YOUNGOR: Swing Strategy, Hard To Return To Main Business

According to the world clothing shoes and hats net, recently, the industry is called "not doing business".

(600177.SH) the announcement said that the net profit in the first quarter of 2018 was expected to increase by 8 billion 680 million yuan, up nearly 7 times over the same period. The investment business achieved a net profit of 9 billion 667 million yuan due to the change in the accounting method for CITIC shares, an increase of 9 billion 21 million yuan over the same period in the previous year, which is fast catching up to 9 billion 894 million yuan of its annual operating income in 2017.

In recent years, there has been news of investment, real estate,

YOUNGOR, the main business, wants to return to the main garment industry while constantly upgrading its real estate and investment businesses.

Insiders pointed out that from its performance and recent moves, YOUNGOR's return to the main garment industry still takes time.

First quarter net profit to catch up with last year's annual revenue

On the evening of April 9th, YOUNGOR announced that the company's first quarter performance in 2018 was expected to increase by about 8 billion 680 million, an increase of nearly 7 times over the same period last year.

It is worth noting that after deducting the non recurring gains and losses, the company's first quarter performance is expected to decrease by 622 million yuan, down by 49.27% over the same period.

For the specific reasons for the increase in the first quarter of 2018, YOUNGOR said in its announcement that the accounting method of the CITIC Limited by Share Ltd (hereinafter referred to as CITIC shares) was changed to a long-term equity investment since March 29, 2018, and the profit and loss were recognized by the equity method. The net asset value of the corresponding net assets held by the company is 9 billion 302 million yuan, which will be included in the first quarter of 2018, and the net profit of the current period will be increased by 9 billion 302 million yuan (based on the audit data).

Public information shows that YOUNGOR invested in CITIC shares in 2015 through new subscription and two market buying.

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.

In an interview with reporters, Shen Meng, executive director of Xiang song capital, said that changes in accounting methods would lead to increased profits of listed companies. However, such a way would not really form real assets, but only the adjustment of rights and interests.

To this end, the reporter called YOUNGOR secretaries, the other side refused to answer related questions on the grounds of not receiving telephone interviews.

In addition, the announcement shows that most of YOUNGOR's revenue comes from investment business.

In the first quarter of 2018, the total revenue of YOUNGOR's clothing sector was 1 billion 367 million yuan, an increase of 13.02% over the same period last year, and the net profit attributable to shareholders of listed companies was 259 million yuan, an increase of 18.4% over the same period last year.

The real estate sector completed its operating income of 250 million yuan, which was 88.39% lower than the same period last year due to the lack of centralized delivery, and the net profit attributable to shareholders of listed companies was 20 million yuan, a decrease of 94.81% over the same period last year.

In addition, because of the change in accounting method of CITIC shares, the investment business realized a net profit of 9 billion 667 million yuan attributable to shareholders of listed companies, an increase of 9 billion 21 million yuan over the same period last year.

YOUNGOR's 2017 earnings bulletin showed that the company achieved 9 billion 894 million operating income in 2017, down 33.58% compared to the same period last year, and the net profit attributable to shareholders of listed companies was 355 million yuan, down 90.36% compared with the same period last year.

For the reasons for the decline in performance, YOUNGOR said it was mainly affected by the impact of CITIC assets impairment.

After the impairment test, the CITIC shares invested by the company have already been impaired. The company has decided to prepare for its impairment of assets, confirming the difference between the face value and the investment cost at the end of 2017, and the impact amount is about 3 billion 308 million yuan.

Swing strategy, hard to return to main business

It is understood that as early as 1992, YOUNGOR entered the real estate sector, and began to intervene in the equity investment field in 1993.

In recent years, YOUNGOR has been moving across borders to real estate and financial investment. These sideline businesses are becoming the main source of YOUNGOR's revenue.

YOUNGOR's performance report in recent years shows that the proportion of net profit contributed by apparel sector to total net profit is declining year by year.

In 2015, the YOUNGOR apparel sector achieved a net profit of 651 million yuan, down 0.23% from the same period last year.

In 2016, the apparel sector achieved net profit of 547 million yuan, down 15.97% from the same period last year.

In 2017, the net profit of garment plate increased.

The results show that in 2017, the net profit of YOUNGOR clothing sector attributable to shareholders of listed companies was 744 million yuan, an increase of 35.92% over the same period last year, while the net profit of the real estate sector attributable to shareholders of listed companies was 1 billion 268 million yuan, a decrease of 15.91% over the same period last year. The amount of investment made by the company was 3 billion 308 million yuan, and the loss was 1 billion 672 million yuan, a decrease of 200.94% over the same period last year.

Although the clothing business performance is not brilliant, but YOUNGOR executives are constantly releasing the signal of the force clothing plate.

In November 28, 2017, YOUNGOR director Hu Gang Gao said that YOUNGOR had always insisted on doing business. In 2017, it invested 3 billion yuan in the clothing sector for the construction of marketing platform and the purchase of exclusive stores.

At the end of last year, YOUNGOR group issued the declaration of "reinventing YOUNGOR in five years", pforming the business mode.

While returning to the main garment industry, it is YOUNGOR's successive efforts in the real estate and investment sectors.

Recently, YOUNGOR announced 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.

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.

Data show that in 2017, YOUNGOR seized three pieces of land, with a total value of 3 billion 990 million yuan.

In December 1, 2017, YOUNGOR announced that it established a Hongyi equity investment company with its holding subsidiary Hongyi capital.

As a limited partner, YOUNGOR invested 990 million yuan, and Hongyi capital invested 1 million yuan as a general partner.

In December 4, 2017, YOUNGOR announced that it would subscribe to the Ningbo bank's preferred placement of some convertible bonds 1 billion 316 million yuan.

YOUNGOR staff said in an interview with reporters that YOUNGOR's core business is still in the clothing sector, and it is investing more than 2000 yuan.

The production line will be formally put into operation at the end of April.

In addition, YOUNGOR will open 1000 new stores in 5 years to meet consumer demand.

Cheng Weixiong, an independent analyst in shoe and garment industry and general manager of Shanghai Liang Qi brand, said that YOUNGOR's return to the main garment industry is still in the slogan to some extent, and its main profitable sector is still real estate and investment.

Financial assets and real estate premium are high and profit margins are large, making it easier to make profits in a short time.

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