Since Saturday, December 3, 2019, there have been several consecutive trading boards, and on the night of December 24, the actual controllers and several senior executives collectively put out high-level cash reduction and arbitrage plans. Singapore Liyuan and Shanghai Maijia, the controlling shareholders of the company and the concerted actors on Saturday, plan to reduce their holdings by no more than 5% in the next six months. Mr. and Mrs. Zhang Zemin and Liang Huaiyu, the actual controllers, will reduce their holdings by 5% and cash out more than 500 million yuan based on the current share price.
At the same time, Li Gang, he Jianfeng and Li Li, directors and senior managers of the company, also disclosed that they planned to reduce their holdings of no more than 257800 shares, 45700 shares and 76200 shares respectively in the next six months due to personal capital demand. As for the reasons such as the reduction of shares held by the controlling shareholders and concerted actors, the statement said in Saturdays announcement that it is to solve the debt pressure of shareholders and the risk of stock pledge financing, and part of the reduction income is used to provide financial support to the company.
Not only that, as early as December 20, 2019, a notice on the transfer of the equity of wholly-owned subsidiaries was issued on Saturday, which said that in order to promote the strategic transformation and upgrading of the company and accelerate the construction of a new retail platform of user centered, data + content driven, consumer scenario integration, the company plans to hold 100% shares in Foshan Saturday technology research and Development Co., Ltd., a wholly-owned subsidiary of the company The right is transferred to Foshan Shiying shoes material Co., Ltd. with the transfer price of 13.85 million yuan.
Earlier, Saturday also said in the announcement that in recent years, due to the low proportion of self-produced products, the proportion of OEM (OEM production mode) production has been maintained. After the divestiture of R & D company, Saturday will reduce production costs and personnel expenses by centralized purchase of spare parts and raw materials, centralized manufacturing, or centralized purchase of finished products. At the time of releasing or reducing the heavy assets of production research and development and supply chain management, we should focus on the brand operation management and supply chain management to further promote the strategic development.
It cant be said that its wrong to divest shoe manufacturers of their strategy of turning to light economy. Many of the worlds top brands are also processed and produced on behalf of others. Selling producers is also a good thing for Saturday, because the most critical value for brands and businesses is brand, not production. Of course, the quality control and brand management and operation are the most critical. It depends on Saturdays control strength whether the entrusted production can be done well in the future. Zhang Peiying, honorary consultant of luxury China Alliance, told China times.
In a telephone interview with a reporter from the China Times on Saturday, the relevant personnel of the investor relations department said that at present, apart from the announcement, there is no more information to be disclosed to the public, and there is no plan to be disclosed to the public for details such as the specific development plan in the future.
Performance loss to profit after restructuring
For traditional shoe companies, the decline in performance is often accompanied by the emergence of store closing tide. Data shows that since 2014, the number of chain stores has declined for the first time on Saturday, with 2327 stores in the same year, a year-on-year decrease of 36. Since then, from 2015 to 2018, 283 stores, 233 stores, 222 stores and 211 stores have been closed successively. As of the end of June 2019, there were 1352 stores on Saturday, including 974 self operated stores, down 15.89% year on year, and 378 distribution stores.
It is worth mentioning that in the development process of traditional footwear industry, Saturday is not an example. Daphne has also started to close stores in large quantities since 2016. In four years, Daphne has closed more than 4000 stores, with a huge loss of 390 million Hong Kong dollars in the first half of 2019. There are only 2075 stores nationwide. Due to blind expansion, there were 376 and 857 stores closed in 2017 and 2018 respectively, 188 in the first half of 2019, and 1421 in two and a half years.
Since 2017, the company has entered the stage of gradual transformation on Saturday. First, it acquired 83% of the equity of fashion Fengxun and 80% of the equity of Beijing Shixin. In March 2019, it incorporated Yuanwang network into the scope of the companys consolidated statements through major asset restructuring, and acquired 89.4% of the equity of Yuanwang network with RMB 1.788 billion.
Business performance improved significantly on Saturday after the restructuring of the network. According to the financial report, in the first three quarters of 2019, the company achieved an operating revenue of 1.369 billion yuan, a year-on-year increase of 20.22%; and a net profit of 105 million yuan, a year-on-year increase of 432.56%. Saturday also said in the first half of the financial statements that the increase was mainly due to the development of the Internet business.
On Saturday, it is estimated that the change range of net profit in 2019 will be 1579.05% to 2138.74%; and the expected change range of net profit will be 150 million yuan to 200 million yuan. It is understood that in the coming Saturday, we will continue to focus on the strategic development direction of building a fashionable IP ecosystem, focus on the development of mobile internet marketing business and social e-commerce service business, and further enrich the way of traffic realization.
How to digest high inventory
In fact, the social e-commerce business targeted on Saturday is the core model of the hottest online Red economy. With the depletion of the traditional e-commerce flow dividend, mobile e-commerce will become the leading e-commerce retail in the future. Netred economic concept stocks have been in an active state. Not only on Saturday, but also since December 2019, netred concept stocks, such as Tianchuang fashion, yujiahui, gravitation media, Yuanlong Yatu, Guangbo, etc., have also increased by more than 8% in Zhejiang digital culture, worth buying and televoice.
It is understood that the Internet red economy is actually a way of expression of the new economy. If it does well on Saturday, it can have a good development in brand, but if it relies too much on capital and uses the way of capital to make a brand, once it is not well controlled, it may fall into a deep pool. Zhang Peiying said.
Behind the facade of prosperity, high inventories have been one of the biggest headaches for shoe companies, including Saturday, the bird of honor and Daphne. According to the data, the turnover days of inventories from 2015 to 2018 on Saturday were 664.57 days, 803.03 days, 820.42 days and 715.85 days, respectively, with a decrease of 534.55 days in the third quarter of 2019. Zhang Peiying thought: not only footwear brands, but also fast-moving and fashion industries will have inventory problems. Besides discount sales, there is no other good way to get rid of inventory. However, its a good way to hook up with netred now. When making a product, netred must ensure the inventory, so that it can be linked with the brand side, quickly digest the enterprises inventory, and reduce the number of middlemen. So this is the most powerful and effective way to inventory. So Saturday is a good step. Source: China Times Author: Zheng Tingting, Huang Xingli editor in charge: Zhang Mei Yu nf2100
Behind the facade of prosperity, high inventories have been one of the biggest headaches for shoe companies, including Saturday, the bird of honor and Daphne. According to the data, the turnover days of inventories from 2015 to 2018 on Saturday were 664.57 days, 803.03 days, 820.42 days and 715.85 days, respectively, with a decrease of 534.55 days in the third quarter of 2019.
Zhang Peiying thought: not only footwear brands, but also fast-moving and fashion industries will have inventory problems. Besides discount sales, there is no other good way to get rid of inventory. However, its a good way to hook up with netred now. When making a product, netred must ensure the inventory, so that it can be linked with the brand side, quickly digest the enterprises inventory, and reduce the number of middlemen. So this is the most powerful and effective way to inventory. So Saturday is a good step.