Profitability Is No Match For YOUNGOR, But 50 Ningbo Listed Companies Earn Only 1 Billion 286 Million Yuan In The First Half Of The Year.

According to statistics, in the first half of 2019, in the A share market, 79 listed companies registered in Ningbo realized 184 billion 12 million yuan in business income, 19 billion 615 million yuan in net profit attributable to the parent company, and the total market value as of August 30, 2019 reached 679 billion 795 million yuan. Among them, the number of Listed Companies in Ningbo in the first half of 2019, whose net profit was not more than 100 million yuan, amounted to 50, and the total realized business income was 31 billion 491 million yuan, accounting for 1 billion 286 million yuan of net profit attributable to the parent company.


YOUNGOR, which also belongs to the Ningbo legion, has a brilliant performance.


According to the financial report, in 2019 1-6, YOUNGOR completed its operating income of 4 billion 582 million 562 thousand and 800 yuan, and realized a net profit of 2 billion 27 million 71 thousand and 700 yuan attributable to shareholders of listed companies, representing an increase of 27.81% and 36.16% over the same period last year, maintaining a steady and healthy development.


The fashion apparel sector achieved 3 billion 156 million 349 thousand and 100 yuan in operating income and realized a net profit of 647 million 870 thousand and 200 yuan attributable to shareholders of listed companies, representing an increase of 11.86% and 6.90% respectively over the same period last year.


The real estate sector completed its operating income of 1 billion 425 million 927 thousand and 500 yuan, achieving a net profit of 274 million 301 thousand and 400 yuan attributable to shareholders of listed companies, representing an increase of 86.70% and 110.60% respectively over the same period last year.


Net profit attributable to shareholders of listed companies reached 1 billion 104 million 900 thousand and 100 yuan, an increase of 46.84% over the same period last year.


(1) fashion clothes


During the reporting period, YOUNGOR brand clothing completed business income of 2 billion 765 million 605 thousand and 900 yuan, the net profit attributable to shareholders of listed companies was 658 million 798 thousand and 200 yuan, representing an increase of 3.79% and 10.52% over the same period last year.


During the reporting period, under the premise of implementing the strategy of big stores, YOUNGOR constantly adjusted the channel structure according to the shift of core business circle and the change of consumption habits. As of the end of the reporting period, there were 2303 total outlets, an increase of 45 compared with the beginning of the year, with a business area of 431 thousand and 800 square meters, an increase of 20 thousand and 100 square meters over the beginning of the year.


(two) real estate business


During the reporting period, 3 new projects of YOUNGOR real estate (Ningbo Songjiang government, JB05-05-24 plot in the bay area of Jiangbei District, 3-B plot of Cixi Kang Lu town), the new construction area of 283 thousand square meters, 14 projects under construction at the end of the year, and 1 million 387 thousand and 900 square meters of construction area (the conversion of the cooperation projects according to the equity ratio, the same below).


In the first half of 2019, YOUNGOR increased its sales area of 232 thousand and 500 square meters, accumulatively completed the pre-sale area of 233 thousand and 600 square meters (order size), an increase of 17.32% over the same period last year, and realized the pre-sale amount of 6 billion 620 million 598 thousand and 700 yuan, an increase of 24.75% over the same period last year.


As of the end of 2019, 6 land reserves of YOUNGOR were 5, with an area of 481 thousand square meters, and the planned development area was 904 thousand and 600 square meters.


(three) investment business


During the reporting period, the investment income of YOUNGOR's investment business reached 1 billion 674 million 840 thousand and 900 yuan, a decrease of 145 million 367 thousand and 500 yuan over the same period last year.


(1) accounting for long-term equity investment assets such as Ningbo bank and Zhejiang Merchants Property Insurance by equity method, resulting in an investment income of 1 billion 51 million 286 thousand and 600 yuan, an increase of 297 million 522 thousand and 300 yuan over the same period last year.


(2) the acquisition of financial assets and dividends and purchases of financial products earned 623 million 372 thousand and 500 yuan, representing a decrease of 2 million 764 thousand and 700 yuan over the same period last year.


(3) the disposal of trading financial assets and long-term equity investments has gained 181 thousand and 800 yuan, representing a decrease of 440 million 125 thousand and 100 yuan over the same period last year. The main reason is that since January 1, 2019 the new accounting standards have been implemented, the financial assets formerly included in the "sale of financial assets" have been designated as "financial assets measured in fair value and whose changes are included in other comprehensive income". The fluctuation and disposal of their value will not affect the current profits and losses.


For growth in performance, YOUNGOR explained:


The main reason for the 27.81% increase in operating income over the same period last year is that the real estate sector has completed the delivery of the first phase of the Ming Ming garden and the super high rise (North) project of Taiyang City, achieving a business income of 1 billion 425 million 927 thousand and 500 yuan, an increase of 86.70% over the same period last year.


2, the net profit attributable to shareholders of listed companies during the reporting period increased by 36.16% over the same period last year. The main reasons are: (1) the net profit of the current real estate sector to shareholders of listed companies is 274 million 301 thousand and 400 yuan, an increase of 110.60% over the same period last year; (2) the net profit of the current investment sector to shareholders of listed companies is 1 billion 104 million 900 thousand and 100 yuan, representing a 46.84% increase over the same period last year.


3, the net profit from non recurring gains and losses attributable to shareholders of listed companies during the reporting period is 46.53% higher than that of the same period last year. The main reason for this is that during the reporting period, the investment sector achieved a net profit of 1 billion 41 million 590 thousand and 800 yuan excluding non recurring gains and losses attributable to shareholders of listed companies, an increase of 74.19% over the same period last year.


4, the net cash flow generated by business activities during the reporting period increased by 59.59% over the same period last year. The main reasons are: (1) the net cash flow generated by the current fashion clothing sector is 652 million 208 thousand and 900 yuan, an increase of 107 million 549 thousand and 400 yuan from 544 million 659 thousand and 500 yuan a year earlier; (2) the net cash flow generated by the current real estate sector is 1 billion 513 million 99 thousand and 800 yuan, an increase of 625 million 364 thousand and 800 yuan over the same period last year, mainly for the purchase of land and labor expenditure, which was reduced by 945 million 352 thousand and 900 yuan over the same period last year.


According to public information, YOUNGOR group was founded in 1979, and is headquartered in Ningbo, Zhejiang. It is a leading textile and garment industry in China. In 1998, the company was listed on the Shanghai stock exchange. YOUNGOR has gone through the course of 19 years from its initial to the public market. However, its vision is not confined to the field of clothing, but rather the early diversification. As early as in 1992, YOUNGOR Garment Co., Ltd. set up a joint venture Real Estate Company. In 1993, it began to set foot in the equity investment field, and invested capital for enterprises with potential development. In 2007, the company adjusted the industrial layout to three major sections, namely, brand clothing, real estate development and equity investment, and opened up the three driving carriage of clothing, real estate and financial investment.


Hao Shuai, an analyst with Guotai Junan Securities, said that in 2018, YOUNGOR's clothing industry's operating income was 5 billion 115 million yuan, an increase of 6.16% over the same period last year, accounting for 57.69% of total revenue, up 6.46pct from 2017. The gross profit margin of brand clothing was 65.69%, an increase of 1.64pct over the same period last year. The garment industry has made remarkable progress in both the scale of revenue and the level of profitability. In the long run, since 2012, the company's apparel business has maintained a steady growth trend, and its growth rate has improved in recent years. With the growth of garment business, its income share has also increased steadily, from 27.86% in 2014 to 57.69% in 2018.


In 2018, YOUNGOR's real estate business revenue was 3 billion 752 million yuan, down 18.23% from the same period last year, accounting for 42.31% of its operating revenue, down by 6.37pct compared with 2017. The gross profit margin of real estate business was 46.54%, an increase of 5.71pct compared with 2017 level.


Hao Shuai said that in the long run, the income of real estate business has maintained a trend of rising first and then decreasing: it increased from about 4 billion 796 million yuan in 2012 to 10 billion 699 million yuan in 2014, and then dropped to about 3 billion 752 million yuan in 2018, which is mainly affected by the relevant policy regulation and the cost and difficulty of the recent increase. However, on the contrary, the gross profit margin of real estate business has improved, gross profit margin has been increasing year by year since 2015, and it has reached 46.54% in 2018, which is 5.71pct higher than that in 2017, indicating that the company has optimized the operating level and profitability of the real estate sector.


According to the financial report, YOUNGOR realized net profit of 3 billion 677 million yuan in 2018, an increase of 1139.14% compared with the same period last year, and the net assets yield reached 13.93%, up 12.69pct from 2017 level. Among them, the company achieved an investment income of 3 billion 484 million yuan in 2018, an increase of 8.97% over the previous year, accounting for 80.13% of the total profit. In Hao Shuai's view, it also reflected the diversification strategy of its three sectors, namely clothing, real estate and equity investment. Investment income has always been over 3 billion since 2014, and has picked up in the near future. YOUNGOR's reliance on investment income has also deepened.


Hao Shuai believes that clothing consumption is constrained by the recession: the proportion of YOUNGOR's clothing revenue has increased. If the macroeconomic fluctuation affects the downstream clothing consumption slowdown, it will form a certain pressure on the company's performance. Meanwhile, the real estate sales are not as good as expected: the real estate regulation policy is uncertain. If YOUNGOR's key layout of urban policies tighten, it will affect the company's project sales situation, and the results will not be released. Moreover, the investment income is not as expected: YOUNGOR's net profit is more dependent on investment income, if the fluctuation of investment income will affect the performance.


YOUNGOR said that the company will pay close attention to the macroeconomic trend and the direction of national policies, comply with the market situation and adjust the policy direction, take the initiative to adjust the development ideas and business plans, and enhance the enterprise's ability to resist risks and competitiveness. In addition, the company will steadily promote transformation and upgrading, apply new technologies, practice new models, explore new formats, reform and increase power, and promote growth with innovation.