In many people's minds, Youngor is a company that sells suits. In fact, this company has already made a lot of money from investment and real estate. It can be said that it is the most powerful and richest listed clothing enterprise.
By investing in CITIC Securities, Youngor once gained more than 9.6 billion yuan in investment income. Li Rucheng, the chairman of Youngor, was once called the "stock god" because of his high return on investment.
During the period from 2007 to 2020 14, the net profit of Youngor Real Estate's travel business totaled about 137 billion yuan, accounting for about 30% of the company's total net profit in the same period.
Therefore, Business Week once commented on Youngor: "Except for the stock and real estate investment business, other businesses of the company have become insignificant."
This is a great blow to Li Rucheng.
When the golden age of finance and real estate is far away, Youngor must return to the main clothing industry both subjectively and objectively.
I don't know whether to be happy or sad about Li Rucheng.
1980, 15 years later, Li Rucheng, an educated youth, got married and had children and returned to the city to work in a township enterprise called Youth Clothing Factory.
In the factory, Li Rucheng learned to cut and his wife learned to sew. His idea at that time was to learn skills well in the factory and leave a way out for himself. In case of bankruptcy, he can open a mom-and-pop shop with his wife without worrying about his livelihood.
Li Rucheng's worry is not unreasonable. At that time, most township enterprises were unstable. Not long after he went in, the youth clothing factory faced the dilemma of bankruptcy.
At this time, Li Rucheng's neighbors provided him with a business message: there is a factory in Liaoyuan, Northeast China, which has a large stock of polyester fabrics and wants to find a company to cooperate in the south.
Hearing this news, Li Rucheng immediately rushed to the factory, risked his life and drank five cups for two days in a row, and finally got back 12 tons of fabric to make women's blouses. 1982 In the winter, the clothes were looted as soon as they came on the market, and this order also brought 200,000 yuan to the factory.
This is the first time that Li Rucheng showed his talent, and it is also a turning point in his career. After surviving this crisis, the youth garment factory gradually stepped onto the right track, and in the next few years, it ushered in two key points of development.
The first time was 1984, and the youth garment factory began to establish a shirt factory with Shanghai state-owned enterprises. Cardigan is a time-honored brand in Shanghai, which is famous in Shanghai and even the whole country.
And set up a shirt joint venture to double the performance of the youth garment factory. By 1985, the net profit of the factory reached 2 million yuan, completing the earliest accumulation.
China's textile industry and men's wear industry almost developed from this time. Ningbo, where the youth garment factory is located, has a long history and a developed textile industry. The first suit and the first suit shop in China were all made or founded by Ningbo people.
Youth Garment Factory is one of the earliest garment enterprises in China, and was once the first echelon clothing brand in China. However, in the early 1990s, with the entry of foreign and Hong Kong-owned brands such as Pierre Cardin and Goldlion, youth garment factories faced increasing market competition.
From 65438 to 0990, Youngor Garment Co., Ltd. was established in cooperation with Macau Nanguang Group, which ushered in the second development stage.
China men's wear industry can be divided into three sections. Ningbo enterprises, represented by Youngor and Shanshan, are positioned as middle and high-end formal attire; Seven wolves, Li Lang and other "Fujian men's wear" focus on business and leisure style; Guangdong men's wear is characterized by jeans.
Youngor and Shanshan are the earliest brands to develop and become famous. 1994, Youngor entered the top eight garment industries in China, and was successfully listed on the Shanghai Stock Exchange on 1998.
How strong was Youngor in the men's wear industry in the 1990s? Take "Minpai Clothing" as an example, its revenue in 2003 was10.80 billion yuan, while Youngor10.95 revenue reached 240 million yuan.
Youngor and Shanshan, hometown enterprises, were the "Ningbo Shuangxiong" of that era.
But unlike men's wear enterprises in other places, Youngor and Shanshan have embarked on the road of diversified development. 1999, Youngor invested in the financial industry for the first time, and it has been out of control ever since.
The company has changed from the original clothing enterprise to a comprehensive group spanning the three major industries of finance, clothing and real estate.
Financial investment is the first field that Youngor set foot in besides its main clothing business, and it is also the sector that contributes the most to the company's profits.
According to the data of Oriental Fortune Choice, from listing to 20021first quarter, Youngor's investment income accumulated as high as 39.7 billion yuan, accounting for more than 80% of the net profit in the same period. Judging from the impact of investment business on net profit, Youngor can almost be called a powerful investment company.
What has supported the high investment income for many years? The main source of income is equity investment, which can be divided into long-term equity investment and available-for-sale financial assets according to the proportion of equity and the degree of influence on the holding company, accounting for 50% of the total assets.
Li Rucheng seems to have won the title of "stock god" because of its huge investment and high return on investment.
After combing the company's annual reports for nearly 20 years, the market community found that Li Rucheng's investment skills did not seem so magical.
Among all the investment targets, CITIC Securities is Youngor's earliest investment and the most outstanding profit. It is not only Li Rucheng's foresight, but also his "loyalty" and "kindness" that contributed to this investment.
In 1990s, Youngor was already a well-known enterprise in Ningbo, but China's finance, especially the securities industry, has just developed. At that time, many financial enterprises took the initiative to find Youngor to seek investment, and piles of materials were handed over to Li Rucheng.
1999 CITIC Securities, which was established four years ago, wants to increase capital and reorganize. The chairman and general manager of the company, with a vice president, personally went to Ningbo to find Li Rucheng, hoping Youngor would invest in CITIC Securities.
Li Rucheng was moved by the sincerity of CITIC Securities, so Youngor invested 320 million yuan to establish CITIC Securities, and became the second largest shareholder with a shareholding ratio of 9.6 1%. This shareholding is 15, and all the shares held were not sold until 20 14.
During this period, CITIC Securities can be said to hold up half the sky of Youngor's investment business. Especially from 2007 to 20 14, according to incomplete market statistics, Youngor accumulated more than 9.6 billion yuan in investment income by selling shares in CITIC Securities. In other words, half of the investment income during that period was contributed by CITIC Securities.
However, a dramatic scene was soon staged.
In 20 15, Youngor focused on CITIC shares, subscribed for new shares of CITIC shares by relying on long-term overseas loans, and purchased145.5 million shares from the secondary market, with an investment cost as high as170.6 billion yuan. You know, the company's operating income in that year was only 65.438+0.45 billion yuan.
Regrettably, CITIC, which had high hopes, not only failed to stage the high-yield story of CITIC Securities again, but also eroded the company's profits.
In 20 17, due to the continuous downturn of CITIC's share price, Youngor made an asset impairment loss of up to 3.308 billion yuan for this investment, which directly caused the company's net profit to plummet to 294 million yuan that year, the lowest value in the past 20 years. With the decline of share price and the sale of shares, by the end of 2020, the book value of CITIC shares held by Youngor is only 3.867 billion yuan.
Another investment target that makes Youngor "happy" is Bank of Ningbo.
In 2004, in the process of Bank of Ningbo's capital increase and share expansion, Ningbo Municipal Government invited Youngor and Shanshan Co., Ltd., two local enterprises. With the mobilization of the government, these two enterprises became the shareholders of Bank of Ningbo.
According to the announcement, from the end of July, 2020 to February, 20021,Youngor reduced its holdings of 296 million shares of Bank of Ningbo at an average price of 33.73 yuan, with a cash amount of 9.98 billion yuan. As of February 2, Youngor still holds nearly 500 million shares in Bank of Ningbo, accounting for 8.32%.
In addition to investment, Youngor began to set foot in the real estate industry in the 1990s. Compared with many hundreds of billions of real estate enterprises, Youngor's real estate scale is small and refined.
At present, Youngor's real estate business is only located in Ningbo and the surrounding areas of Jiangsu and Zhejiang. This time, the company said that it would give a house in Yang Qian Youngor Riverside Garden with an average price of 32,000 yuan/square meter, which is considered as a relatively high-end property in Ningbo.
Since it was incorporated into the listed company in 2002, the company's real estate business income was the highest, only 654.38+0 billion yuan. Therefore, the proportion of real estate business in total revenue in these years is generally lower than that of clothing business.
However, although the real estate business is small, it is a good hand to make money. From 2007 to 2020, during the period of 14, the net profit of Youngor Real Estate's cultural tourism sector accumulated about 137 billion yuan, accounting for about 30% of the company's total net profit in the same period.
Finance and real estate earn more than clothing, which makes Youngor and Li Rucheng face great doubts. In 2007, Business Weekly wrote an article criticizing some enterprises in China for not doing business properly. Among them, Youngor's evaluation is: "Except for the stock and real estate investment business, other businesses of the company have become insignificant."
Later, Li Rucheng said in an interview with the media that the report was a great blow to him.
Investment can make "quick money", but the income is unstable after all, and the real estate industry has also entered a downward cycle. After years of exploration, Li Rucheng gradually realized that financial investment is not Youngor's strong point.
So, in 20 15, Youngor sold his previous investments one after another and began to focus on the main clothing industry. 20 16, Li Rucheng also said heroically: "In five years, another Youngor will be created."
Li Rucheng's confidence lies in his belief that Youngor's clothing industry has achieved the whole industrial chain layout and a solid foundation.
Just as learning technology in the factory left a way out for its own survival, Youngor's clothing business did not lose money despite years of diversification. In case of investment and real estate failure, you can also rely on clothing to support it.
However, seemingly years of "doing nothing" made Youngor the richest company in the clothing field. According to the data of Eastern Fortune Choice, Youngor's monetary fund ranks first in the industry in the past three years.
At the same time, the profitability of the company's clothing business is also ahead of peers.
From 20 17 to 2020, the net interest rate of Youngor clothing sector will remain between 15% and 16%. Taking 2020 as an example, the net interest rate of Youngor clothing sector is about 15%, while the net interest rates of Seven Wolves and Good News Bird in the same period are 7% and 10% respectively.
The slogan of creating another Youngor is not empty. A number of financial indicators of the company show that the investment in the main business is increasing.
When Youngor focused on the clothing industry in the early years, brand marketing mainly relied on advertisements on big platforms, such as CCTV. Although burning money, but the effect is good. With the rapid development of investment business, the company's sales expenditure continues to decline. Until the 20 17 investment failed, the company seemed to start to increase marketing investment again, and the sales expense ratio recovered to more than 20% in the previous period.
At the same time, Youngor's investment in hardware has also increased. In 2020, the company's projects under construction rose from 480 million yuan to 65.438+99.6 million yuan. Among them, the new 10 billion yuan is the purchase price of clothing specialty stores. At the same time, we will invest 1.6 1 100 million yuan to build a smart clothing warehouse, and continuously increase the investment in factory building.
I have to sigh that Youngor has deep pockets, and the new store is not rented, but bought. This is also in line with Li Rucheng's habit of leaving a way out for himself. Even if the clothes don't sell well, it is an investment in real estate.
At one time, under the blessing of "the right time, the right place and the right people", Youngor made a lot of money by holding the original shares of companies such as CITIC Securities and Bank of Ningbo. In the era of crazy rise in real estate, the company also made a fortune.
However, these are all "quick money". Now refocusing on the main clothing industry, Youngor will change from making "quick money" to making "slow money" through intensive cultivation.
Reflecting on his past experience, Li Rucheng once expressed such feelings: "Although the profit of a real estate project is 500 million yuan and 654.38+0 billion yuan, textiles and clothing are industries that can be done all the time, and the money earned by selling clothes one by one is more stable and longer."
References:
The 20th Ningbo International Fashion Festival: Interview with Li Rucheng, Chairman of Youngor, a clothing network in China.
Shenzhen Satellite TV Innovator
Li Rucheng, Chairman of Youngor: Don't repeat yesterday's story.
Li Jincheng: Young Youngor, Economic Observer.
(Editor by Qi Wang)