Youngor, who runs his own career, started a full-scale adjustment of his troika. Recently, the new office of Shanghai Kaishi Investment Management Co. formally moved to Citigroup in Lujiazui and fully "took over" the nearly 10 billion yuan of asset management business in Youngor. "The company will fade its equity investment business and reduce the impact of capital market fluctuations on the valuation of listed companies, but will not exit or strip out the assets of listed companies." Jan. 21, Youngor's securities affairs representative told reporters. Younger once textile and clothing as the main industry, real estate and equity investment as the two wings, but according to a Younger an insider disclosed in late January, at Youngor's internal meeting, chairman Li Rucheng's latest caliber is already "the main textile and apparel and real estate Industry, equity investment is exploratory business. " Fade out without exiting "With 10 billion yuan of funds, with 20 individuals in the team, looking for projects across the country," Once a typical impression to the outside world Li Rucheng. Starting with clothing, Youngor started to subscribe 200 million shares of CITIC Securities (600030.SH) at a cost of 320 million yuan in 1999. When the share price of CITICS surged to 100 yuan in 2007, the equity investment business did bring huge profits. In the same year, Youngor Investment income increased by 50 times over the same period last year, exceeding the net profit of 220% driven by the main industry. After that, Li Rucheng also invested in stocks such as Bank of Ningbo, Bank of Communications and Jinma Stock Co., Ltd. and set up Ningbo Younger Venture and Shanghai Youngor Investment Co., respectively to carry out VC and PE businesses. Due to multiple investment costs and timing properly controlled, the assets of the equity investment business once exceeded 20 billion yuan in assets. Li Rucheng was morally regarded as "China's Buffett." However, the volatility of the capital market also suffered Youngor's equity investment business suffered a shrinking, Younger suffered a huge market pressure. Taking the closing price of Hai Tong Securities on January 21 at 11.7 yuan, Youngor's loss of 3.58 billion yuan in 2007 cost more than 1.2 billion yuan. The third quarterly report of Youngor shows that the market value of securities investment projects of the Company has dropped from 13.5 billion yuan in early 2008 to 104 billion yuan, the company's net profit fell 43.55%. Hu Dezhong, deputy general manager of Shanghai Kai Shi, told reporters that as early as 2007, Li Rucheng has begun to think about fading out and looking for a professional team to take charge of the equity investment business, but he has not found a suitable candidate until September 2008 after he met the former rich fund Chen Jiwu, vice president, fund manager Li Wenzhong, etc., only confirmed the formation of Kaishi team, the assets of 10 billion equity project management tasks to Kaishi. According to the aforementioned Youngor insiders told reporters after the establishment of Kay Stone, Youngor internally discussed the equity investment business has been transferred from the listed company to the Group, in order to reduce the impact of capital market volatility, one of the programs is the gradual purchase of equity projects by Kai Stone . As Youngor Holdings owns 60% of Kailishi, Youngstones takes over the entire financial assets and the Youngor Group's revenue will not be affected. At the same time, it will also avoid any fluctuations in the share prices of listed companies. However, Youngor's securities affairs representative told reporters that although the chairman has faded, but the divestment of equity investment business, the market value of listed companies will be greatly affected, so Younger will not strip the asset. Hu Dezhong told reporters on December 13, 2008, Younger and Kai Shi signed a more stringent asset management agreement, the annual return of 10 billion assets only over 10%, Kai Shi to obtain performance pay, or only consulting fees. Reporter noticed a detail is, fade out direct investment Li Rucheng, Kai-hsien in the hiring of management consultants, the daughter of Shanghai Kai-shek has also become one of the person in charge of management background management and finance. Two carriages In 2009, Youngor's textile and apparel and real estate business will face no small pressure. In the main clothing industry, Younger has established the industrial chain of cotton cultivation, textile printing and dyeing and garments, and ranked No.1 in sales revenue. However, Wang Rong believes that Youngor's current garment business is facing a bottleneck. "Apparel brings about 800 million to 1 billion yuan of net profit to listed companies every year, but the market share has not seen any improvement." In her opinion, Youngor focuses on mid-range products and urgently needs to enhance its design capabilities and increase high-end products to enhance its development space. In early 2008, Youngor acquired the relevant assets of the Singapore-Malaysia Group for $ 120 million. Market participants said that Youngor's design and marketing capabilities will benefit Youngor. Joint Securities analyst Wang Rong believes that the need to integrate Younger acquisition and integration capabilities, the current mergers and acquisitions have so far Youngor's gross margin decreased, the need for the future of the relevant production capacity of the new horse from Shenzhen and other places to move to the Mainland and increase gross margin. Younger Liu Xinyu, director of Youngor said that the company will be prepared to increase market share through the brand split. Wang Rong analysts pointed out that Youngor in the past two years is still very difficult to benefit from the new brand, the current highlights of the development of the garment business is still more likely to focus on maintaining the original competitive edge. This will create a challenge for Younger's garment industry breakthrough. In the real estate business, due to many high-priced take-up in 2007, Younger's new projects that year the average floor price higher than the average price of 30% of the project, coupled with the national real estate market adjustments, Wang Rong believes that the next few years, Youngor Mainly facing the problem of how to absorb the high floor price. It is worth mentioning that the risk of capital flow, the third-party market capitalization into equity investment assets, future holdings of cash will no longer deliberately, in addition, in January, Youngor Extraordinary General Assembly agreed not to issue more than 2 billion company Debt financing, so since January, the outside world has been questioned Youngor's capital shortage. Li Rocheng said that even with the current status quo of equity investment, Youngor still holding nearly 10 billion of financial assets, "the hands of money, not panic." He explained that the 2 billion yuan of funds obtained from this corporate bond was only used as a reserve for working capital mainly due to the fact that Youngor has a relatively high short-term debt ratio and needs to adjust its debt structure through 5-year medium-term bonds. Secondly, the current national policy More lenient, debt issuance easier; Finally, the current situation indicates inflation must be inflation, which will be a good investment opportunity. Hood Chung told reporters, unless some special circumstances and benefits of mature consideration, the future of Kai Shi will not be easily deducted cash holdings for Youngor-managed financial assets.