Youngor Fashion (600177.SH) Takes Over Yintai Department Store. Company Reponds: Aims to "strengthen the chain and improve the fashion ecosystem".

On December 17, Alibaba (09988) announced that it has agreed to sell all of its shares in Yintai to a buyer consortium composed of Youngor Fashion Group and Yintai management team members for about 7.4 billion RMB (accounting for about 99% of Yintai's equity). In response to taking over Yintai Department Store, Youngor Fashion (600177.SH) stated that the investment with the Yintai management aims to "strengthen the chain and fill the gap" to improve the fashion ecosystem. After the investment is completed, Youngor Fashion Group will provide ample operational space for the Yintai management team and support Yintai in further high-quality development. In recent years, with the adjustment in the real estate industry, Youngor Fashion has reduced its investments in real estate and increased its investments in the fashion industry. In the first three quarters of 2024, Youngor Fashion opened 12 new fashion experience stores in central cities such as Changchun, Guiyang, Taiyuan, Wenzhou, Shanghai, and Wuhan. The reopening in September of the Youngor Fashion fashion experience store on Nanjing Road in Shanghai attracted attention with its multi-million dollar investment in creating a naked eye 3D giant screen. Huang Lichong, CEO of Huisheng International Capital, stated that although Youngor Fashion's acquisition this time will help expand its presence in the retail market, it also comes with significant risks. After all, the department store industry is in a state of continuous decline, and Youngor Fashion does not have a clear advantage in reversing Yintai's downturn. As for Alibaba, selling Yintai Department Store is in line with its long-term development strategy, helping it focus more on the development of its core business. It is reported that Youngor Fashion has already built a brand matrix covering business, casual, home, outdoor, sports, and luxury scenes. The third quarter report shows that Youngor Fashion's total operating income for the first three quarters of this year was 8.4 billion RMB, an increase of 12.63% year-on-year; its net profit attributable to the parent company was 2.512 billion RMB, a decrease of 6.73% year-on-year.