- Business
- Zhejiang Aokang Shoes Co Ltd (603001:SHH) manufactures, sells, retails and distributes footwear and leather goods principally in China; its core products include business formal shoes, business casual shoes and other footwear categories as well as complementary leather accessories, bags, hats, clothes and shoemaking materials offered under the Aokang, Kanglong and Red Firebird brands, with additional distribution of Skechers and Puma branded products. The company sells through shopping centers, malls, specialty stores and online channels including Taobao, Tmall, JD.com, Vipshop, Pinduoduo, WeChat mini-programs and live streaming platforms such as Taobao Live, Douyin Live and Kuaishou Live; it serves domestic and overseas markets from its headquarters in Aokang Industrial Park, Oubei Town, Yongjia County, Wenzhou, Zhejiang province, China, where it was founded in 1988. In December 2024, the company announced plans to acquire equity in United Storage Technology (Jiangsu) Co Ltd, a supplier of storage chips and solutions including embedded PPI Nand, SPI Nand, DRAM, LPDDR and MCP products for applications in Internet communications, smart homes, set-top boxes, POS systems, robotics, security, wearables, industrial controls, medical devices and IoT, via share issuance and/or cash payment under a framework agreement with counterparties including Gao Wei and related partnerships, prompting a trading suspension not exceeding 10 days; this cross-industry move follows delisting from other risk warnings after exiting losses in Q1 2024, despite renewed net losses of CNY136 million in the first nine months of 2024 on CNY1.89 billion revenue. The company employs over 6,200 people and reported trailing twelve-month revenue of CNY2.13 billion with a net loss of CNY289 million as of late 2024. Concurrently in December 2024, Chairman Wang Zhentao resigned from board leadership roles and President Wang Jinquan resigned as director and executive due to work reasons amid prior regulatory scrutiny over non-disclosed related-party fund appropriations and internal controls in 2021-2023 reports.