Kay Stone Forced YOUNGOR Incident: Chen Jiwu Seeks Foreign Aid To Contain Li Rucheng

In 2011, Dongli pmission, Air China and Futian Automobile were sold out, and China Airlines lost 200 million

At 11:45 on August 15th, the scorching sun was on the head.

The Bund Shandong two road 1 building, Kai Shi Mansion.

Chen Jiwu hurried downstairs from the 4 floor. He went straight to the taxi beside the road. He quickly opened the door and sat on it. It lasted less than 1 minutes.

"YOUNGOR's withdrawal from Kay stone is totally untrue. Kay stone is just adjusting its stock rights." Chen Jiwu, who was on a taxi, immediately contacted the reporter.

After waiting for 1.5 hours under the Kay stone mansion, the relevant personnel told Chen Jiwu not to be in the company until noon. The reporter saw that he walked out of the building and saw his back in haste, but he had no chance to face it.

An insider close to YOUNGOR was somewhat different from Chen Jiwu's statement, "they two fell apart."

More than one private-equity executive said exactly the same. "YOUNGOR and Kai Shi have been separated."

The myth of YOUNGOR investment began to fall from its peak. Li Rucheng's three horse driving strategy failed halfway.

In 2009 and 2010, YOUNGOR investment reached its peak. Its financial investment business achieved a net profit of 1 billion 625 million and 1 billion 245 million respectively.

In the past two years, YOUNGOR has mainly commissioned the Shanghai Kai Shi Cci Capital Ltd (hereinafter referred to as Kai Shi investment) as an asset investment management consultancy agency to realize the growth of fixed investment and PE investment.

YOUNGOR and Kay stone are renowned for their reputation in the capital market.

In 2011, the market situation was terrible.

This year, YOUNGOR's financial investment net profit slipped to 487 million instantly.

In 2009 and 2010, there was no loss in its investment projects; in the 2011 Annual Report, the situation reversed and the loss items began to appear.

At the same time, unlike the previous two years, YOUNGOR did not refer to Kay as an asset investment management consultant.

As the three carriages of YOUNGOR, real estate and investment have brought huge profits to YOUNGOR, especially the property and investment of non main industries. Now YOUNGOR's income structure is changing quietly.

"Real estate is not losing money, but it is not as high as it used to be, and the investment has already been depleted."

The analyst said.

Li Rucheng, chairman of YOUNGOR, has repeatedly stated that it is necessary to return to the main garment industry, and make the strategy of making big clothes, making fine real estate and regular investment business.

It is hard to get market recognition in the short term.

"At the YOUNGOR shareholders' meeting this year, Li Rucheng said he tried to separate the three businesses for convenience.

Financing.

Some of my analyst friends say YOUNGOR's three businesses are not well valued.

A large brokerage firm revealed.

"It fell to 7.94 yuan today, and my friend was so sad that some of the public friends had gone in more than 8 yuan, and now they are all trapped."

As far as he knows, some analysts will consider lowering their profit forecasts in YOUNGOR's China Daily.

Not long ago, Kay stone and YOUNGOR were known to be changing.

More than one industry insider revealed that YOUNGOR and Chen Jiwu, the controlling shareholder of Kai Shi investment, had been separated because of investment losses and YOUNGOR could not bear it.

According to another source, Li Wenzhong, chief investment officer of Kai Shi investment, was originally a follower of Chen Jiwu from the rich country fund.

"If there is such a report, we will issue a clarification.

YOUNGOR has not divestment completely. Kai Shi is only adjusting its stock rights.

The research team has not changed much, just because the business structure needs to be adjusted, and there will be some job adjustments.

Kai Shi investment was established in October 2008 with a registered capital of 1 billion yuan.

At the beginning of its founding, YOUNGOR group held 70%, and Kay stone management held 30%.

In 2010, the shareholding structure was fine-tuning, YOUNGOR Group Holdings fell to 60%, and Kay stone management increased to 40%.

At the beginning of its founding, Chen Jiwu was the general manager of Kai Shi investment. Vice president Hu Dezhong, Li Chunyi and Li Hanqiong, Li Wenzhong as investment director, Xu Xiang and Xu Yousheng were deputy directors of investment.

It is reported that Kay stone investment 5 fund managers are Cheng Junhao, Xu Yousheng, Yin Wei, Bai Yanhong and Li Wenzhong.

Kay stone investment research team has 17 people, 6 stock investment managers, 1 bond investment managers, 11 industry researchers, basically covers all A shares and Hong Kong stock research, paction managers (2).

Chen Jiwu said, "now there are about 14 people in the research team.

Most of the staff did not run away.

Kai Shi set up the PE department at the end of last year. The money for other LP was not YOUNGOR's.

We have investment in one and half market and two tier market, with external assets management and relatively independent.

This time of equity adjustment, it is possible to introduce some strategic investors.

Finally, YOUNGOR's shareholding may be reduced. "

He continued.

The reason for the adjustment of stock rights is that Chen Jiwu mainly improves the team shareholding ratio in order to solve the management problems.

In his view, public funds have many disadvantages. Management team ownership has always been a problem. At present, the shareholding ratio of management 40% is not enough.

"The goal is to make Kay stone into a standard Asset Management Co integrating industrial capital and professionals in a broader field.

My shareholding will decrease, and YOUNGOR's shareholding will also decrease. This round is not the ultimate shareholding structure. "

What happened between YOUNGOR and Kay stone?

They have been working together in the capital market, but now they are fading away.

The cooperation between YOUNGOR and Kai Shi dates back to the end of 2008.

Kai Shi investment was registered in October 2008. In December 2nd of that year, YOUNGOR issued a notice to hire Kai Shi investment as its investment adviser.

But the capital relationship between YOUNGOR and Kay stone has so far varied.

In the 2010 YOUNGOR annual report, Kai Shi investment is a subsidiary holding company of Ningbo Shengda development, accounting for 70% of the shares.

Occupy 19.31% of Ningbo Shengda.

Ningbo Shengda 100% holdings, Ningbo Fusheng investment, 100% holding YOUNGOR YOUNGOR holdings, 100% holding Ningbo Yinzhou youth investment center, while YOUNGOR holding is the largest shareholder of YOUNGOR listed companies. Li Rucheng directly and indirectly controlled YOUNGOR listed companies by 9% of the shares.

In addition, public information shows that the largest shareholder of Kai Shi investment is YOUNGOR group, while YOUNGOR director Dong said on the phone that the asset belongs to the controlling shareholder while YOUNGOR's controlling shareholder is YOUNGOR holding.

From the information disclosure of listed companies, the cooperation relationship between YOUNGOR group and Kai Shi investment is mainly engaged in Kai Shi as an investment consultant.

However, it is understood that its cooperation is far more than that. According to the industry, YOUNGOR has also been directly involved in Kay stone products, that is, YOUNGOR as a whole, that is Kay stone holdings, is also its consulting customers, or LP.

In the past 2009-2011 years, YOUNGOR has participated in 9 private placement, 12, and 13 respectively. PE and other investment projects have 8, 10 and 1 respectively. The total investment amounts are 3 billion 540 million, 5 billion 334 million and 2 billion 950 million respectively. In the same period, the net profit of YOUNGOR's financial investment business is 1 billion 625 million, 1 billion 625 million and 1 billion 625 million.

In 2009, YOUNGOR participated in the growth of 7 companies, including Rongxin shares, first open shares, Antai set, Zhongtian Technology, Suning Appliance, Shanghai Pudong Development Bank and Dongfang Electric Company.

According to YOUNGOR's 2010 annual report, 7 companies have sold shares, totaling 374 million yuan.

In 2010, YOUNGOR invested 11 projects, namely, ZOOMLION, Chuan Hua shares, Dongli pmission, Futian Automobile, Xugong machinery, China National Aviation, gold seed wine, Lingyun joint stock, Shanghai automobile, Hua Lu Heng Sheng and Qian Yuan electric power. The total investment cost was 4 billion 366 million, while 2 new PE projects were added, and the investment cost of UnionPay Business Co., Ltd. and Xiangyang fishing port Limited by Share Ltd of Zhejiang amounted to 170 million.

During the period of 2011, YOUNGOR invested 27.25 yuan to participate in the 13 private placement companies such as Guang Bai shares, Hai Zheng pharmaceutical, Hai Li, Xing Rong investment, Sheng Yi technology, Jinggong technology, Sheng Nong development, Yunnan Tian Hua, Dongfang zirconium industry, Xinjiang Zhonghe, Zhongjin gold, Hua Xin cement and Shanxi coal international company.

With Kai Shi, YOUNGOR has repeatedly attacked in the capital market, and even overshadowed YOUNGOR's clothing industry.

Unfortunately, no one is always victorious general.

In 2009 and 2010, all of the shares held by listed companies were sold, but not so smoothly in 2011.

The 2011 Annual report shows that Dongli pmission, Air China and Futian motors are all selling at a low price. Among them, Dongli pmission and Futian motors are all sold out, with a loss of 437 thousand yuan and 36 million 288 thousand and 800 yuan respectively.

During China air travel, it bought 50 thousand and sold 48 million 300 thousand at the same time, and lost 217 million during the period.

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The dismal market has a direct impact on the mode of cooperation between the two sides.

Public information shows that at the beginning, YOUNGOR paid consulting fees at a certain proportion of the total investment. In March 2010, it changed to pay Kay stone consulting service fee to 15% of the realized investment income. In August, it changed to the project recommended by Kai Shi before paying the fee.

Obviously, the two sides constantly divide the line in front of their interests, and do so from the principle of affinity.

Reporters observed a subtle difference in YOUNGOR's annual report since 2009.

In the 2009 and 2010 annual reports, YOUNGOR mentioned that the entrusted side party Kai Shi invested as a company's asset investment management consulting agency to achieve the growth of fixed investment and PE investment. In 2011, the YOUNGOR reported only its investment and did not mention Kai Shi investment.

The details conveyed the cooperation between YOUNGOR and Kai Shi since last year.

In addition to collecting advisory fees from YOUNGOR, Kai Shi's main business is to launch its own product.

According to the industry, the main source of funds for these products is YOUNGOR itself and the customers of ICBC's private banks.

This exacerbated the deterioration of the situation.

In particular, the two class market products, it is reported that due to the market downturn, Chen Jiwu's products have heavily loaded with electrical appliances and led to a larger area of losses.

Investment is bogged down in the mire. It even affects YOUNGOR's overall strategy to some extent.

Li Rucheng has expressed on many occasions that he should pay more attention to the development of the main garment industry. The media interpreted this as "returning to the main business".

However, Liu Xinyu, YOUNGOR's Dong MI, thinks this statement is not accurate. "YOUNGOR's main business is clothing."

The idea of "returning to the main business" is more because YOUNGOR has been more diversified than before. Clothing, real estate and investment three vehicles are parallel, but gradually become bogged down.

In the 2009-2011 years, YOUNGOR's operating income in turn was 12 billion 279 million, 14 billion 514 million and 11 billion 539 million; net profit in turn was 494 million, 2 billion 934 million and 2 billion 59 million; the net income of investment was 1 billion 979 million, 2 billion 58 million and 1 billion 443 million.

It can be seen that 2010 was the period of rapid development of YOUNGOR, and it dropped significantly in 2011.

According to YOUNGOR annual report, in the 2009-2011 years, YOUNGOR's textile and apparel business income in turn was 6 billion 905 million yuan, 6 billion 99 million yuan and 6 billion 197 million yuan, respectively, representing an increase of -3.43%, 9.05% and 1.61% over the same period last year. Net profit in turn was 445 million, 705 million and 691 million yuan, up 8.52%, 93.36% and 93.36% over the same period last year.

In 2011, YOUNGOR clothing business entered a stage of slow growth.

In real estate business, 2009-2011 years of real estate business revenue was 5 billion 195 million, 6 billion 853 million and 3 billion 636 million, respectively, representing an increase of 49.88%, 31.9% and -46.94% compared with the same period last year. Net profits were 1 billion 191 million, 679 million and 572 million, respectively, representing an increase of 53.16%, -42.99% and -15.86% over the same period last year.

Since 2010, YOUNGOR's real estate business has seen a negative growth, but YOUNGOR didn't even get it in 2011.

In the three major businesses, only clothing can bring steady profits.

This means that YOUNGOR's return to its main business is more forced by the market.

"YOUNGOR has invested about 9 billion scale this year, of which 1 billion -20 billion is the primary market.

At least a few items were listed in the past few years, but now there is hardly any.

There is not much attention in the first tier market.

The two tier market, a lot of quilts, real estate and investment business valuation has been downward pressure.

One garment industry analyst said.

A key question is whether YOUNGOR's return to the main business can keep pace with the pace.

According to the data, the net profit of 2011, 2 billion 59 million, 1 billion 223 million, 518 million, 415 million and 359 million in 2011, respectively, were 1 billion 206 million, 2 billion 59 million, 1 billion 223 million, 518 million, 415 million and 359 million respectively. The corresponding market capitalization in August 16, 2012 was 20 billion 552 million, 17 billion 679 million, 15 billion 115 million, 14 billion 50 million, 12 billion 599 million and 12 billion 599 million, respectively.

YOUNGOR's 2 billion 59 million yuan in 2011 corresponds to a total market capitalization of about 17 billion 700 million, which also includes real estate and investment profits, clothing net profit of 691 million yuan.

The clothing profits of nine kings and seven wolves are not as good as those of YOUNGOR, but the market value is not far from YOUNGOR.

This means that the market valuation of YOUNGOR's real estate and equity investment business is obviously low.

One analyst lamented that YOUNGOR was too cheap.

YOUNGOR only experienced a wave of rising prices in 1-3 months of this year, and has been in a downturn since April.

The rise at the beginning of the year is not natural for some people in the industry.

"The acquisition of minority shareholders, the spin off of low gross margin business, and the claim that there will be tens of billions of dollars in settlement of real estate this year.

Many of these investors are optimistic about their development this year. However, the market is not good enough. The market does not recognize the valuation of their clothing, and the valuation of mixed operation is generally lower.

In April, YOUNGOR's performance was even more disappointing.

"Property is rising, and it is not rising.

Property fell, and it fell more. "

According to the reporter, YOUNGOR investment projects have been lifted, but the two level market is not satisfactory.

"The overall valuation is not up to date, and the valuation is lower recently. In fact, it is still difficult to define it as clothing stocks, and I can not bear to see it again."

Shanghai has already said brokerage analysts.

Another analyst told reporters that YOUNGOR was unable to refinance because it had been restricted by the real estate business. Its expansion was very slow by its own capital, and its equity investment funds came mostly from loans. The cash flow was stable but not abundant.

One research YOUNGOR agency said, "YOUNGOR stores have fewer people, compared with the news birds, nine herd kings and Semir, YOUNGOR brands are aging. Once weakened, it will be very difficult for them to re-establish the brand.

Now stocks are cheap 1/3, and share prices are hard to raise.