Magellan Bought Congers To Enter The Domestic Market

Out of a pessimistic outlook on the footwear export market, China Shoes Holdings, China's Shoes Holdings, intends to reopen its domestic market, so the July 2007 Chinese company listed on OTCBB in the US recently attracted frequent investments. Recently, the Magellan Fund, headquartered in Delaware, USA, plans to invest $2 million in China footwear holding company. Magellan will be purchased on the day of approval, based on the 8% off share price of the company's average stock price in the first two weeks of trading. The company's current total share capital is more than 100 million shares. When Magellan signed a stock purchase agreement with the company, the company's share price was $0.10 per share. After the completion of the investment, Gu Xianzhong, the founder of China footwear holding company, is still the main shareholder of the company. In addition, a company listed on the US main board also invested in the company in January. In a recent interview with "First Financial Daily" in Shanghai, Gu Xianzhong revealed that in addition to the above financing events, the company is currently negotiating with other venture capital projects to attract investment, and the focus of the company will shift to the domestic market in the future. He said that the key to attracting venture capital is the export of foundry production lines and its OTCBB listed shell resources for many years. "Last year, I bought the shell company at the cost of hundreds of thousands of yuan, and when the domestic sales reach a certain goal, I plan to push it to the main board in the future." What the Chinese shoe holding company hopes highly is their international brand of women's shoes, Kang Jess, which was bought last year. Gu Xianzhong revealed that they plan to open Congers's chain store to 100 stores this year, and continue to accelerate their sales next year. Congers belongs to the middle and high class women's shoes. In addition, they have also registered a mid-range shoe brand, and plan to go to the market later. And Kang Jie Si in China's first flagship store will appear in Xujiahui east commercial building. The Congers plan was mainly developed by direct camp in the early stage, and then opened later. At the same time, China footwear Holdings Limited has launched an online shoe city. This will be the shoe shopping network launched by second shoe manufacturers after Daphne. "The export market is hard to do," Gu Xianzhong sighed. About more than 10 years ago, with the help of his friends, Gu Xianzhong set up the shoe export foundry factory. Although he had done many OEM for many foreign brands, he had no time to take account of the domestic market. "This is a completely different way of thinking." Gu Xianzhong said he will start learning again. The Magellan Fund is an international private equity investment fund. The strategy of the fund is to invest in mature private or small businesses and develop them into successful listed companies. Magellan usually holds a portfolio company for three to five years and achieves investment goals. This investment is the first time that Magellan Fund has invested in Asian companies. In 2007, China made more than 10 billion pairs of shoes, accounting for 60% of the total world's footwear, the largest shoemaking base in the world, and the largest footwear exporter in the world, accounting for more than 53% of the world's total footwear exports. Since this year, the news of the failure of foreign trade shoe enterprises is no longer news because of the rising exchange rate and rising labor costs. The industry believes that the transformation of Chinese shoe holding companies is no accident, but they are also faced with the challenges of opening up new battlefields. Of course, the favorable factors that encourage them to turn are not, for example, China is also the second footwear consumer market in the world, accounting for about 22% of the total consumption of the world.