Youngor: A-Share Clothing Giant

As a famous business men's wear brand, Youngor (600177) now has far more investment income than the main clothing industry.

Profit from selling Bank of Ningbo 1.367 billion yuan

After the disclosure of disposal of equity investment projects on August 12 and September 1, Youngor updated the disclosure data of investment income on the evening of September 7.

According to the announcement, on August 27, 2020, the company's first extraordinary general meeting in 2020 deliberated and passed the "proposal on Authorizing the management to dispose of equity investment projects", which authorized the management to dispose of the equity of Bank of Ningbo (002142) according to the market situation.

The audited net profit of the company at the end of 2020 is RMB 0.476 billion, accounting for RMB 1.756 billion of the total net assets of the bank in 2020, accounting for RMB 1.756 billion of the total net assets of the bank.

According to the previous announcement, from August 3, 2020 to August 11, 2020, Youngor sold 49.2122 million shares of Ningbo bank, with a transaction amount of 1.595 billion yuan, accounting for 5.74% of the audited net assets at the end of 2019, generating investment income of 705 million yuan and net profit of 433 million yuan (not audited), accounting for 10.9% of the audited net profit in 2019.

From August 12, 2020 to August 31, 2020, Youngor sold 48.4471 million shares of Bank of Ningbo, with a transaction amount of 1.629 billion yuan, accounting for 5.86% of the audited net assets at the end of 2019, generating investment income of 898 million yuan and net profit of 468 million yuan (not audited), accounting for 11.77% of the audited net profit in 2019.

It is reported that as of September 7, 2020, Youngor has sold 145 million shares of Bank of Ningbo, with a transaction amount of 4.829 billion yuan and a net profit of 1.367 billion yuan (without audit). The company still holds 651 million shares of Bank of Ningbo, accounting for 10.84% of its total share capital.

The reporter of securities times · e company paid attention to that in mid August 2020, the bank shares ushered in a long-term "general rise", and the book to book ratio of Ningbo bank exceeded twice, ranking the first among 36 listed banks. Since then, Youngor began to reduce holdings in turn.

At the beginning of Ningbo bank's listing in 2007, Youngor became one of the top ten shareholders of the company, and frequently increased or decreased its holdings for many years. After the recent rounds of reduction and cash out, Youngor may still be the third largest shareholder of Bank of Ningbo with its current shareholding ratio.

The investment income is bigger than that of clothing industry

On April 30, 2019, Youngor announced that the company has deliberated and passed the "proposal on the adjustment of investment strategy". In order to achieve the goal of maximizing value, the company plans to make major adjustments to its development strategy. In the future, it will further focus on the development of the main clothing industry. In addition to strategic investment and continuing to fulfill investment commitments, the company will no longer carry out financial equity investment in non main business areas, and Choose the opportunity to dispose of the existing financial equity investment projects.

The company said that its first financial investment in 1999 was due to policy reasons as well as consideration of industrial development and diversification strategy. From 1999 to 2005, Youngor successively invested in CITIC Securities, Guangbo shares, Yike Technology (later renamed as hemp industry, Lianchuang Electronics), Ningbo bank, etc. In 2005, the reform of non tradable shares was launched in an all-round way, and the capital market entered a period of rapid development. The market value of financial assets held by Youngor increased rapidly, once exceeding 20 billion yuan. However, based on the value system of capital market, diversified companies are usually given lower valuation. Therefore, on the occasion of Youngor's 40th anniversary, in order to achieve the goal of maximizing the company's value, the company plans to make the above adjustments to its development strategy.

However, as of 2020, according to the data disclosed in the interim report, Youngor's investment income is still far higher than that of the main clothing industry.

      According to the disclosure, in the first six months of this year, Youngor accumulated operating revenue of 6.958 billion yuan, an increase of 51.83% over the same period of last year; net profit of 2.876 billion yuan, an increase of 41.88% over the same period of last year; net profit of 395 million yuan of fashion clothing, decreased by 16.72% and 39.03% respectively compared with the same period of last year; the net profit of real estate sector was 1.178 billion yuan, increased by 203.57% and 329.56% respectively; The net profit of investment business was 1.303 billion yuan, an increase of 17.91% over the same period of last year.

During the period, Youngor also paid close attention to the land market opportunities, and invested 4.862 billion yuan to win the second phase of Jiefang block, Guanghua unit, the core area of Wenzhou City. By the end of June 2020, Youngor has 3 land reserves, with a land area of 374200 square meters and a planned development area of 865700 square meters.