Chapter 13 12. Younger: Invisible Wings

For those guests invited by Youngor from afar, the winter in Ningbo is really bad.For several days in a row, the cold wind was wrapped in light rain.However, on January 22, the grand celebration in the Sheraton Hotel made them temporarily forget the troubles of the weather. The luxurious crystal chandeliers looked down on this group of people with prominent titles.The ceremony began, and a dark, muscular man stepped into the spotlight.If he changed his suit, he would look more like a figure walking out of a crowd of industrial workers. Li Rucheng, the chairman of the Youngor Group, has a dark complexion and walks slowly, but his hands are small and he has the strength not to look back.

"After Youngor acquires Smart and Xin Ma," Li Rucheng paused, "it will become one of the strongest clothing companies in the world." This is a transaction with an acquisition amount of 120 million US dollars, which is the largest overseas merger and acquisition case in China's apparel industry so far. Smart is a wholly-owned subsidiary of Kellwood of the United States in the Far East, and Xin Ma is an American asset related to Smart. Among them, the acquisition of Smart Youngor invested 70 million U.S. dollars, and the other 50 million U.S. dollars was used to acquire Xin Ma.

In 2007, Youngor's dazzling performance in the capital market was astonishing, and it once became the second largest enterprise in the market value of domestic A-share companies.However, Youngor intends to start 2008 with a demonstration of its ambition for the main clothing business.This ambition has been repeatedly emphasized on several occasions recently, but few words have been said when it comes to equity investment and real estate business. Li Rucheng deliberately avoided the media's questioning of Youngor's investment strategy.In the interview at the end of the acquisition conference, he even told reporters, "The explosive development of the capital market and the real estate market will lead entrepreneurs into misunderstandings. This is what I am worried about. Our previous opportunities and luck cannot Think of it as a way of making a living as a business.”

Someone commented that if Youngor is compared to an airplane, then its fuselage is the main business of clothing, and equity investment and real estate are like its two wings. "It has grasped both the big bull market in the stock market and the big bull market in real estate. The two wings have grown so fast that they have even blocked the fuselage." Huang Jiangwei, secretary-general of the Ningbo Private Enterprise Chamber of Commerce, said, "In 2008, real estate may be affected by policies. Uncertainty factors are also accumulating, and the release of a signal to strengthen the main clothing industry at this time can give people confidence."

In fact, there are indications that Youngor has not slowed down its exploration of equity investment.Li Rucheng also admitted that in 2007 alone, Youngor invested more than 5 billion yuan in the direction of equity investment, and now Youngor has more than 20 billion yuan in financial assets. At the beginning of 2007, under the chairmanship of Li, Youngor established two subsidiaries: Ningbo Youngor Venture Capital Co., Ltd. and Shanghai Youngor Investment Co., Ltd. The role of the former is VC, while the latter is more like PE. "This is already done as an industry," Li said, "We want to gradually and cautiously welcome an industry."

"Worry" on the one hand, and "gradually and cautiously" on the other hand, this may be exactly when the window of finance opens in front of Youngor unexpectedly, and the enterprise is under the attack of two torrents of industry and investment. Li Rucheng's true and subtle mentality. It's not that he is unaware of the doubts from the outside world: after the "stupid money" in the bull market has been earned, can Youngor's investment success be replicated and continued?Are industry, investment and real estate on the same plate, or are they going to start anew?

One thing is certain, private entrepreneur Li Rucheng is determined to use capital as the "key" to inherit the industry.He has repeatedly announced that he will retire at the age of 60, which is 2011. "I want to leave them (successors) assets without trouble, leave tens of billions of wealth to them, and will not burden them. You only need to take the 'key' away, and you can manage the house. Capitalize the industrial assets , securitization, and maintain liquidity, you can hand over the enterprise.” But how did Li Rucheng create this "key"? Overlooking from the eighth-floor office of Youngor's two-winged building, Li Rucheng's eyes may occasionally project to 10 years ago, which is the starting point of creating Youngor's investment myth today.

"Equity investment in Youngor is unintentional. Now when I go outside, people comment on me, 'You are China's Buffett, and every project is very successful'. This sentence is wrong. The original intention of many investment projects is not to make money. How much money is taken care of by the government." Li Rucheng said. "Take care" is Li's expression with Chinese wisdom. The more real situation may be that local governments need Youngor to "take care" of some enterprises.For example, Guangbo Group and Yike Technology were originally state-owned enterprises on the verge of bankruptcy.The government hopes that Youngor can revive them, but Li Rucost is unwilling to accept it, but he can't shirk it.For example, Yike was forced by the government before Youngor went public. "Youngor has no choice but to go public", so it became a major shareholder in desperation.

In April 1997, Ningbo Commercial Bank was established. The city leaders hoped to find several powerful shareholders for the bank, and Youngor was also involved.Although he was worried that the bank would not be easy to do, Li Rucheng could not refuse. Investing in CITIC Securities is a bit of a mistake. After Youngor went public in 1998, he wanted to find projects in emerging industries. Li Rucheng was very interested in the securities industry, but felt that "it is definitely not possible to start a securities company by yourself. It is better to participate in the stock market." In his eyes, CITIC Securities is a relatively standardized state-owned enterprise, and the background of shareholders is also good. They are all large and medium-sized state-owned enterprises, which "just complement us."The subsequent listing of CITIC Securities and the fact that brokerages will become the most aggressive sector in the bull market are beyond Li's expectations.

"During the bear market, Youngor once wanted to sell the shares of CITIC Securities, but he was short of a few cents." Fang Jun, an analyst in the textile industry of Guosen Securities, said, "At that time, a securities company as big as Southern Securities collapsed, and everyone was not optimistic about it. As a brokerage, Youngor has relatively good cash flow, and he is faced with a choice, it’s okay not to sell, but he wants to sell, and it’s not that urgent, and if he doesn’t sell it, it can be said that it’s a slap in the face.” The above-mentioned half-assessment and half-assessment of investments have been brought to fruition after 10 years, and even Li Rucheng himself was shocked by the abundance of harvest. In January 2007, Guangbo Co., Ltd. (002103) landed on the Shenzhen SME Board. The closing price on January 25, 2008 was 15.22 yuan, while Youngor's shareholding cost was 1.52 yuan.Yike Technology (002036) was listed in 2004. In April 2007, Youngor increased its shareholding in Yike Technology to 29.84% and became its controlling shareholder. On January 25, 2008, the closing price of Yike Technology was 17.25 yuan, and the 16.2398 million yuan invested by Youngor for the first time has been enlarged by about 9.5 times.

On July 19, 2007, Bank of Ningbo was listed on the stock market, becoming the first batch of commercial banks listed in China. In less than 10 days, the stock price rose by more than 200%. On January 25, 2008, the stock price was 18.15 yuan, and the investment cost of Youngor in that year was only 1.01 yuan per share. What made Youngor's wallet rapidly expand was the battle of CITIC Securities.Youngor's shareholding cost is 1.7 yuan, and the total investment cost is only 320 million yuan. In February 2007, Youngor reduced its holdings by 30.1214 million shares and cashed out 750 million yuan (after tax).After the shareholding reduction, he is still the fourth largest shareholder of CITIC Securities. On January 25, 2008, the closing price of CITIC Securities was 76.02 yuan, and the book income of Youngor was magnified by 44.72 times. At the beginning of 2007, the person in charge of a financial consulting agency met Li Rucheng in Ningbo. At that time, the effect of investing in CITIC had already appeared.What surprised him was that even Li Rucheng, who was as stable as he was, would be overjoyed, "I have been making clothing for more than 30 years, and the profits have been accumulated bit by bit." Li told him, "But investment is different, and you can make money all at once. 30 years of manufacturing money!" Manufacturing is bitter. In June 2007, Li Rucheng faced reporters and expressed confusion about how to go further on the road of manufacturing: Of course, the enterprise must develop healthily and be a century-old store, but the industrial environment seems to be a bit problematic, and it feels wrong.Youngor has not given up on the main business. Over the years, we have always insisted on putting the main business in an important position.But the development of an enterprise requires a process. For example, the United States has hundreds of years of industrialization and hundreds of years of business and social rules. It has cultivated talents in the fields of entrepreneurs and managers. Enterprises can grow bigger, as long as there is a leader The characters come out and immediately integrate the resources.However, China does not have this condition, and there are two limitations. First, Chinese is the mother tongue of China, and Chinese entrepreneurs seldom study foreign laws and business conditions abroad.In fact, we are very unfamiliar with the world market.People like us, when we go out to eat with others, we have to bring a translator, and we rarely communicate with others. Therefore, Chinese entrepreneurs are different from Indian entrepreneurs in terms of communicating with the outside world. India can produce some more excellent companies.Even if Chinese companies now have a lot of overseas acquisitions and purchases, they are all done by state-owned enterprises, not by companies, but by the state. In addition, there is also such a situation internally. We have done a survey, and more than 30% of the people surveyed want to be entrepreneurs.Now 90% of college students want to go into politics, thousands of troops want to be civil servants, no one wants to be a worker, and no one wants to be a farmer.The foundation of China has changed. Everyone wants to be an official and an entrepreneur. This society has gone wrong.The same is true within the enterprise.It is difficult to integrate from top to bottom. Entrepreneurs can be like Zhang Ruimin, Liu Chuanzhi, and Ren Zhengfei, so that employees can follow them wholeheartedly?impossible.People with a little bit of qualifications in China can set up their own businesses.Even if it is like Liu Chuanzhi, why let Lenovo split up?It's just not fair, it's a special Chinese culture.The Japanese are different. The Japanese will follow you if they recognize you.In the situation in Hong Kong, many bosses are doing things in the Western way, and their general managers are all foreigners, and the culture is different.Compared with them, we are very difficult. China has a population of 1.3 billion, and these 1.3 billion people are not only China's market, but also the world's market.Last time, the mayor of XX city told me that a famous brand store was opened in the local street. He said, "foreign brands must be introduced on the street." Foreign companies come to China to open a shopping mall, and Chinese companies are not allowed to enter. We can still Accept; if we open a street of our own, if we don’t compete through price competition, Chinese companies cannot enter. This is unreasonable. I can afford it, so I should be allowed to enter! After I visited Mexico in the late 1980s and early 1990s, I felt that the Mexican economy was a colonial economy, not a sovereign country.Because a lot of circulation is in the hands of the Americans, I went to Southeast Asia, Thailand, and Indonesia in the mid-1990s. I feel that their economies are also a bit semi-colonial, controlled by the Chinese and Japanese, and the markets are all The Japanese are managing.I worry that such a situation will also appear in China. Under such circumstances, it is difficult for Chinese enterprises to integrate foreign resources, and it is also difficult to integrate domestic enterprises, which means that it is difficult for Chinese enterprises to grow bigger.There are issues of culture, the overall quality of entrepreneurs, and the domestic market. How can Youngor grow bigger under such a background?Maybe we can only move to Hong Kong, move overseas, and use foreign talents to do it.It is a bit embarrassing for Chinese entrepreneurs to ask Chinese entrepreneurs to use 20 or 30 years to compare with other companies that have industrialized for 200 or 300 years. In such an environment, some people are silent, and some people transfer. Yes, there are still people who are drunk and dreamy.Do as much as you can, enjoy life as much as you can.In this way, it is very dangerous for Chinese enterprises.Youngor said that he wanted to be a century-old enterprise, but it was actually very difficult to come up with this slogan. Li Rucheng was deeply stimulated by the successful investment of Ningbo Commercial Bank and CITIC Securities.The listing of the former allowed Youngor to earn nearly 12 billion yuan in equity income. "This is something that some companies can't do for a lifetime," Li Rucheng thought further, "It turns out that investing in commercial banks is a passive investment. Now why don't I take the initiative to take the 10 billion as a strategic investor? 10 billion is invested in 100 companies. , if 60 companies are successful, all of them can become 100 billion. It is very difficult for me to run the best company, but I can invest in it!" "Now I'm not the only one thinking about it, but all entrepreneurs are thinking about it." Li Rucheng said to him, "But they don't want to engage in business anymore, they all want to engage in equity investment, and there are problems." Since 2007, Li Rucheng, who claims to be relatively closed and likes to live in seclusion, has been hunting all over the country to start the "second wave" of Youngor's investment. "I am now a project manager." Li Rucheng told reporters.Now, the main clothing business of Youngor is in charge of Li Rucheng's younger brother Li Rugang. Li Rugang is also the founder of Youngor's business. The professional manager Jiang Qun is in charge of the real estate sector. Only Li Rucheng is in charge of the investment business, and his only daughter is among his partners. There is a roundtable meeting between entrepreneurs and provincial officials in Zhejiang. Li Rucheng receives invitations every year and almost never goes. He participated in 2007.Going to Sichuan, according to someone in the business community in Hangzhou, Li Rucheng said something that was not in his style, "I took 10 billion, and I came here to discuss investment!" According to Li Rucheng's speech at the group's third-quarter economic work conference on October 27, 2007, Youngor Investment will "focus on investing in resource-based, entrepreneurial, industry-driven companies and companies to be listed, explore the possibility of cooperation with finance, and drive Social funds are gradually forming a private equity structure, striving to become a Chinese PE brand.” In his plan, Youngor will not dabble too much in venture capital, but will spend most of the capital on some Pre-IPO projects. "Many good companies, such as some technology-based companies, focus on scientific research and don't know much about the capital market. After we enter, we will restructure and transform their equity and then go public." In fact, in the capital market In the context of high premiums, the Pre-IPO field, which can make short-term profits and has less risk, has become a hot spot for local PE competition.If the success of investing in Guangbo, Yike, Ningbo Commercial Bank, and CITIC Securities 10 years ago was largely due to carelessness and luck, then Youngor’s current investment ideas are not new and unique compared with other PE forces in the market personality. However, judging from the investment list announced by Youngor (600177.SH), Youngor actually did not invest in many industrial enterprises in 2007. Except for the acquisition of Smart and Xin Ma related to the main business at the end of the year, Youngor’s only industrial investment was in 300 million yuan was invested in Huangshan Jinma Co., Ltd. (000980.SZ), a listed company whose main business products are motorcycle instruments, automobile instruments and paper products. Subscribed to the Southern Steady Growth Fund, and invested 180 million yuan in Zheshang Property Insurance Co., Ltd. The biggest deal was the subscription of 100 million shares of Haitong Securities’ non-public additional issuance in November 2007 with 3.588 billion yuan.The Pre-IPO project that Li Rucheng said he would focus on has not yet been announced (Shanxi Sunshine and Hangzhou Entrepreneurial Software Company were not included in the announcement because the amount was too small).However, in the battlefields where Youngor has proved that he has superb skills in revitalizing state-owned assets (such as Guangbo and Yike projects), the opportunities in 2008 have been greatly reduced. According to Li Rucheng, Youngor realized part of the equity in CITIC Securities at the beginning of 2007. The original purpose was to invest in Yunnan Copper. Yunnan Copper promised to give Youngor 80 million shares, but later the other party changed his mind and Youngor’s plan was interrupted. , at least six times.” Li Rucheng said. Haitong Securities is the largest equity investment in Youngor's history, and it is also the most controversial one in the industry's investment in Youngor.Li Xin, an analyst at CITIC Securities, believes that “Although the current market price of Haitong Securities is 44.79 yuan, the additional issue price (subscribed by Youngor) is 80.11% discounted, but due to the 12-month lock-up period for additional shares, there are many securities markets during the period. Uncertainty, and Haitong Securities currently has only 2.84% of the shares in circulation, and it will face greater pressure in circulation after 12 months." Fang Junping, an analyst at Guosen Securities, said that the securities industry is relatively unfamiliar to Youngor. Ability." "Investment is not about speculating in stocks. You can't say that you only look at one year, but the trend. I just put it there and wait for opportunities." Li Rucheng answered the question in this way. He believes that the cost of investing in Haitong is not high. "In my opinion, Youngor will slowly sort out and adjust its investment direction." Huang Jiangwei, secretary-general of Ningbo Private Enterprise Chamber of Commerce, said, "Companies will go through such a process. Finding out what to do and what not to do will frame the direction of investment in a general direction from a certain angle.” Li Rucheng also said something similar. Huang Jiangwei further analyzed that analysts can't understand or understand many phenomena in China just by looking at the data, "Li Rucheng's investment judgment must be multi-dimensional. When making a decision, he must have integrated multiple factors and will not judge based on data alone. If you put Youngor's previous opportunity in front of a finance professor, he may not be able to manage a ready-made Li Rucheng. Practice brings true knowledge." Beneath the modest appearance, Li Rucheng has a hard core. The smooth sailing of the industry over the years has cultivated his self-confidence. His success is based on several times against the wind. "He can quickly build trust in others, but it takes a long time to consider listening to other people's advice, and he has been thinking independently in terms of investment." The person in charge of a financial consulting agency said. Li Rucheng still wants to build an excellent team in investment, rather than relying on him to make decisions alone.He admitted that throughout 2007, he spent a lot of energy in finding investment talents.But he declined to disclose specific progress. Many people in the investment circle are willing to "wait and see" to express their attitude towards Youngor, and they are cautious when predicting its future investment performance.Fang Junping of Guosen Securities said: "How long has Youngor been investing? Just like a baby who was born, you said that he will be an emperor in the future. This is ridiculous." When Youngor was in the limelight in the capital market, an acquainted financial industry expert once gave Li Rucheng a similar suggestion: give up textiles and clothing - which was rejected by Li Rucheng. "Youngor has made the most profit through financial investment, but in the future I think he should focus on industrial investment, especially the combination of industrial and financial investment." Yan Tongzhu, president of Century Vertical Management Consulting Co., Ltd., said, "It is actually a PE-like approach. Increase value through mergers, integrations, and acquisitions." During the last round of diversification, Li Rucheng never gave up his main business. In 1997, Youngor was separated from its peers. A large number of textile and garment enterprises felt that the profits of their main business were thin, and they needed to find a way for the money in their hands. They embarked on diversification. For example, Shanshan began to invest in copper foil materials and heat shrinkable materials. Li Rucheng is different from other high-tech projects. The initial investment still focuses on the main business, such as Guangbo, Yike and trading companies, which have business contacts with textile and garment factories, while investing in commercial banks and securities companies is only to adjust the capital surplus of the main business. Huang Jiangwei said, "If Youngor is willing, it is the force that is most likely to change the pattern of China's clothing industry. Li Rucheng has been immersed in the clothing industry for so many years. He has seen the ups and downs of the doorways and ups and downs in it too clearly, and now he is strong again. The capital support. (integration of overseas resources), who belongs to him?" When too much energy is spent on investment and the income has far exceeded the industrial income, it takes courage to return to the hard-working manufacturing industry.Li Rucheng's pessimism about the industry is undoubtedly true.Younger is indeed in great pain to fight fiercely in the clothing industry with the old method under the circumstance that the marketing cost and logistics cost of clothing enterprises are getting higher and higher, the competition is intensified, and the profits are thinning.The store that should be opened has opened, the brand that should be promoted has been promoted, and the price that should have been available, but Youngor is still only a mid-range clothing brand, and it is difficult to go up. If you want to go down, you have to fight a price war.In the past few years, Youngor was forced to engage in "Golden Youngor" and "Green Youngor", hoping to break through, but the market's recognition of these concepts is average. However, the new style of play of the industry and peers gave Li Rucheng a shock. One is the rise of PPG. In 2007, when the Ningbo Garment Association held a meeting, these three letters frequently appeared in the mouths of traditional clothing industry leaders.In the past, clothing enterprises in Ningbo talked about the shortcomings of online sales, thinking that it was almost impossible. After the emergence of PPG, the original opponents were also tempted to develop the online market.But they ignore that the success of PPG is not only the use of the Internet, but the subtraction. The shirt style and color are single, men are "lazy", don't care much about the fun of shopping, and the price is relatively cheap.However, PPG reminded them that the textile and garment industry can also be "light".Youngor started with shirts and worked hard for more than 20 years. In 2006, the sales of shirts reached 870 million yuan, while PPG took 2 years to achieve 1 billion yuan (PPG's estimated sales in 2007). And Belle.It has been reborn from the manufacturing industry, and has established nearly 4,000 retail stores in more than ten years. Through the integrated business model of product design, development, production, marketing, promotion, distribution and retail, it can control the supply chain to the greatest extent, and the gross profit rate is as high as 63%. In May 2007, it made a leap in the capital market, and its market value surpassed that of Gome. "This is a brainstorm for the whole of Ningbo. I thought it was the end of the industry, but there is a blue ocean in the red ocean, and I found that there is still a lot of space." Huang Jiangwei said.Recently, the Ningbo Garment Association opened a forum, and the "Ningbo Gang" began to reflect. From production to storefronts, repeated construction is very serious. Some companies suggested that everyone's off-season and peak seasons are different, and the styles and positioning are different. Can they complement each other?For example, Youngor's flagship store lists Youngor's brand, and consumers have relatively limited choices. Can we take the road of brand combination?From a historical point of view, Ningbo mainly focuses on men's clothing, and women's clothing was rarely or basically not made in the past.Can it cover a wider audience?Self-built brand is one aspect, can it directly acquire and integrate other foreign brands? In the last round of changes in the garment industry, Youngor went against the trend, opened up the industrial chain from cotton to stores, found a support point for the development of the garment industry, and won the competition. The acquisition of Xin Ma and SMART is Youngor's solution to this round of industrial competition.Li Rucheng has always had doubts about overseas mergers and acquisitions, and finally took this step.In addition to being cheap, another reason is unknown. He is more optimistic about the team headed by Xin Ma President Xu Jingbo. Xu Jingbo, who is nearly sixty years old, has a slender figure and elegant demeanor. He entered the clothing industry in the 1970s and is a legend in the Hong Kong clothing industry. In 1995, he was discouraged and prepared to retire. No one in the team has worked with him for less than 10 years. In 2004, Xu once again wanted to quit, which became an important reason for Kellwood to look for a buyer. One of the conditions for Li Rucheng's acquisition was that Xu Jingbo should not retire in the short term.According to the reporter who participated in the transaction, Li Rucheng once said to Xu: "If you don't do it, I don't want it no matter how cheap it is." After careful consideration, Xu stayed. "I have been seeing the situation of mainland clothing companies since 1979. I have also seen rich entrepreneurs when they are suffering. Li Rucheng is different from many people. He really does it from the beginning to the end." Xu Jingbo said. Li Rucheng once told Xu Jingbo that he now has three businesses, and clothing has more than 20,000 employees, making the least money.There are also more than 500 employees who invest and buy properties, which is easier than making money from clothing.And the investment that makes the most money has only 20 or 30 people who are busy. "If you only care about money, why should I engage in this matter with you?" Li raised his voice very loudly when he said this. "The basic industry of the first platform should be strengthened; the real estate platform of the second platform should be made larger; the third equity investment, we will be more cautious to form it into an industry." Li Rucheng said calmly, "It is not the main business. It’s hard to do well, because the thinking of our operators can’t keep up with social development, and people see opportunities and treasures everywhere in China. At present, there are constraints such as industry convergence and talent bottlenecks, and there will be more space in the future.” This is different from his statement during the craziest period of the capital market. Since the investment started from "unintentional insertion", it has been carried out within the group company. Now the three businesses of Youngor's textile and garment industry, real estate, and investment are all placed on one plate. "The social benefits of the textile and garment industries come first, and they are developing from a production-oriented enterprise to a brand-oriented enterprise. Real estate should still have room to grow in China. Investment is a new industry, and being able to invest is the highest level, and it needs to be done by others. I manage capital myself.” Li Rucheng commented on the three businesses of Youngor in January 2008, and he did not think that a model of “industry + fund” had emerged in China. "It's very difficult to invest in a higher level. There is no industrial enterprise in China that dares to say that its funds are doing well, and they are all in the exploratory stage." Although the annual report has not yet been published, some analysts have predicted that in 2007 Youngor will have more than 50% of its profits from investment income, and real estate will also contribute a high proportion of its profits.So, which of these businesses is the real Youngor?How many Youngors will there be in the future?There is no clear answer. In the past, it was a convenience to put several industries in one listed company.It is precisely because of Youngor's strong clothing business that it is the industrial business card of Ningbo. Li Rucheng is good at handling government-enterprise relations, investing huge sums of money in infrastructure and social welfare, and building gymnasiums and zoos. , Even the ambulance that occasionally roars past has the words Youngor printed on it. "Youngor's clothing industry chain is very long, and a large industrial plate means a great impact on the local economy, and it is easier to integrate government, bank and social resources." Huang Jiangwei said that the main clothing business is the confidence of the other two businesses. If you don't contribute anything to the city, it's not easy to get the support of the city.In return, Youngor received not only several state-owned enterprises to be rescued, but also valuable land. "Youngor Real Estate is undoubtedly the leader in Ningbo's real estate industry." An anonymous executive of a textile company said that the company also has a large number of real estate projects in Ningbo. Why are you willing to spend money on this? Because the land acquisition was too cheap at the beginning, and they were all acquired at 50,000 yuan or 100,000 yuan per mu. For example, the zoo project was given the land in Beverly Hills at a low price. If the cost of land is low, you can put money into the product, earn less, and improve the quality, which is such a mentality.” But Jiang Qun, general manager of Youngor Group and chairman of the real estate company, denied this statement, "All our land is clear residential land, obtained through bidding, auction and listing. It is said that Youngor's land is cheap and has a good relationship with the government. It's all a competitor's attack." According to the "jianghu version" rumored in the Ningbo real estate industry, Youngor won a land in the suburbs of Ningbo, which is the current urban forest, and did not develop it immediately.When Li Rucheng played golf with Wang Jianlin, the chairman of Wanda Group, he said that he could say hello to Wang Jianlin's entry into Ningbo.Hou Wang Jianlin built Wanda Plaza opposite Donghai Garden, turning a piece of "raw land" into "cooked land", and the surrounding housing prices more than doubled from 4,000 yuan per square meter. Several industries sharing one plate can also provide Youngor Real Estate with winter cotton jackets. "Comprehensive group companies have some influence on the popularity of real estate, but their ability to resist risks will be stronger than other companies. Real estate is the industry most affected by national policies. Periodic Strong. When real estate enters a severe winter, other industries may not necessarily enter a severe winter. Within a group, the mutual support of funds may be stronger than that of a single real estate. If the state issues a policy that real estate companies cannot obtain loans, or the loan interest rate will rise in the past two years Policy, this door may not be closed to clothing." Jiang Qun said. However, the image of the listed company became more and more blurred, and the alarm bell was sounded. On September 3, 2007, the China Securities Regulatory Commission rejected Youngor's plan to issue 1.8 billion convertible bonds.Youngor plans to raise funds to invest in the company's four real estate projects.Since its listing, Youngor has been smooth sailing in major matters such as operation, investment, financing, and shareholding reform, but this time it was rejected unexpectedly. "The China Securities Regulatory Commission is too shrewd. Why do you need so much money for such a lucrative investment income? That is, there is no financial pressure, and it is not invested in the main business." said Zhang Bin, an analyst at Sinolink Securities. The reason why Youngor turned to stock market funds to expand real estate is because Youngor Real Estate is developing in different places, and it has to gradually stay away from "low-priced lunches". In July 2007, Youngor Real Estate defeated CapitaLand in Hangzhou with a price 800 million yuan higher than the starting price, and won the bid for the No. 23 land in Hangzhou Zhengchu, setting a new record for land prices in Hangzhou.In Suzhou and Ningbo before, Youngor has won the title of "Land King". "It's okay to live a small life in Ningbo, but it will distance you from the country's first-class real estate developers." Jiang Qun said that Ningbo's land supply was too small in 2007. Although Hangzhou has assumed a higher land price, it must go out.Youngor's cross-regional land acquisition strategy is "strengthy entry and key management". Once Suzhou entered, it won 500,000 construction area for 1.4 billion yuan, and Hangzhou took 4 lands for 3 billion yuan. Since Youngor Real Estate has contributed huge profits to the group, Jiang Qun also hopes to obtain bargaining chips through the capital market.However, after the rejection of convertible bonds, it is difficult to accurately house a bird in a cage in the current structure if cashing out through investment. "How much equity investment is realized every year, or at what price and timing, there are a lot of uncertainties. Even if the funds are realized, they will be balanced and coordinated among several businesses. There are also uncertainties in real estate capital investment. The biggest cost It is land acquisition. The government has no detailed plan for when the land will be launched, and it may not be possible to get it after it is launched. The two uncertainties meet together." Jiang Qun said.Just entering 2008, Youngor Group Co., Ltd. increased the registered capital to Youngor Real Estate by 835 million yuan, increasing its registered capital to 1 billion yuan. Some investors speculated that this might be a preparation for the spin-off of real estate. Youngor's annual report will be launched soon, and how to calculate the huge equity investment is also attracting attention.For the legal person shares of other listed companies held by listed companies, the new accounting standards generally classify them as available-for-sale financial assets.For the measurement of this type of assets, the new accounting standards stipulate that they shall be measured at cost when acquired and at fair value at the end of the period, and the difference between the fair value and the book value shall be included in the owner's equity.In this way, stocks with large stakes in listed companies may be revalued. As far as Youngor is concerned, it classifies its holdings of CITIC Securities as available-for-sale financial assets. On January 15, 2008, the 150,124,100 shares of CITIC Securities held by Youngor in circulation, based on the closing price of CITIC Securities on the day of 27.09 yuan, the fair value of this part of equity was greater than the book value by nearly 4 billion yuan, and Youngor’s net assets increased accordingly Nearly 4 billion yuan.However, "the highly volatile financial assets will make Youngor's performance fluctuate." The commentator Zhongfu pointed out that the 24 billion financial assets recorded in the book look beautiful, but if the market adjustment shrinks by one-third in 2009, the owner's equity will suddenly collapse. A reduction of 8 billion, and selling shirts for ten years may not be able to make up for the shortfall.Therefore, the valuation of financial listed companies in mature markets is very low.Top banks such as Goldman Sachs and Merrill Lynch only get seven or eight times the price-earnings ratio. GE has always been careful to control its revenue in the financial field to less than 40% of its total revenue, in order not to be classified as a financial company by the market. "Professional spin-off is not something we want to think about. We dream of spin-off every day, but it needs to wait for policies." Li Rucheng tapped on the desktop.In the context of domestic A-share listing as the main trend, it is difficult for him to have an accurate timetable for waiting.