Youngor harvests dividends through investments, while its main fashion business struggles under pressure.

On April 29, Youngor released its first quarter report for 2026.

The report shows that the company achieved operating revenue of 2.882 billion yuan in the first quarter, a year-on-year increase of 3.10%; net profit attributable to the parent was 922 million yuan, a year-on-year increase of 14.73%. Based on the numbers, Youngor seems to be pulling out of the downturn of 2025.

However, from a longer-term perspective, in the annual report for 2025 disclosed the day before, Youngor showed a different picture: full-year operating revenue of 11.582 billion yuan, a year-on-year decrease of 18.37%; net profit attributable to the parent of 2.447 billion yuan, a year-on-year decrease of 11.57%.

This contrast between the warming first quarter report and the pressured annual report reflects the dilemma of this 47-year-old fashion giant—caught between the pains of main business transformation and the balance of diversified layout.

Breaking down Youngor’s profit composition, investment income remains its most solid firewall.

In 2025, against the backdrop of overall profit decline, Youngor’s investment business achieved net profit attributable to the parent of 2.471 billion yuan, up 11.86% from 2024. This means that profits contributed by the investment business even surpassed the company’s total net profit attributable to the parent for the year. This pattern of relying on equity investment gains from Ningbo Bank and dividends from CITIC to support overall profits continued in the first quarter of 2026.

However, performance in the core fashion business that started the company is difficult to call optimistic.

In 2025, Youngor’s fashion segment reported net profit attributable to the parent of just 95.93 million yuan, a sharp drop of 77.75% from 431 million yuan in 2024. Although new brands like Bonpoint contributed a slight increase in income, dual pressure from costs and expenses severely weakened profitability.

At the same time, the real estate business, which had contributed significant cash flow to the company, has also entered a period of retreat.

In 2025, the real estate business suffered a net loss of 106 million yuan, reversing from a profit of 154 million yuan the previous year. According to the financial report, the main reasons for the loss were reduced income from delivery of real estate projects and the impact of inventory impairment provision.

The decline in profits of the fashion segment far exceeded the change in income, reflecting Youngor’s high costs in its shift toward more high-end and younger brands.

In recent years, Youngor has been committed to transforming from a single brand to a multi-brand fashion group.

Aside from its main brand YOUNGOR, the company continues to invest in MAYOR, HANP, and newly acquired international brands. In 2025, while revenue from other brands doubled thanks to Bonpoint consolidation, large investments in channel expansion, brand marketing, and digital transformation have yet to enter a stable profit contribution period.

In 2025, the domestic apparel market was in a phase of weak recovery and deep adjustment. With consumers cautious about spending, sales of core menswear categories (shirts, suits) faced pressure. Although Youngor increased its presence in the outdoor casual series, the pace of product structure adjustment still can't fully cover fluctuations in the traditional formalwear market.

The losses in the real estate segment not only directly reduced profits but also reflected Youngor’s accelerated strategy of clearing inventory and not adding new land reserves. While this subtraction helps with cash flow, at the end of the delivery cycle it often results in short-term performance pain due to inventory impairment and allocation of fixed costs.

The profit rebound in the first quarter of 2026 is mainly thanks to the stability of the investment business and marginal improvement in real estate profits. However, the core question for investors remains unresolved: When will Youngor’s fashion business regain its former profitability?

Youngor is now playing a seesaw game. On one side, resilient financial asset dividends provide a stable profit base; on the other, the urgently needed breakthrough in branded apparel carries the company’s identity.

Since 2025, Youngor has frequently reduced holdings in non-core financial assets such as Boxin New Materials and Shangmei shares, signaling a strong focus on fashion.

But to truly make the leap from the "Berkshire of apparel" to a world-class fashion group, Youngor needs not only keen investment vision but also must rebuild the core competitiveness of its brand in the complex and ever-changing retail terminal.

In the short term, investment business will continue to be Youngor’s ballast; in the long term, operational efficiency and brand premium of the fashion segment are the ultimate variables deciding its valuation ceiling.

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