It abandoned its shoes at a loss and planned to package and sell its shoe sales business on Saturday.
On the evening of January 18, Saturday announced that the company, as the parent company of Saturday Shoes, plans to place assets related to the shoe sales business into its wholly-owned subsidiary Foshan Saturday Shoes Co., Ltd. (hereinafter referred to as Saturday Shoes) through a capital increase. , mainly including footwear business inventories and operating subsidiary equity, except for trademarks related to the footwear business.
After the integration is completed, Saturday plans to transfer 100% of the shares of Saturday Shoes, and the transferee will be determined through public listing or commercial negotiations. The company said on Saturday that it has shifted to a “light” asset operation mode focusing on brand licensing, brand management and supply chain services.
In the future, Saturday’s footwear-related business will only include business activities related to footwear brands, and charge brand usage fees to brand authorized objects.
The Saturday footwear business, which only retains the shoe trademark, will be further marginalized. The company will completely transform from a traditional shoe company to a social e-commerce service company. The “number one stock in women’s shoes” will also be transformed into a pure “internet celebrity concept.”
Industry insiders said that in recent years, the Saturday footwear business has suffered serious losses, and this divestment is also to get rid of performance burdens and travel lightly. However, without a strong industrial foundation and capital support, Internet marketing business or live broadcast-based delivery business will be difficult to become a long-term performance growth point.
The maximum loss is 645 million yuan
According to the announcement, it is expected to lose 430 million to 645 million yuan in 2021 on Saturday, with a profit of 24.2978 million yuan in the same period last year.
Regarding the huge loss, Saturday attributed it to the decline in the shoe business. In an announcement on Saturday, it said that the epidemic has repeatedly had a greater impact on offline commercial sales, which has had a great impact on the digestion of the company’s footwear inventory. Coupled with the additional expenses incurred by the company due to business transformation, the footwear business has experienced a year-on-year decline. operating at a loss. On the other hand, in order to further promote the company’s strategic transformation and speed up the return of funds, the company increased the promotion of footwear inventory in the fourth quarter, and quickly digested the inventory with a long shelf life in the form of promotion or wholesale, which also had a negative impact on profits. cause certain impact.
According to the announcement, Saturday’s preliminary estimate was that the impact on the company’s annual profit due to operating losses and provision for inventory depreciation in the fourth quarter due to the above-mentioned operating activities was -200 million to -250 million yuan. It is expected that provision for bad debts and inventory provision for the whole year would be between -200 million and -250 million yuan. The price reduction preparation is about 280 million yuan to 350 million yuan.
At the same time, Saturday also announced that the company plans to integrate the company’s footwear sales business and assets through Saturday Shoes, except for the shoe business trademarks. After the integration is completed, the company plans to transfer 100% of the equity of Saturday Shoes. At the same time, Saturday also said that it will continue to make in-depth adjustments to the footwear business, and plans to sell footwear sales-related businesses and assets (excluding brand trademarks) and turn it into a “light” company focusing on brand licensing, brand management, and supply chain services. How assets are operated.
In 2019, Saturday has sold 100% of its shares in Foshan Saturday Technology R&D Co., Ltd., a wholly-owned subsidiary of footwear production, and will no longer retain its production functions. Coupled with the sale of Saturday Shoes, Planet Six can be said to have completely divested itself of its shoemaking business.
Regarding this performance loss and equity sale, the reporter conducted an interview on Saturday, but no reply was received as of press time.
The sale of shares on Saturday means that it has become a reality to withdraw from the stock market on Saturday and give way to Yuanwang Network.
According to Shen Meng, executive director of Chanson Capital, even if a listed company transfers all its businesses, it will still have the most important asset, the “shell”. The transfer of existing businesses on Saturday may be for the purpose of asset restructuring. Preparation may also be to get rid of performance baggage.
According to the announcement, Saturday Shoes, which was selling off on Saturday, is in a state of loss. Its loss in 2020 was 7.1094 million yuan and its net assets were -18.84 million yuan; in the first three quarters of 2021, it suffered a loss of 30.22 million yuan and its net assets were -49.06 million yuan.
Entering the asset-light era
After divesting its shoe business entirely at huge losses, what’s left of Saturday?
According to the announcement, after the divestment of the footwear business, Saturday will focus on the development of the Internet marketing business and the “light” asset operation method of brand licensing, brand management, and supply chain services.
In fact, regarding the Internet business, Saturday has been laid out for many years. In 2017, Shenzhen Weisucang Technology Supply Chain Management Co., Ltd. was established on Saturday to undertake the existing logistics business; at the same time, Beijing Olifanxing Information Technology Co., Ltd. was established to promote the construction of a fashion IP incubation and operation platform. In the same year, Saturday acquired two domestic fashion new media companies, Fashion Fengxun and Beijing Shixin; in 2018, it acquired Yaowang Network. The proportion of Saturday Internet business revenue has also increased from less than 10% in 2017 to over 70% in the first half of 2021, showing a year-on-year growth trend.
It is worth mentioning that among the many Internet business companies acquired on Saturday, Yaowang Network has high hopes and has become one of its important revenue sources. It is understood that Yaowang Network has certain advantages in the dual-platform operation of Kuaishou and Douyin in the field of live broadcast e-commerce. In 2021, Yaowang Network has successively signed many artist anchors such as Jia Nailiang, Lou Yixiao, Chen Yiru, Shen Tao, etc. The current anchors�It is an artist MCN organization. Judging from sales data, Yaowang Network achieved rapid growth in 2021. Its annual order volume exceeded 100 million, and its sales GMV exceeded 10 billion yuan, which was approximately 2.5 times that of the same period in 2020.
But not all Internet businesses deployed can achieve profitability. In an announcement on Saturday, it was stated 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 dropped significantly, and it is planned to provide for goodwill impairment of 180 million to 270 million yuan.
It has become an industry consensus that live broadcasting to increase revenue but not profit, it is not a wise move to completely abandon the heavy assets of the shoemaking business and move towards the light assets of the Internet business on Saturday. Only when operations are difficult or beyond reach in a foreign country will they consider doing “light” to avoid risks. Authorizing brand management seems very light, but when only the brand is left, it is just overdrawing the residual value of the past brand reputation. For truly building a brand For enterprises, this is killing the goose that lays the golden egg.
Shen Meng said that asset model or brand management and supply chain management are also business models. There are also similar listed companies in the A-share market. However, whether Saturday can truly achieve profitability with this business or even become a long-term performance support depends on Saturday’s performance. Management capacity.
</p
