Third Fire: Wang Zhentao Ignites AOKANG Shoe Industry IPO

Zhejiang AOKANG shoe industry Limited by Share Ltd (hereinafter referred to as "AOKANG shoe industry") will soon be landing on A shares, bringing a hint of warmth to the shoe leather industry in Wenzhou, which is suffering from "running tide". In September 23rd, the China Securities Regulatory Commission approved the first application of AOKANG footwear industry. This means that the private enterprise from Wenzhou has passed the "big test" on the stock market. The landing of A shares is close at hand, and the shoe industry of AOKANG will also become the first one. list Of Wenzhou Shoemaking enterprises.

"The era of shoe integration has arrived, and enterprises can continue to survive in the market only by means of listing and learning how capital operations can be bigger and stronger." For this day, Wang Zhentao, chairman of AOKANG shoe industry, has been waiting for over ten years. Many friends in Wenzhou have begun to realize this. Behind AOKANG, several big Wenzhou shoe companies such as Kangnai and red dragonfly are already on the market.

　 Latecomer

"In 2001, the company has already completed the share reform, but it started early in the capital market but late in the evening." In Wang Zhentao's view, the AOKANG shoe industry is a "latecomer" in the capital market.

An important reason why he is determined to enter the capital market is that BELLE group, which also owns many brands, was successfully listed and raised about 8000000000 yuan in Hongkong in 2007, which followed the merger of BELLE group in the industry. The pace of expansion was far greater than that of AOKANG, which had no capital market support. The news deeply hurt Wang Zhentao.

But this episode is finally catching up. The Wang Zhentao family's wealth is expected to soared. The prospectus shows that the shareholding ratio of AOKANG's largest shareholder in AOKANG footwear industry is 63.83%. Wang Zhentao, the second largest shareholder of AOKANG footwear, holds 90% of AOKANG's investment and owns 18.70% of AOKANG's footwear industry. Therefore, it shares 76.15% of the AOKANG footwear industry directly and indirectly.

In addition to the above two shareholders, the shareholders of AOKANG footwear industry also include 3 natural persons and Hongling venture capital, Chang Ting venture capital two institutional investors. 3 natural persons - Wang Jinquan, Miu Yanshu and Pan Changzhong are Wang Zhentao's younger brothers, uncle and brother-in-law. They have a total shareholding ratio of 12.47%. That is to say, the Wang Zhentao family altogether holds 88.62% of AOKANG shoes. "From the number of AOKANG's footwear industry and its operating conditions, the issue price is expected to exceed 25 yuan / share, and the Wang Zhentao family will be 8 billion yuan." Market analysts said.

These assets are only part of the assets of the Wang Zhentao family.

Prospectus shows that the majority shareholder of AOKANG Footwear Group AOKANG group is mainly engaged in investment management business, and real estate, biopharmaceutical and other subsidiary companies to manage. At present, the main shareholders of AOKANG group are: Wang Zhentao holds 69.22% stake, his wife Lin Liqin holds 10.26% stake, Wang Jinquan holds 10.26% stake, Miu Yanshu holds 5.13% stake, Pan Changzhong holds 5.13% stake.

As of June 30, 2011, the total assets of AOKANG group were 1 billion 260 million 300 thousand and 100 yuan and net assets of 210 million 678 thousand and 500 yuan (the above data were not audited). From the point of view of disclosure, the actual controller of AOKANG footwear industry Wang Zhentao also holds 16 other enterprises, including 6 enterprises whose main business is real estate development and operation, as well as Yongjia Ruifeng microfinance Limited by Share Ltd. {page_break}

　 "Third fires"

AOKANG shoe IPO may be regarded as the third fire that ignited by 46 year old Wang Zhentao.

Wang Zhentao's story is the most condensed and wonderful story of Wenzhou's leather shoes industry. In August 8, 1987, more than 5000 pairs of Wenzhou inferior shoes were burned in Hangzhou Wulin Square. Subsequently, large shopping malls in dozens of big cities such as Shanghai, Nanjing, Wuhan and Shenyang launched a comprehensive encirclement and suppression campaign against Wenzhou shoes. This is the first fire. At that time, Wang Zhentao was 23 years old, selling leather shoes in Wuhan. Seeing this fire, Wang Zhentao decided to run factories to produce leather shoes, and to name Wenzhou shoes.

In 1988, Wang Zhentao and two other natural persons invested 10 thousand yuan to buy production equipment. An experienced shoemaker was invited to formally run the "Yongjia Olin shoe factory". Since then, Wang Zhentao's business is getting more and more prosperous. A large number of inferior shoes with AOKANG and Wenzhou shoes are flooding the market. In 1999, or in Wulin Square, Wang Zhentao himself lit a fire and burned fake Wenzhou shoes.

Today's "third fires" also come at the right time. Recently, a number of small and medium-sized shoe enterprises in Wenzhou have been bogged down in development because of the fragmentation of the capital chain. Under such a background, AOKANG shoe industry has made great progress in the capital market.

"It is the choice to let go of bankruptcy or to rise abruptly, which has become a gateway for the whole shoe industry in Wenzhou to break through." Wang Zhentao said that the suspension of production of some shoe companies indicates that financing difficulties have always been the lingering charm of Wenzhou shoe companies, which in a way has also weakened the overall competitiveness of Wenzhou footwear industry. He believes that the convergence of capital chain will undoubtedly become an important factor in testing Wenzhou shoe enterprises. Towards the capital market, under the background of monetary tightening, it has a very positive significance for the convergence of capital chain.

And the AOKANG footwear industry, which is about to get the help of the capital market, is making an effort to expand the market with the opportunity of listing.

From the prospectus, the funds raised by AOKANG shoe industry will be invested in three projects, namely, marketing network construction, information system construction, and technological transformation of R & D center. The investment amount is 876 million 250 thousand yuan, 96 million 100 thousand yuan and 50 million 10 thousand yuan respectively, with a total investment of 1 billion 22 million yuan.

Among them, the marketing network construction project, which invested 85% of the total fund, will be completed in two years. As of June 30, 2011, there were 4075 sales outlets of AOKANG shoes in various parts of the country, including 3650 outlets and 425 direct outlets. In the first year of the project, there will be 139 planned projects, accounting for 40% of the total expected opening. The remaining 209 will be set up in second years, with a total return on investment of 20.53%. {page_break}

　 Promoting industry forward

As the first brand of mainland women's shoes, BELLE's listing can stir up the market pattern. In May 14, 2007, BELLE International's stock offering ended, priced at HK $6.20, and frozen over HK $433 billion 700 million, breaking the record of HK $415 billion 600 million recorded by ICBC. In May 23rd, BELLE international was successfully listed and raised HK $8 billion 660 million. Its market value was HK $50 billion, and Gome, which exceeded HK $38 billion 600 million in value, was strongly touted by Hongkong media as "the king of mainland retail market value".

"May 23rd is a watershed. It has changed the history of China's footwear industry." When Wang Zhentao met everyone, he said. This day, the listing of BELLE international has stimulated almost all the domestic shoe enterprises' nerves. Today, AOKANG's listing is also stimulating the industry's nerves, pushing the industry forward.

"Shoe enterprises listing is the trend of the times, and time waits for no longer. As the era of" not bad money "goes, listing has become the target of many Chinese shoe companies increasingly converging. Pan Jianzhong, general manager of gigantic Group Co., Ltd. said that listing is the only way for enterprises to become bigger and stronger. But we must lay a good foundation for listing, and we need to "practice" internal strength and wait for the timing of listing.

Pan Jianzhong said AOKANG's technology upgrading is really impressive. Xu Jianliang, vice president of AOKANG footwear technology research institute, said that AOKANG footwear technology research institute has more than 300 existing footwear development and design personnel, many of whom are from the Italy, Spain and other countries design masters, invested about 30 million yuan in R & D funds. Focusing on R & D of R & D products, it covers the contents of soft science, such as research and development of new materials and new products, popularization and application of new technologies, new technologies, standardization engineering, intellectual property protection, fashion research, and industrial development law.

It is reported that after AOKANG, Wenzhou shoemaking enterprises will continue to accelerate the pace toward the capital market, such as Kangnai, Dongyi, red dragonfly, giant one and other strength ranking enterprises. This year, they have already increased their strength to fight the listing of enterprises, and through direct financing to solve the long-term capital needs of enterprises.

"News about the failure of Wenzhou shoe enterprises, relocation, profit declines, difficulties and other news appeared. AOKANG's listing will undoubtedly bring vitality to the industry." Xie Rongfang, executive chairman of Wenzhou shoe leather industry association, said that the shoe making industry in Wenzhou is currently in the shuffling stage. The listing of AOKANG reflects the one or two polarization phenomena of "strong Yu Qiang and weaker weaker" in the industry.

AOKANG's strategic direction toward R & D and brand transformation is also in line with industry trends. In Fujian, shoe companies have won first in the capital market. Anta, XTEP, 361 degrees, PEAK and many other shoe companies are listed on the market with the encouragement and support of local governments.

It can be seen that the era of shoe integration has arrived. Undoubtedly, AOKANG's listing will accelerate the change. How to make bigger and stronger itself by means of the listing society's capital operation and how to jump off the traditional path to seek better survival is an unavoidable thinking direction for shoe enterprises in the development of innovation. AOKANG's listing will undoubtedly bring more confidence to more enterprises seeking transformation. It is foreseeable that more enterprises will go through the market to implement capital operation. In the future, the trend of collectivization and centralization of enterprise brands will be irreversible. In the context of capital operation, Chinese shoemaking enterprises are facing a new game.