On February 15, Saturday Co.Ltd(002291) (002291) disclosed that the company recently received a warning letter issued by Guangdong securities regulatory bureau.
After investigation, the Guangdong Securities Regulatory Commission found that Saturday Co.Ltd(002291) had a problem of violation: in the 2018 financial statements audit process, Saturday Co.Ltd(002291) found that there was a difference between the physical inventory of the stores and the financial system data before the audit institutions launched the inventory monitoring. In order to eliminate the difference in inventory data, Saturday Co.Ltd(002291) “sent 29980 pairs of shoes from the Chengdu warehouse to the relevant stores in Xi’an in March 2019. After the inventory supervision, the relevant goods will be transported back to Chengdu warehouse.
company: inventory in transit variance
failed to inform the accountant
Guangdong securities regulatory bureau pointed out that Saturday Co.Ltd(002291) did not truthfully inform the annual report audit institution of the above data differences and goods transfer. In addition, Saturday Co.Ltd(002291) did not establish a regular backup mechanism for business system data, and failed to provide basic data and original vouchers related to inventory transfer in 2019. The above-mentioned acts violate the provisions of Article 50 of the measures for the administration of information disclosure of listed companies (Order No. 40 of the CSRC). Yu Hongtao, as the chairman and general manager of Saturday Co.Ltd(002291) , and Li Gang, as the chief financial officer, are mainly responsible for the above violations of Saturday Co.Ltd(002291) . Therefore, Guangdong securities regulatory bureau decided to take regulatory measures to issue warning letters to Saturday Co.Ltd(002291) , Yu Hongtao and Li Gang.
In addition, Guangdong securities regulatory bureau also requires Saturday Co.Ltd(002291) to truthfully and publicly explain the specific reasons for the difference between the inventory data of the financial system and relevant stores during the audit of the 2018 annual report, the specific reasons for the business system not retaining the inventory data of 2019 and previous years, and whether there are accounting errors. At the same time Saturday Co.Ltd(002291) shall conduct internal accountability for relevant responsible persons, submit rectification report and internal accountability report to Guangdong securities regulatory bureau within 30 days after receiving this decision, and copy to Shenzhen Stock Exchange.
With regard to the specific reasons for the difference between the financial system and the inventory data of relevant stores during the audit of the 2018 annual report, Saturday Co.Ltd(002291) replied in the announcement that the financial accounting system used by the company is Kingdee financial software, which distinguishes the general classification and detailed classification accounting of different business entities. The inventory item accounts for all the goods of the company, including shoes, bags and accessories, and records the purchase and sales data on a monthly basis. The company’s daily inventory management is to use the professional software Langsha purchase, sales and inventory business management system (hereinafter referred to as the business system) in the footwear retail industry to record the daily receipt, delivery and inventory details of each store warehouse. The inventory data in the business system has two dimensions: one is physical inventory, which refers to the actual quantity of goods stored in each store warehouse, and the other is financial inventory, which includes the quantity of goods in transit. Financial inventory is equal to physical inventory plus in transit quantity.
Saturday Co.Ltd(002291) said that when the financial department of the headquarters checked the inventory data of stores in the business system on March 25, 2019, it found that the physical inventory of 10 stores in Xi’an was 29980 pairs of shoes less than the financial inventory data on March 25, with a value of 4.04 million yuan. It was further verified that the documents transferred from Chengdu warehouse to the above stores in the early stage did not send the goods in time, resulting in the impact in transit. At that time, the accounting firm conducted a comprehensive annual audit and inventory of the company, and the finance department believed that this was a document that should be issued but not issued in 2019, which only needed to be issued before the inventory. Therefore, at that time, the accountant was not informed of the difference in transit, but urged Chengdu warehouse to immediately contact the transportation company to transport these goods to Xi’an and distribute them to various stores, So that the financial inventory of each store is consistent with the physical inventory.
“However, due to the short time, the transferred products cannot correspond to the information in the business system documents one by one. In addition to the subsequent business adjustment, the transferred products will be transferred back to the Chengdu warehouse again after the inventory.” The company said.
not reserved for 2019 and
previous inventory data
In addition to the above inventory data differences, Guangdong securities regulatory bureau also noted that the Saturday Co.Ltd(002291) business system did not retain the inventory data of 2019 and previous years. Saturday Co.Ltd(002291) explained that the company’s Langsha business system for inventory management was developed and enabled in the early stage. It is a relatively independent DRP system rather than the financial integrated ERP system widely used at present. Due to the characteristics of the company’s fashion industry and business model, it has the characteristics of many terminal outlets, fast product updates, many styles and sizes, large amount of data and frequent daily deployment, resulting in a very large amount of data. If it is not cleaned in time, it will seriously affect the operation efficiency.
“Moreover, in general, the data comparison and analysis is only for the data of the same period of the previous year, not for the goods of the next year (especially the goods details) Comparative analysis, coupled with the great changes in business model and business architecture in recent years, it is not necessary to retain the detailed historical data of business system. Therefore, in order to improve the operation speed of the system, the business system only retains the data of nearly one year. For example, the current system retains the annual business data of 2020 and beyond. ” Saturday Co.Ltd(002291) pointed out in the announcement that the above transfer and return business is the internal deployment of the system and will not cause accounting errors.
The reporter of securities times · e company noted that Saturday Co.Ltd(002291) had also experienced early accounting errors. In March 2021, Saturday Co.Ltd(002291) received the supervision letter from Shenzhen Stock Exchange, pointing out that the company had five violations, including related party transactions, failure to timely perform the review procedures and information disclosure obligations, early accounting errors, failure to timely disclose changes in relevant accounting estimates, incomplete disclosure of long-term equity investment information, and failure to strictly implement the accounting standards for new financial instruments.
According to the supervision letter, Saturday Co.Ltd(002291) sold goods of 42.4712 million yuan and 45.8045 million yuan to the company’s related party Foshan Zhongqi in 2018 and 2019 respectively, and transferred accounts receivable of 26.9387 million yuan to Foshan Zhongqi in 2019. For the above connected transactions, Saturday Co.Ltd(002291) failed to timely perform the approval procedures and disclosure obligations of connected transactions as required, and did not hold a meeting of the board of directors for supplementary deliberation and public disclosure until March 22, 2021. Due to the fact that the financial statements of Foshan Qi Co., Ltd. are not disclosed on March 22, 2018, the impact on the consolidated financial statements of Foshan Qi Co., Ltd. in 2018 is not considered in the consolidated financial statements of Foshan Qi Co., Ltd. on March 22, 2018 The financial statements of 2019 have been retroactively adjusted.
pre loss of more than 400 million yuan in 2021
The Saturday Co.Ltd(002291) listed in 2009 was once the “first share of women’s shoes” with A-share popularity.
Since 2017, the company has frequently promoted the transformation to MCN field through external mergers and acquisitions. Benefiting from the market’s pursuit of “online Red economy”, the company’s share price initially increased by more than four times from the end of 2019 to 2020, and was once dubbed “MCN first share” by the market.
However, behind a series of dazzling transformations, Saturday Co.Ltd(002291) has not actually improved its operating performance, but has declined year by year. In 2020, the company’s net profit was 24.2978 million yuan, a year-on-year decrease of 83.85%; According to the latest performance forecast of 2021 disclosed by the company, it is estimated that the net profit attributable to the parent company in 2021 will be a loss of 430 million yuan to 645 million yuan, and the net profit after deduction will be a loss of 410 million yuan to 615 million yuan.
As for the reasons for the large advance loss in 2021, Saturday Co.Ltd(002291) said that during the transformation process, the company has been optimizing the operation mode of multi brand fashion shoes business. In this process, it has constantly sorted out and optimized the original brand business structure, accelerated the improvement of inventory structure, revitalized the company’s assets, improved the operation efficiency of assets and reduced the burden of operation. However, since the outbreak of covid-19, the repeated outbreaks in China have had a long-term and sustained impact on local economies. The overall consumer demand is weak, especially on offline commercial sales, which has a great impact on the digestion of the company’s footwear inventory. In addition, the additional costs incurred by the company due to business transformation, As a result, the footwear business was in a state of operating loss throughout the year.
On the other hand, in order to further promote the company’s strategic transformation, optimize the company’s inventory structure and speed up the return of funds, the company increased the promotion of footwear inventory in the fourth quarter of 2021, and quickly digested the inventory with long stock age in the form of promotion or wholesale, It is preliminarily estimated that the amount of impact on the company’s annual profit caused by the above operating activities and the provision for inventory falling price in the fourth quarter is – 200 million yuan to – 250 million yuan. It is estimated that the provision for bad debts and inventory falling price in the whole year is about 280 million yuan to 350 million yuan.
In terms of fashion media business, in order to cope with the changes in China’s retail market, the company has been committed to the strategy of “building a fashion IP ecosystem” in recent years, focusing on building “media and social platform”, “fashion IP incubation operation platform” and “fashion IP collection platform”, and transforming to a new retail platform. In recent years, the company has vigorously promoted the development of Internet marketing business by acquiring two fashion new media companies, fashion Fengxun and Beijing Shixin, as well as Internet marketing companies.
However, affected by the covid-19 epidemic and the macroeconomic downturn, on the one hand, upstream advertisers reduced various marketing activities and reduced advertising marketing budgets, which significantly reduced the advertising marketing demand of fashion media, and the business volume showed a downward trend. They also paid more attention to the transformation effect of advertising marketing with limited budget and the ratio of advertising input and output, Under the trend of gradually decreasing new traffic on the media side, the difficulty of traffic realization continues to increase, customers have more strict requirements for marketing effect, and the traffic cost continues to rise. In addition, due to the epidemic, travel in China and abroad is blocked, which also has a great impact on the fashion media to undertake brand promotion activities. As a result of the above factors, the operating income scale and net profit level of two fashion new media companies, fashion Fengxun and Beijing Shixin, which are controlled by Saturday Co.Ltd(002291) have decreased significantly.
According to relevant accounting policies and regulations, Saturday Co.Ltd(002291) conducted impairment test on goodwill and various assets in the 2021 annual report in combination with the actual operation situation and the impact of industrial market changes. It is expected that the future profitability of the asset group portfolios of fashion Fengxun and Beijing Shixin will decline. Therefore, the company plans to make an impairment provision for the goodwill of 361 million yuan generated by the acquisition of the above asset group portfolio in 2017. It is estimated that the impairment of goodwill in the current period will be 180 million yuan to 270 million yuan. In addition, the company began to implement the 2021 equity incentive plan at the beginning of the year, resulting in an amortization expense of about RMB 80.08 million, which also has a great impact on the company’s operating performance.
