Chinese Shoe Enterprises: 2008 Top Three Hot Spots

In 2006, China's shoe makers broke through 10 billion pairs of annual output, accounting for nearly 70% of world output.

Last year, a total of 14 billion 800 million pairs of shoes were produced in the world, and 13 billion 500 million pairs were produced in Asia. Most of them came from China, while in Dongguan, Guangdong, the total number of shoes purchased in the Pearl River Delta accounted for 60% of the world's total.

Indeed, in recent years, China's footwear industry has developed rapidly. China has become the largest footwear manufacturing base and footwear exporter in the world.

Experts are optimistic about China's footwear market in the future: by 2010, the output of footwear industry will exceed 15 billion.

Asia has become the world's footwear manufacturing center, and its share of world output is increasing.

China accounts for 75.1% of the total output of about 11000000000 of Asia.

However, even with such an important production position and broad market, there are few listed footwear companies. It seems that only the "Daphne international" listed on the Hongkong stock exchange and the "Hong Guo international" listed in Singapore are listed on the list.

The double star, famous for its footwear industry, also focused on tire manufacturing.

As a typical labor-intensive industry, footwear manufacturing has been neglected by the capital.

In 2007, however, everything seemed to change.

The power of example is endless.

When 1880.HK, a mainland private enterprise with women's shoes brand as its main business, sold more than 500 times the oversubscription in the Hongkong capital market in May this year, when the price earnings ratio reached 30 times, the frozen capital was as high as HK $438 billion. In one fell swoop, it won the throne of "frozen capital king" in Hongkong stock market. The price earnings ratio of many IPO is as high as 30 times, 50 times or even two hundred or three hundred times. No matter how high the price of the stock is and how much the price of the stock is still high, it is still popular with the investors. Those enterprises who either had no intention or waited or waited for landing in the capital market could no longer hold the impulse of IPO for IPO.

In March of this year, Anta submitted a listing application to the HKEx, which was listed on July 10th and raised about HK $3 billion 500 million.

In July this year, Ding Zhizhong and his father-in-law and father-in-law, a sports apparel brand Anta group, was listed in Hongkong. The public offering was partially oversubscribed by 183 times, and the international placement was also 135 times oversubscribed.

In Hurun's "mainland China rich list" for the first time in 2007, the Ding Zhizhong family ranked second in the clothing industry with 14 billion 500 million yuan of wealth, second only to Boston's Gao Dekang.

It can be said that in this round of IPO banquet, every active participant did not return empty handed.

The new company law promulgated in 2006 and the securities law eliminated many restrictions for the development and innovation of the capital market: the abolition of the requirements for the establishment, merger and division of a joint stock company, and the time limit for the restructuring of enterprises, while the mandatory provisions of two times the amount of net assets and no more than 20 times the price earnings ratio were abolished at the same time.

In December 2006, Lv Yongbo held a meeting at the Shenzhen Stock Exchange. One of the most important contents of the conference was to achieve "zero home waiting, 100 day listing". In fact, the most successful one was listed on the 72 day.

And it can be listed as long as the capital stock reaches 100 million yuan and the accumulated profit in 3 years reaches 30 million yuan.

After the introduction of this policy, the advantages of high price earnings ratio, low financial rates and convenient communication began to appear.

Before 2007, the theme of listing was mostly "whether to go public" or "what advantages would be listed". In 2007, how to list and how to go public has become a hot topic of corporate listing. Business owners are seriously studying the rates of major securities markets, and carefully estimating the cost of listing and the wealth effect it brings.

"In a word, innovation requires cost, and the risk of innovation is also great."

Qian Jinbo, chairman of Red Dragonfly Group, said.

In July this year, he just invested 200 million yuan to build sports leather shoes base, and this is only the initial investment. In order to create the concept of sports shoes, he signed a contract with Ace, a famous international sports shoe technology R & D enterprise, and plans to increase R & D investment from the present 1% to 4%~5% in the next few years.

Plus the cost of design, the cost of a pair of shoes is several times higher than its manufacturing cost.

In October, the Red Dragonfly stock company was listed, and their listing work was also in full swing.

Wang Zhentao, chairman of AOKANG group, said: "in the past few years, the unstable and unregulated domestic stock market is a reason why Wenzhou enterprises do not want to go public. More importantly, the concept of Wenzhou entrepreneurs has not changed, especially in private enterprises. They fear that the enterprises that they are working hard to build will become public, and the brand is not their own.

The management of private enterprises is not very standard at present, which requires a process.

Wenzhou private enterprises, who have been immersed in the industry and never look up to the stock market, are brewing a tide of listing.

According to incomplete statistics, there are more than 50 listed companies.

Among them, there were 7 enterprises to report materials in 2008, 14 enterprises planned to go public in 2009, and 29 enterprises planned to go public in 2010.

AOKANG chairman said AOKANG will be listed in two years.

In addition, Kangnai, red dragonfly, XTEP, del Hui and so on all hope to be listed, and achieve faster upgrading through capital.

In December 15th, the highest price of Yong en international was 5.79 yuan, the highest price of Anta sports was 9.6 yuan, and the highest price of BELLE international was 10.7 yuan.

Xie Rongfang, President of Wenzhou Leather Industry Association, once said that after listing, it can attract more talents to join, control more resources, manage more standardized, and become a public enterprise. This will be the process of Chinese shoe enterprises' Phoenix.

Chen Jiyi, director of the listing Office of Wenzhou listed company, said: "listing is not for the purpose of" collecting money ". Many private enterprises gradually realize that the most effective way to gather many resources is capital operation.

It seems to be the best choice for footwear manufacturers to seize the current opportunity to go public.

An industry executive said that if the mainland private shoe-making enterprises want to achieve sustainable development, they should learn from BELLE's thinking, get sufficient cash flow through capital operation, and expand their market share through mergers and acquisitions.

The new macro situation is both a pressure and a driving force. It is both a challenge and an opportunity.

29 listed companies in Quanzhou are shining in the capital market at home and abroad.

Li Chunxing, chairman of Feng Zhu group, Lin Fuchun, chairman of Guan Fu Group, and a number of entrepreneurs who have already tasted sweetness from the listing think that in the face of the tide of listing, a good company should have one family.

Land, real estate license and so on are listed companies often encounter problems. The government should give more help to enterprises in opening up green channels and simplifying procedures.

In the listed Reserve Corps, XTEP, nine Mu Wang, eight horse tea industry, Longsheng light industry, Hongfa stone, Jomoo group, Heng Quan biology and other business owners suggested that under the influence of tight money, the government should increase support for small and medium-sized enterprises, introduce financing policies, and guide strong brands and potential enterprises to go public.

Shoe enterprises go all out to melt into the new labor law.

At the end of 2007, the labor relations in Dongguan, the world's shoe capital, were not calm.

Unlike previous years, the labor contract law will be implemented in January 1st next year. This labor and capital game has reached a new critical point: the buffer period before the implementation of the new law has given enterprises great opportunity to adjust and avoid opportunities, while the long and weak workers feel the sunshine of the new law and increasingly demand the price from the enterprises.

For a time, the contradiction between labour and capital in Dongguan came one after another.

With the approaching date of the implementation of the labor contract law, similar incidents are coming.

One of the commonalities of such events is that, like the conflict in Qingxi Town, factories have never signed contracts with employees before. In response to the implementation of the labor contract law, enterprises intend to sign labor contracts with employees for the first time, resulting in the loss of employees without collective contracts before signing contracts.

For example, workers are required to pay the economic compensation and the difference in overtime pay after one time, so they are willing to sign a labor contract with the enterprise, thus intensifying the relationship between the two sides.

"Three feet of ice" is not a cold day.

The labor contract law is like a sunshine, making workers more eager to get rid of the unequal status quo.

One legal profession said.

He said that the most obvious long-term weakness is reflected in the wages of workers.

In the past 10 years, the wage increase of workers has been almost negligible compared with the increase in prices.

But on the side of business owners, they can not be so generous.

Bai Zaijun, chairman of Houjie Songjiang shoe material factory, was very surprised. His daily labor contract law, which he had never forgotten, knew little about his friends in the circle.

"I asked 10, at least 9 did not know.

Some townsman said he didn't know this information at all.

"Let your boss learn the labor contract law. If your boss doesn't give enough attention, your company will be in danger.

For the implementation of the new law, do not always think about how to avoid the loopholes, and the most important thing is to obey it.

In the recent lectures on the labor contract law, almost every lawyer expert who speaks will warn the business people here, but the boss of some small and medium-sized enterprises still shows indifference to the implementation of the new law.

"These factories that think that there are policies and Countermeasures" may be the potential focus of the future labor conflicts.

A legal profession said that the long and weak workers may be encouraged by the labor contract law to launch a strong offensive against these enterprises.

In the balance of labor relations in the coming year, how to protect the interests of workers and the supervision of local governments will play a decisive role in the government's ability.

How to make the labor law take root in shoe enterprises and how to make shoes enterprises survive in the labor law? This should be the top priority for Chinese shoe enterprises in 2008.

The voice of the new labor law concerns the owners: how much money can they earn after the implementation of the new law?

Nancheng one leather factory owner told reporters that anti dumping and lack of work are all shoemaking on the footwear industry, and some processing plants even have only 5 profit points.

If we raise labor costs again, many enterprises will not be able to sustain them.

"After the implementation of the new law, the cost of employing enterprises will increase, estimated to increase by more than 8%, and the illegal costs of enterprises will be greatly increased."

In November 28th, in a lecture on the labor contract law held in Guancheng District, Chen Yongzhong, a lawyer in charge of law in Guangdong, told a series of data that made them jumpy with more than 200 business owners.

What workers care about is "first make up the previous overtime pay, then talk about the contract."

For the factory to sign the contract news, Dongguan Huang Jiang Town, a hardware factory staff to show their attitude to reporters.

The industry pointed out that the hardworking attitude of workers has accumulated over a long period of time.

Due to the weakness of the laborers in the previous labour dispute, there was a sense of distrust in the factory.

On the one hand, this distrust comes from distrust of the contracts provided by the management, and believes that there may be some potential pitfalls. On the other hand, mistrust stems from their habitual thinking: once the enterprises have signed labor contracts with them, they will write off the arrears of overtime pay.

The third voice: in the chaos of labor disputes at the end of the year, the potential troubles are coexisting with the formation of the new order.