Youngor Plays “Three Major Industries” Announcement with 300 Million Shopping Shops

The investment in Baoxi Bird Shop and Rent Shop is for rapid expansion of channels. 30% of the 178 new stores are self-operated and 70% are franchisees.

In 2008, Youngor yarn-dyed fabrics have an annual output of more than 50 million meters. In 2009, Youngor added Shaoxing's yarn-dyed fabric factory, with an investment of 400 million yuan and an estimated 15 million to 17 million meters of new production capacity. From the scale, Youngor's yarn-dyed fabric production capacity is second only to Yida and Lutai, ranking third.

Although the production capacity has expanded, the sales price has declined due to industry factors and increased supply. In 2008, Youngor's textile business revenue was RMB 2.031 billion, and net profit was RMB 123 million. In 2009, net profit may decline year-on-year.

In the first half of 2009, Youngor's domestic apparel sales revenue growth remained at 15%, and its profit margin was stable. At present, there are 1,800 channels, 80% self-employed, including 800 department store counters, accounting for 37% of revenue, 400 self-operated stores, accounting for 37% of revenue, and the rest are franchise and group purchases.

Younger's future channel expansion seeks to improve quality, not quantity growth. And will be concentrated in provincial capitals and central cities. This shows that Younger’s expansion strategy is different from Metersbonwe and seven wolves. This is because Youngor's development has passed the stage of high-speed extension, and on the other hand, it is related to Youngor's product positioning. After all, there is a difference between the suit and the public leisure audience.

Younger entered the real estate industry in 1992 and is currently the largest real estate developer in Ningbo. At the same time, the project radiates the Yangtze River Delta regions such as Hangzhou, Suzhou and Shaoxing. In 2008, Youngor’s real estate revenue was 3.459 billion yuan and gross profit was 47%. The warming of the real estate industry in 2009 drove the sales of listed companies to maintain a robust situation, with an advance of RMB 2.2 billion from January to May.

In terms of positioning, Youngor will continue to uphold quality development strategies and maintain high profitability. Regionally, Youngor temporarily only considers the development of regional real estate developers and does not consider expanding the scale to the whole country. The main reason is that the increase in management costs when real estate development expands to other places is too high.

Younger set foot in the financial investment field in 1993. Along with the continuous expansion of the assets, Youngor entrusted the financial investment business to the Group’s investment management of Kaishi in 2008.

Youngor's current three businesses are all operating independently and may develop better after spin-off. Listed companies are also actively exploring, but the current stock market has not yet precedentized the demerger of listed companies, and it takes time to implement the process.

In addition, due to the limited resources of domestic commercial channels, the current commercial channels are seeking excessive profits. With the increase of supply, there will certainly be surplus of channel resources in the next 3-5 years. At present, high-quality manufacturing companies have already qualified to negotiate with commercial channel companies.

The Annunciation intends to publish a total of no more than 65 million A shares, and upgrades the structure of the Announcement of the Announcement of the Announcement. Using direct marketing, joint ventures and franchise, 18 image center stores, 80 sales center stores and 80 fashion stores were established, and the newly added store area was 46,400 m2. After the completion of the project, Announcement will increase revenue by approximately 570 million yuan and net profit of 120 million yuan.

The investment in buying stores and renting stores is for the rapid expansion of channels. The Xinxiu itself has also opened stores to drive franchisees to open stores. 30% of the 178 new stores are self-operated and 70% are franchisees. The issuance of short-term earnings per share of good news is very optimistic in the medium to long term, and in the short term, the dilutive effect can be reduced through the active development of existing businesses.

The original goal of Baoxi Bird's store expansion was around 8%-9%. It raised 178 stores and opened it within 2 years. The total store speed was 15%. The maturity period of new stores is 3 years. The first year efficiency is 60%, the second year is 80%, and the third year is 100%.

Since the Annunciation IPO, a total of about 300 million yuan has been spent on purchasing shops, totaling more than 20 stores, and the total number of stores in May 2009 was about 700.

In the first-line market, Baoxiu is mainly based on image stores, and the second-tier market is playing a role in improving sales performance. At present, the ratio of the retail price to the cost price of Shengxi Bird is 5-6, and the wholesale discount is 4.5%.

From a production point of view, SAINT ANGELO and S.ANGELO brands are basically all self-produced suits with an annual output of 300,000 sets; a small part of casual suits are produced, most of the outsourced shirts And other leisure products are all outsourced. BONO brand, suits and shirts are all basically self-produced, with an annual production capacity of 500,000 suits and 400,000 shirts.

In the first half of 2009, the number of orders received by Baoji Group's group buying business was basically the same as that of the same period of 2008. However, due to overseas demand, foreign trade export business declined slightly year-on-year. Taken together, it is estimated that in the first half of 2009, Bao bird will realize a profit of about 10 million yuan, and the annual profit will be expected to maintain the level of 30 million yuan in 2008.

In 2009, the cost of workers for the Annunciation did not increase, sales continued to increase, and procurement costs fell sharply. Costs for purchasing raw materials for autumn and winter clothing fell by 10%, and purchase costs in spring and summer also declined slightly, which dragged down overall manufacturing costs.

In addition, Baoxi Bird hopes to obtain the title of Zhejiang High-tech Enterprise, which will reduce the income tax expense, and the logistics center will also receive a government subsidy of RMB 1 million-2 million.

In the same way, if inflation occurs throughout the country in the second half of 2009, the retail price of the Annunciation will increase accordingly.