On December 3, Guangdong Yowant Technology Group Co., Ltd. announced plans to publicly transfer 100% equity of Foshan Saturday Footwear Co., Ltd.
After three consecutive years of losses and a market value plunge exceeding 4 billion yuan, Yowant Tech has decided to offload its subsidiary Saturday Footwear for 453 million yuan. This move is not merely a business adjustment but marks the final liquidation of a capital-driven strategy.
**The Web of Interests in Financial Opacity** In 2019, the then-named "Saturday" footwear company acquired an 88.5651% stake in Yowant Network—a firm specializing in internet advertising and live-streaming e-commerce—for 1.77 billion yuan through a mix of cash and stock issuance.
This deal allowed the company to pivot into live-streaming e-commerce, rebranding as "Yowant Tech" in 2022 and transforming from a traditional women’s footwear manufacturer to a "pioneer in live-streaming e-commerce."
This transition effectively completed a backdoor listing years ago. The current sale of footwear assets should thus be viewed as post-listing cleanup.
Within Yowant Tech’s financial labyrinth, certain related-party transactions warrant scrutiny.
Three affiliated enterprises—Hangzhou Hongzhen, Hangzhou Honghua, and Hangzhou Xinyi—established in 2019, show clear ties to Yowant Tech. These firms are not only major clients but also hold company shares, creating a complex interest network. As of late 2023, their combined receivables totaled 626 million yuan.
Notably, Yunnan Zhaolong, Yowant Tech’s controlling shareholder, appears among Hangzhou Hongzhen’s downstream clients. Such structures have raised regulatory and market concerns about potential inflated revenues or undisclosed benefits to related parties.
**Post-Commitment Performance Collapse** The valuation of Saturday Footwear in this transaction shows a 130.89% premium—a striking figure for a chronically loss-making business.
Back in 2019, Yowant Network was valued at 2 billion yuan. It narrowly met performance targets for three consecutive years: 105.23% in 2018, 102.52% in 2019, and a mere 6.5489 million yuan above target in 2020. Such precision, common in capital markets, often precedes post-commitment downturns.
True to form, after the commitment period, Yowant Tech’s performance nosedived, recording losses from 2021 through 2024.
**From Footwear to Live Commerce: A Costly Pivot** Yowant Tech’s shift from footwear manufacturing to live-streaming e-commerce was dramatic. Initially, the transition seemed successful: its stock surged from 4–5 yuan to a historic high of 36.56 yuan per share in December 2019, with 17 limit-up hits in 26 trading days.
Yet, market enthusiasm failed to translate into sustainable success.
Genuine synergies never materialized. The two business segments operated in silos, even dragging each other down. While the footwear arm struggled with slow transformation and persistent losses, rising marketing costs and platform traffic expenses eroded profits in the e-commerce division.
**Post-Sale Challenges** The sale of Saturday Footwear is expected to streamline Yowant Tech’s industrial structure, reduce debt ratios, and improve operational cash flow. A successful 453 million yuan deal could provide temporary financial relief.
However, whether this addresses core issues remains doubtful.
The live-streaming e-commerce sector has matured, with intensifying competition and escalating traffic costs. Yowant Tech’s model heavily relies on traffic procurement.
As of Q3 2025, revenue fell 34.65% year-on-year to 2.613 billion yuan, with net losses hitting 415 million yuan. Its stock, now around 6 yuan, has shed over 20 billion yuan in market cap from its peak.
Far from becoming "China’s answer to [industry leaders]," Yowant Tech remains mired in losses, its transformation falling short of expectations.
Note: AI tools were used to compile market data and industry insights for this article.
Comments