Youngor: Capital Profit Feeds Back The Clothing Industry

According to the Voice of China News Horizon, Youngor, founded and led by Li Rucheng, is currently the largest clothing company in Asia. Last year, the operating revenue was 12.2 billion yuan, and the profit was 4 billion yuan.

Youngor is famous not only because it has a factory with nearly 50000 people, but also because it Ningbo The largest real estate developer is also a major shareholder of Bank of Ningbo. In textile and clothing, real estate, and financial investment, although Li Rucheng is good at each of the three seemingly unrelated industries, there are still many insiders who criticize Youngor for "doing nothing".

In an exclusive interview with reporters, Li Rucheng said that their critics may not have seen their efforts in the clothing industry. Through the profitability of the capital market, Youngor is using the method of "borrowing arrows from hasty boats" to feed back the clothing industry. Through structural adjustment and technological innovation, the goal of an international superstar in the clothing industry and a century old boutique is becoming clearer and more firm.

Everyone on earth knows what Youngor does Textile clothing However, investors are more aware that Youngor's most profitable business is not textile and clothing, but real estate and financial investment. Leader Li Rucheng therefore has a good name - "Chinese Buffett".

Reporter: If we regard the three industries of Youngor as your children, which one do you like best?

Li Rucheng: Youngor's brand clothing has been in operation for 30 years. However, real estate is also challenging. Operation and investment is a new field, which represents the main direction of China's future economic development. Youngor must participate, because modern finance is necessary.

Interestingly, among the three major industries of Youngor, financial investment earns the most money, but employs the least people; Textile and clothing has nearly 50000 employees, but the profit is the lowest. Experts joked that Li Rucheng knew how to "borrow an arrow from a boat". First, he used the money he earned from selling clothes to make real estate and financial investment, and then used the profits of the capital market to feed back the clothing industry. However, Li Rucheng believes that this is a misunderstanding of the market. In his view, industrial diversification is the essence of Youngor's structural adjustment.

Li Rucheng: Actually, this is a misunderstanding. Now we invest in real estate with the money we earn from textile and clothing. This piece of cash flow is relatively sufficient. We have 700 or 800 million yuan a year, and it is estimated that more than 1 billion yuan will be generated this year.

Reporter: Have you ever thought that if you don't do industry in the future, will textile and clothing become Youngor's secondary or even non primary business one day?

Li Rucheng: Now Youngor The sales of textile and clothing are more than 10 billion yuan, and we have nearly 50000 employees. It should be said that it is Youngor's main business. The main business cannot be described in terms of profit. I think financial investment is the core of modern economy. As an enterprise like Youngor, the industrial structure must be put into the core to improve. This is our strategy. We need not only to adjust the structure, but also to innovate in the system and industry over the past three decades. Youngor's goal is very clear, we want to create a century old enterprise.

"Grass boats borrow arrows" is for a bigger battle. In Li Rucheng's mind, Youngor represents the development model of China's private enterprises. It can not only be the largest textile and clothing company in Asia, but also be an international superstar and a century old famous store. However, in front of the reality that the clothing industry and international brands are surging, how can Youngor become famous in the world? Li Rucheng's idea is: Borrow a boat to go to sea. Mine is mine, and yours can also be mine.

Reporter: Youngor has acquired two major international companies, Smart and Singapore and Malaysia. This is a typical case of international mergers and acquisitions in China's textile industry. What is the starting point of these two acquisitions?

Li Rucheng: Our development goal is to create an international brand. Our staff should be internationalized, and our enterprises should be internationalized. We built Youngor's platform abroad through mergers and acquisitions. Open the way for Youngor to go to the world. Brand has no national boundaries. M&A is not only the merger of an industry, but also the integration of a team.

However, Li Rucheng also knows that mergers and acquisitions are far from enough to become an international brand. At this year's two sessions, Li Rucheng held out his feet to talk about technological innovation. At that time, Li Chengyu reached out to show the new product "Hanma Family" independently developed by Youngor:

Li Rucheng: We have invested nearly 300 million yuan. Han Ma is a product that surpasses our original cotton wool products. It has brought a revolution to the wearing of human bodies. The requirements of the market are very high, so we must constantly demand new concepts, new materials, and new styles.