AOKANG Shoe Industry Listed Three Suspected &Nbsp; Direct Business Is Still Running Poorly.

In the context of the high price of leather, the cost of leather is decreasing year by year. Direct shop Under the condition of poor management, it also plans to expand the "high yield" of straight battalion and self produced leather shoes, but the output remains unchanged for several years. There will be "three big doubts" in AOKANG footwear industry.

Lower and lower cost of leather

Since 2008, leather shoes as the upper reaches of AOKANG shoes cost. Prospectus The manual shows a strange decline year by year. situation 。

The prospectus shows that the average cost of AOKANG leather is 13.36 yuan / square foot, 13.80 yuan / square foot, 13.67 yuan / square foot, 14.44 yuan / square foot in 2011 1~6, 2010, 2009 and 2008 respectively.

Reporters in Haining, Zhejiang, China's leather industry, learned that the main raw materials needed by the leather industry this year rose from a square foot of 10 yuan last year to 15~16 yuan this year, and some of the sheepskin prices rose to around 28 yuan per square foot. Doubling 。

On the leather market, 00496.HK, a listed company in Hongkong, said in its earnings report that the price of cowhide climbed to a historical high level at the end of 2010. Influenced by the high price of leather, Carson international furniture leather and other manufacturing businesses earned only 738 million 600 thousand yuan in the first half of this year, a decrease of 19.1% compared with the same period last year. This part of the business lost 14 million 200 thousand yuan, compared with a profit of 85 million 100 thousand yuan in the same period last year.

It is doubtful how AOKANG shoe industry will keep raw leather prices unchanged or even lower in the last 4 years or so.

Limited business capacity?

The prospectus shows that if successful listing, AOKANG shoe industry will invest in the main part of the fund-raising fund for the construction of Direct stores, and the capacity utilization rate of the listed companies will be 83.47%, 83.55%, 75.77% and 84.40% respectively in the first three years. The company will open 348 outlets in the one or two and three tier cities in the future, with a total investment of 876 million yuan.

However, judging from past performance, AOKANG shoes industry is not strong enough to control direct stores, so that the company's revenues are increasingly relying on distributors. channel 。

The data show that the revenue contributed by the distributor to AOKANG shoe industry is on a rising trend. The proportion of distributors in the three years of the above 66.88% years is 66.88%, 65.85%, 58.33% and 36.85%, respectively. As a result, the proportion of direct channel revenue of AOKANG footwear industry is 21.44%, 20.17%, 21.75%, 28.67%.

Now that the past 4 years have proved that dealer channels are more conducive to performance support, how will AOKANG shoes industry guarantee the performance of Direct stores in the future?

Why did leather shoes remain unchanged for several years?

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.

The unit cost of self-produced products in the first three years is 82.07 yuan / 85.72, 85.72 yuan / double, 89.04 yuan / double and 92.48 yuan / double, respectively. The unit cost of self-produced products is on the decline. The main reason is that the company's production scale continues to expand, making the single cost of the company's own products decreasing. Over the same period, the unit cost of outsourced products is 101.11 yuan / double, 93.28 yuan / double, 102.26 yuan / double and 137.52 yuan / double respectively.

Therefore, the gross profit margin of self produced products in the first three years is 40.14%, 37.47%, 33.17% and 25.50% respectively, while the gross margin of outsourced products is 33.34%, 28.47%, 24.47% and 23.36% respectively.

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 84.40% in three years, and has never been saturated.