Youngor(SH:600177) Xin Lang Cai Jing·2025-04-25 06:36Core Viewpoint - YOUNGOR is undergoing a painful transformation, with a decline in net profit for the fourth consecutive year despite a slight increase in revenue [1][3]. Financial Performance - In 2024, YOUNGOR reported revenue of 14.188 billion yuan, a year-on-year increase of 3.19%, while net profit attributable to shareholders was 2.767 billion yuan, a decline of 19.41% [1]. - The company has experienced a continuous decline in net profit from 2021 to 2023, with decreases of 29.15%, 1.05%, and 32.31% respectively [1]. Business Segments - The real estate sector remains a significant contributor to YOUNGOR's revenue, despite the company's announcement to exit this business. In 2024, real estate revenue accounted for a substantial portion of the company's income, with a reported 7.471 billion yuan, a year-on-year increase of 16.20% [12]. - The fashion segment, which was expected to drive growth, faced challenges with revenue and profit declines. In 2024, the fashion segment generated revenue of 6.799 billion yuan, down 6.94%, and net profit of 431 million yuan, down 43.90% [4][5]. Market Conditions - The overall retail market is under pressure, with a consumer confidence index at a low level and a significant drop in retail growth rates. The retail sales growth for clothing, shoes, and textiles was only 0.3% in 2024, a decrease of 12.60 percentage points from 2023 [4]. - The decline in the business apparel market is attributed to changing consumer preferences towards casual and outdoor wear, impacting YOUNGOR's traditional business model [7]. Strategic Adjustments - YOUNGOR plans to focus on product upgrades and iterations, aiming to reposition itself as a brand that caters to business professionals in various settings [7][8]. - The company is investing in channel development, with plans to open large "Business Pavilions" in key cities to enhance customer experience [7][8]. Investment and Real Estate Strategy - YOUNGOR is gradually exiting its real estate business, with no new projects launched in 2024 and a focus on clearing existing inventory [10][12]. - The investment segment remains crucial for maintaining stable net profits, with YOUNGOR recovering 1.796 billion yuan from financial investments in 2024 [12][15]. Future Outlook - The company is expected to continue its transformation and may consider external acquisitions to expand its business footprint, especially in the fashion sector [15].