Modern Express News (reporter Gu Weiwen / photo) with "ST &SAT" and "D: FUSE" and other brands of women's shoes the first "Saturday", because of the concept of "net red live broadcast", from the end of 2019 to the beginning of 2020 in more than a month soared 4 times, becoming a temporary "demon stock". However, after a brief performance explosion, Saturday fell back into the red. On January 19, the company expects a loss of 430 million yuan to 645 million yuan for the full year 2021. At the same time, after the divestiture of the women's shoe production business, the company also intends to further package the women's shoe sales business for sale, and in the future, women's shoes will transform the "selling hangtag" model of brand authorization.
△ Saturday "ST & SAT" counter
The pre-loss is 645 million, and the women's shoes and fashion media businesses are sluggish
On January 19, in front of the "ST&SAT" brand women's shoe counter in a shopping mall in Xinjiekou, Nanjing, a promotional sign with a "as low as 20% off" was prominently erected.
Brands such as "ST&SAT", "D:FUSE", "SAFIYA", "SATURDAY MODE", "FONDBERYL" and other brands belong to the women's shoe company "Saturday" founded by Zhang Zemin and Liang Huaiyu. The company was listed on the A-share small and medium-sized board in 2009 and was known as the A-share "women's shoe first stock".
However, in the highly competitive women's shoe market, from the second year of listing, Saturday performance began to decline continuously. In the eight years from 2010 to 2017, only the performance in 2014 increased by 5.67%, and in 2017, it lost 352 million yuan.
In this case, starting from 2016, Saturday made a major transformation, first spending 370 million yuan to acquire two companies, Fashion Fengxun and Beijing Shixin, winning the two fashion information platforms of "Onlylady Woman" and "Kimiss Girlfriend Network" and entering the field of Internet marketing; and then acquiring 89% of the equity of Hangzhou Yaowang Network for nearly 1.8 billion yuan and entering the live streaming business.
In 2019, the year of the Remote Look Network and the year, Saturday's performance soared by 32.6 times. However, in 2020, its net profit fell to 24.3 million yuan, down 84% year-on-year. According to the latest release of the 2021 performance forecast, the company expects a full-year loss of 430 million yuan to 645 million yuan, followed by another annual loss after 2017.
Judging from the company's explanation, the huge loss mainly comes from three aspects.
The first is the women's shoe business, which is in a state of operating loss throughout the year. In the fourth quarter of 2021, the company increased the promotion of footwear inventory, and quickly digested the inventory with a longer inventory in the form of promotion or wholesale, and the preliminary estimate of the impact of the resulting operating loss and the provision for inventory price decline on the company's annual profit was -200 million yuan to -250 million yuan, and it is expected that the provision for bad debts and the provision for inventory decline for the whole year will be about 280 million yuan to 350 million yuan.
The fashion media business also weighed on performance. The company said that in the past two years, upstream advertisers have reduced various marketing activities, reduced advertising and marketing budgets, greatly reduced the demand for fashion media advertising and marketing, showed a downward trend in business volume, and paid more attention to the conversion effect of advertising and marketing with limited budgets, the difficulty of traffic monetization continued to increase, and the cost of traffic continued to rise. After preliminary investigation and calculation, it is expected that the future profitability of the asset group portfolio of Fashion Fengxun and Beijing Shixin will decline, so the Company intends to make an impairment of the goodwill of 360 million yuan generated by the acquisition of the above asset group portfolio in 2017, and it is expected to record a goodwill impairment of 180 million yuan to 270 million yuan in the current period.
In addition, the company implemented the equity incentive plan in early 2021, and the amortization expenses incurred throughout the year were about 80.08 million yuan, which also had a greater impact on operating performance.
Packaging and selling women's shoes sales business, transforming "selling hangtags"
For the women's shoe business that continues to be sluggish, Saturday's attitude is a deep adjustment and a resolute divestiture. As early as the end of 2019, Saturday transferred Foshan Saturday Technology, a subsidiary mainly engaged in leather shoe manufacturing, to 13.85 million yuan and no longer retained production capacity. At the same time as the release of the performance forecast, Saturday also announced that it is planned to further divest the footwear sales business through the "two-step walk" of first transferring and then selling.
The company plans to first implement internal restructuring, increase the capital of folly-owned subsidiary Foshan Saturday Shoes and transfer footwear business, inventory, equity, etc., except for the trademarks related to footwear business; after the integration is completed, it is planned to transfer 100% of the equity of Saturday Footwear through public listing or commercial negotiations.
Saturday's footwear industry lost 7.11 million yuan and 30.22 million yuan in the first three quarters of 2020 and 2021, respectively; the total assets and total liabilities at the end of the period were 126 million yuan and 175 million yuan, respectively, and they were insolvent.
The company said that it plans to change the original "heavy" asset operation model with self-operated brands and self-operated channels as the main vertical integration, and gradually transform into a "light" asset operation model focusing on brand management and supply chain management.
After the completion of the above transfer, the company will carry out brand management of the company's own footwear brand, and supervise the business activities, commercial operations, brand product design and publicity and promotion related to the footwear brand, and charge brand use fees to the brand authorization objects.
They do not produce and sell themselves, but only charge a fee through brand authorization, which is called "selling hangtags". In the A-share market, Antarctic e-commerce has played this model to the fullest, and has also attracted many imitators. "China ZARA" La Chapelle also previously announced the transformation of the "asset-light" model of brand licensing.
However, in the case of not engaging in production and sales at all, product quality and after-sales are difficult to guarantee, and the "selling hangtag" model has also caused great controversy. The "king of hangtags" Antarctic e-commerce after continuous high growth, in 2020 there was a decline in performance. In the first three quarters of 2021, Antarctic e-commerce achieved a net profit of 403 million yuan, down 44.15% year-on-year. Its gross profit from the "brand service fee" was more than 1.1 billion yuan in 2019 and 2020, but only 220 million yuan in the first half of 2021, a decrease of nearly half compared with the same period last year.
In order to cope with the decline in the income of "selling hangtags", the way for Antarctic e-commerce is to buy more "hangtags". At the end of 2021, Antarctic E-commerce announced that it intends to acquire the trademark ownership held by TBH GLOBAL in Chinese mainland and Hong Kong for 330 million yuan of its own funds, and acquire 100% of the equity of Baijiahao (Shanghai) Fashion Co., Ltd., a wholly-owned subsidiary of TBH, for 180 million yuan. The price of 510 million yuan was exchanged for 78 trademarks, including Korean brands BASIC HOUSE, Mind Bridge and JUCY JUDY.
La Chapelle (*ST La Chapelle), which is deeply in the delisting crisis, proposed to carry out "brand licensing + operation services" in September 2020. According to the 2021 interim report, its licensing business only achieved revenue of about 65 million yuan, while the company lost 240 million yuan in the same period.
Gamble on live streaming with goods business
In the performance preview on Saturday, it said that it will continue to promote strategic transformation in the future and concentrate resources to promote the development of mobile Internet marketing business.
In the past two years, its subsidiary Yuanwang Network has developed rapidly in the field of live e-commerce, and last year it successively added more artist anchors such as Jia Nailiang, Lou Yixiao, Chen Yiru, and Shen Tao. On the sales side, in 2021, the annual transaction order volume of The Remote Vision Network exceeded 100 million, and the sales of GMV reached more than 10 billion yuan, which was about 2.5 times that of the same period in 2020.
According to the 2021 interim report, Yuanwang Network achieved revenue of 750 million yuan and net profit of 60.76 million yuan in the current period, an increase of about 51% and 58% respectively over the same period last year.
The company's live e-commerce business has also been placed high hopes by many institutions. As the e-commerce industry generally ushered in the peak season in the second half of the year, Orient Wealth Securities had previously expected that the revenue and net profit of 2021 would reach 3.513 billion yuan and 341 million yuan respectively on Saturday, and the profit growth rate would reach 13 times, of which the net profit of The Distant Vision Network was expected to reach 582 million yuan. Huaan Securities had expected the company's net profit to reach 552 million yuan and revenue to reach 4.328 billion yuan in 2021.
The company also said in a survey of reception institutions on November 5 last year, "The first three quarters were in the business expansion period, profit was not the main focus, Q4 will adjust the business strategy, gross profit margin, GMV as a whole are rising." ”
Nowadays, the company's forecast performance is far from the expectations of the institution, even if the live streaming GMV achieves a 2.5-fold growth, how much is finally implemented on the actual performance?
Still, the company seems confident about the future of the network. In the performance forecast, the company said that it will set up the Yuanwang Innovation Research Institute to strengthen research on blockchain, AI intelligence, meta-universe, digital virtual people and other fields, and incubate internal/external entrepreneurial teams to cultivate new momentum for the sustainable development of the company's business in the future. ”
On January 19, the stock price opened low and went high on Saturday, closing at 19.66 yuan, up 2.93%.