China is the largest leather shoes producer in the world, and it is also a huge consumer market. In recent years, international famous brands have entered the Chinese market in a big way, making use of the advantages of brand, capital, technology, information and management, increasing the strength of channel development and product marketing, and gaining market share.
In the past 2019, some shoe companies were having a hard time. Many old brand enterprises are in a predicament, and some even go bankrupt and withdraw from the market.
In November 21, 2019, the HKEx issued a notice that the listing status of birds of fortune will be abolished according to the listing rules from 9 a.m. on November 25th. Founded in 1991, the rich bird has developed from casual shoes and has been developing into manufacturing and selling footwear and business casual men's wear products. It has been called the "real leather shoes king of China".
In 2017, BELLE was officially delisted from Hongkong. Daphne international share price has been depressed for a long time. From 2015 to 2018, there were more than 3700 core brand stores in Daphne, and the market value was sharply reduced compared with 17 billion Hong Kong dollars in the peak period of 2012. The shares of the precious birds have been auctioned many times, and the bank accounts of the bonds have been frozen. What's wrong with China's shoe industry?
Through the observation of financial data, another two shoe companies in the A share market are facing different degrees of "predicament". The AOKANG international, which is dominated by men's shoes, is in a predicament of performance growth. The red dragonfly, the main female shoe industry, is also facing the difficulties of sluggish sales and declining performance in the fierce competition of women's shoes market.
According to public information, AOKANG international is mainly engaged in R & D, production, retail and distribution of leather shoes and leather products. Its products are mainly business shoes, casual shoes, sports shoes and other footwear products and leather accessory products. It owns its own brand "AOKANG", "Kanglong" and the United States sports leisure brand "Si Cage" and the German fashion sports brand "Puma", and has made strategic cooperation with Belgian shoe and clothing giant Cortina, India famous outdoor brand Woodland and international sporting goods retail giant INTERSPORT (Yichang sports). Its main sales area is the national 123 line shopping mall, shopping malls, stores and so on.
But AOKANG has also faced many embarrassing situations in recent years: big pledge of major shareholders, continuous decline in net profit growth, and shareholder cash.
The share pledge ratio of major shareholders and real controllers is over 90%.
Last year, the three quarterly data showed that AOKANG International's top two shareholders: AOKANG Klc Holdings Ltd and Wang Zhentao, the equity pledge rate reached 96.5% and 98.45% respectively.
The announcement shows that Wang Zhentao, the second largest shareholder, is the actual controller of the company, with a shareholding ratio of 15.10%, and the shareholding structure of AOKANG Klc Holdings Ltd, the largest shareholder of 27.73%, is 90% of Wang Zhentao's shareholding and 10% of Wang Chen's shareholding. Meanwhile, Wang Chen is the son of Wang Zhentao, the actual controller of the company, which is consistent with Wang Zhentao and AOKANG Klc Holdings Ltd.
Large shareholders cash in excess of 600 million
Data show that in September 2018, Wang Zhentao's 90% stake in AOKANG investment transferred 5% stake, and his son Wang Chen also turned out 9.98% equity clearance. Father and son together cash 625 million yuan.
Net profit fell for three consecutive years, and net profit in 2019 decreased by 38% in the three quarter.
Since 2016, AOKANG International's net profit has declined for three consecutive years. In 2015, AOKANG international annual report showed that the net profit before 2015 was 390 million yuan, and the net profit in 2016, 2017 and 2018 three years was 305 million yuan, 226 million yuan and 137 million yuan respectively. Net profit grew by -21.79%, -25.80% and -39.53% respectively.
Contrastive analysis, 2015-2018 years, the company's revenue has been maintained at around 3 billion yuan, no major improvement, while net profit showed a downward trend, from 390 million yuan in 2015 to 137 million yuan in 2018, a drop of 65%.
According to the three quarterly report in 2019, the company achieved operating income of 1 billion 973 million yuan during the reporting period, down 9.56% from the same period last year, and net profit of 106 million yuan, down 38.48% from the same period last year. It is understood that other revenue declined 63.89% compared with the same period last year, mainly due to the reduction of government financial subsidies.
With the advent of the electricity supplier era, AOKANG international inventories, which were sold through traditional mode, grew faster. In 2015, it was 919 million yuan and increased to 1 billion 37 million yuan in 2016. According to the latest data, as of September 30, 2019, the company's inventory was 849 million yuan.
There is no doubt that as a manufacturer of leather shoes, the inventory is high or there is a big risk of falling prices. But in recent years, AOKANG's stock has declined.
Lack of innovation, channel and brand aging, can not adapt to the new consumer demand timely adjustment, online and offline encounter more competitors attack, perhaps are some of the old shoe enterprises in trouble. Most of the old shoe companies that are in trouble are still out of touch with the consumer market and late start of the business channel, resulting in high inventory and relatively old products. Some consumers say these products are too old for young people.
Statistics show that AOKANG shoe industry was once one of the largest private shoe manufacturers in China and landed on the Shanghai Stock Exchange in April 26, 2012. The stock price once surged to 53.73 yuan / share, and its market value exceeded 20 billion. Today, the total market capitalization has dropped to 3 billion 709 million, and the share price has fallen to 9.25 yuan / share.