(Yicai Global) May 24 -- Fashion retailer Youngor Group will no longer proceed with a plan to donate a hospital and other assets worth CNY1.4 billion (USD200 million) to its hometown in China's southeastern Zhejiang province after shareholders objected.

“Management has decided to terminate the donation because investors expressed dissent, saying it would impair their interests,” a company representative told Yicai Global yesterday. No decision has been made as to what to do with the assets now, he added.

Youngor intended to give Puji Hospital and other related assets to the city of Ningbo. The donation would have reduced the firm’s net profit by about CNY1 billion this year and saved it a lot of money on taxes, the company said on May 17.

Youngor is trying to exit the healthcare sector to focus on its main garments business amid market uncertainty at home and abroad. The firm recently revealed divestments in other areas, such as the sale of a 1.3 percent stake in PipeChina for nearly CNY3.4 billion.

The retailer is profitable. Youngor made CNY4.4 billion (USD659 million) last year, up 41 percent from a year ago. Revenue climbed 19 percent to CNY13.6 billion (USD2 billion).

Shares of Youngor [SHA: 600177] closed down 1.8 percent at CNY6.96 (USD1) each today. The benchmark Shanghai Composite Index fell 2.4 percent.

Editor: Kim Taylor