Net Red Stocks Rose Three Times From Limit To Limit On Saturday.

Last week on Saturday, the last fifth minutes of the last 8 minutes were finally unable to sustain. From the free fall of the daily limit to the ceiling, the astonishing trend of the sky floor was staged, and the five link was finally ended. The alarming increase has triggered high attention and doubts from regulators and the market.

A series of amazing performance is making the net red economic stocks (002291.SZ) locked down further under the spotlight on Saturday.

In from March 2nd to 5th, on from March 2nd to 5th, four daily limit plates were harvested on a continuous basis. In March 6th, on Friday, the trading limit was raised again in early trading. But in the last 8 minutes of the final market, it suddenly fell to the ceiling, and the performance of "sky floor" took place at 29.85 yuan, the turnover rate reached 19.86%, the turnover volume was 2 billion 722 million yuan, and the market value evaporated 4 billion 900 million yuan.

For the sudden "sky floor", investors ridicule comments that "Friday successfully blocked Saturday", "dive beautifully", "Saturday is really no longer Saturday."

Researchers note that history is always strikingly similar.

(Saturday's official website screenshot)

In January 17th, it was also Friday, and at the end of Saturday, the volume dived and finally dropped by 6.74%. At this time, since the first trading limit in December 13, 2019 to the 25 trading day in January 17th, the company has 16 trading restrictions.

Now, there are 9 trading restrictions on the 29 trading days from January 20th to March 6th before the second time of the sudden explosion.

In recent months, stock prices continued to rise in recent months, and for many consecutive days, the abnormal fluctuation of stock price was achieved in January 3rd, January 15th, February 5th and March 4th respectively, and became the focus of supervision under the supervision of the market at the same time, while it was sought after by the market in January 3rd. In March 6th, the Shenzhen Stock Exchange issued a letter of concern on Saturday, calling for the existence of other non information disclosure channels to actively cater for the new hot spots such as "new retail" and "webcast".

Wind data showed that on Saturday afternoon, the stock price was 29 yuan on Saturday, down 2.85%.

The last 8 minutes of the day floor

Data show that since last Saturday, the stock price has increased considerably since last 2020, and the abnormal fluctuation of stock price was achieved in January 3rd, January 15th, February 5th and March 4th respectively.

After a sharp rise in stock prices, hundreds of institutions were heavily investigated on Saturday. On the day of March 1st, they received joint research from 82 institutions and some individual investors.

On the evening of March 4th, the announcement of abnormal fluctuations in stock trading on Saturday revealed the recent business situation.

On Saturday, the new coronavirus pneumonia epidemic spread rapidly around the Spring Festival in 2020. Affected by the epidemic, the company and its important subsidiaries resumed 10 to 20 days' delay. At present, the shops in some areas are not yet operating normally. Meanwhile, the sharp decline in the volume of real stores has resulted in a sharp decline in sales of real stores.

On the other hand, some suppliers postponed the resumption of work, special traffic control, and blocked logistics during the epidemic period, which also had some impact on the normal development of the online sales business in the early stage, and now it is gradually returning to normal.

On Saturday, it also said that the epidemic is expected to have a greater impact on some of its business, especially offline sales, in a certain period.

In addition, the company plans to continue to promote strategic transformation and upgrading, so as to gradually build the new retail platform with "user centered, data driven, consumer scenario integration" as the goal, vigorously promote online sales, actively develop mobile internet marketing business, and focus on expanding social networking services business.

In this announcement, on Saturday, it also said that in order to further promote strategic transformation and upgrading, its core management team deliberated on the possibility and necessity of the company's startup refinancing matters, and plans to plan the issue of non-public offering stocks. However, the refinancing mode and issuing plan are uncertain. This raises questions from the market and regulators, questioning whether the news is a major public announcement and has a greater impact on share prices.

Share price rose three times.

The researcher noted that in the early morning of March 6th, the Shenzhen Stock Exchange issued a letter of concern which asked whether it would disclose the inside information to the research institutions and individual investors on Saturday whether they had any violation of the principle of fair disclosure.

In addition, the Shenzhen Stock Exchange also asked Saturday to explain whether there was insider trading or manipulating the market. Whether or not there was the use of other non disclosure channels to cater for the "new retail", "webcast" and other market hot spots for stock price speculation and cooperation with shareholders.

Wind statistics show that stock prices soared continuously in recent months, ranging from 6.87 yuan in late November 2019 to 29.85 yuan in March 6, 2020, with an increase of 334.50% and a three fold increase in share price.

On Saturday, Dong Jian Gao obviously will not miss this opportunity to reduce his holdings.

According to the announcement, on Saturday, the controlling shareholder of Shenzhen, Klc Holdings Ltd (hereinafter referred to as Saturday's investment control) on from January 16th to 21st, totally reduced 7 million 354 thousand and 500 shares, reducing the average price to 33.027 yuan / share, and realized the total amount of 240 million yuan.

According to the pre Disclosure Notice of controlling shareholders and unanimous action reduction shares disclosed in December 25, 2019, the controlling shareholders' investment control and concerted action plan on Saturday will not exceed 32 million 940 thousand and 700 shares in the next six months, accounting for 5% of the total share capital. After the reduction in January, the controlling shareholders of the controlling shareholders and the concerted action on Saturday still have room for reduction of 25 million 586 thousand and 200 shares. According to the March 6th closing price of 29.85 yuan, it can cash 764 million yuan from the two market.

Earlier, on January 16th and 17, on Saturday, Li Gang, deputy general manager and chief financial officer, reduced 257 thousand and 800 shares and cash 8 million 339 thousand and 800 yuan. The director, deputy general manager and deputy director general Jian He Jian reduced 45 thousand and 700 shares and cash 1 million 422 thousand and 800 yuan. The vice general manager Li Li reduced 76 thousand and 200 shares and cash 2 million 682 thousand and 700 yuan. On Saturday, three directors and supervisors increased their total cash holdings to 12 million 445 thousand and 300 yuan.

Worries about net profit surged 18 times in 2019

Inspection revealed that Saturday was launched in 2002 and listed in September 2009. The industry information includes two divisions: the production and sale of shoes and clothing, and the Internet advertising business. The original brand of shoes and clothing business includes Saturday (ST&SAT), Sophia (Safiya), Febe Lil (FONDBERYL) and Difors (D:FUSE). As of December 31, 2018, the company had 1378 brand chain stores, including 1059 self owned stores and 319 distribution outlets.

On February 28th, Saturday, the performance bulletin was disclosed. In 2019, the total revenue was 2 billion 274 million yuan, an increase of 48.48% over the same period last year. Net profit was 176 million yuan, an increase of 1871.45% over the same period, or more than 18 times. The net profit in 2018 was 8 million 933 thousand and 600 yuan, less than ten million yuan.

In its performance bulletin on Saturday, it said that in 2019, the company continued to focus on the strategic development goals of "creating a fashionable IP ecosystem", actively promoting transformation and upgrading, and merging Hangzhou distant view network technology Co., Ltd. through the issuance of shares to buy assets, and incorporated it into the merger scope, resulting in a great change in the company's overall assets, capital stock and business data.

In conjunction with the performance bulletin, the announcement on assets impairment provision announced on Saturday showed that the total amount of assets impairment provision in 2019 was 46 million 991 thousand and 800 yuan, which would reduce the net profit of 45 million 558 thousand yuan in 2019, accounting for 25.89% of the net profit for the same period.

Data show that on Saturday 2019, the assets impairment includes 5 million 239 thousand parts of accounts receivable bad debt preparation, 517 thousand and 100 yuan of prepayment bad debt preparation, and 41 million 235 thousand and 700 yuan preparation for inventory depreciation, among which the stock price depreciation prepares the highest proportion.

For a long time, the problem of low turnover of high inventory on Saturday is still an important adverse factor affecting performance in 2019. Wind data show that over the years Saturday's stock accounts for more than 80% of net assets. From 2015 to 2018, the book value of final inventory on Saturday was 1 billion 475 million yuan, 1 billion 512 million yuan, 1 billion 379 million yuan, and 1 billion 409 million yuan respectively. The net assets on Saturday were 1 billion 814 million yuan, 1 billion 837 million yuan, 1 billion 487 million yuan and 1 billion 496 million yuan respectively, and the proportion of inventory accounts for total assets was 81.31%, 82.31%, 92.74% and 92.74%, respectively.

In 2019, the book value of the stock was 1 billion 338 million yuan. Net assets were increased by 3 billion 448 million yuan in the transaction price of nearly 1 billion 900 million yuan during the year, and the proportion of stock to net assets fell to 38.81%. However, the absolute amount of book value of stock has not been significantly reduced, and the inventory problem has not improved.

In addition, from the inventory cycle data, Saturday's inventory turnover days are also high for a long time. Data showed that from 2016 to 2018, the turnover days of inventory were 533.81 days, 664.57 days, 803.03 days, 820.42 days and 715.85 days. Although the channel optimization strategy was adopted on Saturday, the production and R & D terminals did not make corresponding adjustments, resulting in high inventory value and low turnover efficiency at the same time.

According to the announcement on Saturday, the business of women's shoes was affected by the low consumption environment and fierce competition in the industry. In 2019, the business income of women's shoes was expected to decline year by year. At present, it is still in the stage of adjustment and optimization. It is expected that the revenue of the stores under the impact of the epidemic will gradually shift the direct store to join and pool to reduce the pressure on the stock. It is expected that the income of women's shoes will decrease in the future.

Hope for the future

On Saturday, under the pressure of the traditional footwear industry, the Internet advertising industry began to seek growth.

In February 2017, it completed the acquisition of fashion front and Beijing shihin on Saturday. The main platform is OnlyLady women's and Kimiss girlfriends network. Two new media company have been involved in the beauty fashion and consumer life field, and have become the MCN cooperation agency of micro-blog, jitter, Taobao, and fast hands. The revenue comes mainly from the advertising and marketing of the brand merchants, and the net red brokers.

Data show that in 2017 and 2018, the revenue of Internet advertising business was 1.38 yuan and 169 million yuan on Saturday respectively, accounting for 9.20% and 11.02% of gross revenues respectively, with gross margins of 60.40% and 57.10% respectively. As of the first half of 2019, the proportion of Internet advertising revenue rose to 35.87%, but OnlyLady women's ambition and Kimiss girlfriends network were severely affected by the fierce competition in the industry and revenue declined.

On Saturday, March 2019, it bought a 88.57% stake in the remote watch network at a price of 1 billion 771 million yuan, of which 472 million yuan was paid in cash, and 1 billion 299 million yuan was issued by issuing 260 million shares at 5 yuan per share. Then, on Saturday, August 2019, it acquired a 6.54% stake in the remote watch network with 131 million yuan in cash. At present, it has 95.11% stake in the remote watch network on Saturday, and the remaining 4.89% stake in the remote network. Saturday also plans to complete the acquisition after raising funds through the application of merger and acquisition loans and the establishment of a merger fund.

Enterprise survey shows that the network is divided into the traditional network advertising business, WeChat platform marketing and social networking business, including social business including short video advertising, fast broadcast live goods and so on.

From the current disclosure of data, the fourth quarter of 2019, the distant view of the network layout of the business layout of the electricity supplier landing, anchors with goods revenue fast drive to drive a significant increase in revenue, the acquisition and watch the network to drive the overall performance of Saturday to achieve substantial growth.

Saturday's past announcement shows that from the perspective of the network development process, in 2013 and 2014, the main Internet advertising distribution business, 2015 and 2016 cut into hand travel promotion and operation business, 2017 to 2019 began to layout WeChat ecosystem promotion, social networking business.

The network has achieved good performance in recent years, especially after the business cut in 2017. Data show that net profit in 2016, 2017 and 2018 were 35 million 97 thousand and 700 yuan, 59 million 187 thousand and 800 yuan and 168 million yuan respectively, representing a growth rate of 40%, 68.6% and 184.7% over the same period.

According to the official website information of the company, the network is the most concerned about the social business field of the market. The network relies on the advertisers and star artists to charge a certain proportion of service fees, while promoting products including self owned brands, cultivating entertainers, providing marketing planning, technical support and other services. At present, the signing artists of the distant view network include Wong Cho Lam and Cecilia Cheung. The network celebrities include Li Xuanzhuo, NTI Guli and Yu Dandun, who have the experience and ability of artists training and self hatching. They mainly cooperate with jitter and fast platform, and have been ranked first in MCN row since May 2019. The brand of goods is concentrated in the field of cosmetics and fast food, among which an exclusive distributor agreement with a leaf is reached.

It is noteworthy that, according to the performance commitment agreement, the counterparty looked ahead to the original shareholders of the network and promised that the net profit after 2019 and 2020 would be no less than 210 million yuan or 260 million yuan. In the context of declining other businesses, the look ahead network will become the main force to enhance business scale and profitability on Saturday.

After turning into the "net red economic concept stock" and becoming the leading stock of this concept on Saturday, it became the focus of capital chasing, and there were many continuous trading boards, which made the stockholders crazy. But after a huge increase in the share price, the P / E ratio also stood at 157.34 times high, and the total market value also reached 22 billion yuan. The risks contained in it were also worth the attention of the market.