After two extensions, on the evening of June 17, Yuanwang Technology finally released the Shenzhen Stock Exchange’s response to its annual report inquiry letter. The financial report of
shows that in 2023, Yuanwang Technology achieved revenue of 4.777 billion yuan, a year-on-year increase of 22.48%, a net loss of 1.049 billion yuan, and a net profit decrease of 299.33% year-on-year. In this regard, the Shenzhen Stock Exchange asked Yuanwang Technology for its large loss of net profit, sharp decline in cash flow from operating activities, serious year-on-year decline in gross profit margin of the Internet advertising business, and whether there was any inflated increase in accounts receivable to cover up inflated revenue or transfer of benefits to related parties, etc. Issue an inquiry about the situation.
It is understood that the predecessor of Yuanwang Technology is "Saturday Women's Shoes". In 2018, Yuanwang Technology became the first A-share listed company in the live streaming e-commerce industry by backdooring "Saturday". In December 2022, "Saturday" officially changed its name to "Yuanwang Technology". However, since its backdoor listing, Yuanwang Technology has suffered losses for three consecutive years. The financial report shows that Yuanwang Technology will have a net loss of 702 million yuan in 2021 and a net loss of 263 million yuan in 2022. In 2023, Yuanwang Technology’s losses will further intensify to 1.049 billion yuan.
revenue increased but net profit fell, and the gross profit margin of the main business dropped sharply.
Yaowang Technology revealed in its reply that in the 2023 annual report, Internet advertising and Internet advertising agency will be merged into new media advertising , and social e-commerce services will be split. It is divided into two categories: social e-commerce and self-operated brands and brand distribution. Among them, Internet advertising mainly includes portal website placement, WeChat public account placement, etc.; Internet advertising agency refers to the company placing ads for advertisers through Internet platforms such as Douyin, Tencent, and Kuaishou in response to the advertisers' requirements. 's self-operated brands mainly include self-operated brands and brand distribution business such as drinks and clothing, while social e-commerce mainly includes live broadcast e-commerce business.
According to this classification, in 2023, Yuanwang Technology’s new media advertising revenue will be 2.375 billion yuan, a year-on-year increase of 49.72%; self-operated brand and brand distribution revenue will be 265 million yuan, a year-on-year increase of 5.54%; social e-commerce is also the live broadcast e-commerce business Revenue was 1.729 billion yuan, a year-on-year increase of 36.18%; clothing and footwear industry revenue was 400 million yuan, a year-on-year increase of 8.37%.
Yuanwang Technology’s 2023 financial report.
Although the revenue of all sectors has increased, Yuanwang Technology's net loss in 2023 is still as high as 1.049 billion yuan. Based on this calculation, the net profit dropped 299.33% year-on-year. In terms of gross profit margin, the gross profit margin of the Internet advertising industry dropped from 16.45% in 2022 to 1.12% in 2023; the gross profit margin of clothing and footwear dropped from 31.36% in 2022 to 10.78% in 2023.
Shenzhen Stock Exchange requires Yuanwang Technology to explain "the specific reasons and rationality for the large loss of net profit and large outflow of cash flow from operating activities while operating income has increased significantly."
In response, Yuanwang Technology said in its reply, "Mainly because the clothing and footwear business has increased operating income due to enhanced clearance efforts, the gross profit margin has dropped from 31.36% in 2022 to 10.78%." The decline in gross profit margin of
's social e-commerce business was due to the decline in operating income due to changes in the company's live broadcast categories, lower than expected schedules, and delays in the opening of live broadcast scenarios such as x27. Yuanwang Technology also revealed that in mid-2023, in order to compete with local life platforms such as Meituan for traffic entrance resources, the Douyin platform increased its commercial support for the local life sector. In order to seize the trend and occupy the track in time, the company will The content of the live broadcasts is tilted towards local lifestyle products. However, since the commission rate of local lifestyle products is significantly lower than that of other products (generally the commission rate of local lifestyle products is not higher than 5%), most of the revenue is reflected in special event fees and pit fees, so the report During the period, social e-commerce operating income declined, which in turn affected gross profit margin.
It is understood that Yuanwang Technology started as a "star anchor". Currently, more than 60 celebrities, including Jia Nailiang and Huang Shengyi, have signed contracts with Yuanwang Technology to cooperate in live broadcast business. During this year’s 618 period, Jia Nailiang’s single game GMV exceeded 425 million yuan. According to statistics from third-party organizations, from May to now, Jia Nailiang has been leading the sales of Douyin products, and has firmly established himself as the new "big brother" in Douyin products.
But celebrity anchors are both an achievement and a drag. Yaowang Technology revealed that since high-quality IP is the company's core resource, when the operating income does not reach the target in 2023, the fixed costs of the company's anchor and celebrity IP also affect the gross profit of the social e-commerce business.
The net cash flow from operating activities of Yuanwang Technology in 2023 was negative 223 million yuan. Yuanwang Technology explained that this was mainly due to the increase in the number of employees due to the development of new online and offline commercial complex projects, and the increase in purchases due to the improvement of the supply chain. .
Judging from the financial report of Yuanwang Technology, as of March 2024, the number of Hangzhou Yuanwang Technology employees (excluding anchors) is approximately 3,000, an increase of approximately 80% compared to the beginning of 2022.
Spends 2.3 billion yuan a year on Douyin to stream and buy ads
Although it is a full-platform mcn, many top anchors from Yuanwang Technology are live streaming on Douyin. The 2023 financial report shows that Beijing Douyin Information Services Co., Ltd. (hereinafter referred to as "Beijing Douyin") is the largest supplier of Yuanwang Technology. That year, the purchase amount of Yuanwang Technology from Douyin reached 2.304 billion yuan, accounting for 53.87% of the total annual procurement. %.
In response, the Shenzhen Stock Exchange required Yuanwang Technology to explain the specific products or services purchased from Beijing Douyin, the specific uses after purchase, whether the supplier is substitutable, and whether there is a risk of dependence on a single supplier.
Yaowang Technology explained that the content purchased from the Douyin platform is platform traffic from new media advertising business and social e-commerce business. Yaowang Technology also admitted that "the company's purchase and delivery of traffic from the Douyin platform is in line with industry business model practices, and there is a certain risk of dependence on a single supplier." In this regard, Yuanwang Technology has tried an "online + offline" business model , multi-platform cooperation with new traffic carriers such as celebrity artists and strengthening fan private domain traffic accumulation can reduce reliance on platform traffic to a certain extent.
In addition, the annual report shows that the closing book balance of Yuanwang Technology’s accounts receivable in 2023 is 1.52 billion yuan, and a bad debt provision of 505 million yuan has been made. An additional provision of 318 million yuan for bad debts was made in this period, a year-on-year increase of 221.21%. The accounts receivable of Hangzhou Hongzhen and Hangzhou Honghua were individually provided with bad debt provisions in 2023, and as of the end of the reporting period, a cumulative provision of 375 million yuan in bad debt provisions had been made. The ending balance of the top five accounts receivable based on the ending balance of debtors totaled 784 million yuan, and a cumulative provision for bad debts of 364 million yuan has been made.
Shenzhen Stock Exchange requires Yuanwang Technology to explain whether the accounts receivable and the transactions corresponding to the accounts receivable truly exist and have transaction substance, and whether there is any situation in which the inflated increase in accounts receivable is used to cover up the inflated income or transfer benefits to related parties. .
In response to this, Yuanwang Technology responded that Hangzhou Hongzhen, Hangzhou Honghua, and Hangzhou Xinyi began operating and undertaking its shoe business in October 2019. The market began to change in early 2020, especially for the main channels that are basically offline entities. The impact on the store's business is greater. A large number of store closures have caused a gradual decline in sales returns in recent years, and will reach a trough in 2023.
Yaowang Technology listed the business background of accounts receivable, name of the debtor, contract amount, accrual amount, time of formation of accounts receivable, etc., and stated, “The company’s accounts receivable amounts are all physical delivery and Those who provide services are confirmed by the settlement documents of both parties and are real and have the essence of the transaction. There is no situation of inflating the accounts receivable to cover up the inflated income or conveying benefits to related parties. "
Before the companies listed by Yuanwang Technology. The business background and other relevant information of the five accounts receivable.
has suffered losses for three consecutive years and was issued a warning letter by the Guangdong Securities Regulatory Bureau.
It is understood that in December 2023, x27 park operated by Yaowang officially opened. The project is known as the first "digital and real integration" commercial complex operating all day in China. Nandu reporters learned that the construction area of Yaowangx27 Park is about 260,000 square meters. By channeling online traffic into offline industries, it will promote the formation of a new model of "online commerce and offline tourism". According to Yuanwang Technology, x27 park is expected to achieve sales of 30 billion to 35 billion yuan in the first year after its official operation.
This is not the only online + offline commercial complex layout of Yuanwang Technology. According to the reply from Yaowang Technology, the development of new projects such as Yaowang Network's "online + offline" new commercial complex "Yuanwang x27 Park", Yinru Yuanwang Wenzhou Digital Ecological Industry Chain Base, and Yuanwang Tianmen Live Broadcast Operation Base has brought company employees With the increase in quantity, cash paid to and for employees increased by 119 million yuan compared with the previous year.
In addition, in order to seek listing, Yuanwang Technology has signed a gambling agreement with Saturday. Yuanwang Technology needs to complete the deduction of non-net profits of no less than 160 million yuan, 210 million yuan and 260 million yuan in 2018, 2019 and 2020. performance. Since then, Yuanwang’s performance betting completion rates have been 105.23%, 103.03%, and 102.5% respectively.
But starting in 2021, Yuanwang Technology has suffered losses for three consecutive years, with a net loss of 702 million yuan in 2021 and a net loss of 263 million yuan in 2022. The net loss will further intensify in 2023 and reach 1.049 billion yuan. From the perspective of revenue and net profit,
, both listed companies in live streaming e-commerce, are often compared with Dongfang Selection and Make a Friend. The financial report data released by Oriental Selection shows that in the six months ending on November 30, 2023, Oriental Selection’s total revenue was 2.795 billion yuan and net profit was 249 million yuan. Based on this calculation, Oriental Selection’s net interest rate was 8.9%. The financial report of
Make a Friend shows that the revenue for the 2023 fiscal year is about 1.07 billion yuan and the net profit is 114 million yuan. Based on this calculation, the net interest rate of Make a Friend is 10.7%.
Yuanwang Technology’s total revenue in 2023 will be 4.777 billion yuan, and its net profit will be -1.049 billion yuan. Based on this calculation, Yuanwang Technology’s net interest rate is -22%.
As early as the beginning of last year, someone asked Yuanwang Technology on the investor platform, "It is also a live broadcast to sell goods, why is Yuanwang Technology's net profit margin so much lower than New Oriental Online?" Yuanwang Technology responded, "The specific operations of each company The models and business strategies are different. Please continue to pay attention to the company’s regular reports regarding the company’s performance.”
In addition to the letter of concern from the Shenzhen Stock Exchange, in December 2023, Yuanwang Technology also received the "Decision on Taking Measures to Issue Warning Letters against Foshan Yuanwang Technology Co., Ltd., Yu Hongtao, Xie Rudong, Li Gang, He Jianfeng, and Ma Chao" issued by the Guangdong Securities Regulatory Bureau ” (hereinafter referred to as the “Decision Letter”).
"Decision Letter" shows that the book value of the company's inventory from 2021 to 2022 is inconsistent with the actual value; some revenue recognition was inappropriate from 2019 to 2020; revenue, profits and accounts receivable were inflated; external The financial assistance was not disclosed in a timely manner; the guarantees of the company and its subsidiaries were not disclosed in a timely manner; the joint investment with professional investment institutions was not disclosed in a timely manner. The Guangdong Securities Regulatory Bureau decided to take administrative supervision measures by issuing warning letters against Yuanwang Technology, Yu Hongtao, Li Gang, Xie Rudong, He Jianfeng, and Ma Chao.
Written by: Nandu reporter Wang Chenchen
