YOUNGONE AT A GLANCE

2.1 YONGONE Corporation, Seoul based Korean Company founded in 1974. YONGONE Corporation today is a world class and the largest supplier of outdoor clothing and sportswear, such as athletic, active and causal sports apparel including sports shoes backpack etc. The operation of the company is pretty much spread around the globe. The most significant one being in countries like Bangladesh, India, Thailand, Vietnam, China, Korea, EL Salvador, Mexico, UK, Sweden and Switzerland.

The scope of the report is the Export and Import of YONGONE Corporation in CEPZ, Bangladesh. In the edge of competitive international business, it is evident that countries are more involving in international trade. Without sound knowledge of import and export any Corporation can’t operate its business smoothly if it is hundred percent exports oriented.

During preparing my report, I’ve detected some problems of my company. In the light of those problems I’ve mentioned some recommendations. I strongly trust that if the management of the company follows my recommendation, it will help the company to achieve their desired goals in the long run.

2.2 HISTORICAL BACKGROUND

YOUNGONE CORPORATION, a Seoul based Korean Company founded in 1974. The company increased its presence in the active wear market and is now involved in the cutting edge technology of garment design & manufacturing. Today it is the biggest vendor for some top-end active wear brands of the US and Europe. The operation of the company is pretty much speed around the globe. The most significant ones beings in countries like Bangladesh, India, Thailand, Vietnam, China, Korea, USA, EL Salvador, Sweden, Uk etc. The initial venture of manufacturing down proof & CWS garments turned out to be a success story.

2.3 YOUNGONE Bangladesh Chapter

YOUNGONE recognizes Bangladesh as a land of enormous investment potential for it’s investment friendly environment and availability of an industries of an industries work force and pool of professionals. YOUNGONE Corporation’s first overseas operation got of the ground in the post city of Chittagong back in 1980 and that was the first foreign investment in woven sports jacket in the country. It moved into Chittagong Export Processing Zone in 1987 after forming a new company named YOUNGONE (CEPZ) Limited. The quality and dedication of workers led YOUNGONE Corporation to progressively invest further in Bangladesh and that trend continues till today.

YOUNGONE Corporation set the following factories in CEPZ, Chittagong & DEPZ, Savar, Dhaka during 1987 to 2005.

2.4 YOUNGONE Factories in Chittagong EPZ

YOUNGONE SPORTSWEAR LTD.

KARNAPHULI SPORTSWEAR IND. LTD.

LALMAI SPORTSWEAR IND. LTD.

TITAS SPORTSWEAR IND. LTD.

YOUNGONE SPORTS SHOES IND. LTD.

YOUNGNE PADDING LTD.

YOUNGONE GARMENT ACCESSORIES IND. LTD.

YOUNGONE SHOE ACCESSORIES IND. LTD.

SHINHAN EMULSION CO. (BD) LTD.

SURMA GARMENTS WASHING AND FINISHING CO.

2.5 YOUNGONE Factories in Dhaka EPZ

YOUNGONE HI-TECH SPORTSWEAR IND.LTD.

YOUNGONE SYNTHETIC FIBER PRODUCT IND. LTD.

SAVER DYEING & FINISHING IND. LTD.

SAVER SPORTSWEAR CO. LTD.

2.6 SYNOPSIS OF THE BACKWARD LINKAGE FACTORIES FROM ABOVE

YOUNGNE PADDING (CPZ) LTD (YPL). and YOUNGONE SYNTHETIC FIBER PRODUCT IND. LTD (YSF) in DEPZ, YOUNGONE built countries first non-woven Synthetic fiber factory in Chittagong Export Processing Zone & Dhaka Export Processing Zone to meet the demand of Padding, quilting of RMG sector in home and abroad. The Global Market by exporting outstanding quality products at competitive price.

As a pioneer YPL & YSP has been enjoying the unique position in manufacturing of different types of padding, Quilting (Normal) & Computerized with various design. In terms of necessity and to support the backward linkage industries recently YOUNGONE introduce the items of “NON-WOVEN INTERLINING” in YSF located at DEPZ, Savar, Dhaka.

Hence, YOUNGONE offer PACKAGE DEAL, ONE STOP service like padding, quilting (Normal & Computerized) and interlining for its user from YPL & YSP.

Thus, YPL & YSP are capable enough to fulfill the requirement of our esteemed customers with our diversified range of quality products by adopting modern technology and upgrading time to time.

2.7 SAVER DYEING & FINISHING IND. LTD. (SDF)

The first nylon fabric dyeing and finishing plant in the country went into production in early 1996. It evolved from a facility to dye basic lining fabric to its present capability of producing various air texture yarn fabrics with breathable coated fabric for shell. At this point in time SDF industries Ltd. is one of the major fabric vender for YOUNGONE and 100% export oriented garments industries Bangladesh. The valued customers are savings their valuable time to place the order to SDF by short lead time and get part delivery for their smooth production. SDF has earned good reputation in RMG sector of Bangladesh. SDF also explore their market abroad by exporting the Nylon Fabrics.

2.8 YOUNGONE GARMENT ACCESSORIES IND. LTD (YGA)

YGA producing LDPE/HDFE/PP poly & Bilister bag with six solour printing, different shape cutting with self adhesive. There are well equipped workshop service facilities for fabrication, overhauling, refurbishing, repair and maintenance of all kinds of garments machinery. This is the first well equipped workshop in the EPZs.

2.9 SHINHAN EMULSION CO. (BD) LTD (SEL)

YOUNGONE Corporation has set up a resin plant in CEPZ, Chittagong producing resin for Padding, Interlining, Textile (Print Binder), Paint Resin, Floor Coating etc.to support the backward linkage industries for competitive price, SEL is capable to meet the requirement of resin for Padding & Interlining Production for Bangladesh.

Having local workers in it is payroll in 1987, YOUNGONE today (01-03-07) employs more than 33,800 employs including senior and mid management officials from Bangladesh, Thailand, Korea, Sri-Lanka, Europe, China, USA, Mexico, India, etc.

2.10 YOUNGONE is now developing an industrial park/ export processing zone of its own, named, “KOREAN EPZ CORPORATION (BD) LTD.”

Located on the south bank of the river “Karnaphuli” in a picturesque natural environment spans over and area of about 2,500 acres. Building and others infrastructure development works are under construction. The zone is expected to as many as 150,000 jobs for Bangladeshi’s and generates other economic activities.

Thus Youngone Corporation in its never-ending drive toward improvement will undoubtedly become the most competitive and reliable supplier and production partner of its buyers.

2.11 YOUNGONE at a Glance

We have the privileged to introduce YOUNGONE Bangladesh as a 100% export oriented foreign owned group of industries doing its business in Bangladesh for nearly 25 years and had already earned a global reputation and fame for its garments manufacturing and export. YOUNGONE is producing High –Tech garments like ski-wear, Down Wear, Jacket Vest, Parka, Jog Suit, Sleeping Bags, Rainwear’s, Hunting Wears, Sportswear, Taped Garments (Seam Sealing & CWS), Casual Shoes, Sports Shoes, Out Sole of Sports Shoes, Hand Gloves, Padding, Quilting, Computerized Quilting, Poly Bags, Nylon Fabrics, Poly Synthetic Fabrics, Taffeta Fabrics, Ripstep Fabrics, Resin, etc. which are exported to USA, Canada, Italy, Switzerland, Hong Kong, Korea, Japan, Thailand, Singapore and European Union etc. Mostly market destinations are North America and Europe and some to South Asian and African countries. Our valued USA and Europe buyers are the North Face, Nike, Puma, Polo, L.L.Bean, Lands‘ End, Tension, Burton, Timberland, Jansports, Decathlon, Diesel, Aigle, Scott, Lafuma, Royal Robins, Odlo, Napapijri, Sanmar, Millet, Poiver, Balance, Woolrich, Spyder, Walls, Market, Marmot, Insport, Snow sports, O’Nill, Eddie Bauer, Tommy, Hill Figure, etc. In the span of last 25 YOUNGONE has established 14 Manufacturing unites at CEPZ and 4 Manufacturing Units at DEPZ. Besides, has its Global Manufacturing Units in Chennai-India, Namdin-Vietnam, Hanoi-Vietnam, Qingdao-China, Celaya-Mexico & Suna Franca- Elsalvador. For its global marketing YOUNGONE is maintaining its Liaison Officers in Idia, Vietnam, Singapore, Hong kong, Bangkok, Seattle-USA, New England, Vicenza-Italy, Bern- Switzerland. This is at a glance the total picture of YOUNGONE Group globally.

COMPARISON DATA:

DEFINITION OF NO SEWING & SEWING TECHNOLOGY:

No Sewing technology:

It is a unconventional garments manufacturing processes where we use different types of thermoplastic adhesive to joint different fabric par.

Sewing technology:

It is a conventional garments manufacturing processes where we use different types of threads to joint different fabric part .

FINANCIAL STATEMENT:

Location	2003 CM	2004 CM	2005 CM	2006 CM	2007 CM	2008 CM
BD (CTG)	839915	2137896	2757088	3584876	2589883	2338965
BD (YHT)				39142	109533	85532
QD, China			207210	563287	574565	391362
YNL, Vietnam				5478	58159	408048
ELS, Elsalvador				65061		11450
Total	839915	2137896	2964298	4257844	3332140	3235357

Location	2003 FOB	2004 FOB	2005 FOB	2006 FOB	2007 FOB	2008 FOB
BD (CTG)	5691509	22646981	35891151	50484090	37498238	36094655
BD (YHT)				898147	2088856	1826545
QD, China			2105008	3619049	13254471	8821746
YNL, Vietnam				65211	2146348	9743588
ELS, Elsalvador				1184360		126960
Total	5691509	22646981	37996159	56250856	54987913	56613494

SWOT MATRIX:

	STRENGTH	WEAKNESS
	1) Corporate name with good reputation	1) Concentration on higher priced unit
	2) Good service & warranty	2) Focus on some feature of the garments
	3) Extensive R & D Capabilities	3) Heavy investment in tool making
	4) Most of the Officers & employee are educated & skill	4) Cost of quality assurance is high
	5) 5 plant location	5)Less capacity to produce Full CWS garments
		6) Salary structure is not at expected level
OPPORTUNITIES	POSSIBLE STRATEGY	POSSIBLE STRATEGY
1) Demand for international Market	1) Expand into foreign market	5) Making low cost equipment
2) Demand for technical garments	2) Emphasize is on best quality garments	6) Making full CWS garments
4) Demand for CWS Garments accessories
5) Demand for good quality garments
THREATS	POSSIBLE STRATEGY	POSSIBLE STRATEGY
1) Lead time of CWS raw material is high	3) Develop CWS raw material	7) Improve salary structure
2) High price of CWS raw material	4) Procure automated Machine	8) Reduce price of the garments
3) Increased competition
4) Impending safety regulation
5) Employee turn over is high

FINANCIAL PERFORMANCE OF NO SEWING & SEWING GARMNETS

PRODUCTION STATUS OF NO SEWING GARMENTS:

No of Buyers in different location
Year	Location
	BD-CTG	BD-YHT	QD,CHINA	YNL, VN	YLS
2003	7	0	0	0	0
2004	21	0	0	0	0
2005	22	0	3	0	0
2006	21	3	4	1	3
2007	19	4	8	2	0
2008	14	4	7	10	1

In this chart I’ve shown the no of buyers only for CWS in different location of Youngone CWS factory. From this chart we can see that the demand of CWS product is increasing day by day.

No of style in different location
Year	Location
	BD-CTG	BD-YHT	QD,CHINA	YNL, VN	YLS
2003	44	0	0	0	0
2004	231	0	0	0	0
2005	277	0	18	0	0
2006	356	15	38	17	5
2007	377	28	68	11	0
2008	330	24	65	30	1

Order qty in different location
Year	Location
	BD-CTG	BD-YHT	QD,CHINA	YNL, VN	YLS
2003	128934	0	0	0	0
2004	366473	0	0	0	0
2005	803322	0	34232	0	0
2006	1290310	10493	67860	1464	29609
2007	1050466	68257	224301	70085	0
2008	1054381	56511	135302	172182	3000

CM earnings in different location
Location
BD-CTG	BD-YHT	QD,CHINA	YNL, VN	YLS
839915	0	0	0	0
2137896	0	0	0	0
2718461	0	307264	0	0
3584876	39142	563287	5487	65061
2589883	109533	574565	58159	0
2338965	85532	391362	408048	11450

FOB Earnings at different Locations
Location	2004 FOB	2005 FOB	2006 FOB	2007 FOB	2008 FOB
BD (CTG)	$22,646,981	$35,891,151	$50,484,090	$37,498,238	$36,094,655
BD (YHT)			$898,147	$2,088,856	$1,826,545
QD, China		$2,105,008	$3,619,049	$13,254,471	$8,821,746
YNL, Vietnam			$65,211	$2,146,348	$9,743,588
ELS, Elsalvador			$1,184,360		$126,960
Total	$22,646,981	$37,996,159	$56,250,856	$54,987,913	$56,613,494

From the above diagram we can compare the FOB earnings in different locations of CWS. Finally we can see that BD-CTG is earning more than the other CWS factories

PRODUCTION STATUS OF SEWING GARMENTS:

Quantity Produced at different Locations
Location	2004	2005	2006	2007	2008
BD (CTG)	329826	963986	1135473	829868	896224
BD (YHT)			9234	53923	48034
QD, China		41078	59717	177198	115007
YNL, Vietnam			1288	55367	146355
ELS, Elsalvador			26056	0	2550
Total	329826	1005065	1231768	1116356	1208170
Location	2004	2005	2006	2007	2008

From Last 5 year’s data analysis we have seen that the demand of CWS garments is increasing day by day. This rate of increase of demand of CWS garments is higher than non- CWS garments. In comparison to year 2004 to 2008 the demand increases four times.

CM Earnings At Different Locations
Location	2004	2005	2006	2007	2008
BD (CTG)	1154390	3373952	3974155	2904538	3136783
BD (YHT)	0	0	32318	188731	168120
QD, China	0	143774	209009	620192	402523
YNL, Vietnam	0	0	4509	193785	512241
ELS, Elsalvador	0	0	91196	0	8925

FOB Earnings at Different Locations
Location	2004	2005	2006	2007	2008
BD (CTG)	8245643	24099660	28386820	20746704	22405596
BD (YHT)	0	0	230846	1348076	1200859
QD, China	0	1026960	1492920	4429945	2875168
YNL, Vietnam	0	0	32208	1384179	3658868
ELS, Elsalvador	0	0	651398	0	63750
Total	8245643	25126620	30794192	27908903	30204240

From Last 5 years data analysis we have seen that FOB earning is continuous higher for BD (CTG) in comparison to other location of CWS.

6.3 PROFIT MARGIN:

Companies pay a great deal of attention to their profit margins:

Profit margin = Net Income

Sales

Profit margin for CWS:

	2004	2005	2006	2007	2008
Net income	$188,077	$628,094	$1,146,016	$484,261	$1,030,022
Net sales	$2,137,896	$2,964,298	$4,257,844	$3,332,140	$4,121,990
Profit margin	8.80%	21.19%	26.92%	14.53%	24.99%

Profit margin for Sewing:

	2004	2005	2006	2007	2008
Net income	$98,702	$316,393	$424,979	$370,485	$418,120
Net sales	$1,154,390	$3,517,727	$4,311,187	$3,907,246	$4,228,594
Profit margin	8.55%	8.99%	9.86%	9.48%	9.89%

From Last 5 years data analysis we have seen that profit margin of No sewing garments is fluctuating but profit margin of sewing is more or less steady. In general profit margin of No sewing garments is higher than the Sewing garments. In most cases it two times higher than sew garments. In 2007 profit margin of No Sewing drop badly but in last year it is recovered

6.4 RETURN ON ASSETS:

ROA is a measure of profit per TK. of assets. It can be defined several ways, but the most common is this.

Return on Assets = Net Income

Total Assets

Return on Assets for CWS:

	2004	2005	2006	2007	2008
Net income	$188,077	$628,094	$1,146,016	$484,261	$1,030,022
Net assets	$6,788,580	$6,976,574	$7,446,560	$6,694,583	$7,133,236
Return on assets	2.77%	9.00%	15.39%	7.23%	14.44%

Return on Assets for Sewing:

	2004	2005	2006	2007	2008
Net income	$98,702	$316,393	$424,979	$370,485	$418,120
Net assets	$6,788,580	$6,976,574	$7,446,560	$6,694,583	$7,133,236
Return on assets	1.45%	4.54%	5.71%	5.53%	5.86%

6.5 PROFIT & LOSS ACCOUNT:

The profit & Loss account measures performance over a year. The Profit & Loss account equation is:

Revenues – Expenses = Income

Revenues:

Revenues are the gross increase in owner’s equity resulting from business activities entered into for the purpose of earning income. Revenues usually result in an increase in an asset. They may arise from different sources and are identified by various names depending on the nature of the business. Common source of revenue are: Sales, fees, Services, Commissions, interest, dividends, royalties and rent.

Expenses:

Expenses are the cost of assets consumed or services used in the process of earning revenue. They are decreases in owner’s equity that result from operating the business.

Expenses represent actual or expected cash outflows.

PROFIT AND LOSS STATEMENTS FOR LAST FIVE YEARS (CWS):

	2004	2005	2006	2007	2008
Total asset	$6,788,580	$6,976,574	$7,446,560	$6,694,583	$7,133,236
CM earnings	$2,137,896	$2,964,298	$4,257,844	$3,332,140	$4,121,990
Cost of Products sold	$1,619,339	$1,815,466	$2,365,554	$2,388,154	$2,402,125
Gross Profit	$518,557	$1,148,832	$1,892,290	$943,986	$1,719,865
Overheads	$249,875	$251,555	$255,125	$252,185	$248,405
Operating Profit	$268,682	$897,277	$1,637,165	$691,801	$1,471,460
Provision for Tax	$80,605	$269,183	$491,150	$207,540	$441,438
Profit after Tax	$188,077	$628,094	$1,146,016	$484,261	$1,030,022

From Last 5 years data analysis we have seen that profit of no sewing garments is fluctuating but profit margin of sewing increase after 2004 & after 2006 it is more or less steady. In general profit of No sewing garments is higher than the Sewing garments. In most cases it two times higher than sewing garments. In 2007 profit margin of No Sewing drop badly but in last year it is recovered.

PROFIT AND LOSS STATEMENTS FOR LAST FIVE YEARS (Sewing):

	2004	2005	2006	2007	2008
Total asset	$6,788,580	$6,976,574	$7,446,560	$6,694,583	$7,133,236
CM earnings	$1,154,390	$3,517,727	$4,311,187	$3,907,246	$4,228,594
Cost of Products sold	$763,512	$2,814,181	$3,448,950	$3,125,797	$3,382,875
Gross Profit	$390,878	$703,545	$862,237	$781,449	$845,719
Overheads	$249,875	$251,555	$255,125	$252,185	$248,405
Operating Profit	$141,003	$451,990	$607,112	$529,264	$597,314
Provision for Tax	$42,301	$135,597	$182,134	$158,779	$179,194
Profit after Tax	$98,702	$316,393	$424,979	$370,485	$418,120

CONTACT US:

Chairman Office Dhaka:

HASNA VILLA, HOUSE # 14, ROAD # 7C
SECTOR - 3, UTTARA MODEL TOWN
DHAKA-1230, TEL : 880-2-8918453, 8916498, 011-802846, 8413609
FAX : 880-2-8916498

Head Office :

YOUNGONE CORPORATION
YOUNGONE CORPORATION
# 171, 2 - KA MANRI-DONG
CHUNG GU, SEOUL KOREA
C. P. O. BOX : 1204
TEL : 82-2-390-600-6114
FAX : 82-2-390-6600-6603
TLX : YOCORP K 28451

U.S.A Office :

911, WESTERN AVENUE # 411
RYE, NH 03870
PHONE : 206 405 4454
FAX : 206 405 2801

Hongkong Office :

YOUNGONE CORPORATION
UNIT 9-10, 24/F, TOWER-1
EVERGAIN PLAZA
88 CONTAINER PORT ROAD
KANAI CHANG HONGKONG
TEL : 852 2403 5088
FAX : 852 2403 5188

Bangkok Office :

YOUNGONE CORPORATION OFFICE
DONGNAMA TRADING CO. LTD.
23RD FLOOR, UNIT # 2307
RIVER WING WEST EMPIRE TOWER
195, SOUTH SATHORN ROAD
YANNAWA SATHORN
BANGKOK-10120, THAILAND
TEL : (662) 670-1680-4
FAX : (662) 670-1688

Chittagong Office (BD) :
WEST WING
Karnaphuli Sportswear Ind. Ltd.
G. P. O BOX # 543
PLOT # 12-14, SECTRO - 7
CHITTAGONG EXPORT PROCESSING ZONE
CHITTAGONG, BANGLADESH.
PHONE : 88-031-740607-9, 741623, 741625
FACSIMILE : 88-031-740610

CONSTRUCTION WITHOUT SEWING (CWS)

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