Youngor(SH:600177) Xin Jing Bao·2025-07-04 02:13Core Viewpoint - YOUNGOR is divesting its financial assets to refocus on its core fashion business, aiming to recover from declining profits and adapt to changing market conditions [2][3][4]. Financial Performance - As of June 23, YOUNGOR sold financial assets totaling 4.175 billion yuan, representing 10.13% of the company's net assets [2]. - In 2024, YOUNGOR reported revenue of 14.188 billion yuan, a year-on-year increase of 3.19%, but net profit decreased by 19.41% [4]. - The company's investment business generated a net profit of 2.209 billion yuan in 2024, accounting for approximately 80% of total net profit [7]. Business Strategy - YOUNGOR is shifting its focus back to the fashion industry after years of reliance on real estate and financial investments, with a strategic goal of becoming a world-class fashion group [3][6]. - The company has made significant acquisitions in the fashion sector, spending over 9 billion yuan in the first half of 2024 to acquire retail and luxury brands [3][9]. Market Challenges - The traditional menswear market is facing a downturn, with YOUNGOR's main brand experiencing an 11.14% decline in revenue [8][9]. - The company is diversifying its portfolio by acquiring brands in various fashion segments, including luxury and outdoor apparel, to mitigate risks associated with the declining menswear market [9][10]. Operational Adjustments - YOUNGOR is reducing its real estate operations, which previously contributed over 70% of its revenue, and is now focusing on enhancing its fashion business [6][8]. - The company has opened 23 new self-operated stores while closing 18, indicating a strategic adjustment in its retail footprint [10].