"Dark-skinned," is the phrase most often used by the media to describe Li Rucheng. But in the warm sunshine of Xishuangbanna, this feature takes on a different meaning — if he doesn’t speak, he could easily be mistaken for an indigenous local. It seems that Li Rucheng has grown fond of this kind of "blending in." Since the establishment of Youngor in 2007, Henma Industrial Investment Holdings Co., Ltd. was formed as a joint venture between Youngor (owning 91% of shares), Ningbo Yike Technology Industrial Co., Ltd., Yunma Industrial Co., Ltd., and the PLA Military Equipment Research Institute under the General Logistics Department. Hemp became a regular part of the company's operations, with some even becoming somewhat of a "master" in the field. Guests visiting Youngor are often invited to tour the "hemp backyard." As one might expect, the process begins with a warning: "Please do not take pictures." This friendly reminder comes from service staff dressed in uniform, especially when it comes to the visits of Ningbo NPC deputies. Any visitor attempting to photograph the workshop at the Hanma base in Xishuangbanna is met with a polite but firm "sorry." According to base personnel, some employees have even tried to secretly "learn" from the base, using pinhole cameras to capture images. The entire base is modest in size, with few workers in each workshop, yet it covers the full production process from raw hemp to yarn. There’s a sense of military discipline and organization throughout the facility — it's likely one of the most advanced hemp production lines in the world.
In 2004, government officials from Yunnan Province visited Liao Xilong, the Minister of the PLA General Logistics Department, who had spent over 30 years in Yunnan. During their meeting, they expressed confusion about Yunnan’s abundant marijuana resources and their limited use. They hoped the Army Logistics Department would help with scientific research. Liao Xilong then passed the message to Major General Zhang Jianchun, head of the military supplies and equipment institute. At that time, Zhang and his team had already developed improved cannabis varieties, "Yunma 1" and "Yunma 2," which retained the beneficial properties of cannabis without the potential for drug extraction. These were rebranded as hemp. When Li Rucheng learned about the project during the "two sessions" from Zhang, both saw its great potential. Although hemp technology had the basic conditions for industrial development, real industrialization required strong textile and garment enterprises to drive it forward. After thorough research, Li Rucheng made up his mind to "steadily grow an industry that benefits the country and the people." He believed this was not only Youngor’s original intention but also a historic mission.
In 2005, after receiving state approval, Youngor and the Central Military Commission's munitions and equipment department officially launched research projects on hemp planting, fiber processing, and comprehensive utilization. By now, infrastructure, plant construction, and equipment procurement were complete, and the factory was operational, achieving an annual output of 5,000 tons of bast fiber. A unique industrial chain from planting to design, production, and sales was taking shape. In 2007, Youngor products began supplying the military. By 2008, they supplied 4 million pairs of hemp socks to the army, and in 2009, that number reached 10 million. Hemp training combat suits are currently being tested by some units. At the same time, Youngor also started selling small quantities of hemp clothing on the market. Since December 2008, test marketing of shirts, suits, and undergarments has been underway, receiving positive consumer feedback.
The hemp project has shown significant value. According to Yikeke Technology's 2009 interim report, the gross margin of the hemp business was 20.92%, higher than the 14.15% of its main garment accessories. The report covered data up to June 30, while the hemp project was launched in early April. Within two months, the hemp business showed its value, becoming the highest-margin segment among all of Yikeke’s businesses. However, this is just the beginning.
From imagination to reality, the Chinese textile industry still faces a major bottleneck: raw material confusion. Despite China being the largest fiber processor globally, there is a huge gap in raw materials — 60% of chemical fiber raw material needs are imported, 25% of cotton, and 66% of wool. Even bast fiber, which China produces, saw 550,000 tons imported in 2007. Without control over raw material pricing, China cannot change its position in the industry. Hemp, a new natural fiber with independent Chinese rights, offers a breakthrough in the high-end fabric market.
Hemp products not only provide environmental protection and health benefits but also offer high added value. In Europe and the U.S., hemp clothing can cost twice as much as cotton. Global demand for hemp fabric grows by 30% annually. Youngor plans to invest 50% of its hemp products in the international market, where the space and returns are substantial.
Zhang Jianchun’s research team has further studied the composition, structure, performance, and application technology of hemp in military applications. “Currently, a 13-industry chain has been formed, including roughing, fiber processing, chemical engineering, papermaking, viscose, wood plastic, automotive interiors, new building materials, composite materials, food and healthcare, wood ceramics, activated carbon, and biodiesel. Many achievements have been applied to national economic construction, bringing great economic benefits to the civilian sector,†said Zhang.
At present, only three countries — China, Canada, and Germany — have mastered the technology of hemp fiber development and utilization. China’s research and development achievements are leading globally. According to the planning goal, by 2012, Youngor aims to plant 10 million hemp plants, producing 1 million tons of hemp fiber annually, solving employment for 1 million rural laborers and helping 3 million poor rural people out of poverty. This industry will bring social benefits to millions of rural families.
Military-civilian cooperation, agriculture development, low-carbon environmental protection, the entire industry chain revenue, and international market pricing power — all these factors converge in Youngor and the hemp project. At this point, Youngor’s strategy and tactics are intriguing. It’s not just imagination; it's becoming a reality step by step.
Now, Li Rucheng has become a prominent voice in the hemp industry. He said he used to carry seven sets of underwear per week on business trips, but now two or three sets of hemp underwear are enough. With features like moisture absorption, breathability, comfort, anti-mold, antibacterial, anti-radiation, UV protection, and the ability to absorb harmful gases, he always praises the advantages of hemp. He is also interested in the construction of a hemp living museum across the country. In the three-story Youngor store in Beijing’s Dongdan area, men’s, women’s, and underwear sections are displayed with a sophisticated, high-end experience. The Han Ma brand is integrated into a broader Youngor clothing program. Currently, this living museum has opened in Ningbo, Beijing, Shanghai, and will expand to hundreds of locations in the coming years.
A few years ago, some industry analysts questioned the aging of the Youngor brand. That’s where Youngor has focused its efforts in the past two years. Recently, at CHIC, Youngor made a high-profile appearance, showing a younger, more confident attitude. Alongside brands like MAYOR & YOUNGOR, YOUNGOR CEO and GY, and Hart Schaffner Marx, Youngor has gradually built a strong brand strategy. At the same time, hemp has helped Youngor enter other areas such as home textiles, women’s wear, accessories, and daily necessities.
The question of Youngor’s "unprofessional" image has never seemed to fade. Although Youngor’s real estate and investment businesses in Ningbo and Jiangsu are thriving, the clothing industry remains a core focus for Li Rucheng. Numbers show that in 2009, despite contributing only about 450 million yuan in profit to listed companies, the apparel industry created 6.9 billion yuan in cash flow and significant brand value.
On the banks of the Lancang River, 59-year-old Li Rucheng crossed the river barefoot, joking as he headed west. While enjoying a local Dai dish, he and his team discussed business and beliefs: "I believe in the Arab numbers. You see, employee income, tax revenue, investor returns, and business growth...". For the boss of China’s largest apparel company, he seems envious of European small companies: "Their culture isn’t big, but it’s good — refined and stable, running a company is a pleasure."
Once, Li Rucheng repeatedly said he would retire at 60. But he also admitted, "The current generation is different. The new generation has a strong sense of self-respect and self-awareness. This is a societal issue, and Youngor faces it too." If he follows through, the coming year may be his last as Youngor’s leader. Fortunately, he loves the sunshine of Xishuangbanna.
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