AOKANG: Not Listed Now, Waiting For Death.

　　 Recently, I received the end of the month. LV group Invitation from France's head office for dinner, let Zhejiang AOKANG shoe industry Wang Zhentao, chairman of Limited by Share Ltd, was very happy. This meal may make AOKANG a LV leather partner in China.

However, in the face of reporters, let him laugh brighter is that in early November, AOKANG wholly owned subsidiary of Hong Wah Biological Products Co., Ltd. produced by the epidemic cerebrospinal fluid vaccine is coming to the market.

The Chengdu based company was founded in 2003. Silent, Wang Zhentao. Shoe boss "In the process of westward March, quietly entered the biopharmaceutical industry, after 7 years of incubation, finally began to usher in the harvest period. At the same time, the biopharmaceutical enterprise and the main industry footwear industry have begun to plan for listing. In the future, AOKANG, who is preparing to walk on the capital market with two legs, has started another gorgeous turn.

Investing hundreds of millions of drugs to find second "engines"

It is Wang Zhentao's creed to "do the shoes well".

However, the cold shoe industry started at the end of 2007, which made many Chinese shoe enterprises feel the hardship of "winter". The rising cost of raw materials, the appreciation of the renminbi, foreign anti-dumping and labor shortages all depressed many shoe companies, and a large number of small and medium-sized shoe enterprises in Dongguan and Wenzhou collapsed in China's two largest footwear industry base.

"The number of shoemaking enterprises in Wenzhou has dropped from more than 10 thousand to more than 1800, and a large part has been eliminated."

Wang Zhentao told reporters that shoemaking enterprises that had survived were beginning to find new outlets or transformation.

Unlike many shoe companies that have been forced to transform, AOKANG has started to focus on the biopharmaceutical industry very early. As early as 2003, AOKANG set up Hong Wah Biological Products Co., Ltd., located in Longquanyi District, Chengdu, Sichuan, mainly producing rabies vaccine, epidemic cerebrospinal meningitis vaccine and other products.

As a shoemaking enterprise, it suddenly entered the pharmaceutical industry without any connection. At that time, friends in the circle did not understand it, and joked that they used the same production line to make shoes in the daytime and to make medicine in the evening. In order to avoid other people's misunderstanding of making medicine and making shoes, AOKANG specializes in the name of Hong Wah, which is not related to AOKANG's name.

"Many people have asked me how a shoe maker wants to go to pharmacy, because biopharmaceuticals are the future direction of the pharmaceutical industry." Wang Zhentao said that the strategic transformation must have a span. The shoe making industry at present is labor-intensive industry. The decreasing labor force input and land cost pressure in coastal areas will be an unavoidable problem for shoemaking enterprises for a long time. After completing certain capital accumulation, we should look for opportunities in capital intensive and technology intensive industries.

"The output of a biopharmaceutical employee is equal to the output of 100 employees of a shoemaking enterprise, and the profit rate is much higher than that of the traditional footwear industry." In order to turn around, Wang Zhentao invested hundreds of millions of dollars. Specific figures, he smiled and said secrecy, but it would not be a small number. The reason why he can invest heavily and hide for 7 years is the high capital investment, high profit margin and high technology threshold of the industry.

Wang Zhentao counted the number of reporters with his fingers. This month's vaccine for epidemic meningitis is no more than three powerful competitors nationwide. The rabies vaccine in the future will also be lucrative. According to Hong Wah bio information, rabies vaccine is expected to reach 10 million people per year. The annual output of the vaccine is nearly 20 million. Once the product is profitable, Hong Wah bio will become a new engine to promote AOKANG's rapid growth.

"No listing now, just waiting for death."

As the largest private shoe company in China, AOKANG produced about 17000000 pairs of shoes last year, and the sales of individual brands have won the national championship. In Wang Zhentao's own words, "it is equivalent to making shoes for every citizen in Shanghai, which is equivalent to making pairs of shoes for every small country in Europe."

But in his view, the Wenzhou people who liked to hold together were lagging behind in the capital market. In particular, Wenzhou shoe enterprises have not yet come out of a listed company. This has also become an important reason why Wenzhou footwear industry has been catching up with Fujian footwear industry represented by a number of listed shoe companies such as Anta.

"The growth rate of AOKANG shoe industry is 20%~30% every year, but the pressure is increasing. In the past, when people thought about private capital adequacy, and thought about making products, they wanted to go public. In 2001, the company had already completed the share reform, but it was very early and late." After more than 10 years of thinking, listing has become one of Wang Zhentao's most urgent ideas.

Another important reason for AOKANG to make a decision to enter the capital market is that BELLE, a competitor with the same brand name, was successfully listed and raised about 8000000000 yuan in Hongkong in 2007. This news deeply stimulated Wang Zhentao, because it followed the BELLE group in the industry's massive acquisition integration, the pace of expansion is far more than AOKANG without capital market support.

Early in the capital market, AOKANG, who was late in the market, is on the way to the market. The main industry shoemaking enterprises are preparing to declare materials recently, and the biopharmaceutical companies that begin mass production of drugs have begun to prepare for listing.

In his view, the era of shoe integration has arrived. Only by making use of the capital operation of listed companies can enterprises grow and strengthen in order to survive in the market.

　　 "Not listing now, not raising norms is waiting for death." Wang Zhentao said many of Wenzhou's shoe makers have come to realize this. Behind AOKANG, several big Wenzhou shoe companies such as Kangnai and red dragonfly are already on the market.