Over the past three decades since the inception of the A-share market, a series of remarkable investors have emerged, each earning the title of "stock god" due to their exceptional returnsHowever, in the tumultuous market environment, survival of the fittest is paramount, and particularly in the volatile year of 2023, many of these acclaimed "stock gods" have faced significant defeats.

Nevertheless, a few participants have exhibited extraordinary investment acumen and have managed to prevail against the marketAmong them is a certain participant who has realized continuous stable returns for over 20 years, averaging nearly 2 billion yuan in profits annually

The latest statistics indicate that this participant's impressive wealth-building narrative continues, having achieved profits of 1.7 billion yuan in the first half of this year aloneThe real question arises: how has this participant managed to sustain such consistent performance? What are the latest strategic developments?

This individual with a stunning track record is none other than the A-share listed company, Youngor Group.

According to official reports, the company's main business segments include branded apparel, real estate development, and financial investmentHowever, reviewing the annual profit breakdown reveals that financial investments account for a significant portion of overall profits

For instance, from 2000 to 2022, the company realized cumulative net profits attributable to shareholders of 53.6 billion yuan, while net investment income during the same period reached 45.65 billion yuan, comprising over 85% of the total profits.

Due to its origins in the garment industry and its history of substantial annual investment returns, the company has been rose to popularity in the market as the "Warren Buffett of the Apparel Industry." The latest semi-annual report shows that Youngor once again delivered impressive results, achieving a net investment income of 1.694 billion yuan in the first half of this year (not all of which came from securities investments, although securities comprise a significant portion).

Alongside Youngor's solid investment earnings report was the disclosure of its stock holdings at the end of the first half of the year

The semi-annual report indicated that Youngor held a total of seven stocks, including four Hong Kong stocks—CITIC Limited, CITIC Bank, Midea Real Estate, and Shimao Group—as well as three A-shares—Bohai Chemical, Zhongji United, and Dali OrientalNotably, the company net purchased approximately 164 million yuan of CITIC Bank during the first half, while reducing stakes in Zhongji United, Dali Oriental, and others to varying degrees.

From a performance perspective, these companies generally qualify as blue-chip stocksFor instance, in the first half of this year, all of them reported profits, with CITIC Bank showing the highest net profit of 36.067 billion Hong Kong dollars, reflecting a year-over-year growth of 10.89%.

Regarding the duration of these holdings, these companies are considered to be long-term positions for Youngor. For instance, in October 2018, at the initiation of Midea Real Estate's IPO, Youngor invested 148 million USD, becoming a cornerstone investor

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Similarly, Bohai Chemical and Zhongji United were acquired through this equity investment approach, and participation in IPOs is also a significant strategy for Youngor to achieve profits via equity investment.

For example, last year, Youngor heavily invested in Jintian Co., Chuangye Huikang, and Huaxia Bank, all of which were favorites at their market debut and were maintained until the end of last yearHowever, possibly due to subpar performance from these companies recently, Youngor opted to fully divest from them in the first half of this year.

In terms of the industries represented in Youngor's stock holdings, the current strategy focuses primarily on the financial sector, as well as the apparel and real estate industries.

As observed, Youngor's historical investments follow a synchronization of “left hand in financial stocks, right hand in apparel and real estate industries.” The company's official website indicates successful investments in securities such as CITIC Securities, Ningbo Bank, and Shanghai Pudong Development Bank.

Notably, as of the end of the first half of this year, Youngor also maintained a significant position in Ningbo Bank

According to the report, in addition to the net buying of CITIC Bank, Youngor increased its holdings in Ningbo Bank by 389 million yuanRecent reports suggest that Youngor's share count grew by 15.1719 million to 5654.744 million shares during the same period.

In addition to the publicized holdings, other positions have emerged following the release of the semi-annual reports from listed companiesFor instance, Youngor's 100% controlled Youngor Clothing Holdings Limited appeared as one of the top ten shareholders of Shengtai Group, despite continuous reduction of stakes over the last few quarters, still holding the position as the second-largest shareholder.

According to reports, Shengtai Group is a multinational company specializing in textile and garment services for high-end domestic and international brands, encompassing all five key processes in the garment production chain: spinning, weaving, dyeing, embroidery, and garment cutting and sewing, aligning with Youngor's strategy to strengthen its position in the apparel industry.

Youngor stated that “we have always adhered to the principles of value investing, pursuing authenticity and practicality

We actively leverage our industrial capital advantages and patiently nurture our investments, growing collaboratively with these enterprisesWhile maintaining a balanced portfolio of financial assets, we also explore emerging investments, consolidating our commitment to enhancing equity investments and supporting the development of the main business.”

Further elaborating, Youngor remarked, “we emphasize apparel and consumer sectors, proactively seeking leading players across various links of the industry chain, such as fabrics, brands, channels, and salesThis allows enterprises to create strategic synergies with Youngor's garment business, enhancing overall competitiveness and providing substantial support for future growthOur investment purview encompasses apparel brands and upstream and downstream enterprises with core competency.”

Apart from noteworthy shifts in publicly disclosed holdings, Youngor has made minimal additional moves within the secondary market

According to Wind statistics, in the first half of this year, it was only spotted on the institutional research list of Lutai AReports note that Lutai A is a leading manufacturer of high-end color-printed fabrics and prominent producer of international brand shirts, aligning with Youngor's investment principle of spreading its portfolio between financial stocks and apparel and real estate industries.

However, since the beginning of the third quarter, Youngor has begun to take a more active role, while largely adhering to its established investment strategyRecent reports indicate that Youngor has been involved in institution-led research of Mars Robotics.

As reported, Mars Robotics is a high-tech company aimed at addressing kitchen grease issues and is a leader in the integrated stove segment within the real estate supply chain

The core product is the Mars integrated stoveTheir performance report for the first half of this year reflects a net profit of 136 million yuan, consistent with the same period last year, while achieving revenue of 1.02 billion yuanThe company has stated it ranks first in terms of both e-commerce sales and revenue in its segment according to the online retail market monitoring reports by AVC.“Among four companies competing in the integrated stove segment, we maintain a leading position in both scale and sales.”

Additionally, Youngor also made appearances on institutional research lists from Gansu Energy & Chemical and Yongtai EnergyHowever, it should be noted that both companies belong to the coal sector

The former is the first coal listed company in Northwestern China, while the latter specializes in comprehensive energy services, encompassing power and coal businessesThis seems incongruous with Youngor's historical investment strategy.

However, in practice, coal stocks share similar characteristics with financial stocks, as both are considered stable assets with consistent performance and high dividendsFor example, Gansu Energy & Chemical has consistently issued cash dividends over the past 15 years, and the total cash dividends over the past three years reached 1.211 billion yuan, accounting for a staggering 83.74% of net profits. Nonetheless, in the first half of this year, Gansu Energy & Chemical's performance lagged behind expectations, citing that “this year, due to fluctuations in the Chinese coal market price, the company’s coal prices dropped significantly across various products.”

The decline in coal prices is a widespread challenge faced by the entire coal industry in the first half of this year

For instance, Shaanxi Coal and Chemical Industry Co., one of the top coal stocks, similarly expressed its outlook during the first half performance warning announcement that the coal selling prices would likely decrease relative to the previous year due to market supply and demand effects.

On a more positive note, Yongtai Energy reported a 31.45% year-on-year increase in performance due to increased production and sales in its coal business alongside a decreasing procurement cost for thermal coal in its power sector.

(The listed individual stocks mentioned in this article are for illustrative analysis purposes only and do not constitute investment recommendations.)