Re Guarantee $120 Million On Saturday.

　　 Women's Shoes The brand announced on Saturday that it is a wholly owned subsidiary of Foshan, Agel Ecommerce Ltd and Foshan on Saturday. Saturday Footwear industry Co., Ltd. and Foshan science and Technology Development Co., Ltd. on Saturday provide 120 million yuan loan guarantee. In fact, this is not the first guarantee for a subsidiary company on Saturday. On Saturday, 2016, the company provided 30 million yuan loan guarantee for its subsidiary. Behind the continuous acquisition of loans is the frustration of declining performance on Saturday. Insiders said that the guarantee for 3 subsidiaries showed cash flow problems, and now there is no small financial pressure on Saturday.

Billion loan guarantee to solve the difficulties of subsidiaries

Announcements show that on Saturday, its wholly owned subsidiary, Foshan Saturday, Agel Ecommerce Ltd and Foshan Saturday. footwear industry Ltd. and Foshan Saturday science and technology research and Development Co., Ltd., respectively, apply for loans of 50 million yuan, 50 million yuan and 20 million yuan to the Shenzhen branch of China Co truction Bank Corp, totaling 120 million yuan.

It is worth noting that the current assets and liabilities ratio of the 3 subsidiaries is above 70%. For the 120 million yuan guarantee, the announcement said that the funds obtained from the guarantee will be used to supplement liquidity and repay debts. On Saturday, the responsible person said that the guarantee would be conducive to the future development of the company.

In fact, this is not the first guaranteed loan on Saturday. On Saturday, January 2016, it was announced that in order to shorten the time of receivables withdrawal, speed up capital turnover, improve the efficiency of capital use, promote business development and reduce the management cost of accounts receivable, Foshan Agel Ecommerce Ltd intends to apply for 33 million 20 thousand yuan accounts receivable factoring business on Saturday.

It is understood that, as China's "women's shoes first share", on Saturday, the main production and operation of leather shoes, leather products, and so on, including SAFIYA (Sophia), FONDBERYL (Febe Lil), 69 SIXTYNINE, GAVAKLAS, D:FUSE, SAT MEN, STONEFLY and other brands.

"Many enterprises have loans, but if they rely on loans for a long time to solve business cash problems, there will be problems. The long-term development of enterprises needs to rely on their own income normalization." Textile and clothing brand management expert, Cheng Weixiong, general manager of Shanghai Liang Qi Brand Management Co., Ltd.

Net profit slipped 17 times.

In fact, the constant pressure on loan relief to ease financial pressure stems from the decline in performance on Saturday. After listing in 2009, the funds raised in the capital market on Saturday continue to expand their scale and expand offline stores. However, with the gradual growth of revenue, the net profit began to descend rapidly in 2012.

Data show that in 2009, net profit reached 114 million yuan on Saturday, and net profit fell to 20 million 840 thousand yuan in 2016, which was only 1/5 of net profit in 2009. Since then, in 2017, net profit on Saturday has reached "freezing point", losing 352 million yuan, down 1789.31% compared to the same period. From the seven years of 2010-2016 years, the total net profit on Saturday was only 369 million yuan.

At the same time, under the environment of the weak consumer market under the traditional line, the situation of growing up on Saturday, which once relied on the crazy expansion shop operation mode to stimulate growth, is also increasingly difficult. According to statistics, in 2009-2013 years, the number of stores increased from 2363 to 2363 on Saturday, and the number of stores began to decline. In 2014-2017 years, 36 stores, 283, 233 and 222 stores were closed on Saturday.

Cheng Weixiong said: "stripping bad business can reduce the burden of Saturday's business losses, but it is difficult to get rid of the embarrassment of poor performance only by closing stores, and Saturday needs to know why the products are not marketable." In this regard, Beijing The newspaper reporter contacted the person in charge of Saturday's management but failed to reply as of press release.

Diversified spanformation needs clear positioning

The industry believes that on Saturday, brands like Daphne and BELLE are facing the same problem. Facing the current full channel market, fashion is not as good as foreign brands, and price competitiveness is not comparable to domestic emerging brands. These are all reasons for poor performance.

It is worth mentioning that, in the face of its poor performance, Saturday also tried to find a way to overcome difficulties through spanformation. In July 17th, a public announcement was made on Saturday that the company would jointly invest with Hui Jie share and set up a item company specializing in footwear product design, brand promotion and product sales. On Saturday, August 13th, it announced that it would spend 1 billion 788 million yuan to acquire 89.4% stake in the remote network, hoping to provide more diversified Internet marketing services to advertisers through the acquisition, and further improve its layout in the Internet marketing industry chain.

In this regard, Cheng Weixiong said that through the establishment of new companies, acquisitions and a series of actions to achieve spanformation, and can not be immediate, it is also necessary to formulate medium and long-term plans. For Saturday, we need to sort out the strengths and weaknesses of our brands, products, prices, supply chains, channels, etc., so that we can have a clear positioning to make the user experience more accurate.