Youngor, led by Li Rucheng, is not just a major player in the textile and apparel industry—it's also the largest real estate developer in Ningbo and a key shareholder of Ningbo Bank. While its presence spans seemingly unrelated sectors such as textiles, real estate, and financial investment, many within the industry have questioned whether Youngor is "not doing its job well." However, for Li Rucheng, this diversification is part of a broader strategy to build a long-term, sustainable business.
Founded in 1984, Youngor has grown into Asia’s largest apparel company, with annual revenue reaching 12.2 billion yuan and a profit of 4 billion yuan in recent years. Despite its size, the company remains deeply rooted in the textile industry, employing nearly 50,000 people. Yet, it’s the real estate and financial segments that have become the most profitable, earning Li Rucheng the nickname “China’s Buffett.â€
In an exclusive interview, Li Rucheng explained that while the clothing sector is his heart’s true passion, the other industries are essential for growth. “Real estate is more challenging, and financial investment represents the future direction of China’s economy,†he said. He emphasized that industrial diversification isn’t a distraction but a necessary step toward becoming a global brand.
The concept of “grassboat borrowing arrows†(borrowing resources to achieve greater goals) is central to Youngor’s strategy. By using profits from textiles and real estate, the company fuels innovation and expansion in its core business. This model, however, has sparked debate among industry observers. Some see it as a smart move, while others question the balance between profitability and core operations.
Li Rucheng insists that the textile and apparel division remains the main business, even if it generates lower returns. “Profitability shouldn’t be the only measure of a main business,†he said. “Our goal is to build a century-old brand, and that requires constant innovation and structural adjustment.â€
To achieve global recognition, Youngor has pursued international acquisitions, including Smart and Xinma. These moves, Li Rucheng believes, help position the company on the world stage. “Mergers and acquisitions are not just about buying companies—they’re about building international teams and platforms,†he added.
Beyond M&A, Youngor is investing heavily in technology and product innovation. Recently, the company launched a hemp-based fabric line called “Han Ma Family,†which has gained significant market interest. “We’ve invested nearly 300 million yuan in this project,†Li Rucheng said. “It’s not just a new material—it’s a revolution in comfort and sustainability.â€
As Youngor continues to evolve, its vision remains clear: to become a globally recognized, century-old brand that thrives through innovation, diversification, and strategic foresight.
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