In the secondary market, many people will ask: what does Yuanwang Technology do?
Yuanwang Technology was once known as the "first stock of women's shoes", and was previously referred to as "Saturday". In recent years, the company has transformed the Internet marketing industry through the acquisition of assets and the change of name.
Yuanwang Technology, which has collected many popular concepts such as "Internet celebrity economy", "digital economy", "data elements" and "short drama games", was found to have committed financial fraud after the transformation, and the acquisition target fell into a loss.
Now, in the secondary market, the share price of Yuanwang Technology has gradually **, and since January 2020, it has accumulated more than 70%. Internal and external troubles, looking at the winter of 2024 from afar, it is a little cold.
1. From women's shoes, live broadcasts to short dramas, Yuanwang Technology has become a "person chasing the wind".
Back in 2018, Saturday disclosed that it would be 178.8 billion yuan to acquire 89% of the equity of Yuanwang Network to improve the Internet marketing layout.
Prior to this, Saturday was a company specializing in women's shoes, and its acquisition target, Yuanwang Network, was established in 2010 and operated a game guild business in the early stage, and later turned to Internet advertising distribution and marketing, mobile game promotion and joint transportation.
In 2019, Saturday, which completed the acquisition, saw its net profit soar 15 times because of its subsidiary, Hangzhou Yuanwang Network Technology***.
At the end of the year, the company announced that with 13.58 million yuan, Foshan Saturday Science and Technology R&D, a wholly-owned subsidiary whose main business is shoe production, will no longer retain production functions. And Saturday also changed its name to Yuanwang Technology, transforming from a women's shoe company to live streaming.
In the second half of 2022, Saturday listed 100% of the shares of Saturday Shoes, a wholly-owned subsidiary**, twice, but finally terminated the transaction. In December 2022, the abbreviation of the company was directly changed from Saturday to Yuanwang Technology, and it became a "live e-commerce" concept stock.
Through transformation, Yuanwang Technology has tasted the sweetness. From 2018 to 2022, the revenue of the company's mobile Internet business increased from 16.9 billion yuan soared all the way to 357.4 billion yuan. Behind this is inseparable from Yuanwang Technology's pursuit of Internet hotspots.
Since then, more than 100 celebrities and Internet celebrity anchors have signed and cooperated with Yuanwang Network, with a total of more than 200 million fans.
Not only that, Xie Rudong, chairman of Yuanwang Technology, has also stepped into the star circle with half a foot, and more than 50 Chinese and foreign stars such as Wang Zulan, Jia Nailiang, Cecilia Cheung, Huang Shengyi, and Jessica are all partners of Xie Rudong. In 2022, the GMV of Yuanwang's live broadcast e-commerce sales will exceed 15 billion yuan, and the celebrity live broadcast will be indispensable.
However, although the tuyere has brought traffic dividends to Yuanwang Technology, there are huge loopholes at the same time as the rapid development of the enterprise.
Second, Messi is in charge, and it is still difficult to escape the problem of profitability
In June last year, Yuanwang Technology invited Messi to appear in the ** live broadcast room, the anchor was wearing a black T-shirt, and the word "Yuanwang" on the right chest was eye-catching. Although the host has repeatedly emphasized that Messi's live broadcast room has nothing to do with any commercial activities, the patch advertisements on the head of the football king in the live broadcast are changing in turns, and the words "Yuanwang Technology" are also prominently listed in many brand names.
When Messi appeared, the audience in the live broadcast room had reached nearly 1.7 million, and by the time Messi left, the audience had exceeded 2.38 million.
For Yuanwang, the core purpose of inviting the football king to sit in the town is to expand its influence and drive its own profits. In fact, in the past few years, Yuanwang has been a "money-burning" player.
As early as 2020, Fang Jian, president of Yuanwang Technology, said on many public occasions, "If you don't bring a huge amount of money, don't enter the market", "You can lose money in the early stage, and make a natural profit to a certain height". Fang Jian emphasized that whether it is in the incubation of anchors or in business development, Yuanwang Technology once adhered to the strategy of exchanging funds for scale and scale for benefits.
According to ** report, Yuanwang Technology will give the same training plan to its anchors, invest 3 million yuan per celebrity and match a team of 4 people, eliminate it layer by layer according to the data, and finally bet heavily on the anchor with the best data performance.
Feedback to the financial data, the 2023 semi-annual report shows that the revenue contribution of the social e-commerce service sector where the short ** and live streaming goods are located has increased from 67 last year88% to 3749%；Revenue fell by 30% year-on-year61% to 84.9 billion yuan;The gross profit margin is directly from 2639% to 306%。
In the first three quarters of last year, Yuanwang Technology showed a performance waterloo and fell into the dilemma of increasing revenue but not increasing profits, with a net profit of 317 year-on-year39%, with a loss of 03.8 billion yuan, 1700 million yuan, 24.2 billion yuan. From 2021 to the first three quarters of 2023, the cumulative net profit loss of Yuanwang Technology in the past three years is as high as 141.5 billion yuan.
The sharp rise in costs has become the main reason for the loss of Yuanwang Technology. Due to the expansion of business scale and the increase in investment costs, in the third quarter, the operating cost of Yuanwang Technology increased by 41% year-on-year40% to 331.8 billion yuan, management expenses **5041%。
The trouble of looking at it from afar doesn't stop there.
3. "Approved by the China Securities Regulatory Bureau": overcounting inventory and inflating income
In December last year, the Guangdong Securities Regulatory Bureau disclosed the "Decision on Issuing Warning Letters to Foshan Yuanwang Technology Co., Ltd. Yu Hongtao, Xie Rudong, Li Gang, He Jianfeng, and Ma Chao No. 2023 No. 164", which disclosed many violations of Yuanwang Technology.
It was mentioned that the announcement showed that due to the inflated revenue, profits and accounts receivable collection of Yuanwang Technology, the failure to timely disclose external financial assistance, and the failure to timely disclose the guarantee of the company and its subsidiaries, the Guangdong Securities Regulatory Bureau decided to take administrative supervision measures to issue a warning letter to Yuanwang Technology and 5 relevant responsible persons.
According to the announcement, Yuanwang Technology's 2019 annual report overcounted operating income and operating costs by 2240 at the same time050,000 yuan;The 2020 annual report overstated both operating income and operating costs by 1870630,000 yuan. In addition, Yuanwang Technology inflated revenue and profit by 588 at the same time in 2019850,000 yuan (excluding tax);In 2020, the fictitious accounts receivable collection was 624190,000 yuan (tax included);In 2021 and 2022, the consulting service fee will be inflated by 282190,000 yuan, 3.42 million yuan.
The impact of financial fraud is transmitted to the secondary market, and the stock price of Yuanwang Technology continues to be **.
In fact, in the capital market, Yuanwang Technology was once known as a "demon stock". From the end of 2019 to the beginning of 2020, with the concept of online celebrity live broadcast, Yuanwang Technology won 16 daily limits in 25 trading days, and its stock price soared by about 400%.
Today, the market value of Yuanwang Technology, which is suffering from internal and external troubles, is only 790.1 billion, compared with 21 billion at the highest market value in 2020, is not just cut in half.
Text: Zero.