Yowant Technology(SZ:002291)2020-04-22 16:00Business Operations - The company operates primarily in the fashion consumer market, with a significant portion of revenue derived from sales to domestic consumers[6]. - The company operates in two main business segments: multi-brand mid-to-high-end fashion footwear and information technology services focused on mobile internet marketing[34]. - The company has established a multi-brand fashion footwear business with brands such as "ST&SAT" and "D:FUSE," and is transitioning to a new retail platform[35]. - The mobile internet business was bolstered by acquisitions, including Yaowang Network in 2019, which focuses on digital marketing and social media services[36]. - The company has actively adjusted its channel structure, expanding online sales channels and opening "Saturday MODE" brand collection stores in shopping centers, enhancing consumer shopping experiences[50]. - The company is transitioning to a light-asset operation model by gradually reducing the self-operated store ratio and converting original department store self-operated stores to franchise stores[78]. - The company has established three brand companies to operate its shoe brands, aiming to improve cash flow and enhance profitability through optimized retail operations[78]. Financial Performance - The company's operating revenue for 2019 was ¥2,091,869,265.58, representing a 36.57% increase compared to ¥1,531,682,079.47 in 2018[24]. - The net profit attributable to shareholders for 2019 was ¥150,259,202.15, a significant increase of 1,581.96% from ¥8,933,553.55 in 2018[24]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥148,017,061.64, up 1,874.37% from ¥7,496,932.84 in 2018[24]. - The basic earnings per share for 2019 was ¥0.24, reflecting a 1,100.00% increase from ¥0.02 in 2018[25]. - The total assets at the end of 2019 were ¥5,291,412,166.30, with net assets attributable to shareholders amounting to ¥3,362,486,277.89, a 72.21% increase from the previous year[25]. - The total profit reached 172.19 million yuan, an increase of 648.39% compared to the previous year[65]. - The company reported a total of over 700 million exposures from various successful projects in collaboration with major e-commerce platforms like Tmall and JD.com in 2019[75]. Market Trends and Strategies - The MCN industry has experienced explosive growth since 2017, with the number of institutions increasing from hundreds to over ten thousand, reflecting an average year-on-year growth rate exceeding 100%[7]. - The company emphasizes the importance of continuously creating quality content and acquiring premium clients to maintain competitive advantages in a rapidly evolving market[7]. - The mobile short video industry is expected to drive direct consumer engagement through influencer marketing, enhancing brand connection with consumers[48]. - The live e-commerce sector is anticipated to experience significant growth supported by 5G technology, optimizing user experience and supply chain management[49]. - The company aims to construct a new retail platform driven by data and content, focusing on user-centric strategies to enhance consumer engagement[51]. - The company has identified a shift in consumer behavior towards brand and service consumption, indicating a need for high-quality products and shopping experiences[44]. Risks and Challenges - The company faces risks related to user attrition due to the immature development of the social e-commerce industry, which is still in its early stages and characterized by rapid expansion and regulatory lag[8]. - The internet marketing and MCN industries are subject to evolving policies and regulations, which could adversely affect the company's operations and development[11]. - The rapid growth of the MCN industry poses risks due to low entry barriers and increasing competition, potentially affecting the company's market position[123]. - The social e-commerce industry is still in its early stages, with risks of user attrition due to poor service and product quality[125]. - Regulatory changes in the internet marketing and MCN sectors could impact operational stability and compliance requirements[127]. Corporate Governance and Compliance - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management, ensuring accountability for any misrepresentation[4]. - The company has engaged Da Hua Accounting Firm for auditing services, ensuring compliance and transparency in financial reporting[23]. - The company has fulfilled its commitments regarding information disclosure and compliance with regulatory requirements during the reporting period[139]. - The independent directors have provided prior approval and independent opinions on related party transactions conducted during the reporting period[173]. Investment and Development - The company plans to adopt OEM as the primary production method starting in 2020, enhancing its production efficiency[38]. - The company plans to raise up to 2.97 billion yuan through a non-public offering of A-shares to fund various projects[116]. - The YOWANT Digital Marketing Cloud Platform project has a total investment of 1.06 billion yuan, with 905.94 million yuan allocated from the raised funds[117]. - The Social E-commerce Ecosystem Construction project aims to build 50 personalized short video scenes and 100 live broadcast rooms, with a total investment of 1.43 billion yuan[117]. - The Innovation Technology Research Institute project focuses on R&D upgrades and new technology innovations, with a planned investment of 391.42 million yuan[117]. User Engagement and Marketing - The "WeChat-based social marketing" business has seen significant growth, leveraging the WeChat ecosystem for advertising[67]. - The "Micro Alliance" platform has authorized over 20,000 public accounts, with a total user count exceeding 400 million[68]. - The company has collaborated with over 100 celebrities in 2019, enhancing its influence in the fashion sector across various platforms, with total fans exceeding 15 million for OnlyLady and over 6.36 million for Kimiss[74]. - The company is implementing a new customer loyalty program expected to increase user retention by 15% in 2019[140]. Financial Management - The company has committed to ensuring that any future cash dividends will only be considered when the distributable profit is positive, as per its dividend management policy[138]. - The company has not issued any cash dividends in the last three years, with cash dividends amounting to 0.00 CNY for 2019, 0.00 CNY for 2018, and 0.00 CNY for 2017[137]. - The company is focused on sustainable development and enhancing market risk response capabilities, which influenced its decision against profit distribution[132]. - The company’s cash flow management strategy is aimed at supporting its long-term strategic development goals[133].