Securities Announcement: "Saturday" Changed To "Yuanwang Technology"

Taking off the shoes that have been worn for nearly 30 years, the first group of women's shoes changed its name and surname on Saturday.

This is due to the rapid development of the live e-commerce business, which has been cultivated for three years, and has become the main revenue source of the company.

After abandoning the start-up business, there are not many women's shoes listed companies in the capital market, and there is one less.

01、 Take off shoes

A month ago, the company announced that in order to highlight the main business of Internet advertising and reflect the core position and brand value of Yuanwang technology, it plans to change its name and abbreviation, which has finally settled down.

On the evening of November 30, the announcement disclosed that the change had been completed, the company name was changed from Saturday Co., Ltd. to Foshan Yuanwang Technology Co., Ltd., and the securities abbreviation was changed from "Saturday" to "Yuanwang technology".

In 2019, the company completed the acquisition of 89.40% equity of Yuanwang network, a MCN organization, for a consideration of 1.771 billion yuan, and established live e-commerce as another main business besides women's shoes.

This is a major business adjustment made by the company after the weakness of its main business. Although the company was listed in 2009, it became the first listed women's shoe enterprise in a share market, and its performance continued to decline soon after listing. In 2017, a huge loss of 352 million yuan was ushered in. Although the deficit was turned into a profit the next year, it was only 3.04 million yuan.

It was not until the merger of Yuanwang network that the company resumed its growth again. Since then, Yuanwang network has become the main contributor to performance.

Looking at the performance of the network, Zhang Zeming and his wife, the actual controller, were not disappointed, but they also moved the idea of stripping the shoe assets.

At the end of 2019, the company transferred 100% equity of Foshan Saturday technology research and Development Co., Ltd., a wholly-owned subsidiary, and transferred footwear products to a third-party OEM.

Since June this year, the company has listed and transferred 100% equity of Foshan Saturday Shoes Co., Ltd. twice through Guangdong equity trading center, and the intended transferee is Zhejiang LESA.

As the shoe business has changed from heavy to light, the company has completed the integration of dealer channel and self operated counter channel through the joint-stock company Foshan Zhongqi commerce and Hangzhou Hongzhen.

02、 touch net

Before the official access to the Internet, there was also a plan to create a fashion IP ecosystem strategy on Saturday.

In 2017, the company invested 353 million yuan to acquire 83% equity of Beijing fashion Fengxun and 80% equity of Beijing Shixin information. The main business of these two enterprises is to provide marketing services for advertisers through fashion information platforms such as ONLYLADY women's blog and kimiss girlfriends. It was the merger of the two companies that enabled the company to turn around in 2018, but it did not completely improve the decline of its business.

At the time of anxiety, the company found the gold mine of live e-commerce business. Heavy money smashed into Yuanwang network, the head of the MCN organization. The business of Yuanwang network is to provide sales and marketing services for many brands through short video advertising and live delivery.

So far, the company's income structure has changed. From 2020 to the first half of 2022, the company's social e-commerce service revenue was 1.012 billion yuan, 1.724 billion yuan and 1.223 billion yuan, accounting for 47.05%, 61.33% and 67.88% of the company's revenue, and the gross profit rate was 24.92%, 16.74% and 26.39% respectively. Over the same period, Yuanwang network achieved revenue of 1.434 billion yuan, 2.219 billion yuan and 1.609 billion yuan respectively, with net value of 267 million yuan, 65 million yuan and 181 million yuan, respectively.

In 2021, Yuanwang's live online e-commerce Gmv exceeded 10 billion yuan, about 5.5 billion yuan in the first half of this year. During the double 11 period, it reached 3.187 billion yuan, an increase of 38.4% over the same period last year.

The domestic women's shoe market is bleak. After focusing on light assets operation on Saturday, it has successively stripped off core assets such as shoe production capacity. At the beginning of this year, the company plans to keep only footwear trademark business, and will rely on brand authorization in the future.

The company's personnel adjustment also reflects the adjustment of business focus.

In April this year, the board of directors of the company was changed. Xie Rudong, chairman of Yuanwang network, was elected chairman of the listed company and was employed as general manager; Ma Chao, vice president of Yuanwang network, became a director of the company. Zhang Zemin, the founder of the company, retreated behind the scenes and retained control only.