Behind YOUNGOR'S Clothes

YOUNGOR is an excellent company.

But how good is YOUNGOR?

Many people know that YOUNGOR is a clothing enterprise, but many people do not know that YOUNGOR is not just a clothing enterprise.

YOUNGOR's business scope includes clothing manufacturing, technology consulting, real estate development, trade, foreign investment, project investment, warehousing and pportation, needle textiles, metal materials, chemical products and raw materials, building materials, electrical and mechanical, household appliances, electronic equipment, coal and coke sales.

Its main business is the design, manufacture, sale, import and export trade and real estate of clothing and apparel products and accessories.

Its main business is from clothing to real estate, and now it has increased equity investment.

In 1998, YOUNGOR went public.

As the first brand of Chinese men's wear, its leading products, YOUNGOR shirts and Western-style clothes, occupy the first place in the domestic market share for twelve consecutive years and seven years.

As early as the late 1997 of last century, YOUNGOR began to build self owned stores. It has established 156 branches and 1835 marketing outlets all over the country, including 356 self owned stores, including 108 stores.

From the sample statistics of the sales of goods in the large retail stores in the China National Business Information Center and the China Federation of Commerce, the total market share of YOUNGOR shirts was 14.04% in December 2007, and the overall market share of the suits was 16.27%. The comprehensive market share has been ranked the first in the country for thirteen years and eight years in a row.

The performance of the garment industry is good, while YOUNGOR is equally good in equity investment. YOUNGOR really made a fortune by investing heavily.

According to the annual report released by the company, net profit in 2007 increased by 220% over the same period last year, and investment income contributed as much as 70% of profits.

Last year, YOUNGOR realized a net profit of 2 billion 476 million yuan attributable to shareholders of listed companies, an increase of 220% compared with the same period a year earlier. The net profit of deducting non recurring gains and losses attributable to shareholders of listed companies was 778 million yuan, up 10% from the same period last year.

The consolidated income statement shows that the investment income is as high as 2 billion 754 million yuan, accounting for 75% of the total profit of 3 billion 691 million yuan.

In comparison, YOUNGOR's investment income in 2006 was only 53 million yuan, and its investment income increased by more than 50 times in 2007.

Securities analysts said that YOUNGOR's high returns were mainly due to its sell-off of some CITIC Securities (love shares, quotes, information) shares, which sold 2 billion 465 million yuan of CITIC Securities shares last year, which is also one of the reasons for the crazy growth in performance compared with the end of 2006.

In addition to selling some of its stake in CITIC Securities, YOUNGOR also redeemed its robust growth (AI, net, information) fund and gained over 100 million yuan last year.

In YOUNGOR's annual report, we can see that the profits made by its main business seem to be getting smaller and smaller.

YOUNGOR's investment gains shine far beyond its main business.

The actual controller of YOUNGOR is Li Rucheng, who is also chairman of YOUNGOR. He also serves as chairman of Ningbo Shengda development company, director of Limited by Share Ltd of Ningbo bank and director of CITIC Securities and Limited by Share Ltd.

At the annual general meeting held in May 16th this year, Li Rucheng was asked to answer the question of not being honest.

Li Rucheng replied, "I used to be a farmer, and my career was agriculture. Later, I started a garment factory and started producing shirts.

After the shirt factory has reached a certain scale, I want to introduce a suit production line and make suits.

So, at that time, people in the clothing industry said with suspicion, "do suits?

It's not that easy.

As for real estate, actually we did it very early and began in 1992.

Of course, the real estate relative clothing is also not proper, but this is a long way to go.

According to the logic of Li Rucheng, the executives of domestic listed companies seem to be doing nothing.

To do VC and PE, YOUNGOR has been in front of many listed companies. We believe YOUNGOR is not just playing.

Like some listed companies, YOUNGOR also has its own Vc firms.

Venture capital is a hot field of concern in recent years. They are no longer satisfied with paying some of their funds to private equity managers, but rather starting their own ventures.

YOUNGOR has a large number of subsidiaries, Shanghai YOUNGOR Investment Co., Ltd. and Ningbo YOUNGOR Venture Capital Co., Ltd. is one of its subsidiaries.

Unlike many subsidiaries, the identity of the investment company is PE and Vc firms is VC, that is, the stock market is invested in the equity of listed companies, and is also PE and VC. YOUNGOR does need us to study it carefully.

The word "adventure" is not enough to describe YOUNGOR's investment behavior.

Whether investing in the equity of listed companies, entering PE, VC and other fields, these positive and rapid actions of Chinese listed companies are more than that of some listed companies in western developed countries.

The front of our article has already said that YOUNGOR is a very good listed company, and is one of the top listed companies in the clothing industry. Li Rucheng is also a very good entrepreneur.

But the key is that excellent companies and excellent people are often the imitation of many people. We believe that Li Rucheng's capital trajectory or YOUNGOR's investment behavior has long been a target for some listed companies to learn or even worship.

If the excellent companies like YOUNGOR rush to invest in other listed companies and invest in PE, VC and other fields, who will follow the YOUNGOR learning of listed companies and entrepreneurs, who will really care for their main business?

It has been thirty years since China's reform and opening up. Entrepreneurs from the eastern coast and Southern China coast have grasped some small opportunities at the beginning of their business because of their own growth paths and their own business growth trajectory.

After thirty years of reform and opening up, we are seeing the improvement of the investment environment in China's securities market, which has changed greatly in the international market environment or in China's social and economic environment since the YOUNGOR's doing nothing.