In the early days, he started with clothing and textile business, and later expanded his real estate business and equity investment. Youngor's development course can be described as a typical example of industry turning to investment. However, doubts about this development model have always accompanied.
Hard-won clothing profits can not fill the blank of real estate cash flow, and the hidden worry of broken capital chain and huge losses always exists. At that time, I'm afraid even Youngor's clothes will be dragged down and drowned. Fang Jianyong, a Ningbo market observer who is concerned about Youngor's history, said in an interview with the reporter of Caijing National Weekly. In this regard, Li Rucheng, chairman of Youngor, believes that Youngor would not have a net asset of 20 billion without real estate and equity investment. However, time is unfavorable. While Youngor's real estate business is affected by macro-control, equity investment is also bleak due to the market downturn. The bleak market forced Youngor to tighten his belt for the winter, which also directly affected its cooperation mode with the investment company Shikai Investment, and the grievances between the two sides became the focus of market attention. At this point, Youngor claimed that the two major businesses in the troika, namely clothing, financial investment and real estate, have fallen into a quagmire and the future is full of uncertainty.
A sure stone.
At present, the market is depressed. Youngor did withdraw some funds from April 20 12, which is normal. Regarding the current rumored breakup storm in the market, investment general manager Chen said frankly that Youngor and Investment are currently adjusting their business and structure. The reason why the breakup storm has attracted much attention from the market is that Shikai Investment once played an important role in Youngor's development. According to public information, Shikai Investment has a registered capital of 654.38 billion yuan, and its main business is investment management and investment consulting. As a holding subsidiary of Ningbo Sheng Da Development Co., Ltd., Youngor Chairman Li Rucheng holds 654.38+0% shares in Ningbo Sheng Da. From June 5, 2008 to February 2008, Youngor hired Shikai Investment as its investment consultant. According to the contents of the investment agreement between the two parties, Shikai Investment provides professional investment analysis for Youngor's equity investment project assets, available-for-sale financial assets and transactional financial assets, and Youngor pays related consulting fees. In view of the fact that Ningbo Sheng Da is the indirect controlling shareholder of Youngor and controls Shikai Investment at the same time, according to the Stock Listing Rules of Shanghai Stock Exchange and relevant documents, the above matters constitute connected transactions. The cooperation mode between Youngor and Shikai Investment can be said to be the relationship between customers and companies providing services, and Shikai Investment provides consulting services for Youngor. Insiders of Shikai Investment said.
In fact, the cooperation between the two sides goes far beyond this. Youngor has also directly participated in the products invested by Shikai for many times; Fang Jianyong said that Youngor is not only the controlling party of Shikai Investment as a whole, but also its consulting client and limited partner. The above investment agreement also shows that Youngor pays consulting fees to Shikai Investment at the rate of 65,438+0% of the total investment every year. Youngor only pays consulting fees when the net rate of return in that year is less than or equal to 10%; When the net rate of return is greater than 10%, Youngor will draw 20% performance reward for the part exceeding 10%. Shikai Investment provides consulting services for financial assets held by Youngor or its holding subsidiaries, and Youngor pays a consulting service fee of 0.5% of the transaction amount. Considerable consulting fees and profit commission are completely the fund's charging standards. Such a good thing, why not invest in Shikai? Fang Jianyong said in an interview with our reporter. Strangely, in that case, why did Youngor allow such an unequal investment advisory agreement to exist for a long time? It can be said that Shikai is actually intercepting the cash flow of Youngor Group. Shikai's investment is sure to make a profit, and the ultimate benefit is Ningbo Sheng Da, with Li Rucheng holding 19.438+0%. Fang Jianyong said. Under this mode of cooperation, at least in the short term, Youngor has tasted the sweetness himself. Relying on Shikai investment, Youngor has repeatedly attacked the capital market. In 2009, Youngor participated in the private placement investment of nine listed companies, all of which were profitable; The equity investment business realized a net profit of 65.438+62.5 billion yuan, a year-on-year increase of 404.438+0%. In 20 10, the total profit of Youngor's private placement investment reached 374 million yuan; Holding investment projects such as 10 PE investment; In that year, its financial investment business achieved a net profit of 654.38+24.5 million yuan. Stimulated by the aura, Li Rucheng showed ambition. Many garment industries are supported by a consortium. Without huge financial support, it is difficult for this enterprise to survive for more than ten years or hundreds of years. Li Rucheng said that financial investment is the direction of industrial development ... However, financial investment is a challenge to the company's steady operation after all. A broker who has been tracking Youngor for a long time said in an interview with the reporter of Caijing National Weekly that whether it is PE investment or Youngor,
Troika two falls
The large-scale floating profit in equity investment once made Youngor have unlimited scenery. However, the good times did not last long, and then the cold war in Li Rucheng began in the cold winter. 20 1 1, Youngor participated in the issuance of 13 listed companies, and the net profit of financial investment business fell to 487 million yuan, down 60.90% year-on-year; The cumulative investment in private placement and PE was 2.95 billion yuan, down 44.78% year-on-year. The bleak market prompted Youngor to tighten his belt for the winter. According to Youngor insiders, in the first half of 20 12, the company's management expenses decreased by nearly 200 million yuan year-on-year, and the consulting fees decreased by 65,438 billion yuan. The rational return of investment environment also directly affects its cooperation mode with Shikai Investment.
On March 20 10, Youngor broke the practice of paying consulting fees according to a certain proportion of the total investment and paid consulting service fees to Shikai Investment according to 15% of the realized investment income. Five months later, it was changed to a project recommended by Shikai Investment Company to pay for it. In addition, the once proud real estate developers did not bring warmth in the cold winter. With the continuous macro-control of the real estate market, Youngor's real estate business plummeted at 20 1 1. Whether Youngor's real estate is profitable or not and whether there are real risks depends on the original land acquisition cost, debt level, sales speed and current property prices. Gu Haibo, senior economist and independent economist of Shanghai Changning Housing and Construction Bureau, said. In the first half of 20 12, we didn't take land, and we didn't expand our real estate business temporarily, and the advertising expenses didn't increase significantly. Youngor's management is' walking on thin ice'. The above brokers said. Youngor's book cash is 3.23 billion yuan, but it has to deal with short-term interest-bearing liabilities of 654.38+07.46 billion yuan. Real estate industry analysts warned that liquidity risk will increase, and the further development of real estate business is directly subject to short-term liquidity. Real estate business is not strong, and financial investment business is also disappointing. 20 1 1, the Shanghai Composite Index fell by 30%. The systematic risk faced by this business is too great, and the iron law of' making new profits and paying for old ones' has failed. The bear market hit Youngor hard. The above brokerage analyst said. Since the resumption of IPO in the second half of 2009, 730 new shares have been issued in China's A-share primary market, with 103 broken on the day of listing, accounting for 14. 1 1%. The market generally reflects that the era of lying down to make money is gone forever. Investment was mired in the quagmire, which affected Youngor's overall strategy to some extent. In addition, the two housing and stock market bubbles in 2006-2007 and 2009-20 10 completely changed this industry from its main business to an unfamiliar high-risk industry. Fang Jianyong said that the sweetness of gambling made people get carried away, and the industrial share of Youngor's business dropped to a pitiful 25%. Under pressure, Li Rucheng said on several occasions that he would pay more attention to the development of the main clothing industry. In China, financial investment is a new industry, and Youngor can participate in it, but not as its main business. In addition, real estate has been regulated for many years. In this case, we must' return to the core'. Originally, we walked on three legs at the same time. Now one clothing industry is the main industry, and the other two industries are the secondary industries. In Li Rucheng's view, only by concentrating the team in one core industry can we have more advantages than other industries. This move was interpreted by the industry as returning to the main business. However, Liu Xinyu, Youngor's secretary-general, thinks this statement is not accurate. Youngor's main business is clothing. In the 20 1 1 annual report, the company said that it would gradually reduce the scale of financial investment and further increase the investment in brand clothing.
Judging from Youngor's profit composition, this change has already appeared. In the first five years, the profit ratios of financial investment, real estate and brand clothing were 5:3:2 and 20 1 1/3 respectively. 20 12 year total profit is estimated to be 40% of the main business, and the other two items each account for 30%. Although Youngor's revenue in the clothing entity industry is 7.526 billion yuan, there are still some factors in the industry, such as increasingly fierce competition, shortened periodic impact and encirclement and suppression of foreign brands. Whether Youngor can achieve the goal of 20% growth by the end of 20 12 remains to be tested by the market.