Outstanding performance: In 2008, Youngor textile business income of 2.031 billion yuan, net profit of 123 million yuan, real estate revenue of 3.459 billion yuan, gross profit of 47%, in equity investment, Youngor will financial investment business commissioned in Kai Shi investment management, with The booming capital market in 2009, equity investment income is expected to gradually increase. Sample Significance: It took nearly 20 years for Younger to establish a three-tier chain of growth in the voice of doubt: cash flow business is textile and garment, growth business is real estate, seed business is financial investment, and the single-industry manufacturing Industrial complex changes. Some people commented that if Youngor is likened to a plane, then its main body is the clothing industry, equity investment and real estate is like the two wings. Classic Quotations: "Do not think Younger just a garment business." Maybe after decades, making satellite is also possible. "" Textile and apparel industry is Youngor's first platform. Real estate is the second platform. The third The platform is an investment, an emerging industry that is still being explored and modeled, but this is the highest level. "- Li Rucheng, Chairman of the Youngor Group Realizing the Path: In early 2008, Business Week Magazine of the United States asked Youngor: The company holds shares in nearly 10 companies, including China Life Insurance, Bank of Ningbo and CITIC Securities, which raised Youngor's investment income from January to September 2007 to 223.6 million U.S. dollars, accounting for 98.5% of the company's total profit. "Other than stock and real estate investing, the rest of the company has become insignificant." 98.5% of the stage data may not explain all, but Youngor's real estate business and equity investment contribution to the net profit is indeed very significant, once 53%, significantly higher than the traditional main business, covering the light of the main business. That people often wonder: Younger or Ningbo that garment business? Youngor's textile and garment, real estate business and equity investment how to coordinate, in the eyes of outsiders has always been a subject that is subject to controversy and curiosity. However, in the financial crisis, such a decentralized investment strategy has really been affirmed. Younger's related diversification began in the late 1990s. Li Rucheng first to the garment industry upstream textile, fabrics and downstream sales channels in these two directions extends, the first major step. In November 2007, following the successful acquisition of Smart and XinMa, Li Rucheng insisted: "Younger has never deviated from the main business, and apparel has always been the foundation, and we will become one of the strongest apparel companies in the world." This is a sum of money acquired The $ 120 million deal is by far the largest overseas acquisition in the apparel industry in China. In fact, many analysts who understand Youngor and the textile industry think that Youngor is facing a bottleneck in domestic sales of apparel, that is, the space for further market share has become more and more limited and the growing ceiling is already faintly visible. Founded in 1992, Youngor Properties has been the key player in the Younger real estate industry. In 1999, Youngor relocated through the factory building, restarting the real estate projects in the original factory and savoring the sweetness of Nuggets real estate. Li Rucheng's desire is to establish a three-tier business chain growth: the cash flow of textile and clothing can be used to feed the capital-intensive real estate, financial investment is for the entire group to provide a "financial reservoir" type of protection and development space , The three can form a benign interaction. After 2000, Younger became Ningbo's premier real estate company. From 2002 to 2006, Younger's real estate revenue increased from 500 million yuan to 1.9 billion yuan, an increase of 280%. Timing into the autumn of 2008, with the real estate market getting into recession, the stock market blew thousands of miles, Youngor market value billions of dollars. May 2009, Youngor executives said "the goal of clothing sales in 2010 will increase by 20%." In the main clothing industry, Youngor has indeed increased research and development efforts to improve the gross profit margin of clothing. More importantly, Younger's channel integration is nearing completion. Prior to the more than 6,000 stores, has been integrated into more than 1,000. However, in the long run, Youngor must find a way out for the good cash flow of its main business. In June 2009, as the real estate step by step, the once-subdued Younger geothermal enthusiasm was rekindled and auctioned for one of the largest Residential land. Youngor now has a land reserve of about 4,480,000 square meters of land, enough to support the development of the next three years. In the third level of the capital market, Youngor has long been proficient in making money tips. As early as July-August 1999, after the battle of CITIC Securities, Youngor's image of the market has been completely changed overnight from the clothing king has become a venture capital specialist. Younger held Bank of Communications, Yike Technology, Broadbo shares, Shanghai 900, Brilliance shares and China COSCO and other listed companies, the total market capitalization reached nearly 20 billion yuan. Later appeared on the Younger investment list, also includes Ningbo Hangzhou Bay Bridge Investment and Development Co., Ltd., Shanxi Sunshine Coking (Group) Co., Ltd., Shenzhen China Europe Venture Capital Partnership, Tianyi Securities Co., Ltd., Hangzhou Venture Software Technology Co., Ltd. Wait. Li Rocheng himself is described as "Younger with 10 billion yuan of funds, with a 20-person team, looking for projects across the country," the Youngor chairman. Twists and turns also come out in the fall of 2008, with the risk of increasing capital markets, Younger's equity investment business has been shrinking. Youngor 2008 third quarter report shows that the company's market value of securities investment projects from 13.5 billion yuan in early 2008 down to 104 billion yuan, net profit fell 43.55%. Based on the capital market risk considerations, the end of 2008, Li Rucheng personally in command of the company set up Kai Shi investment company, the professional team to assist in the management of some of the existing financial assets, and try to gradually shift the investment business from the stock company to the group The company level to operate to reduce the risk. Although walking on the dangerous capital wire, Youngor's three-tier business chain growth has been relatively safe. Profit and risk are always the pros and cons of a coin. The core essence of diversification is the issue of ability. Expert Comments: Yao Xianguo (Zhejiang University School of Public Administration): Youngor started with clothing and fame, but now the flying young eagle, but by the seemingly unrelated to the three main businesses, and the three main businesses But also happens to constitute a three-tier business incompatible. Unrelated, disorderly and orderly, "chaos" has inherent logic.