YOUNGOR: Clothing, Real Estate, Financial Investment, Three Pillars

Company implementation in 2010 Business income 14 billion 514 million yuan, an increase of 18.20% over the same period of last year. profit 3 billion 401 million yuan, down 17.86% compared with the same period last year, the net profit attributable to the parent company owners was 2 billion 672 million yuan, down 18.13% compared with the same period last year. Profit 1.20 yuan. The allocation plan is 5 yuan (including tax) for every 10 shares.

　　 clothing Real estate, financial investment three feet Dingli 。 During the reporting period, the business of the three sectors of the company was coordinated, including finance. Investment Business contributes 56% of the profits. clothing retail In terms of segmentation market The five brands launched by MAYOR, GY, HartSchaffnerMarx, CEO and HANP (hemp family) are gradually moving towards independent operation, forming a positive complement with the original leading brand YOUNGOR. At the same time, the business outlets have increased by 187 to 2145, and the sales efficiency of the store has increased by 10%. In terms of real estate development, the company steadily promoted the strategic layout of the Yangtze River Delta, and entered the Shanghai market in the year after gaining a firm foothold in Ningbo, Suzhou and Hangzhou. At present, there are 18 sales projects, and the order amount for pre sale is 11 billion 900 million yuan, an increase of 66% over the same period last year, which provides protection for the company's property income. On the contrary, the company mainly participates in the private placement and PE investment of the listed companies, and obtains the investment income through reducing the sale of the financial assets. In 2010, the company participated in the private placement of 12 companies. The company received 1 billion 900 million yuan from the disposal of the sale of financial assets and accounted for 90% of the investment income.

Net profit margins declined due to lower gross margins. During the reporting period, net profit fell by 16%, mainly due to a 5 percentage point reduction in gross margin. Judging from the gross profit margin of the sub item products: the clothing business has increased gross margin by 2 percentage points under the efforts of the company's shirt product upgrading and structural optimization, and the gross profit margin of the real estate business has decreased by 12 percentage points to 33%, dragging down the company's gross profit margin. The main reason is that the gross profit margin of the three phase of the Suzhou future city is relatively low, only 22%.

Strong clothing industry, dig deep real estate, expand financial investment. Li Rucheng, chairman of the company, published the plan for the future development of YOUNGOR in the 1 sessions: (2) developing clothing brands through opening up physical stores and direct selling stores, launching the hemma emerging market; and 2, concentrating resources on the development of the real estate business in the Yangtze River Delta region, doing the four most prosperous cities in Ningbo, Hangzhou, Shanghai and Suzhou; and 3, in the next ten years, we will regard financial investment as a long-term industry. We believe that the management of the company has a vision of development, initiative and long-term layout, and has the sustainability of its future performance under its guidance.

Risk warning: the risk of rising prices of textile raw materials; the downside risk of housing prices under the control of real estate policies; earnings forecasts: the company's 2011-2012 year EPS is 1.39 yuan and 1.54 yuan respectively, and the corresponding dynamic price earnings ratio is 9 times and 8 times the closing price of April 18th, maintaining the company's investment rating as "overweight".