Friday, March 07, 2008

Youngor targets to be nationwide developer in 5 years

Youngor<600177>, China’s largest shirt company, plans to consolidate its property assets into a holding firm in a bid to become a nationwide developer within the next five years, a company official said on Friday.

The property holding firm is expected to be set up by the first half of this year, company board secretary Liu Xinyu said.

Youngor now owns properties in the eastern port city of Ningbo, its home base, and several nearby cities in the Yangtze Delta region. Besides, it plans to expand into other regions in the near future. In this case, revenue generated by its property businesses might hit RMB 4.8 billion and RMB 7.2 billion respectively in the following two years, Liu said.

Talking about reasons for shifting to real estate business from its traditional core interest, Liu explained that the garment industry is becoming more thin-margined dragged by increasing competition and rising difficulties in exports.

Shares of the Shanghai-listed firm closed at RMB 21.07 on Friday, down 1.50% from the previous trading day.

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