Securities code: 002291 securities abbreviation: Saturday Co.Ltd(002291) Announcement No.: 2022-008 Saturday Co.Ltd(002291)
Performance forecast for 2021
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
1、 Expected performance of the current period
1. Performance forecast period: January 1, 2021 to December 31, 2021
2. Expected performance: ■ loss \uf0f0 turning loss into profit \uf0f0 rising in the same direction \uf0f0 falling in the same direction
The current reporting period of the project is the same period of last year
Shares attributable to listed companies
Loss: RMB 430 million to RMB 645 million profit: RMB 24.2978 million net profit of Dongdong minus non recurring profit and loss
Loss: 410 million yuan to 615 million yuan, profit: net profit after 32.621 million yuan
Basic earnings per share loss: 0.47 yuan / share to 0.71 yuan / share earnings: 0.03 yuan / share
Note: “ten thousand yuan” in this announcement refers to ten thousand yuan.
2、 Communication with accounting firms
The financial data related to the performance forecast of the current period have not been audited by an accounting firm. The company has made pre communication on matters related to the performance forecast with the certified public accountants signed by the accounting firm providing annual audit services for the company, and there is no difference between the two sides in this performance forecast.
3、 Explanation of performance change reasons
1. In recent years, in order to cope with the changes in China’s retail market and improve the company’s business performance, the company began to focus on the strategy of “building a fashion IP ecosystem”, focus on building “media and social platform”, “fashion IP incubation operation platform” and “fashion IP collection platform”, and transform to a new retail platform. According to the market situation and the company’s strategic development needs, the company has acquired Beijing fashion Fengxun Information Technology Co., Ltd. (hereinafter referred to as “fashion Fengxun”) in recent years Beijing Shixin Information Technology Co., Ltd. (hereinafter referred to as “Beijing Shixin”) two fashion new media companies and Internet Marketing Company Hangzhou Yuanwang Network Technology Co., Ltd. (hereinafter referred to as “Yuanwang network”) to vigorously promote the development of Internet marketing business. In the process of transformation, the company has been optimizing the operation mode of multi brand fashion shoes business. In this process, the company continues to sort out and optimize the original brand business structure, accelerate the improvement of inventory structure, revitalize the company’s assets, improve the operation efficiency of assets and reduce the operation burden. 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 accelerate 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 in the fourth quarter, the impact on the company’s annual profit caused by the above operating activities and the provision for inventory falling price is – 20000 to – 250 million yuan. It is estimated that the provision for bad debts and inventory falling price in the whole year is about 280 to 350 million yuan. 2. In terms of fashion media business, affected by the covid-19 pneumonia epidemic and the macroeconomic downturn in the past two years, on the one hand, upstream advertisers have reduced various marketing activities and reduced advertising marketing budgets, resulting in a significant reduction in advertising marketing demand of fashion media and a downward trend in business volume. They also pay more attention to the transformation effect of advertising marketing with limited budget and pay attention to 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 fashion Fengxun and Beijing Shixin, which are controlled by the company, have decreased significantly.
Combined with the actual operation of the company and the impact of industrial market changes, the company conducted impairment test on goodwill and various assets in the 2021 annual report in accordance with the accounting standards for Business Enterprises No. 8 – asset impairment and relevant accounting policies. After preliminary investigation and calculation by the company’s financial department and evaluation institution, it is expected that the future profitability of the asset group portfolio of fashion Fengxun and Beijing Shixin will decline. Therefore, the company plans to withdraw the impairment of goodwill of 360803942.26 yuan generated by the acquisition of the above asset group portfolio in 2017. It is expected that the business reputation impairment of 180 million yuan to 270 million yuan will be withdrawn in the current period. The amount of the final provision for impairment will be determined after evaluation and audit by the evaluation institution and audit institution with securities and futures qualification hired by the company.
3. 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.
4. To sum up, it is expected that the company will realize a loss in the net profit attributable to the shareholders of the listed company in 2021, and the net profit attributable to the shareholders of the listed company is expected to be – 430 million yuan to – 645 million yuan.
In the future, the company will continue to promote strategic transformation and concentrate resources to promote the development of mobile internet marketing business. In the past two years, the network has developed rapidly in the field of live broadcast e-commerce. The company has made excellent achievements in the signing and incubation of artists / anchors, Tiktok cloud system in 2021 ended in the fourth quarter of 2021, helping the company build a moat on the standardization and replicating of live broadcast operation. The company became a direct broadcast, Kwai Yin dual platform operation and leading edge enterprise in the field of live broadcasting, and it has been adding more artists and directors to Jia Nailiang, Lou Yi Xiao, Shen Tao and other artists last year. The company has become an artist MCN organization with great advantages in the industry. On the sales side, Yuanwang network achieved rapid growth in 2021, with the annual turnover of orders exceeding 100 million and the sales of Gmv exceeding 10 billion yuan, about 2.5 times that of the same period in 2020. The company’s key plans for Internet marketing business in 2022 include: first, vigorously develop the ecology related to social e-commerce, strengthen the construction of supply chain, continuously extend upstream and downstream, improve the commodity gross profit / commission rate by going deep into the source and personalized customization, and set up an industrial fund to further stimulate the construction of supply chain ecology and raise barriers, Consolidate the advantages and enhance the core competitiveness of the company; Second, gradually increase the resource investment in clothing, jewelry and other directions in the field of non-standard commodities, build a supply chain SaaS service platform serving small and medium-sized anchors based on “looking at the cloud”, build a large live broadcasting base, and promote the expansion of the company’s business scale in the field of non-standard commodities through investment / contract cultivation, supply chain sharing and other means, Form new business growth points; Third, set up Yuanwang Innovation Research Institute to strengthen research in blockchain, AI intelligence, metauniverse, digital virtual human 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 and enhance the company’s medium and long-term competitiveness; It is expected that the operation scale of Yuanwang network, the holding subsidiary of the company, will achieve large growth in 2022.
On the other hand, the company will continue to make in-depth adjustments to the footwear business. It plans to sell the businesses and assets related to footwear sales (excluding brand trademarks) and turn to the “light” asset operation mode focusing on brand authorization, brand management and supply chain services, which is expected to bring good positive benefits to the company and further improve the company’s sustainable operation ability and profitability, Enhance the market value of the company.
4、 Other relevant instructions
This performance forecast is the preliminary calculation result of the company’s financial department. The specific financial data shall be subject to the 2021 annual report disclosed by the company. Please make careful decisions and pay attention to investment risks.
It is hereby announced.
Saturday Co.Ltd(002291) board of directors January 18, 2002
