Thai Footwear Industry Applies For More Than 10 Patents For Listing Assault

In November 1st, Quanzhou, Fujian, which is known as the "shoes capital of China", has been born. Anta , XTEP , 360 degree [3.370.60%] and other shoe companies listed in Hongkong. But these enterprises are only the first squares of Quanzhou's footwear industry entering the capital market. Now, the imagination of capital is constantly deepening, and the second phalanx of the shoemaking industry chain begins to debut. As an enterprise supplying sole to Anta and XTEP, the Limited by Share Ltd of Thailand footwear (hereinafter referred to as Thailand footwear industry) was applied for approval in October 22nd IPO. Its sponsor is Huatai United Securities.

But how long can it last? Tai Ya shoes need to deal with decentralized markets, rising labor costs, rising oil prices and poor parent companies.

How much space does it depend on the big tree?

The main business of Thailand footwear industry is the research, production and sales of sports shoes soles. Before it appeared before the public, they all wore the label of "Anta sole supplier".

In 2009, the top five customers of the Thai footwear industry were all domestic brand sports shoes enterprises in Quanzhou, including Anta, XTEP, 31st degree, Hongxing Erke and del Hui, accounting for 62.38% of the total sales revenue of the company.

At present, Thailand footwear is the largest sole supplier of Anta and XTEP. It is also the sole supplier of the top five, 31st degree, Hongxing Erke and del Hui. At the same time, the Thai shoe industry has repeatedly said it is "the largest sole manufacturer in Quanzhou."

According to statistics, in 2007, the market sales of Tai Ya shoes ranked second in the sports shoes enterprises in Quanzhou, and 2008 in 2009. However, for the market share, the footwear industry chose to avoid talking about it. Correspondingly, there are about more than 1000 enterprises in the sports shoes soles industry, and the market concentration is not high enough. It is only in the largest footwear industry in Quanzhou that gold content remains to be seen.

Anta's annual report shows that in 2009, the largest supplier of Anta accounted for 6.4% of its total purchases, while the former five suppliers purchased 25%. In 2008, the largest supplier accounted for 6.1%, while the former five suppliers accounted for 26.7%. That is to say, the shoe sole provided by the Thai shoe industry does not exceed 6.4% of the purchase amount of Anta. The Thai shoe industry also acknowledges that there are no more than 10 fixed shoe soles for general sports shoes manufacturers.

It can be seen that Anta's procurement is relatively decentralized. In the banquet of Anta, the shoe industry of Tai Ya is just a dish. Although Anta is the sole supplier of shoes, the footwear industry is not the only one, and there is no evidence that it has a significant gap from other suppliers.

Anta's 2010 China Daily also showed that the percentage of its outsourcing production in sales costs has dropped from 64.3% in the same period in 2009 to 58.8% in 2010. Meanwhile, Anta said it also owns a sole factory in Fujian. The Thai shoe industry also said: "at present, the company is committed to serving the brand sports shoes enterprises in Quanzhou, and has no competition in other parts of the country. {page_break}

Cost: affected by fluctuations in oil prices, manpower costs are mines.

At present, the main business models of sports shoes soles industry in China are divided into two types: OEM and ODM. The Thai shoe industry is entirely ODM mode. ODM mode requires manufacturers to have independent research and development capabilities, and the added value of products is relatively high. Enterprises adopting ODM mode can get relatively large profits.

The footwear industry of Tai Ya said that it has many competitive technologies. However, the reporter found that only 5 practical models of the patent displayed in the prospectus were patent owned by the Thai footwear industry. The other 10 kinds of invention, 2 utility models and 5 designs were all "accepted" and the date of application was the earliest in April 14, 2009.

A lawyer engaged in listing consultancy said that this may be a processing skill. Many companies would choose to apply for patent before listing, beautify the prospectus, how many patents actually have core competitiveness, and even how many patents will eventually be obtained.

The production process of sports shoes soles is longer, and the equipment and manual distribution in its published production process show that in a set of 29 processes, there are 28 manual processes and 1232 people are needed.

A Shanghai brokerage analyst said, "now the country is promoting the upgrading of the industrial structure, labor intensive enterprises in China has already had to change, after China's labor costs can not be as cheap as before, the factory to Southeast Asia other low labor force transfer is an inevitable trend."

Another factor that affects the cost of the footwear industry is oil. The upper reaches of Thailand footwear industry are plastics, rubber and other chemical industries, which are closely related to crude oil prices. Crude oil prices gradually strengthened after the two quarter of 2009, and the cost of raw materials in Tai Ya footwear industry increased.

Shareholders' deficit is only $1000 in net assets.

Thailand footwear industry has three legal person shareholders, including the actual controller Lin Xiangwei, Wang Yane and his wife holding 100% of Tai Ya international, as well as Tai Ya investment and Guangzhou Tianfu.

However, when the footwear industry of Tai Ya rose to life, shareholders fell down collectively. As of June 30, 2010, the net assets of Tai Ya were only HK $9600.30, net profit was 0.3 yuan, and Thailand invested 20 thousand and 300 yuan in the same period, and Guangzhou Tianfu lost 90 thousand and 300 yuan in the first half of 2010. Among them, Guangzhou Tianfu was an external investor who increased capital and shares in November 2009. At the time of capital increase, the net assets of Tai Ya shoes were 1.4 yuan per share, and Guangzhou Tianfu shares were priced at only 2 yuan per share.

Tai Ya shoe predecessor, Tai Ya limited, was set up in 2000 by Hongkong Tai ya, with a registered capital of HK $10 million 500 thousand, but there was a delayed capital contribution, and the equipment invested HK $8 million.

Coincidentally, Jinjiang Tai ya, a subsidiary of Tai Ya shoe holding company, also had overdue investment when it increased its capital in 2000. The actual controller of Jinjiang's Tai Ya was also a member of Lin's family. The 15 million yuan contribution of Fujian Taifeng, a subsidiary of Taya Footwear Company, was also completed in 2004 when it was approved by the government department. There was overdue investment. Taifeng, Fujian, was also under the control of the Lin family. Fujian Taifeng's contribution was delayed until 2010.

It is worth noting that during the reporting period, Lin family occupied the funds of Tai Ya shoe industry, and the amount of money was frequent. In 2007, Lin family and related parties occupied 77 million 521 thousand and 500 yuan in the footwear industry and 59 million 94 thousand and 300 yuan at the end of 2008.

It was not until 2009 that these funds returned. The interpretation of Thailand shoe industry is that borrowing large amounts of money from natural persons to participate in real estate development. In addition, some of the loan funds are also used for Lin Xiang Jia and other related natural persons to purchase personal property and lend to others.