Huge Investment Network Company -- The Way Out For Women'S Shoes On Saturday?

On the evening of March 5th, the Limited by Share Ltd (hereinafter referred to as Saturday) purchased a 88.57% stake in the Hangzhou looking Network Inc (hereinafter referred to as the "Wang Wang Network") at a paction price of about 1 billion 800 million yuan, and was granted "conditional" approval by the China Securities Regulatory Commission on Saturday.

It is worth mentioning that investing in women's shoes on Saturday is not the first time since the media. In the light of the information that has improved its business performance, is it the way to Saturday?

Frustrated in main business, weak in performance, and struggling hard.

As a few listed companies in women's shoes industry, Saturday's life is not easy.

On Saturday, it was once known as the "first leg of Chinese women's shoes" in the early stage of listing, but from 2009 to 2017, during the nine years, net profit rose only in 2009 and 2014, and the remaining seven years net profit fell.

Net profit fell by 1789.31% last year.

It is worth noting that on Saturday, in recent years, it is facing enormous inventory pressure. The Chinese Commercial Daily reporter reviewed its earnings report, and found that since 2013, the ratio of total inventory to total assets has been over 40% since 2013, even more than 50% in 2016, and the stock in 2017 has exceeded $1 billion 500 million.

On Saturday, the shop staff told the China Commercial Daily reporter that the shop style was constantly updated, and that the unsold shoes had to be discounted, but there was still a lot of inventory that could not be processed.

From the perspective of company development, inventory is a major reason for the drag on Saturday's performance.

In fact, during these years, Saturday also experienced a wave of opening shops and closing stores.

Earnings data show that from 2009 to 2013, the company's chain stores expanded continuously from 1403 to 2363.

Meanwhile, the brand chain stores on Saturday also extended to more two or three line cities along with the channel of department stores.

In 2014, the number of chain stores declined for the first time on Saturday, down 36, closed 283 stores in 2015, closed 233 stores in 2016, and closed 222 stores in 2017.

There are many reasons for closing stores, such as the passive closure of stores due to the closure of department stores, and the adjustment of inefficient stores to brand collection shops because of the adjustment of company strategy.

In the past four years, 774 chain stores have been closed on Saturday. As of the end of 2017, there were only 1589 stores on Saturday.

In recent years, on Saturday, it has been closing to the high-end women's shoes business. In 2012, it bought a 80% stake in heppu (Tianjin) Footwear Co., Ltd. for $264 million in 2012, and introduced the brand of Di Fu to develop the high-end market.

Despite the richness of the brand matrix, profit growth has not been achieved.

Since then, on Saturday, we want to rely on the electronic business platform to get new vitality. But the reporter inquired that Tmall flagship store on Saturday found that fewer than 500 yuan of goods were purchased, and the sales volume was only a single digit, while the highest shoe sales in the whole shop had only 214 sales.

Visible, the performance of the electronic business platform on Saturday is not optimistic.

Can Internet advertising profit be realized?

After a long slide, Saturday finally came to a profit.

On the last day of February this year, the 2018 performance bulletin was released on Saturday. The total operating income in 2018 was 1 billion 532 million yuan, an increase of 1.87% over the same period last year. The net profit attributable to shareholders of listed companies was 14 million 59 thousand and 300 yuan, an increase of 103.99% over the same period last year.

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. (hereinafter referred to as "fashion front") and Beijing Shixin Information Technology Co., Ltd. (hereinafter referred to as "Beijing Xin Xin") are expected to have a positive effect on the company's business performance.

The two companies have nothing to do with women's shoes business.

It is reported that on Saturday, 2017, the takeover of the controlling takeover of fashion fast forward and Beijing shihin was completed.

It is reported that the main business of fashion front is to operate its Onlylady women's ambition Internet advertising platform, while Beijing Shixin's main business is to operate Kimiss girlfriends Internet advertising platform.

According to the information disclosed on Saturday, we want to quickly enter the female fashion information media platform with the help of acquisitions, and get the traffic entrance.

It is worth mentioning that, recently, since the media platform Mi Meng has written off its WeChat public address, it is reported that the public number has brought her eight digit annual income in 2017.

It is not hard to see that the income of Internet platform advertising is considerable.

It is not hard to speculate on why we should spend $1 billion 771 million on Saturday's acquisition of the 88.57% stake in the network.

Public information shows that the look ahead network was established in November 2010, which includes hand travel, Internet marketing, Internet advertising and advertising agency business.

The remote network was a new three board listed company. In January of this year, the Internet application was suspended and the cards were delisted in March.

For Saturday, there is indeed a risk of acquiring the network at the price of nearly 1 billion 800 million yuan.

In the two failure of the network restructuring, there were rumors in the market that it was too low to give up the paction.

On Saturday, the price of nearly 1 billion 800 million yuan was given to facilitate the paction.

However, the Chinese Commercial Daily reporters queried historical data and found that in 2015, the valuation of the distant view network was only 12 million 500 thousand yuan. According to the paction amount, the value of the network in the three years increased 160 times.

However, the business revenue of remote watch network last year was 586 million yuan, down 54.86% compared with 895 million yuan in 2016.

It can be seen that there is still a risk between the purchase amount on Saturday and the change in the network performance.

As of press release, Saturday did not respond to questions related to takeover.

Author: Wang Yue