Women'S Shoes Are Not Selling Well. On Saturday, "Turn Around" Stars Carry Goods, And Net Profit Increased By 1871.45% In 2019.

On Saturday, Limited by Share Ltd (hereinafter referred to as Saturday) released the 2019 performance bulletin on the "first leg of local women's shoes" on February 28th. In 2019, the company achieved operating income of 2 billion 274 million yuan, an increase of 48.48% over the same period, and realized a net profit of 176 million yuan attributable to shareholders of listed companies, an increase of 1871.45% over the same period last year.

For the change of performance, the Red Dragonfly explained that during the reporting period, the company continued to focus on the strategic development goals of "creating a fashionable IP ecosystem", and actively promoted transformation and upgrading. The company purchased the assets through the issue of shares and purchased Hangzhou remote network technology Co., Ltd. and incorporated it into the merger scope, resulting in a larger total assets, capital stock and business data of the company. Change. In 2019, Hangzhou distant view network technology Co., Ltd. was in good operation, and the company's business performance increased significantly last year.

Public information shows that the red dragonfly was founded in 2002 and traded on the Shenzhen stock exchange in September 2009. The company's main business is production and operation of leather shoes, leather products, bags, clothing and so on. Its brands include Saturday (ST&SAT), Sophia (Safiya), Febe Lil (FONDBERYL), Difors (D:FUSE) and so on. As of December 31, 2018, the company had 1378 brand chain stores, including 1059 self owned stores and 319 distribution outlets, with an overall reduction of 211 compared with 2017, mainly closing down some inefficient department stores.

Since June 2013, the number of offline stores (especially direct stores) has decreased significantly, from 1920 to 974 in June 2019. The reason for the company's proposal is to clean up inefficient stores and improve the overall efficiency of the channel. Single store sales reflect the obvious effect of this strategy, and single store sales increased from 499 thousand and 100 yuan in June 2011 to 708 thousand and 900 yuan in December 2018. But compared with the channel size reduction, efficiency improvement is difficult to compensate for the reduction of the number of stores, so clothing and footwear revenue has gradually declined since 2013. Compared with online sales, the "double eleven effect" has obviously weakened since 2015, and online sales decreased significantly in the first 11 months of 2019, down by 0%~20%. Therefore, the logic of channel size reduction or the reduction of demand after reducing demand relieved profit pressure.

In March 2019, the red dragonfly was granted the acquisition and acquisition of the network. The network was mainly engaged in the Internet marketing business. Its performance in recent years was good. Net profit in 2016~2018 was 0.35, 0.59 and 168 million yuan respectively. The growth rate was 40%, 68.6% and 184.7% respectively. Looking from the perspective of the development process of the network, the company is good at grasping the draught, the main Internet advertising distribution business in 2013~2014, and the 2015~2016 hand in tourism promotion and operation business in 2015~2016. In the year of 2017~2019, it began to layout the promotion of the eco circle and the business of social networking. In addition, the company's fashion media OnlyLady women's ambition and Kimiss girlfriends cover 13 million or 5 million fans respectively. In 2018, the company joined the electronic business platform, holding more than 20 flash activities, serving more than 150 brands, helping the brand customers get more than 1 billion exposure of the whole network, and in 2018, the related businesses achieved 173 million yuan in revenue and 42 million 165 thousand and 300 yuan in net profit.

From the point of view of revenue structure, the distance network business is composed of traditional advertising, game distribution promotion, WeChat public number and WeChat wide point pass. Among them, game distribution and promotion are reduced by the main customers' Baidu and 360 demand, resulting in the contraction of the business scale. The WeChat business has achieved rapid growth in 2016~2018, and the WeChat business income in 2018 was 453 million yuan, accounting for 69%. Profit side, the net profit from the net profit has been increasing rapidly since 2017, and increased by 184.75% in 2018.

Looking ahead network since the 4 quarter of 2018, link star, daring and other artists resources, connect the brand electric business, carry out social networking service business on the short video and live broadcast platform such as jitter, fast hands, etc., and look forward to the network to invest 5 million to establish cradle fund, in order to solve the after sale dispute of the process clock of the artists' electricity supplier, promise the user to complete the problem verification and compensation within 72 hours after appealing. Processing, after-sale, return visits and other links. The main reason for the shortage of short video platform providers is that most users trust the anchor to buy products, but the after-sale problem is handled by the brand side. However, many small and medium brands are not perfect after sale, resulting in poor user experience. Compared with the after-sales management system of the e-commerce platform, the short video platform often neglects the management of after sales service. Therefore, the remote watch network as a MCN institution set up a fund is equivalent to the advance payment of the after sale loan, and then communicate with the brand side. This measure helps to improve the user's shopping experience and enhance the trust of the anchor.

Lv Ming, an analyst at Tianfeng securities, said that the content creativity is the core competitiveness of the MCN looking at the Internet on Saturday. Content creativity is divided into two aspects: content quality and replicability. Content quality is the source of traffic, and replicability is the basis of company expansion. At present, the pain of MCN lies in its replication ability. MCN with continuous self hatching ability will have more room for survival. In addition, for the MCN with weak voice in the industry chain, the cost control capability will become more and more important. It is expected that the MCN will have more advantages in the future. The reason for deep ploughing is the difference between different vertical classes. For MCN, it is very difficult to develop in all directions. On the other hand, the development of beauty and clothing is very broad. In addition, MCN will have stronger profitability if the future profit space is compressed.

According to the financial report, the three quarter of September 30, 2019 ended September 30, 2019, which achieved 1 billion 369 million revenue on Saturday, an increase of 20.22% over the same period last year. At the same time, the reduction of capital and efficiency has been effective, and operating profit has obviously recovered, mainly due to the decline in the cost of sales.

In terms of cash flow, the cash flow of business activities remained stable and the overall cash flow situation was relatively healthy. From the point of view of revenue structure, Saturday's brand accounted for relatively high, close to 50%, Internet advertising grew faster, while profit margins maintained high level, driving the net profit growth to the parent company. In the three quarter of 2019, the net profit of the parent company increased by 432.56% over the same period of 2018.

The industry believes that looking forward to the long-term network of the market, has a more obvious preemptive advantage in the field of KOL incubation and operation. As of 2019, the company signed more than 50 KOL incubators, and the number of fans in the whole network exceeded 150 million. With the rapid development of MCN, the vertical racetrack such as fashion and beauty shows great growth. The company hopes to enjoy the fast growth dividend of the industry with the help of MCN's first hand advantage.

It is also known that on Saturday, it sold a 100% stake in Foshan Saturday technology research and Development Co., Ltd. (hereinafter referred to as "R & D company") for 13 million 850 thousand yuan, and said it would no longer retain production capacity after Saturday. According to industry analysis, in the current decline of the leather shoes market, it is urgent for sunrise industries to help them achieve their performance on Saturday. It has also proved that Saturday's acquisition of the network has brought great help to its performance. After the resale of heavy capital, Saturday gradually stripped women's shoes business and focused on the development of Internet business.