(Yicai) Dec. 26 -- Youngor Group, a Chinese clothing retailer whose growth was powered by property development for many years, said it will rename itself to more accurately reflect its core business and future development plans.

The group plans to change its name to Youngor Fashion, the Ningbo-based owner of well-known clothing brands such as Youngor, Mayor, and Hanp announced yesterday.

Founded in 1979, Youngor started out as a seller of menswear, but it was the group’s property development and equity investment interests that began in the early 1990s that underpinned its growth.

Change has been in the works since 2019, when Youngor said it would undergo a major strategic adjustment by ceasing to invest in non-garment businesses, disposing of non-core investment projects, and updating its business scope to textiles, apparel, and accessories from real estate. 

Then in 2021, Youngor revealed plans to invest CNY2.8 billion (USD391.9 million) to set up a branch in Shanghai to bolster its fashion business. The group has also built a smart logistics center at a cost of nearly CNY1 billion.

A look at Youngor’s nine-month earnings highlights the refocus. Net profit at its fashion business rose 15 percent from a year ago to CNY650 million (USD91 million) on a 13 percent gain in revenue to CNY5.1 billion (USD710 million). Meanwhile, its real estate business had net profit of CNY330 million and revenue of CNY2.4 billion, down 86 percent and 72 percent, respectively.

Shares of Youngor [SHA: 600177] rose 0.9 percent in Shanghai today to close at CNY6.50 (91 US cents) each. The stock has gained 2.7 percent since the end of last year.

Youngor also owns American streetwear brand Undefeated and Norwegian outdoor clothing and sports apparel maker Helly Hansen. Besides its self-owned brands, it operates American men's suit producer Hart Schaffner Marx in China.

Editor: Emmi Laine