months, the company decided that it had already suffered impairment and decided to prepare for its impairment of assets. The impairment loss was recognized by the difference between the face value at the end of 2017 and the cost of investment, which affected the amount of 3 billion 308 million yuan."

According to the Associated Press reporter, YOUNGOR passed the new subscription and two level in 2015. market The way to buy is to invest in CITIC shares. By the end of 2017, it had held 1 billion 450 million shares of CITIC shares, with an investment cost of about 17 billion 20 million yuan and a total value of 13 billion 710 million yuan at the end of the year.

At the same time, the second largest shareholder of Kunlun is the trust fund of the Kunlun trust, one of the investment trust schemes, which is intended to reduce YOUNGOR shares by means of centralized bidding, bulk trading and other laws and regulations.

YOUNGOR announced that in August 2018, 25 days ago, the Kunlun trust scheme had no more than 215 million shares, or less than 6% of the total share capital of the company. Up to now, Kunlun trust holds 440 million shares of YOUNGOR's tradable shares, accounting for 12.33% of the total share capital of the company.

As a result of the decline in the value of the provision and the decline in profits, it has a certain impact on YOUNGOR's share price. In order to stabilize investor confidence, YOUNGOR pays dividends on the premise of lower profits, while large shareholders begin to increase their holdings in the near future.