Loss abandoning shoes, Saturday Co.Ltd(002291) has entered the era of asset light. On the evening of January 18, Saturday Co.Ltd(002291) announced that it expected a loss of 430-645 million yuan in 2021. At the same time, the company will transfer 100% equity of its subsidiary Foshan Saturday Co.Ltd(002291) Shoes Co., Ltd. (hereinafter referred to as ” Saturday Co.Ltd(002291) shoes”) to focus on the development of Internet marketing business and enter the asset light development mode. Affected by this, Saturday Co.Ltd(002291) rose 5% today.
Industry insiders said that in recent years, Saturday Co.Ltd(002291) shoe business has suffered serious losses. This stripping is also to get rid of the performance burden and go to battle light. However, Internet marketing business or live broadcast delivery business based on live broadcast can hardly become a long-term performance growth point without strong industrial foundation and capital support.
the maximum loss is 645 million yuan
According to the announcement, Saturday Co.Ltd(002291) 2021 is expected to have a loss of 430-645 million yuan and a profit of 24.2978 million yuan in the same period of last year.
For the large loss, Saturday Co.Ltd(002291) attributed it to the decline of shoe business. Saturday Co.Ltd(002291) said in the announcement that the repeated epidemic had a great impact on offline commercial sales, which had a great impact on the digestion of the company’s footwear inventory. In addition, the company’s additional expenses arising from business transformation led to the operating loss of the footwear business 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 long stock age in the form of promotion or wholesale, which also had a certain impact on profits.
According to the announcement information, Saturday Co.Ltd(002291) preliminarily estimates that the 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 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 to 350 million yuan.
At the same time, Saturday Co.Ltd(002291) also announced that the company plans to integrate the company’s footwear sales business and assets through Saturday Co.Ltd(002291) footwear industry, except for the trademark of footwear business. After the integration is completed, the company plans to transfer 100% equity of Saturday Co.Ltd(002291) footwear industry. At the same time, Saturday Co.Ltd(002291) also said that it will continue to make in-depth adjustments to the shoe business, and plans to sell the business and assets related to shoe sales (excluding brand trademarks) to a “light” asset operation mode focusing on brand authorization, brand management and supply chain services.
In 2019, Saturday Co.Ltd(002291) has sold 100% equity of Foshan Saturday Co.Ltd(002291) technology R & D Co., Ltd., a wholly-owned subsidiary of shoe production, and will no longer retain the production function. Coupled with the sale of Saturday Co.Ltd(002291) shoes, planet VI has completely stripped off the shoemaking business.
For the performance loss and equity sale, the reporter of Beijing business daily interviewed Saturday Co.Ltd(002291) . As of press time, no reply has been received.
Cheng Weixiong, an expert in textile and garment management and general manager of Shanghai Liangqi Brand Management Co., Ltd., said that the sale of equity by Saturday Co.Ltd(002291) means that it has become a fact that Saturday Co.Ltd(002291) withdrew from the stock market and gave way to Yuanwang network.
According to Shen Meng, executive director of Xiangsong capital, even if the listed company transfers all its business, it still has the most important asset of “shell”. This transfer of existing business may be to prepare for asset restructuring or to get rid of the burden of performance.
According to the announcement, the Saturday Co.Ltd(002291) shoe industry sold by Saturday Co.Ltd(002291) is in a state of loss, with a loss of 7.1094 million yuan and a net asset of – 18.84 million yuan in 2020; In the first three quarters of 2021, the loss was 30.22 million yuan and the net assets were – 49.06 million yuan.
entering the era of light assets
What remains of Saturday Co.Ltd(002291) after a substantial loss and the complete stripping of the shoemaking business?
According to the announcement, after stripping the footwear business, Saturday Co.Ltd(002291) will focus on the development of Internet marketing business and the “light” asset operation mode of brand authorization, brand management and supply chain services.
In fact, Saturday Co.Ltd(002291) has been laid out for many years. In 2017, Saturday Co.Ltd(002291) established Shenzhen weisucang Technology Supply Chain Management Co., Ltd. to undertake the existing logistics business; At the same time, Beijing Oliver Star Information Technology Co., Ltd. was established to promote the construction of fashion IP incubation operation platform. In the same year, Saturday Co.Ltd(002291) successively acquired two Chinese fashion new media companies, fashion Fengxun and Beijing Shixin; Acquired Yuanwang network in 2018. The proportion of Saturday Co.Ltd(002291) Internet business revenue also increased year by year from less than 10% in 2017 to more than 70% in the first half of 2021.
It is worth mentioning that among the many Internet business companies acquired by Saturday Co.Ltd(002291) , Yuanwang network has been highly expected and has also become one of its important revenue sources. Tiktok has a certain advantage in the fast broadcast of Kwai Chung electric field and the operation of dual platform platform. In 2021, Yuanwang network successively signed a number of artist anchors such as Jia Nailiang, Lou Yixiao, Chen Yiru and Shen Tao. At present, it is mainly an artist MCN organization. From the sales data, in 2021, Yuanwang network achieved a rapid growth, its annual transaction order volume exceeded 100 million, and the sales of Gmv exceeded 10 billion yuan, about 2.5 times that of the same period in 2020.
But not all Internet businesses can be profitable. Saturday Co.Ltd(002291) said in the announcement that the revenue scale and net profit level of two fashion new media companies, fashion Fengxun and Beijing Shixin, which are also Internet businesses, have decreased significantly, and it is planned to withdraw 180 million-270 million yuan of goodwill impairment.
According to Cheng Weixiong’s analysis, it has become an industry consensus to increase the income without increasing the profit of live broadcasting with goods, Saturday Co.Ltd(002291) it is not wise to completely abandon the heavy assets of shoe-making business and move towards the light assets of Internet business. Only when the operation is difficult or it is too late in a foreign country can we consider doing “light” to avoid risks. Authorized brand management seems very light, but only the brand is left. At the same time, it is only overdrawing the residual value of the past brand reputation. For enterprises that really make brands, this is killing chickens and eggs.
Shen Meng said that asset model or brand management and supply chain management are also a business model, and there are many similar listed companies in a shares. However, whether Saturday Co.Ltd(002291) can really make profits from this business or even become performance support for a long time depends on Saturday Co.Ltd(002291) ‘s operating ability.
