On Saturday, By The Sideline Industry, The "Pre Growth King" Shop Has Repeatedly Called "Light Assets".

In 2019, the three quarterly report ended. The first leg of women's shoes, which had been on the margins of profit decline in previous years, became the biggest winner on Saturday. On October 27th, the annual net profit growth forecast was released on Saturday. It is estimated that the net profit for the whole year in 2019 will rise by 1579.05% to 2138.74% compared with the same period last year.

The performance of Saturday's share price in the capital market is associated with the surge in performance. Due to previous expectations for Saturday's three quarterly report, the company's share price has frequently changed since last week. In October 24th, the company issued a notice of abnormal fluctuation in stock trading, explaining the fluctuation of stock prices. However, on Saturday November 1st, share prices fell, but remained high. As of November 1st closing, Saturday fell 0.85%, to 7.04 yuan / share, the market value of 4 billion 638 million yuan.

On the Saturday of "closing shop tides", why is it "changed" to become a 2019 annual performance increase? The reason is that the acquisition of Hangzhou remote network technology Co., Ltd. (hereinafter referred to as "Wang Wang Network") is merged into the scope of consolidated statements.

What is worth noting is that the main business of the Internet is far from the fashion business of the shoe industry on Saturday. Excluding the surging growth of the network, the women's shoes business on Saturday was not good. In the first half of the year, it continued to slide, with high inventories and accounts receivable increased to 997 million from the beginning of 777 million 500 thousand.

　　 This year, the subsidiary company's performance has surged to 1 billion 727 million.

Since October 23rd, the three trading day on Saturday has been trading at 5.8 yuan to 7.72 yuan, and the highest in October 28th to 8.49 yuan.

According to public information, Saturday was the first shoe company to be listed on A shares. The founder Zhang Zemin went to sea in 80s of last century. He became the sole distributor of BELLE footwear in 1992. In 1993, he founded his own brand because of the contention of sales control. In 2009, the company listed on the SME Board of Shenzhen Stock Exchange. The official website of the company introduced a multi brand and whole industry chain vertical integration operation mode on Saturday, which includes demand research, production supply, marketing promotion and so on. The company owns brand ST&STA, D:FUSE, MOOFFY and so on.

The company said in its 2019 semi annual report that the company's main business is the production and sale of shoes and clothing. However, the expected surge in profits for the whole year was revealed in the three quarterly report on 2019, which is due to the merger of the company's "look and feel" acquisition network in the 2019.

Saturday is not the first time that Internet Co has been improving its performance. Before 2018, it experienced a long decline in performance, and on Saturday, 2018, it turned into a profit. On Saturday, the company will continue to focus on the strategic development goals of "creating a fashionable IP ecosystem". Beijing fashion vogue Information Technology Co., Ltd. and Beijing Shixin Information Technology Co., Ltd. (hereinafter referred to as "Beijing Xin Xin") are expected to meet the expected performance and play a positive role in the company's business performance.

The two companies have little to do with women's shoes. In 2017, the controlling takeover of vogue and Beijing shihin was completed on Saturday. Public information shows that the main business of fashion front is to operate its Onlylady women's ambition Internet advertising platform. The main business of Beijing Shixin is to operate Kimiss girlfriends Internet advertising platform. According to the previous announcement on Saturday, the company wanted to quickly access the female fashion information media platform with the help of acquisitions, and get the traffic entrance.

Less than half a year after the completion of the acquisition, a non public issuance plan was launched on Saturday. According to the plan, no more than 79784379 shares will be issued on Saturday, which will account for no more than 20% of the total share capital of the company before issuing, and the maximum fund-raising will be 835 million yuan. The fund-raising funds are mainly used for the construction and supply chain construction of media incubators and fashion IP stores.

In its two feedback, the SFC questioned the reasonableness of the investment projects, whether the profits came mainly from the venue rent and whether it was substantially reduced to financial investment and lost the synergy with the main business itself. After the two reply to the SFC's feedback, it was terminated on the grounds of changes in environment and timing on Saturday.

In the 2019 semi annual report, on Saturday, it said it would focus on the strategy of building a fashionable IP ecosystem, focusing on the construction of "media and social platform", "fashion IP incubator platform" and "fashion IP gathering platform" to transform the new retail platform, and the most important of them is the remote network that began with the listing body in March this year. Public information shows that the network was founded in November 2010 and is a comprehensive digital marketing service provider. The company's main business includes Internet advertising and agency business. In December 14, 2015, the company launched the new three boards, and in March 2017, the company stopped listing.

Prior to this, the remote watch network and the Huawen media, Huashu holdings two listed companies came out "gossip", but all have no end. In 2018, olive branches were dropped on Saturday to acquire a 88.57% stake in the network. In December 2018, the transaction was finally approved by the SFC's merger and reorganization Commission.

In the first three quarters of this year, revenue was 1 billion 370 million on Saturday, up 20.22% from the same period last year, and its net profit to mother was 105 million, an increase of 432.56% over the same period last year.

The network has been incorporated into the consolidated statement of Saturday since March 2019 as a controlling subsidiary. During the reporting period (3-6 months), the network achieved a profit of 252 million yuan and a net profit of 45 million 27 thousand and 900 yuan. At that time, the two sides also signed a performance commitment compensation agreement. According to the agreement, four compensatory obligor in the distance network promise that the net profit from the net 2018~2020 will not be less than 160 million yuan, 210 million yuan, and 260 million yuan.

According to the 2018 annual audit report issued by Lixin Zhonglian accounting firm (special general partnership), the net profit attributable to the shareholders of the parent company after deducting the non recurring gains and losses is 168 million yuan, exceeding the commitment number of 8 million 369 thousand and 500 yuan, and the completion rate is 105.23%.

In November 1st, people in the industry told the Beijing News reporters that through the acquisition and look ahead network, Saturday will better integrate all kinds of quality and medium and long tail traffic resources, and provide more diversified Internet marketing services for advertisers, which will further improve the layout of the Internet marketing industry chain, and perhaps help the company to gain new traffic dividends.

At present, the network has exceeded the expected completion of the first year of gambling, and Saturday also ushered in a substantial increase in profits. However, as a result of mergers and acquisitions technology, Saturday's goodwill surged 3.78 times compared with the same period last year, and the goodwill balance increased from 361 million to 1 billion 727 million.

　 The main business of women's shoes was confined to nearly 1000 stores in 5 years on Saturday.

Saturday's main business is fashion women's shoes, which is experiencing the baptism of the market.

Choice data show that from 2009 to 2018, the net profit rose only in 2009, 2014 and 2018 in 2009, and net profit in the remaining seven years was down, and net profit in 2017 dropped by 1789.31%. In this regard, the company said it was due to the end of the reporting period goodwill, inventory and accounts receivable and other impairment calculation, resulting in the loss of large assets impairment.

From 2014 to 2017, the net profit of returning to the parent company on Saturday was 35 million 951 thousand and 200 yuan, 22 million 534 thousand and 600 yuan, 20 million 839 thousand and 600 yuan and -3.5 billion yuan respectively, showing a decline and loss year by year. In 2018, the net profit was 8 million 933 thousand and 600 yuan, and it was also attributed to the Internet advertising business.

In addition, from 2014 to 2018, the net assets yield on Saturday was 2.2%, 1.3%, 1.14%, -21.18% and 0.6% respectively, compared with other companies in the same industry, such as starting stock, Tian Chong fashion, Wanlima, Xingye technology, Hasen stock, AOKANG international and red dragonfly.

According to the 2019 semi annual report, in the first half of 2019, clothing and footwear were about 570 million yuan in the first half of 2019, down 12.4% compared with the same period last year, which is in sharp contrast to the Internet advertising business which increased by 283.63% and earned 320 million yuan.

On September 2019, in response to investors' questions about how to achieve breakthroughs and growth on Saturday's women's shoes business, the secretaries said on Saturday that they would adjust their store structure and reduce the proportion of self owned shops and gradually move towards light assets.

Corresponding to performance is Saturday's expansion in the past 10 years. From 2009 to 2013, the company's chain stores expanded continuously from 1403 to 2363. The number of chain stores fell for the first time in 2014, when the number of stores in 2014 was 2327, down 36 year-on-year. Since then, 283 stores have been closed in 2015, 233 in 2016, 2017 in 2017, and 211 in 2018.

As of the end of 6 2019, there were 1352 stores in the same period on Saturday, with an extension of 9.32%, including 974 self operated stores, 15.89% down and 378 distribution outlets. In addition, the average store efficiency in the first half of 2019 decreased by 6.35% to 355 thousand and 600 yuan, mainly due to the weaker consumption of leather shoes and the more intense competition in the industry.

　　 Inventory is high. Inventory turnover days in 2018 are more than 700 days.

For Saturday, the biggest problem is high inventory. In 2017, the loss of inventory was 197 million yuan.

A large shopping mall in Beijing on Saturday told reporters that the store style was constantly updated, and that the unsold shoes had to be dealt with at a discount, but many inventories were still hard to deal with. Past data show that from 2013, the share of total assets on Saturday has been above 40%. From 2015 to 2017, the stock of the company remained high, and the inventory value at the end of three years was 1 billion 475 million yuan, 1 billion 512 million yuan, and 1 billion 379 million yuan respectively. As of the end of 2018, the book value of the stock on Saturday was 1 billion 409 million yuan. Its inventory was from 2015 to 2018, and the percentage of inventory accounts for total assets on Saturday was 48.71%, 50.61%, 43.32% and 45.73% respectively. As of the end of the 3 quarter, its inventory was 1 billion 324 million.

Compared with the same industry, Saturday's inventory turnover capacity is obviously weak. Wind data showed that from 2014 to 2018, inventory turnover days were 533.81 days, 664.57 days, 803.03 days, 820.42 days and 715.85 days on Saturday. Compared with other companies in the same industry, they are at a high level.

On this occasion, He Jianfeng, Secretary of the board of directors, said on Saturday: "because we had accumulated some stock before we opened stores in department stores. These stocks need to be adjusted and digested at a certain time. At present, more than 80% are inventories within one year. In addition, we are direct sales oriented sales mode, so the inventory is still in our company here. In the future, we will gradually reduce the inventory level through the proportion of affiliate and the reduction of direct sales ratio.

In terms of new business, the acquisition of stylish fast forward and Beijing Shixin's Internet advertising business has become a profitable system. In 2017, the proportion of Internet advertising revenue in total business revenue was 9.2%, gross margin 60.4%, slightly higher than 57.59% of footwear business; in 2018, this proportion increased to 11.02%, gross margin 57.10%, higher than 53.97% of footwear business; in the first half of 2019, this proportion has increased to 35.87%.

Does that mean taking off the hat of shoe companies on Saturday?

In September 2019, according to the question raised by investors on the interactive platform, "whether the gradual improvement of performance on Saturday depends entirely on the network, and whether there is a need for women's shoes business on Saturday", the company's secretaries replied that the company's growth this year owes much to the overall contribution of the network, but the main business of the company has not changed.