Youngone Holdings Co., Ltd (009970)

A. Youngone Holdings Co., Ltd. The company has existed as a holding company through a corporate split on July 1, 2009. As a pure holding company, its primary purpose is to control other companies by owning their shares, and its main sources of revenue are dividends, IT service fees, rental income, and management fees received from the subsidiaries it controls. Through the operating company Youngone Corporation, it conducts the manufacture, export, and distribution of outdoor and sports apparel, footwear, and backpacks, and Youngone Outdoor Corporation operates the retail business of The North Face brand in Korea. In addition, in Bangladesh, through the operating company KEPZ, it began full-scale industrial complex development from 2012, providing land and infrastructure for footwear and apparel production plants. In 2012, it established Scott North Asia Co., Ltd. and operates the domestic distribution business of the SCOTT bicycle brand. In March 2022, it established YOH CVC in Singapore to invest in startups and the like with growth potential, aiming to create business synergies with Youngone Holdings' subsidiaries and to discover future growth drivers. - Operating Results (Unit: KRW millions) *Separate basis By category / 52nd fiscal year (2025.1.1 ~ 12.31) / 51st fiscal year (2024.1.1 ~ 12.31): 1. Operating revenue: 153,579 / 151,461; - Dividend income: 130,354 / 132,345; - Other: 23,225 / 19,115; 2. Operating profit: 123,082 / 122,016. B. Youngone Corporation [Manufacturing OEM Business Segment] The company is an enterprise that receives orders for products such as outdoor and sports apparel, footwear, and backpacks from approximately 40 renowned overseas buyers, produces the products via the OEM method at its overseas local corporation plants, and exports them. The company is not a simple apparel manufacturer competing only on low wages, but an enterprise equipped with both product development capability and technological capability, maintaining competitiveness based on production bases diversified by plant across Bangladesh, Vietnam, El Salvador, and Ethiopia and on its excellent financial structure. In the case of Bangladesh, a major production base, European buyers' preference for Bangladesh is relatively high due to relatively low labor costs and GSP tariff exemption benefits for apparel exported to Europe; however, the entry barriers are relatively high because cost-increase factors such as poor infrastructure like electricity and gas, various disasters, and consecutive minimum wage increases are emerging. In this situation, Youngone, which entered Bangladesh, established a large-scale production base, and took the lead in localized management, maintains its competitiveness by increasing the productivity of numerous local corporation plants, including its major subsidiaries. In addition, it is pursuing mid- to long-term growth through facility investment and the expansion of apparel production lines at the Korea Export Processing Zone (KEPZ) in Chittagong, Bangladesh, as well as in India, Kenya, etc. To solve the seasonality problem inherent in outdoor apparel production, the company has expanded the scope of its business to include footwear, backpacks, functional knit apparel, and even fabric production. To expand the knit apparel and fabric business segments by utilizing its cross-selling capability with existing customers, it built a Textile Mills complex in Nam Dinh, Vietnam, where it produces merino wool fabric, polyester fleece, and functional fabrics. In addition, it continues to invest in normalizing the production and sale of related products such as its in-house developed special padding and fabrics, and is continuously making efforts to shorten production lead times and improve productivity through vertical integration from fabric to finished products. To expand the company's fabric business, it established the KARNAPHULI POLYESTER PRODUCTS COMPANY LIMITED (KPP) plant within the KEPZ complex in Bangladesh. Through this, it produces and supplies various functional knit products such as warp knit, circular knit, and fleece knit, which are sports apparel materials, as well as functional lightweight down-proof woven fabric. In 2020, as COVID-19 spread worldwide across the United States, Europe, Asia, etc., the global economy fell into a slump, which affected not only the buyers but also the company's OEM production plants. However, from 2021, despite global supply chain issues and inflation concerns, it showed a recovery trend as demand for products for outdoor and sports activities increased along with the recovery of consumption in the global market. In 2023, orders decreased again due to the impact of a difficult business environment such as global economic uncertainty and slowing demand in upstream industries, but from the second half of 2024, orders showed a gradual recovery. In addition, the company is seeking to strengthen its competitiveness through continuous facility investment and various efforts to improve productivity at its overseas local corporation production plants. However, due to the impact of global economic uncertainty, geopolitical risks, and slowing consumption in major markets, the overall market environment remains highly volatile. [SCOTT Business Segment] In 2015, by securing a majority stake in SCOTT CORPORATION SA, a premium bicycle brand company based in Switzerland, the company entered the global bicycle and sports brand distribution business. SCOTT CORPORATION SA and its affiliates (hereinafter "SCOTT") were founded in 1958, beginning with the development of the world's first aluminum ski pole, and thereafter established a foothold in the European ski market through the development and sale of various ski products, before entering the bicycle market by launching its first MTB in 1986. Subsequently, through continuous product development and investment—such as developing the world's lightest road frame in 2007 and an MTB carbon frame in 2011—SCOTT has maintained its competitiveness as a high-end premium bicycle brand, and currently more than 80% of its sales are generated by the bicycle division. Expanding its bicycle portfolio, SCOTT has maintained its reputation as a world-class premium bicycle brand based on the three core elements of innovation, technology, and design. In 2020, following the lifting of quarantine due to the spread of COVID-19, sales increased significantly as bicycles, including E-BIKEs, gained the spotlight as the most ideal untact exercise and means of transportation in the global market. However, from 2023, an uncertain business environment continued, including recession concerns stemming from inflation and interest rate hikes, and as COVID-19 subsequently ended, global bicycle market demand slowed, causing difficulties from declining sales and excess inventory. In 2025 as well, as inventory adjustment across the bicycle industry proceeded, centered on the European and North American markets, some discount sales continued, and SCOTT is also making efforts to normalize its inventory. Meanwhile, SCOTT seeks to lead the market through the launch of new products, and plans to continuously strengthen its brand competitiveness in the premium bicycle market through product development based on consumer needs, the execution of marketing strategies segmented by region, and the rationalization of SKUs (Stock Keeping Units). - Operating Results (Unit: KRW millions) *Consolidated basis By category / 17th fiscal year (2025.1.1 ~ 12.31) / 16th fiscal year (2024.1.1 ~ 12.31): 1. Sales: 4,063,584 / 3,517,837; 2. Operating profit: 514,439 / 315,581. C. Youngone Outdoor Corporation With heightened interest in health and leisure, the domestic outdoor market enjoyed the greatest boom in the apparel industry over several years since 2020. However, the domestic outdoor market, which had shown steep growth on an industry scale of trillions of won, has been showing a long-term stagnation phenomenon. Due to stagnation in demand for outdoor products and changes in sales timing caused by climate change, fierce price competition among outdoor apparel companies is intensifying, and various characteristics seen in the stagnation phase following the market maturity phase are emerging, such as deepening market segmentation, the rise and fall of new brands, the development of new distribution networks, and the appearance of various marketing means. Through its flagship brand The North Face, the company is focusing on continuously strengthening brand value and product innovation. As the official sponsor of the 2018 PyeongChang Winter Olympics and the Republic of Korea national team, it contributed to the development of sports, and has led the market by introducing various innovative products such as ultra-lightweight long padding (0.99kg), the Nuptse down jacket, the Big Shot backpack, and eco-friendly Eco Tech products. In addition,...