YOUNGOR Reopens New Projects With More Than 500 Million Yuan Of Funds

< p > a few days ago, YOUNGOR subsidiary YOUNGOR real estate holding company (hereinafter referred to as "YOUNGOR real estate") won the right to use the original lion ball group in Yinzhou District, Ningbo for 291 million yuan.

In the first 5 months of 2013, YOUNGOR launched a new project with more than 500 million yuan of funds.

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< p > "we are still two main industries in parallel, and fade out is just financial investment business."

In May 23rd, Liu Xinyu, YOUNGOR's deputy director, said in an interview with the Economic Observer newspaper.

The so-called "double main business" refers to < a target= "_blank" href= "//www.sjfzxm.com/" > clothing < /a > and real estate.

"We never intend to fade out of the real estate business."

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< p > 2011, YOUNGOR chairman Li Rucheng has publicly stated that YOUNGOR will return to the main garment industry.

At that time, the background was affected by the market environment, the development of YOUNGOR's real estate business was blocked, and financing difficulties were once higher than that of the clothing industry.

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< p > December 2012, Li Rucheng said publicly that YOUNGOR will adjust the real estate business according to the total amount of funds. "Because of the loss of the financing function of the capital market in the real estate market, the mixed operation of real estate and clothing has seriously restricted the whole development of YOUNGOR."

But Li Rucheng's voice has just dropped, and YOUNGOR's real estate business again presents a fierce offensive.

By the end of 2012, the stock of $22 billion had raised doubts about the state of its funds.

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< p > YOUNGOR's 2013 quarterly report shows that YOUNGOR achieved 1 billion 750 million yuan in revenue, an increase of 201.60% over the same period last year, while the total revenue of the quarter was 3 billion 158 million yuan, and the sales volume of real estate business was higher than that of its apparel industry.

The real estate sales revenue was 1 billion 664 million yuan, an increase of 237.81% over the same period, and realized net profit of 267 million yuan, an increase of 795.63% over the same period last year.

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< p > 2012 annual report shows that real estate sales revenue of 4 billion 796 million yuan, an increase of 42.16% over the same period, net profit of 1 billion 9 million yuan, an increase of 76.54% over the same period last year.

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< p > from two earnings data, YOUNGOR's real estate business has outperformed the main business that the company has repeatedly emphasized to return to, whether it is revenue scale or profit contribution.

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< p > however, in 2010 and 2011, YOUNGOR's real estate performance was lower than that of its clothing industry. In 2009, YOUNGOR realized a net profit of 1 billion 200 million yuan and nearly three times of its clothing business. At this time, YOUNGOR's strategic deployment is not the so-called "double main business" now, but the three driving carriage of clothing, real estate and financial investment.

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< p > YOUNGOR has invested billions of yuan in profits from the CITIC Securities [-1.67% Fund Research Report (600030) in the early years, and then pformed from the garment manufacturer to the financial holding giant.

Later, he also held Kay stone investment.

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< p > 2011, YOUNGOR spent nearly 3 billion yuan to participate in 13 company's private placement projects. Once it was named "A" in the market on the basis of "land king".

However, with the gradual decline of A shares, YOUNGOR has been stuck in a number of private placement projects, and the book has shrunk more than 1 billion yuan. The profit of the company's financial investment business also dropped by more than 60%.

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< p > by the end of 2012, YOUNGOR had 22 stocks, distributed in many industries such as banks, nonferrous metals, automobiles, agriculture, securities, etc., but in 2012, YOUNGOR's investment business suffered a loss of 230 million yuan.

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< p > at the annual general meeting of shareholders in 2012, Li Rucheng evaded the formulation of "financial investment" as one of the main businesses, and referred to YOUNGOR's subsequent investment in non real estate as "industrial investment".

The words "three carriages" go hand in hand and are no longer mentioned by any broker researcher.

"In particular, our real estate performance in 2010 is also good, though it is reflected in the annual report that the contribution of real estate performance has not been able to continue in 2009. This is because we added 542 million yuan to the land value-added tax that year. If the amount was calculated, the net profit of the real estate contribution to the listed company was about 1000000000 yuan, which was unchanged from 2009."

Liu Xinyu said.

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< p > as far as the performance of real estate in 2011 is not very satisfactory, Liu Xinyu explained that this is because there is a certain period in the development and delivery of real estate, and the input and return of capital are not immediate.

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< p > YOUNGOR did not have real estate development in 2012. Liu Xinyu explained that YOUNGOR did not change the company's strategic plan in 2011. "We have been following up the new project, but the market environment has made our investment prudent.

In 2012, we also tracked the plots in Ningbo and Suzhou, but because the land price was too high, they didn't eat in.

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< p > YOUNGOR's location is similar to that of Zhejiang green city, which is mainly oriented to the high-end market. The high cost land price has brought pressure on YOUNGOR's pricing and sales in Hangzhou, Suzhou and other places. This also makes its real estate inventory high and capital pressure obvious.

In 2010 and 2011, YOUNGOR's inventory was 18 billion 727 million yuan and 23 billion 307 million yuan respectively.

As of 2012, inventories of real estate alone amounted to 22 billion yuan.

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< p > YOUNGOR tried to prove "not bad money" with financial data.

In 2012, YOUNGOR home operated cash flow of 3 billion 917 million yuan, an increase of 6 billion 214 million yuan compared to 2011. At the same time, it also reduced the short-term loan of real estate business from 9 billion 500 million yuan in early 2012 to 7 billion 200 million yuan.

Liu Xinyu stressed: "we are not as rumoured as the outside world. The capital chain is tight. We still have some securities investment on our hands. If there are new real estate projects that need capital, we can sell stocks at any time."

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< p > despite the fact that the "three main industries" have been changed to "double main businesses" and clothing is the first main industry, but the response is on financial data, whether it is business income or contribution to the profits of listed companies, since 2012, YOUNGOR's real estate business has been higher than that of clothing business, and has returned to the proportion of business segments in 2009.

In this sense, compared with clothing, real estate is the "first main business" of YOUNGOR's "double main business".

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< p > 500 million yuan to test the water marks the restart of YOUNGOR's real estate business after two years of silence. Maybe this is just the beginning.

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