Zhejiang Aokang Plans IPO In Shanghai

Zhejiang-based Chinese shoe maker Aokang has announced plans to launch an initial public offering in Shanghai and issue 81 million shares in the Shanghai Stock Exchange.

According to the IPO prospectus of Aokang, the company was founded on November 12, 2001, with registered capital of CNY70 million. It focuses on the development, manufacturing, distribution, and retailing of shoes and leather products. It also engaged in other fields like commercial real estate and biological products.

Aokang plans to invest the financed capital in three projects, including a marketing network construction project, an information system construction project, and a development center renovation project. Of those areas, 85% of the financed capital will be invested in the marketing network construction project.

By June 30, 2011, Aokang had 4,075 sales sites in China, including 425 self-owned stores. During the first year of its marketing network construction project, the company plans to open 139 stores and another 209 stores will be opened during the following year.

The prospectus revealed Aokang's operating status since 2008. It said that by the end of 2008, Aokang's operating revenue was CNY1.079 billion; in 2009, its operating revenue was CNY1.667 billion; and in 2010, the revenue reached CNY2.211 billion. In addition, from January to June 2011, the company realized operating revenue of CNY1.329 billion.

For net profit, the company gained CNY43 million, CNY200 million, and CNY280 million in 2008, 2009, and 2010, respectively. Its net profit during the first six months of 2011 was CNY216 million.