YOUNGOR Intends To Make Major Adjustments To Its Development Strategy And Focus On The Main Garment Industry.

YOUNGOR announced that the company held the nineteenth meeting of the ninth board of directors in April 26, 2019, and deliberated the adoption of the motion on investment strategy adjustment. In order to achieve the goal of maximizing the value, the company intends to make a major adjustment to the development strategy. In the future, it will further focus on the development of the main garment industry. Besides strategic investment and continuing investment commitments, the company will no longer carry out the financial equity investment in the non main sector, and take the opportunity to deal with the existing financial equity investment projects.

In 1999, YOUNGOR was involved in financial investment for the first time, both for policy reasons and for industrial development and diversification strategy.

In the past 1999-2005 years, YOUNGOR has invested in CITIC Securities, Guang Bo shares, yeco Technology (later renamed the hemp industry, LIAN Electronics) and Ningbo bank.

In 2005, the split share structure reform was completely rolled out, and the capital market entered a rapid development period. The market value of financial assets held by YOUNGOR increased rapidly, which once exceeded 20 billion yuan.

After comprehensively studying the capital demand of the existing business development and the development prospect of the capital market, YOUNGOR put forward the development strategy of "three carriages" in 2007, and prudently explored the investment business on the basis of the steady development of clothing and real estate business.

In the next 12 years, YOUNGOR witnessed the rapid development of the capital market, and experienced the ups and downs of the investment return, which brought the complexity of the valuation judgment to investors and the uncertainty of the future.

Moreover, based on the capital market value system, diversified companies are usually given lower valuations.

Therefore, in order to achieve the goal of maximizing the value of the company, the company intends to make the above adjustment on the occasion of YOUNGOR 40th anniversary.

By the end of 3 2019, YOUNGOR had invested 39 projects, with an investment cost of about 30 billion 455 million yuan and a final face value of about 32 billion 20 million yuan.

YOUNGOR intends to invest in the stock item of financial equity investment. In addition to fulfilling its original investment commitments, according to different investment characteristics, it adopts two different strategies, such as market reduction, agreement pfer, withdrawal after expiration, exit after listing, and so on.

In view of: 1, the company has implemented the new accounting standards since January 1, 2019, and designated financial assets other than long-term equity investments as "financial assets measured in fair value and whose changes are included in other comprehensive income". Its value fluctuation and disposal do not affect the current loss, and only the dividend income can be included in the current investment income, thereby affecting the current profits and losses;

2, the Bank of Ningbo, as a strategic investment project held by the company for a long time, will provide a stable return for the company. Therefore, the implementation of "no longer new and accelerated disposal of financial equity investment scheme" will not have a significant impact on the company's investment income; moreover, in the process of disposing of the financial equity project, the company will gradually recover the funds, which will help the company to further strengthen the main garment industry and improve the overall profitability of the company.

Based on the strategic thinking that the company has clearly focused on the main garment industry, in order to reduce the impact of the volatility of capital market on the company's uncertainty, investors and capital markets have a clearer and clearer understanding of the company, and the company intends to no longer add financial equity investments in the non principal sectors, and choose the existing financial equity investment projects, focus on resources and tap the potential, and strive to promote YOUNGOR's clothing industry to a new level, creating greater value for investors.

The above matters need to be submitted for consideration at the annual general meeting of shareholders in 2018.