Youngor YOUNGOR men's clothing revenue in the third quarter of 2.915 billion

Youngor YOUNGOR men's clothing revenue in the third quarter of 2.915 billion

The triangle is known as the most stable one of all geometric shapes. Clothing, real estate, and financial investment have been the most profitable layouts for the most profitable red tailors, Li Rucheng. However, for the 35-year-old Ningbo Youngor Group, the pre-sale revenue of real estate has recently declined sharply, which has severely dragged down the overall performance of the company. The concept of this seemingly cyclical best hedge has begun to go wild.

According to the latest figures, at the end of the third quarter of 2014, Youngor had only 5 land reserves, and it plans to develop a construction area of ​​593,100 square meters. So the scale of land reserves, even in small and medium-sized housing enterprises is also too small. What's more, this “qualification”, which has been involved in the real estate industry for a full 22 years, has no intention of concealing its intention to shrink the property sector.

The Younger media official told reporters a few days ago that the company does have strategic adjustments. In the future, it will shrink the property sector and return to the main business of clothing.

According to Liu Chenguang, general manager of Hangzhou Regional and Hangzhou Corporation, he told reporters that “3 years ago, when Youngor was in financial difficulties, he had started to transfer some real estate project companies and also retired some of his cooperative interests and plots, but because of the positioning of the company’s projects and the market Dislocation, adjustment effect is not obvious."

Base camp into a disaster area

In the third quarter of 2014, Youngor's branded apparel business achieved revenue of RMB 2.915 billion, which was basically the same as the same period of the previous year; net profit was RMB 466 million, an increase of 23.50% over the same period of the previous year.

Contrary to the popularity of the clothing sector, the real estate sector, which is also one of the pillar businesses of Youngor, has not raised up.

In the third quarter of 2014, the company realized real estate project pre-sales revenue of 6.465 billion yuan, a decrease of 36.05% over the same period last year. As of the end of the reporting period, the company's property sector accounts for advances of 13.895 billion yuan, net profit of 643 million yuan, a decrease of 29.36% over the same period last year.

Yan Yuejin, a research fellow at Shanghai Yiju Real Estate Research Institute, told reporters that one of the reasons for the fluctuation of Youngor's performance is that the target of the purchase restriction policy has hit the Yangtze River Delta, especially Ningbo, Hangzhou and other cities, these are the key sections of Youngor's layout.

In the first half of 2014, the real estate market continued to wait and see mood and transactions continued to decline. The Ningbo, Suzhou, Shanghai and Hangzhou cities where Youngor's development projects are located face the severe situation in which the transaction area of ​​commercial housing is reduced to varying degrees and the overall inventory is high.

At the same time, the sluggish sales of its real estate sales also increased Younger’s cash flow pressure. In the third quarter of 2014, the net cash flow from the company's real estate segment operating activities was 1.148 billion yuan, a decrease of 2.361 billion yuan over the same period of last year, a drop of up to 61.38%.

In response, Youngor’s management explained that this was due to the continuous downturn in the regional housing market and the overall impact of the company’s project development cycle and product mix.

Real estate sector shrinks

In line with the decline in performance, Youngor’s acquisition of land and the construction process are also slowing down.

In the first three quarters of 2014, Youngor had only one new project (Mingzhou Phase I) with a construction area of ​​149,800 square meters; the number of completed projects was 4 (Xianghu Dandee Phase II, Beverly II, Suyuan , Purple Jade Garden), completed an area of ​​351,100 square meters. As of the end of 3Q14, there were only 9 projects under construction by the company and the area under construction was 1,409,600 square meters.

In fact, Youngor has been cautious in taking land. In addition to the urban sunshine of the cooperation project, no new land reserve was acquired in the third quarter of 2014. As of the end of the third quarter, the company has five land reserves and plans to develop a construction area of ​​593,100 square meters.

Yan Yuejin analysis said that the scale of such a land bank, even in small and medium-sized housing enterprises, is too small, and it is easy to bring the risk of insufficient inventory.

The rhythm of taking this ground is related to Younger’s cautious financial implementation strategy.

Youngor told reporters that the company has also analyzed and participated in land parcels for several times, but in view of the current low market turnover and the unabated reduction of the land market, it has abandoned many projects that exceed cost expectations in order to control risks.

Of the five existing lands of Youngor, 4 were land reserves newly added from last year, and Youngor’s intention to reduce land reserves was evident in the layout of last year.

In 2013, Youngor added a total of only five land reserves, of which two were cooperative projects and three were wholly-owned projects. The additional equity could be built at an area of ​​492,300 square meters and the total land price was 2.604 billion yuan.

Dealing with the business of the real estate sector in this way has become a megalith in the heart of the Lee family.

In 2013, the chairman of the Youngor Group, Li Rucheng, repeatedly stated in public that it would split the real estate business into an independent listing. In February 2014, Youngor was planning a major event. The industry generally believes that it is planning to list the real estate sector. However, the situation was ultimately stronger than that of people. Plan A finally ended in failure. Nowadays, Youngor has begun to shrink the real estate sector, and the move to the market is hopeless.