Loss-making abandonment of shoes, Saturday entered the era of light assets. On the evening of January 18, Saturday issued an announcement that it is expected to lose 430 million to 645 million yuan in 2021, and the company will transfer 100% of the equity of its subsidiary, Foshan Saturday Shoes Co., Ltd. (hereinafter referred to as "Saturday Shoes"), focus on the development of Internet marketing business, and enter the asset-light development model. Affected by this, Saturday's intraday gain reached 5%.
Industry insiders said that in recent years, Saturday's shoe business has suffered serious losses, and this divestiture is also to get rid of the performance burden and go light. However, if the Internet marketing business or the live streaming business based on live broadcasting has no strong industrial foundation and capital support, it is difficult to become a long-term performance growth point.
The maximum loss was $645 million
According to the announcement, Saturday is expected to lose 430 million to 645 million yuan in 2021, compared with a profit of 24.2978 million yuan in the same period last year.
The sharp loss was attributed saturday to a decline in the footwear business. In the announcement on Saturday, it was said that the repeated impact of the epidemic on offline commercial sales was large, which had a great impact on the digestion of the company's footwear inventory, coupled with the additional costs incurred by the company due to business transformation, resulting in the footwear business being in a state of operating loss throughout the year. On the other hand, in order to further promote the company's strategic transformation and accelerate the return of funds, the company increased the promotion of footwear inventory in the fourth quarter, and quickly digested the inventory with a long inventory in the form of promotion or wholesale, which also had a certain impact on profits.
According to the announcement information, Saturday preliminarily estimated that the impact of its operating losses and provisions for inventory decline in the fourth quarter on the company's annual profit due to the above operating activities was -200 million to -250 million yuan, and it is expected that the provision for bad debts and inventory decline provision for the whole year will be about 280 million yuan to 350 million yuan.
At the same time, Saturday also announced that the company intends to integrate the company's footwear sales business and assets through Saturday Shoes, except for footwear business trademarks, etc., and after the integration is completed, the company intends to transfer 100% of the equity of Saturday Shoes. At the same time, Saturday also said that it will continue to make in-depth adjustments to the footwear business, and intends to sell footwear sales-related businesses and assets (excluding brand trademarks) to a "light" asset operation mode focusing on brand licensing, brand management and supply chain services.
On Saturday 2019, it has sold 100% of the shares of Foshan Saturday Technology Research and Development Co., Ltd., a wholly-owned subsidiary of shoe production, and no longer retains production functions. Coupled with the sale of Saturday's footwear industry, Planet Six can be said to have completely divested the shoemaking business.
For the performance loss and the sale of equity, the Beijing Business Daily reporter interviewed Saturday, and did not receive a reply as of press time.
Cheng Weixiong, a textile and apparel management expert and general manager of Shanghai Liangqi Brand Management Co., Ltd., said that the sale of shares on Saturday meant that it had become a fact that Saturday withdrew from the stock market and gave way to Yuanwang Network.
In the view of Shen Meng, executive director of Chanson Capital, even if the listed company transfers all its business, it still has the most important asset of "shell", and the transfer of existing business on Saturday may be both to prepare for asset restructuring and to get rid of performance burdens.
According to the announcement information, The Saturday shoe industry, which was sold on Saturday, was in a state of loss, with a loss of 7.1094 million yuan and a net asset of -18.84 million yuan in 2020; a loss of 30.22 million yuan in the first three quarters of 2021, with a net asset of -49.06 million yuan.
Enter the era of light assets
After a large loss to completely divest the shoemaking business, what is left on Saturday?
According to the announcement, after the divestiture of the footwear business, Saturday will focus on the development of the Internet marketing business, focusing on the "light" asset operation mode of brand authorization, brand management, and supply chain services.
In fact, regarding the Internet business, Saturday has been laid out for many years. In 2017, Shenzhen Micro-Speed Warehouse Technology Supply Chain Management Co., Ltd. was established on Saturday to undertake existing logistics business; at the same time, Beijing Olivanxing Information Technology Co., Ltd. was established to promote the construction of a fashion IP incubation operation platform. In the same year, Saturday acquired two domestic fashion new media companies, Fashion Fengxun and Beijing Shixin, and in 2018, it acquired Yuanwang Network. The proportion of Revenue of the Internet business on Saturday also increased from less than 10% in 2017 to more than 70% in the first half of 2021, showing a year-on-year growth trend.
It is worth mentioning that among the many Internet business companies acquired on Saturday, Yuanwang Network has been placed high hopes and has become one of its important sources of revenue. It is understood that the dual platform operation of Remote Look Network in the field of live e-commerce has certain advantages. In 2021, Yaowang Network has successively signed a number of artist anchors such as Jia Nailiang, Lou Yixiao, Chen Yiru, Shen Tao, etc., and is currently mainly an artist MCN organization. From the sales data, in 2021, the remote network achieved rapid growth, its annual transaction order volume exceeded 100 million, and the sales GMV achieved more than 10 billion yuan, which was about 2.5 times that of the same period in 2020.
But not all Internet businesses in the layout can achieve profitability. In the announcement on Saturday, it was said that the revenue scale and net profit level of two fashion new media companies, Fashion Fengxun and Beijing Shixin, which are also engaged in the Internet business, have dropped sharply, and it is proposed to record a goodwill impairment of 180 million to 270 million yuan.
Cheng Weixiong analyzed that it has become the consensus of the industry that live streaming with goods to increase revenue and not increase profits has become an industry consensus, and it is not a wise move to completely abandon the heavy assets of the shoe business and move towards the light assets of the Internet business on Saturday. Operation is difficult or in a foreign country whiplash will consider doing "light" to avoid risks, authorized brand management looks very light, but only the brand at the same time, only in the overdraft of the past brand reputation of the surplus value, for the real brand of the enterprise is to kill the chicken and egg.
Shen Meng said that the asset model or brand management and supply chain management is also a business model, and there is no shortage of similar listed companies in A shares, but whether Saturday can really achieve profitability with this business or even become a performance support for a long time depends on Saturday's operating ability.
Beijing Business Daily reporter Zhang Junhua
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