Where Is The Way For AOKANG 480 Million To Invest In Lanting Pavilion?

One is China's manufacturing industry facing inventory squeeze and rising labor costs, and the other is cross-border electricity providers, one of the main directions of the current electricity supplier.

In terms of capital concept, Lanting Pavilion has been very popular in AOKANG. Why is the actual situation just the opposite? And the A share investment in the US China stock market has created a topic for China's stock market to dismantle VIE and return to A shares.

Recently, AOKANG International announced that the company was allowed to sell 24 million 550 thousand shares of Lanting Pavilion stock by way of cash in the form of a subsidiary of Hongkong. It accounted for 25.66% of the common stock issued by Lanting Pavilion and the total paction consideration was $77 million 340 thousand (about 480 million yuan).

After the completion of this pferable share, AOKANG international will become the largest shareholder of Lanting Pavilion, but it does not have the actual control power of Lanting Pavilion.

Public information shows that AOKANG group is a traditional footwear enterprise in China. It focuses on the R & D, manufacturing, distribution and retail of footwear and leather products. It was listed on the main board in April 2012. Its current market value is 22 billion 288 million yuan (about 3 billion 598 million US dollars), which is more than two times that of the stock market.

Foreign trade B2C Lanting Pavilion was listed on the NYSE in June 2013. Its current market value is US $279 million, which has shrunk by nearly two times compared with the market value.

Aside from this topic, why do Lanting Pavilion and AOKANG international choose each other?

Business needs of Lanting Pavilion

In an interview with Tencent science and technology, Guo Chi Chi, a CEO of Lanting Pavilion, said that AOKANG international investment mainly came from two factors:

1,

Apart from having their own brands, there are also many well-known brands in the world. The two sides may explore how to introduce international brands, especially European brands, into the Chinese market through reverse cross-border electricity providers.

2, AOKANG international is from

Start, the whole industry chain, B2C is only the last mile, B2C still has a lot of front, factory, design, brand, wholesale, these have not yet access to the Internet, the future can consider these front-end pactions and the Internet together.

Tiger sniffing will help you understand the essence of the two factors.

First point,

We want to introduce overseas brands through AOKANG international as a "reverse cross-border electricity supplier".

Because there is no Chinese website on the server of the Lanting Pavilion, through the domain name query, it can be found that the weight of Baidu is 3, the number of entries is only 16, while Google's PR value is 5, and the number of entries is 1 million 780 thousand.

Such a rule is in line with its foreign trade business. If we really want to do the business of sea search, it means that Lanting Pavilion has to open its Chinese station and overseas investment. It is not a cooperative brand that AOKANG can bring to solve, but also needs rich categories.

Second, in fact, the Lanting Pavilion collection will become the overseas sales channel of AOKANG international, and this is not the expansion of the existing shoe industry by AOKANG international. Instead, we need to set up the brand with the help of Lanting Pavilion's potential overseas stores and users, because the average price of AOKANG's leather shoes exports is about 20 US dollars, which is still a "low price run".

Both sides need to make improvements based on the above two points.