The Fall Track Of Former Footwear Giant

The establishment, merger and bankruptcy of an enterprise is a normal phenomenon of market competition.

But the Hong Kong and Taiwan group, which once represented the foundry industry, has become the history, but it has caused many complaints in the industry.

Analyzing the trajectory and details of Hong Kong and Taiwan group may bring more inspiration and thinking to the industry.

Glorious period

The founder of RTHK group is Deng Jianqun, a businessman in Hongkong. He is known as "Dr. shoe king".

As a famous sports brand foundry enterprise, the workforce has exceeded 20 thousand employees in its prime stage.

Beginning in 1982, Deng Jianqun officially opened a shoe processing plant in the mainland, and in 1987 joined the Taiwanese businessmen to set up factories in the mainland, mainly producing.

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In 1990, Deng Jianqun set up a "Hong Kong and Taiwan shoe city" in Longgang District of Shenzhen.

Since then, the RTHK group has been ready to go public and successfully listed on the HKEx in 1992. Deng Jianqun is the chairman of the group.

This reporter learned from the news disclosed by the RTHK group that the Hong Kong and Taiwan group has 25000 employees and a turnover of over HK $2 billion during the peak period of development.

More than 25 million pairs, the result is arrogant.

It is understood that the Hong Kong and Taiwan group has exported more than 60 million pairs of footwear products to all countries in 1995.

Besides the famous brand Reebok, LA Gear, Avia, Adidas, and middle and low grade non sports shoes, Deng Jianqun's reputation as "shoe king" spread like wildfire.

During the glorious period, the Hong Kong and Taiwan group set up 6 factories in the mainland, with 3 in Shenzhen and Dongguan.

Among them, 3 factories in Dongguan are known as Tangxia Hongye shoemaking Co., Hongfa shoe material Co., Ltd., Yong Rong rubber factory.

Before 2007, the RTHK group maintained a good momentum of development, and its industrial layout expanded again and again.

According to its annual report, in 2007, the Hong Kong and Taiwan Group's turnover amounted to US $102 million, and the profit attributable to shareholders increased by 36% to US $7 million 600 thousand over the previous fiscal year. The group also expressed satisfaction with this result.

Declining trajectory

In 2008, when the global financial crisis struck, the RTHK group also suffered a serious impact and its performance began to decline gradually.

In the year, besides the sharp decline in foreign trade orders, the employees of RTHK group began to lay off a large number of workers.

Similarly, in 2008, the Shenzhen port group decided to pfer the capacity of Shenzhen production base to Dongguan under the influence of the construction of the subway.

Previously, the Hongkong and Taiwan footwear industry in Shenzhen has always been the base of the Hong Kong and Taiwan group in the mainland.

In fiscal year 2007, the production capacity of Hong Kong and Taiwan Shoes accounted for about half of the RTHK group, but in the 2008 fiscal year, the RTHK group lost 4 million 100 thousand US dollars.

In 2009, the performance of RTHK group is also not optimistic.

The cost of manpower has risen and RMB appreciated. The RTHK group has not reached an agreement with foreign customers. The Hongkong and Taiwan group has announced that it will no longer manufacture the original equipment for the main customers who account for 60% of the group's turnover.

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The Hongkong and Taiwan group has stopped working with Reebok, a 20 year old customer.

The RTHK group finally decided that "as the turnover of the group will fall sharply in the coming year due to the reduction of the largest customer orders, the directors of the group decided to accelerate the pace of restructuring and suspend all production operations of the group in Shenzhen and the production business of the two Dongguan plant."

After the closure of its 5 factories, the Hongkong and Taiwan Group's factories in the mainland only have one of the Yong Rong rubber factory.

Now, from this graduation storm, we can see that this enterprise is also in a precarious situation.

Farewell to Dongguan

After the closure of 5 factories in the mainland, the Hong Kong and Taiwan group hopes to get out of the difficulty.

In the 2010 annual report, the RTHK group described that "Hong Kong and Taiwan should break through this dilemma, or pfer the industrial base to countries with lower cost of production factors, such as India or Bangladesh, or to reintegrate and break away from the role of" export processing plants "and comprehensively enhance their position in the industrial chain and value chain.

With the worsening external economic environment, the efforts of the Hong Kong and Taiwan group have not been successful.

In the fiscal year ended March 2011, the Hong Kong and Taiwan Group's turnover was $29 million 99 thousand, an annual growth of 60.9%, but a net profit of $797 thousand was recorded, with a 65.3% regression.

A shoe manufacturer in Dongguan thinks that the gradual decline of Hong Kong and Taiwan group has a sample significance in the footwear industry.

After the financial crisis, it began to decline from the height of its prosperity. It was the result of the stimulation of the external economic environment and the failure of its own pformation and upgrading.

In April this year, the Hong Kong and Taiwan Group announced that the company was renamed Asia safe.

Asia's main business is changing after the Hong Kong and Taiwan group is backdoor.

Earlier this month, Asia announced that it was consulting with the independent third parties to acquire a majority stake in a logistics company in Indonesia.

Mr. Wang worked in Yung Rong rubber factory for 5 years. Although Anning Asia decided to continue the operation of Yung Wing Factory and signed a labor contract with its employees in July 31st, Mr. Wang decided to leave.

According to the agreement, he will receive 5 months' compensation in 5 years' working age. "I am going back to my hometown and working at home."

Mr. Wang said.

There are nearly 100 workers who have similar plans with Mr. Wang. They will also be leaving. Although they do not know the next step of the plan, they know that the Hong Kong and Taiwan group has become a history in Dongguan.