The mainland Securities Regulatory Commission will examine Zhejiang today (23).

From the chairman of the AOKANG group, the Wang Zhentao family holds a total of 88.62% of the AOKANG footwear industry. If the first application is approved, the Wang Zhentao family will be priced at RMB 8 billion yuan (NT $38 billion 130 million).

Last year, Wang Zhentao led a senior cadre of AOKANG, who once visited low-grade leather shoes headquarters on the road in Songjiang, Taipei. The AOKANG group's public relations later confirmed the news.

According to the key findings of the consumer goods market released by China industry and business information publishing center (CIIIC), AOKANG is in the 2010 year.

AOKANG sells shoes ranging from 200 yuan to 3000 yuan (NT $955 to $14 thousand and 337).

According to the data, AOKANG is the second brand of leather shoes for the mainland, which is second only to the "San Da". In the first half of this year, the total output of AOKANG shoes was 9 million 8 thousand and 500 pairs of shoes. Last year it produced 16 million 731 thousand and 800 pairs of shoes. Last year, the company's revenue reached RMB 2 billion 211 million yuan (NT $10 billion 550 million).

As of June 30, 2011, there were 4075 sales outlets for AOKANG footwear across the mainland, including 3650 outlets and 425 direct outlets.

There are only a few listed companies in the shoe industry. If the AOKANG shoe industry can be successfully approved by the SFC, there will be a listed company specializing in men's shoes in the A share market.

Zhang Bin, an analyst with mainland securities, thinks AOKANG shoes is the main product of men's shoes. Its net profit is RMB 215 million yuan in the first half of 2011. As the second half of the shoemaking business will be better than the first half, AOKANG will achieve a net profit of 323 million yuan (NT $1 billion 543 million) in the second half of 2011 by 4:6.

However, the AOKANG prospectus shows that the gross profit margin is only below 30% in 2008-2010 years, but last year, including BELLE international and Daphne international, the gross margin reached 60%, which was almost twice as high as that of AOKANG.

AOKANG said that the company's sales channels are mainly distributors, and some profits need to be sold to dealers, so the gross profit margin is low.

And the listed companies in the same industry mostly use direct camp mode, and the gross profit rate is higher.

According to the AOKANG footwear prospectus, AOKANG's largest shareholder AOKANG group is mainly engaged in investment management business, and the management of real estate, biopharmaceutical and other subsidiaries.