YOUNGOR'S Investment Adjustment Decided To Return To Its Main Business

< p > > Ningbo a target= "_blank" href= "//www.sjfzxm.com/" > dress < /a > enterprise leader. YOUNGOR was in the most active period of capital market, once shareholders launched the vote of Li Rucheng PK fund trader Wang Yawei, which shows Li Rucheng's success in capital market and its recognition.

But Li Rucheng has repeatedly stressed that "the main industry has never given up". Even when the three carriages of investment, real estate and clothing are parallel, Li Rucheng is most complacent about extending his feet to many journalists during the "two sessions" to show off his new product, "hemp" socks.

< /p >

< p > a lot of securities companies sought to raise capital for listing on the same year. Li Rucheng only picked the whole team to visit his CITIC Securities.

Because Wang Dongming, chairman of CITIC Securities, used 5 million to set CITIC Securities to a scale of billions of dollars. Li Rucheng admired it very much.

< /p >

Compared to Guo Guangchang, the 60 generation old friend Guo Guangchang, Li Rucheng told reporters the difference between him and Guo: "he is light and active. I am more robust and must be able to invest, so I'd rather do some half market."

It is only a year's time to get into the market. If we fail to do so, we can withdraw immediately. That is, we can't lose much, and the risk is controllable.

< /p >

< p > American business week once criticized him. "Apart from the stock investment business, YOUNGOR's other businesses have become insignificant." once the stock price really begins to fall, the company will have to write down these investment losses in the income statement, resulting in a decline in profits.

In turn, a slide in profits may trigger a fall in the company's own share price, leading to a more rapid and deeper fall in the stock market.

< /p >

"P > this evaluation, Li Rucheng calm acceptance, behind also silently thinking.

He also has time to lose money.

In investing in hemp, Li Rucheng abandoned the standard of investors and waited for 20 years of industrial cultivation. At that time, he became an "foolish old man". He teased himself: "Yu Gong should have an attitude of foolish old man."

< /p >

< p > "YOUNGOR, like China's private economy, has grown from small to large, and has gone through a primitive accumulation of capital. It has become a new prototype. I have been thinking about how to make it bigger."

Li Rucheng told reporters that in these ways of thinking, investment and real estate in a certain period of time helped YOUNGOR get twice the result with half the effort. But as the economy continued to decline, the "three carriages" model no longer adapted to the development of YOUNGOR, so also had the beginning of this dialogue, why YOUNGOR returned? < /p >

< p > < strong > main business return to core < /strong > < /p >.

< p > "TOYOTA is a successful example of diversified pformation from" a target= "_blank" href= "//www.sjfzxm.com/" to "textile /a" machine pformation.

Just like TOYOTA, YOUNGOR a target= "_blank" href= "//www.sjfzxm.com/" > dress < /a > has also been looking for an upward breakthrough, and from one yuan to multiple roads.

"At that time, we also wanted to find a bigger and more profitable industry, but in the end, we returned to our costumes because YOUNGOR was the best at making clothes."

Li Rucheng said frankly.

< /p >

< p > in YOUNGOR's "three carriages" era, YOUNGOR has achieved outstanding achievements both in real estate and capital market.

But after the financial crisis, the state's regulation of real estate and the drawbacks of the US economy led Li Rucheng to think about the sustainability of this model in the present era.

< /p >

"P >" 30 years of reform and opening up, and now it is time for a period of adjustment. That is why the growth rate of GDP will be lowered.

In addition, we have invested too much in the past, how to maintain these investments in the future infrastructure projects completed, new investment, especially real estate will not be too much, under such circumstances, economic restructuring is expected to be urgent, consumption growth has become a top priority.

These comprehensive reasons let Li Rucheng begin to adjust and return to the main business.

< /p >

< p > in fact, Li Rucheng's prediction seems to be more accurate with figures.

< /p >

< p > since 2009, news of YOUNGOR's investment in securities business has fallen sharply and real estate revenues have dropped sharply.

According to YOUNGOR's quarterly report this year, the investment income of YOUNGOR during the reporting period was 206 million 105 thousand and 600 yuan, down 61.99% from the same period last year. The disposal of trading financial assets and the sale of financial assets amounted to 185 million yuan, excluding the cost and interest expenses of the financial investment business, with a net loss of 21 million yuan, a net loss of 265 million yuan compared with the same period last year. The investment income in 2011 was 1 billion 442 million 506 thousand and 200 yuan, a 29.9% decrease over the same period last year.

< /p >

< p > Securities expert analysis: the main reason for the decline of YOUNGOR's revenue is that in 2011, the company voluntarily reduced the export OEM business with a low gross margin (the total gross margin of the company increased from 37.51% of 2011Q1 to 49.16% of 2012Q1).

In the first quarter, the company's apparel sector, real estate sector and financial investment sector achieved net profit of 264 million 532 thousand and 200 yuan, 29 million 838 thousand and 400 yuan and -2137.57 million yuan, respectively, representing an increase of 25.94%, 133.25% and - 108.06% over the same period.

Because of the high net profit base of 265 million of 2011Q1's financial investment business, the net profit of financial investment business in 2012Q1 declined considerably, dragging down the overall performance of the company.

< /p >

< p > "financial investment is a new industry in China. YOUNGOR can participate in it, but it can not be used as the main industry. Real estate is regulated year after year. Under such circumstances, we must" return to the core ". It was three legs walking at the same time. Now it is clothing industry, and the other two industries are deputy.

In Li Rucheng's view, only by concentrating the team on a core industry can we have more advantages than other industries.

< /p >

< p > in fact, from the perspective of YOUNGOR's profit composition, this change has emerged. "In the first 5 years, the profits of financial investment, real estate and < a target=" _blank "href=" //www.sjfzxm.com/ "> brand clothing < /a > accounted for 5:3:2, and last year three accounted for 1/3 respectively. The total profit composition of this year is estimated to be 4 of the main industry, and two of the other two.

< /p >

Li Rucheng has not set high goals in terms of growth. < p >

According to its prediction, because of macroeconomic regulation and control, the uncertainty of real estate impact and financial investment will also be postponed. After adjustment, the company's expected growth rate will be 15%, and its profit contribution will exceed 2 billion yuan.

< /p >

< p > < strong > investment logic < /strong > < /p >.

< p > take Li Rucheng's words, after YOUNGOR became rich, many enterprises came to Japan, including 3G mobile phone manufacturers in Japan, and local SMEs. At first, they bought two local businesses in a spirit of unfounded mind. Through reintegration, the results of the two companies listed on YOUNGOR brought great benefits to YOUNGOR.

< /p >

"P >" since then, I have developed some companies that are going to be listed and companies that want to be targeted.

As for the financial services industry, the target of reference is mainly the other party's capital, team, market and P / E ratio and high net market rate. The most important thing is that I will put myself in mind if I spend 5 or 10 years or longer to make such an enterprise.

< /p >

< p > besides, the investment related to YOUNGOR's main business also includes some new industries, automobiles, medicine and machinery manufacturing companies, which is also the focus of Li Rucheng's attention.

< /p >

< p > Morgan was once reminded by an expert of Stanley, YOUNGOR, that such a "no go concern" company: "do not overestimate the maturity of Chinese investors. Someone needs to point out that the emperor did not wear" a target= "_blank" href= "//www.sjfzxm.com/" clothes and clothes /a ".

One of the implications is that these companies do not focus their energies on the development of their main businesses. Two, it is considered that YOUNGOR is only an amateur level for PE investment.

< /p >

< p > Li Rucheng obviously does not recognize the label of "amateur": "in the field of financial investment, China is also in its infancy, so no one can say that it is entirely professional.

But at present, YOUNGOR has two professional teams, one for PE investment and one for private placement. Each investment plan is decided by the board of directors through budget, investigation, analysis and auditing.

And now, YOUNGOR's investment in Chinalco and Zhongke have doubled investment returns. "

{page_break} < /p >

< p > in fact, the controversy over YOUNGOR is actually the driving force of a business enterprise. What is the driving force of an enterprise? Is it the expansion of industrial chain or the drive of diversification? Or is it the driving force of investment? The change brought by this drive should not only be reflected in assets and net profit, it should have a substantial positive impact on the future sustainable development, growth space and industrial structure of enterprises, and more importantly, it should not be affected by the environment and policies, and it belongs to Chaoyang or non Chaoyang industries.

< /p >

After the financial crisis, Li Rucheng gradually saw the key to the problem and began to adjust his investment strategy, which was related to investment in the main business. P

At present, there are 33 A share listed companies and bonds held by YOUNGOR, of which 29 are A share listed companies. The initial investment amount is 9 billion 202 million 657 thousand and 500 yuan, the final face value is 9 billion 778 million 350 thousand and 700 yuan, and the floating profit is 575 million 693 thousand and 200 yuan.

< /p >

< p > Li Rucheng told reporters: "now, YOUNGOR's investment field will pay more and more attention to the field related to the main business, and the speed of China's clothing brand will accelerate. The related industries will bring us more opportunities to assemble our own entity industry, which will be an advantage of YOUNGOR and also comply with YOUNGOR's adjustment."

< /p >

< p > financial dialogue -- Discussing with a 50 generation of private entrepreneurs to return to the main business.

< /p >

< p > reporter: why do you want to quit Xugong machinery? < /p >

< p > Li Rucheng: the machinery industry is a highly cyclical industry. Its peak period is 2009, 2010 and 2011. These three years are the year when the government has invested and built large scale. Now we have built all the products, and the peak period is over.

< /p >

< p > reporter: will you pay attention to enterprises like Xugong in the future? < /p >

< p > Li Rucheng: Xugong and Sany are all selling machinery and equipment by means of financial leasing. When the country has a demand, many people buy the machinery of these enterprises to make loan investment, but now the degree of borrowing is high, and large-scale projects that can use these machines are not very common.

< /p >

< p > reporter: do you say that you want to enter the main industry related industries? Are there any specific items you see? < /p >

< p > Li Rucheng: I will pay attention to the consumer goods and retail industry. The retail industry is not good at first, and the resources are good. And now some enterprises in this industry are not fully activated. Some of them are not very good in the core area of the city, but we will see such enterprises. This is also the main industry related industries.

< /p >

< p > reporter: now is the most difficult time to make real estate. Have you ever thought of quitting? < /p >

< p > Li Rucheng: China's real estate industry has a long way to go. First, urbanization, rural modernization, and the formation of urban commercial complexes, and the development of satellite towns.

From this point of view, there is still much room for development of real estate. The question is how to make rational allocation of various resources.

< /p >

< p > reporter: before you say that you like to do the first and second half market, because the market risk is low, how long does this average investment cycle from entering to exit? < /p >

< p > Li Rucheng: These are short-term projects, averaging less than two years, at most two and a half years.

< /p >

< p > reporter: are you more inclined to invest in this short and fast way? < /p >

< p > Li Rucheng: it depends on whether the industry can invest for a long time. We also have PE investment in the medium term of 10 years.

< /p >