AOKANG Diversified Industrial Layout Ready For Listing

　 It is also a rising star, including the Hong Kong international brand and the Saturday shoe industry, which have the brand of 100 billion, and also listed on the Singapore Stock Exchange and Shenzhen Stock Exchange in 2003 and 2009. But what is puzzling is why AOKANG has not been listed. In May 18th, the largest private shoe making enterprise in Zhejiang, AOKANG shoe Limited by Share Ltd, signed an agreement with VALLEVERDE, the first shoe brand of Italy shoe industry in Shanghai, to acquire the ownership of the latter in Greater China.

This is AOKANG's first acquisition of overseas brands. In the 2009 "Pierre Cardan takeover battle", AOKANG, which had always been interested in international brands, was once considered a powerful contender. However, it failed to see its action. Now the answer is announced, aiming at Italy's Wanli Wade.

The predecessor of AOKANG group is Yongjia Olin shoe factory, founded in 1988. It is a national top 100 private enterprise with leather shoes as its main business and involved in commercial real estate, biological products, cross industry and cross regional development. Founded in 1969, wanwade mainly produces "breathing type" functional shoes. It is Italy's "time-honored brand" shoemaking enterprise. It has more than 2300 stores in the world, and its ownership in Greater China involves mainland China, Taiwan and Hongkong.

It is understood that as early as January 2008, AOKANG and Wanli Wade signed the global strategic cooperation agreement, and acquired the brand management right of the Asia Pacific region for 10 years with a US $22 million. Wanwade provides product R & D resources, technology and legal support, and its brand marketing and product manufacturing in the Asia Pacific region are operated by AOKANG. Subsequently, AOKANG implemented a series of innovations on Wanli Wei's brand positioning, marketing channels and product research and development.

Wang Zhentao, President of AOKANG shoe industry, said that the use of licensed brands and agents to win the right and operate independently is the only way to achieve success. Wanli Wade originally intended to sell the whole enterprise as a whole, but AOKANG took into account the upcoming listing and indigestion, "for the time being, it only needs the brand ownership of Greater China." And plans to invest 5 to 600 million yuan, 3 years to become the most competitive high-end brand in China and even Asia Pacific, enter more than 300 domestic high-end shopping malls.

"AOKANG will set up an international team to carry out packaging planning and variety development for wanwade. It is different from the existing low-grade private brands such as AOKANG, Kanglong, red Firebird and so on. In May 18th, AOKANG launched the international high-end brand strategy. AOKANG's series of actions will be a beneficial supplement to the high-end brand market. It can be predicted that the first brand of Italy's footwear industry will be a part of AOKANG's pre market preparation.

In AOKANG's current industry layout, the real estate, biopharmaceutical and footwear industries are neck and neck in three big blocks. In fact, 7 years ago, AOKANG began to make strategic adjustments, while the low profit of the traditional footwear industry was a reason for AOKANG's adjustment.

As for why the final choice of biopharmaceutical and real estate is AOKANG after years of development to explore the "test" results. It is understood that before the biopharmaceutical, AOKANG also chose to do other industries. After trial, it was found that biopharmaceutical and commercial real estate is feasible for AOKANG. {page_break}

From the current situation, AOKANG's diversified portfolio is feasible. Obviously, the ample cash flow in the shoe industry can provide financial support for capital intensive real estate and biopharmaceuticals. The past world financial crisis has made AOKANG shoe industry face unprecedented economic cold winter. It is understood that AOKANG's biological vaccine has been planned for mass production, which is also a new profit growth point beyond the footwear industry.

Similarly, AOKANG is not doing real estate for real estate, but around AOKANG's leather shoes. On New Year's day in 2006, AOKANG opened its first commercial pedestrian street for 200 million years in Huanggang, Hubei. In May 21, 2010, Quanjiao AOKANG commercial pedestrian street was openly invited to invest in Wenzhou, which is the third pedestrian street built by AOKANG.

According to AOKANG's public information, the pedestrian street project is a modern multi-functional integrated brand commercial street which combines business activities, urban leisure, sightseeing tours and history and culture. After the completion of the commercial street, AOKANG will introduce Suning, KFC and other more than 100 domestic and foreign brands. And in these pedestrian street shops, AOKANG will focus on recommending its brand shoes, which is why AOKANG only makes commercial real estate.

As early as 2007, the listing of peer BELLE enabled Wang Zhentao to deeply understand the necessity of listing. He once publicly stated that "the era of shoe integration has arrived, and only by making use of the capital operation of the listing society can enterprises grow and strengthen, so that they can continue to survive in the market." At this point, AOKANG is accelerating the pace of listing, it is understood that AOKANG is "on the road to catch up", and the two subsidiaries of shoemaking and bio pharmaceuticals are "on the way to the market."

Undoubtedly, AOKANG's diversified industrial layout is beneficial to the listing of enterprises. Listed companies are directly involved in capital market competition. Market risk requires that listed companies must have sufficient financial support. And AOKANG will seek diversified industrial breakthroughs before listing, which will surely bring sufficient financial support to enterprises in the future.