Recently, Yao Wang Technology (002291.SZ) announced to the public that it will once again delay the originally adjusted fundraising projects and add two new companies with a registered capital of only 10,000 yuan each as the implementing entities for these projects.

A series of actions have undoubtedly caused waves in the market, raising doubts among many investors and industry insiders about its operational capabilities and project execution efficiency.

From an operational perspective, Yao Wang Technology is still in a loss-making state and has not yet emerged from its predicament. Although the company has achieved certain results in the live broadcast e-commerce field and its anchors have considerable influence, the overall financial situation has not improved as a result.

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The fundraising projects are delayed again.

The announcement issued by Yao Wang Technology shows that the company has reviewed and passed the "Partial Fundraising Investment Project Delay Plan", deciding to postpone the expected completion time of the "YOWANT Digital Marketing Cloud Platform Construction Project" and the "Innovative Technology Research Institute Construction Project" from the previously adjusted September 2024 to December 31, 2025.

The above two projects were initially proposed as 2021 additional projects, with a total investment of 1.454 billion yuan, planned to use 1.291 billion yuan of fundraising funds, and initially expected to be in a usable state by September 2023. The performance report for the first half of 2024 shows that the investment progress of these two projects is 36.2% and 28.19%, respectively. A year has passed since the originally scheduled usable state, and the construction progress has not yet exceeded half.

At the same time, Yao Wang Technology also announced on the same day that Hangzhou Xunxi Network Technology Co., Ltd. (hereinafter referred to as "Hangzhou Xunxi") and Hangzhou Lingliang Network Technology Co., Ltd. (hereinafter referred to as "Hangzhou Lingliang") will be added as one of the implementing entities for the above two projects, and plans to use fundraising funds to provide loans to these two companies to promote the implementation of the fundraising projects.

It is worth noting that both subsidiaries were established on July 8, 2024, with a registered capital of 10,000 yuan each, and are wholly owned by Hangzhou Shi'en Asset Management Co., Ltd. (hereinafter referred to as "Hangzhou Shi'en"), which in turn is a wholly-owned subsidiary of Hangzhou Yao Wang Network Technology Co., Ltd. (hereinafter referred to as "Yao Wang Network"), a holding subsidiary of Yao Wang Technology.

According to the announcement of Yao Wang Technology, Yao Wang Network and Hangzhou Shi'en were originally the key executors of the above fundraising projects, but the project completion time has been repeatedly postponed. As early as August 2022, Yao Wang Technology had decided through a meeting not to directly lend to Yao Wang Network and Hangzhou Shi'en through fundraising funds to implement the fundraising projects, but chose to convert the original loan claims (principal) and bank deposit interest income into capital increase for Yao Wang Network, and then Yao Wang Network increased its capital to Hangzhou Shi'en for project implementation.

The current series of operations have attracted external attention, especially regarding whether companies with a registered capital of only 10,000 yuan can effectively undertake the operation of projects with a scale of billions. Yao Wang Technology's plan to provide loans to the newly established Hangzhou Xunxi and Hangzhou Lingliang has also sparked market speculation about whether it is still indirectly providing financial support to Hangzhou Shi'en by increasing the level of subsidiaries.Still Mired in Losses

Yao Wang Technology, formerly known as Saturday, is a long-standing high-end footwear manufacturer and the first listed company in the footwear sector of the A-share market. However, with the decline of the shoe business, the company later transformed into an MCN agency, a shift that stands out among many established shoe companies.

After the transformation, Yao Wang Technology shone brightly in the live broadcasting field, with its contracted host, Jerry Jia, firmly holding the throne of "top salesperson" on Douyin. According to data from Feigua Statistics, in the first half of this year, Jerry Jia has repeatedly topped the Douyin sales chart. During the 618 promotion period, Jerry Jia surpassed He Hui Tongxing and Xiao Yang Ge, becoming the new "top salesperson" on the Douyin platform. In the first live broadcast of 618 alone, Jerry Jia's live room achieved a sales performance of 450 million yuan. Recently, on the live broadcast sales daily chart on September 25, Jerry Jia once again won the championship with a sales volume of over 51 million yuan.

Despite the good performance in the live broadcast business, Yao Wang Technology still faces the problem of serious losses. From 2021 to 2023, the company's cumulative losses exceeded 2 billion yuan. In the first half of this year, although the company's revenue increased by 31.56% year-on-year, reaching 2.978 billion yuan, the net profit is still in a loss state, down 5.2% year-on-year, with a loss of 219 million yuan.

It is not difficult to find from the financial report data of Yao Wang Technology that the main reason for the loss is the company's provision of a large amount of asset impairment and the increase in period expenses. From 2021 to 2023, the company's credit impairment and asset impairment losses totaled 1.32 billion yuan. In the first half of this year, the company's asset impairment losses and credit impairment losses increased by 136% and 219% year-on-year, respectively, which had a negative impact on net profit.

In terms of expenses, since 2021, administrative expenses have become the largest proportion of expenses. In the first half of this year, administrative expenses increased by 33.56% year-on-year, reaching 290 million yuan. This is mainly due to the use of X27 PARK, the first commercial complex in the country that operates 24/7 both online and offline, which led to a significant increase in depreciation and amortization expenses, property fees, etc.

Faced with the situation of increasing losses in the main business, Yao Wang Technology decided to enter the instant retail market and plans to implement the X27 MINI front warehouse project. However, this plan has been questioned by investors. Some investors suggested on the interactive platform that the company should carefully evaluate its offline operation capabilities and asked whether the newly added instant retail business has undergone complete business verification, and whether the company has an operation team capable of handling this business.

In the instant retail industry, platforms such as Meituan Flash Purchase, Ele.me, and JD.com have a large user base, deep brand recognition, and a wide distribution network, firmly occupying the vast majority of the market share. For latecomers like Yao Wang Technology who want to enter this field, they are facing the high walls built by giants and fierce market competition. This is undoubtedly a challenging road full of thorns. From strategy to strength, Yao Wang Technology faces a severe test.