Transformation From A Traditional Shoe Company To Internet Marketing Service Enterprise On Saturday

With the first shares of women's shoes disclosed on Saturday, 2021, the shoe company ushered in a loss since listing - more than 700 million yuan.

It started in Foshan, Guangdong Province, and started selling women's shoes. During this period, there were more than 2300 stores in China, It was once as famous as Daphne and Belle shoes.

Over the years, women's shoes eventually became a burden. Last year, the stock price of shoes fell by more than 300 million yuan.

In 2017, the company gradually embarked on the road of peeling off the shoe business. First, it sold the shoe production capacity. In January this year, it prepared to package and sell the footwear sales business assets, and only retained the footwear trademark business, Completely transform from a traditional shoe enterprise to an Internet marketing service enterprise.

　　 A huge loss of 700 million

Gradually bid farewell to shoes business and turn to mobile internet marketing services, which has not yet made Saturday (002291. SZ) a better life.

On the evening of April 8, the company disclosed its performance express in 2021, realizing a revenue of 2.814 billion yuan, a year-on-year increase of 30.81%, and a net return to the parent company of -704 million yuan, a sharp drop of 2996.15% year-on-year.

The big increase in revenue is mainly due to the large-scale growth of social e-commerce service revenue, while the sharp drop of net return to parent company is due to Traditional shoes business operating losses, bad debts and inventory falling price and other factors.

According to the company's disclosure, last year, the epidemic situation and the overall weak consumer demand, as well as the additional costs brought about by business transformation, led to the company's shoes business in operating losses, lower prices, increased discount rate, resulting in the annual provision for bad debts and inventory falling price reserves of about 315 million yuan.

Shoes business is still in deep water. The company's other main business is fashion media business. Due to the compression of marketing budget by upstream advertisers, the business volume has decreased.

According to the company's expectation, the asset portfolio of fashion Fengxun and Beijing Shixin will decline in the future, and the impairment of goodwill accrued in this period is about 207 million yuan.

In addition, the company's equity incentive plan since last year has generated amortization costs of about 69.23 million yuan, which also has a great impact on operating performance.

Five years ago, the company decided to move from a traditional women's shoes company to the Internet marketing service field. Subsequently, the revenue scale grew rapidly, but the level of * * was up and down.

According to the data, from 2017 to 2020, the operating revenues were 1.504 billion yuan, 1.512 billion yuan, 2.070 billion yuan and 2.151 billion yuan, respectively. In the same period, the net assets attributable to the parent company were -352 million yuan, 4.477 million yuan, 151 million yuan and 24 million yuan respectively.

　　 Women's shoes are becoming chicken ribs

People familiar with the domestic women's shoe market should be familiar with Daphne, Belle, Tata and other brands. In the early stage, these women's shoes brands attracted a large number of female consumers by their innovative design.

With the fierce market competition and the impact of online channels, the industry adjustment has not stopped, so that women's shoe brands continue to close stores. Daphne (00210. HK) has closed more than 6500 stores in 8 years, which has continuously magnified this anxiety.

As an old women's shoes enterprise, Saturday can't bear the fierce battle of women's shoes market, and has long intended to give up the development of shoes business. In particular, after stepping into the field of Internet marketing services in 2017, the footwear business has gone up and down since then.

From 2017 to 2020, footwear revenue will reach 1.360 billion yuan, 1.357 billion yuan, 1.214 billion yuan and 648 million yuan respectively, and then drop to 234 million yuan in the first half of 2021.

The scale of the company's brand chain stores decreased from 1589 in 2016 to 988 in 2020. Among them, the number of self operated stores decreased from 1188 to 180, and to 98 by the end of June 2021.

The company has four large and medium-sized high-end women's shoes brands, including Saturday, Sofia, fibriel and tiffs, covering the price band of women's shoes from 350 yuan to 2500 yuan.

"Saturday" is the top priority, but the operation has been struggling in recent years, with the revenue scale falling from 650 million yuan in 2017 to 407 million yuan in 2020.

Seeing that women's money is not easy to earn, the company simply sold its important shoes manufacturing enterprises. In December 2019, the company transferred 100% of its wholly-owned subsidiary Foshan Saturday technology to Foshan Shiying shoe materials.

In January this year, the company plans to package and transfer its footwear sales business and only retain its footwear trademark business, The future will rely on brand management, brand authorization and supply chain services to maintain the footwear business.

　　 On the Internet

Like many traditional enterprises, the transformation on Saturday mainly depends on buying and buying.

In 2017, the company purchased the control rights of fashion Fengxun and Beijing Shixin; In 2018, issuing shares and paying cash will attract the head MCN institutions with a valuation of 2 billion yuan into the arms of the network, Outline the business map of fashion IP ecosystem.

Fashion Fengxun and Beijing Shixin mainly operate onlyady women's blog and kimiss boudoir network. The company obtains the flow entrance through acquisition of women's fashion information media platform; Rely on Yuanwang network and get involved in the field of digital marketing and live e-commerce.

However, the epidemic situation and economic weakness have led to the demand for fashion media advertising, and the income of fashion Fengxun and Beijing Shixin are on a downward trend.

In January this year, the company disclosed in its reply to the concern letter of Shenzhen stock exchange that from 2019 to 2021, the revenue of fashion Fengxun was 114 million yuan, 53 million yuan and 43 million yuan, respectively, with a year-on-year decrease of 9.25%, 53.56% and 19.17% (the data of 2021 are not audited); Over the same period, Beijing Shixin's income was 31 million yuan, 9.9239 million yuan and 3.6654 million yuan, respectively, down 32.45%, 68.36% and 63.06% year on year (the data of 2021 are not audited).

Under the banner of Yuanwang network, there are many Internet Celebrities and entertainers. In 2020 alone, the MCN has signed 10 stars, including Lou Yixiao, Shen Tao and Jia Nailiang, and more than 100 "celebrities" such as Li xuanzhuo.

In recent years, the live e-commerce and other new businesses dominated by Yuanwang network have become an important source of revenue on Saturdays. In 2020, the revenue of Yuanwang network will reach 1.433 billion yuan, with a year-on-year increase of 65.47%; In 2021, the revenue will reach 2.1 billion yuan to 2.3 billion yuan, with a year-on-year increase of 47% - 61%. (not audited)

New business is becoming more and more important in the company's revenue. The proportion of Internet advertising business (mainly Internet marketing services) revenue increased from 9.2% in 2017 to 69.1% in 2020 and 76.42% in the first half of 2021. Over the same period, the proportion of footwear revenue decreased from 90.48% in 2017 to 30.11% in 2020, and 22.89% in the first half of 2021.

Through the shortcut of acquiring new business, it can be quickly reflected in the performance, resulting in the impairment of goodwill, and bringing uncertainty to the future operation.

For example, the acquisition of fashion Fengxun and Beijing Shixin formed a total of 360 million yuan of goodwill; The acquisition of Yuanwang network resulted in a goodwill of 1.302 billion yuan. As of June 2021, the goodwill scale of the company is 1.670 billion yuan, accounting for 30.11% of the total assets of the company.

In 2020, we hope that the network will complete its performance commitment. Last year, the company's performance changed, with a net value of RMB ￥ 70 million to RMB 120 million, with a year-on-year decrease of 55% - 74% (without audit).