AOKANG'S Shanghai Stock Market Successfully Entered &Nbsp, But Fell Into The Vortex Of Trust.

AOKANG

Chairman Wang Zhentao

Claiming to be the first stock of men's shoes in China

Although the AOKANG shoe industry in Wenzhou has made a breakthrough, the Zhejiang shoe making enterprise, known as the first shoe of China's men's shoes, has been strongly questioned by the media. There are various doubts about its prospectus, which include the following questions: gross margin is lower than the average level of the industry, and the qualification of high-tech enterprises is doubtful.

AOKANG has to face a serious crisis of confidence.

According to the prospectus, AOKANG shoes industry was founded in November 12, 2001, with a registered capital of 70 million yuan. It is a research and development, production, distribution and retail business of leather shoes and leather products, and has been involved in commercial real estate, biological products and other fields. The price of leather shoes sold ranges from 200~ 3000 yuan.

In 2010, "AOKANG" is the only second brand of leather shoes in the world, which is only inferior to "San Da". Its market share is 5.7%.

However, as the leading industry, AOKANG's gross profit margin is very low.

In 2008~2010, the gross profit margin of AOKANG shares was only below 30%, while last year, the other companies including BELLE international, Daphne international and surplus group made gross profit margin of about 60%, almost double the AOKANG shares.

AOKANG shares said that the company's sales channels are mainly dealers, and some profits need to be sold to dealers, so the gross profit margin is low.

And the same industry listed companies mostly use direct mode, so the gross profit rate is higher.

Insiders said that the reply of AOKANG shares was not satisfactory. The average profit of women shoes on another domestic footwear industry listed company reached 45%, which was half of that of AOKANG shares.

AOKANG shoe industry, which has such low gross margin, is still a "high-tech enterprise" and enjoys a preferential tax rate of 15% of high-tech enterprises.

Some media questioned that according to the provisions on the management of new and high technology enterprises, the high and new technology enterprises must satisfy six conditions at the same time.

The products (services) of high and new enterprises belong to the scope specified in the new and high technology field supported by the state.

The key areas supported by the state are divided into eight categories: electronic information technology, biological and new medicine technology, aerospace technology, new material technology, high tech service industry, new energy and energy saving technology, resources and environmental technology, and high and new technology pformation of traditional industries.

But compared with these regulations, AOKANG shoe industry does not have a link with leather shoes and leather products that AOKANG shares are engaged in.

In addition to the requirements for technology input and employment, hi-tech enterprises must also possess a certain number of R & D personnel with a certain academic level.

According to the third provision of the administrative measures, technical personnel with a college degree or above should account for more than 30% of the total number of employees in the enterprise, and the R & D personnel should account for more than 10% of the total number of employees in that year.

The R & D personnel of AOKANG shoes brand account for only 3.21% of the total number of companies.

In addition, AOKANG shares prospectus stated that in the first half of 2008~2011, R & D expenses accounted for 0.16%, 0.79%, 1.05% and 0.88% respectively.

Since the operating income of AOKANG shares has exceeded 1 billion yuan since 2008, the proportion of R & D expenses should be no less than 3% according to the recognition rules of high-tech enterprises. Obviously, the company is not in conformity with the above provisions.

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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, and the Yongjia Ruifeng microfinance Limited by Share Ltd (small loan company).

In 2010, the company that realized the highest net profit was AOKANG group. Its main business was investment, creating a net profit of 104 million yuan; however, it lost 7 million yuan in the first half of 2011, while the small loan company whose net profit was only 16 million yuan in 2010 has achieved net profit of 14 million yuan in the first half of 2011, becoming the most profitable company of Wang Zhentao, whose registered capital is 200 million yuan.

AOKANG shoes industry is very popular in the prospectus for its own leather shoes, and thinks that it contributes a lot to the profitability of the company.

But in the past 4 years, the number of AOKANG's own leather shoes has basically remained unchanged. The annual output of AOKANG shoe industry is 7 million 489 thousand and 500 pairs, 6 million 894 thousand and 800 pairs and 7 million 813 thousand and 100 pairs in 2008~2010, and has never been over 8 million pairs. The utilization rate of its own capacity is 83.47%, 83.55%, 75.77% and 84.4% in three years, and has never been saturated.

However, poor operating ability did not affect AOKANG's big shareholder family.

Judging from the number and operation of the AOKANG shoe industry, the issue price is expected to exceed 25 yuan / share, and the Wang Zhentao family will be 8 billion yuan.

This is the test Wang Zhentao is facing.