YOUNGOR Sells &Nbsp Of New Horse Clothing, And Pave The Way For Splitting The Listing.

June 25th hearing,

Strategic pformation

New Malaysia clothing, the main business is production and

YOUNGOR's securities department staff said that the sale of the new Malaysia clothing OEM business which contributed little profit and the bottom of gross profit was more conducive to YOUNGOR's concentrated resources and energy to do well in the brand clothing industry. In 2010, the gross domestic product rate of YOUNGOR's domestic clothing reached 63%, and many international first-line brands did not match up, the gross profit margin of LV was 64.6%, and the gross margin of Burberry was 62.8%, much higher than that of the general domestic brand gross profit rate.

The current profit of YOUNGOR's clothing sector is mainly from the contribution of brand clothing. The profit of the new Malaysia business is less than 2%. With the appreciation of RMB and the rise of labor costs, this business does not have sustainable profitability and development space.

Therefore, the sale is conducive to the realization of the strategic goal of "brand pformation from production management to brand operation".

Li Rucheng, chairman of YOUNGOR group, also said that YOUNGOR is pforming from a production and marketing enterprise to a brand oriented enterprise. The company is also considering a higher level of industrial upgrading. It should turn from technology intensive to art and creative enterprises, and turn YOUNGOR from a garment factory into a "creative and creative world of culture and art".

"In view of this, we accelerated the brand development strategy of clothing, and completed the re distribution of sales channels.

YOUNGOR will gradually reduce the OEM export share of gross margin and occupy more resources. The brand clothing assets of the company will be further optimized, and the marginal benefits of clothing will be further highlighted.

Li Rucheng said that there is still a big gap between YOUNGOR and some famous international brands such as NIKE, ADIDAS, UNIQLO and POLO. In the future, it will expand the scale through the acquisition and merger of new Ma international platform and resources.

Paving the way for splitting the listing

After buying YOUNGOR's new horse clothing, the company lost money in successive years.

In 2010, the new horse clothing net loss was 20 million 710 thousand yuan.

But from the beginning of this year, the garment enterprise began to turn a profit, and made a profit of 13 million 760 thousand yuan from 1 to May this year.

YOUNGOR, which started with clothing, sold the clothing assets that had just started making money. It was even more puzzling at the same time, which made people daydream, and no doubt dropped a heavy bomb on the two tier market.

Analysts speculate that from a variety of information, the pfer may not be a simple investment and assets that investors think, which may be the premise for YOUNGOR to split its clothing business separately.

Yesterday, YOUNGOR responded positively to various conjecture.

YOUNGOR Securities Division personnel revealed that YOUNGOR will be split in the market when the macro policy is appropriate.