Aokang International's controlling shareholder cashes out nearly 400 million yuan; buyer is a PE fund founded just 13 days ago

By Zhu Yiyi, 21st Century Business Herald

Aokang International (603001.SH), the Wenzhou-based "Shoe King," recently disclosed four announcements that have thrust its controlling shareholder's equity transfer transactions into the spotlight.

According to a September 17 announcement, the company's controlling shareholder, Aokang Investment Holding Co., Ltd. ("Aokang Investment"), and its actual controller, Wang Zhentao, plan to transfer 18.0686 million shares (4.5061% of total share capital) and 10 million shares (2.4939% of total share capital), respectively, to a newly established private equity fund, Zhejiang Hangshu Technology Development Partnership (Limited Partnership) ("Hangshu Technology"). The fund was established just 13 days prior. The total consideration for the 7% stake transfer is 229.7 million yuan.

In addition to the 7% stake transfer to Hangshu Technology, Aokang Investment also plans to transfer 20.05 million shares (5.0002% of total share capital) to Chen Haifeng, a post-70s individual, for a consideration of 164 million yuan.

The combined value of the two transactions is approximately 393.7 million yuan. This means that Aokang International's actual controller, Wang Zhentao, will transfer a total of about 12% of his shares, cashing out nearly 400 million yuan.

The day after the announcement (September 18), Aokang International's shares hit the daily limit up.

Transaction Details

The two transactions are being conducted simultaneously, with a share transfer price of 8.17 yuan per share.

First Transaction:

• Aokang Investment transfers 18.0686 million shares (4.5061% of total share capital)
• Wang Zhentao personally transfers 10 million shares (2.4939% of total share capital)
• Total shares transferred to Hangshu Technology: 28.0686 million shares (7% of total share capital)
• Total consideration: 229.7 million yuan

Second Transaction:

• Aokang Investment transfers 20.05 million shares (5.0002% of total share capital) to Chen Haifeng
• Total consideration: 164 million yuan

Hangshu Technology: A Newly Established Platform

Notably, Hangshu Technology was established on September 4, just 13 days before signing the share transfer agreement with Aokang Investment and Wang Zhentao on September 17. This suggests it was created specifically for this transaction.

According to the announcement, Hangshu Technology has a registered capital of 220 million yuan and is located in Dongxin Subdistrict, Gongshu District, Hangzhou, Zhejiang Province. Its main partners include:

• Hangzhou Hanhai Xinghe Technology Co., Ltd.
• Zhejiang Provincial Economic Cooperation Group Co., Ltd.
• Hangzhou Dexin Enterprise Management Co., Ltd.
• Shanxi Xiangguan Technology Co., Ltd.

Based on information from Qichacha, the capital contribution ratios of Hangshu Technology's partners are:

• Hangzhou Dexin Enterprise Management Co., Ltd.: 46%
• Zhejiang Provincial Economic Cooperation Group Co., Ltd.: 33%
• Shanxi Xiangguan Technology Co., Ltd.: 20.5%
• Hangzhou Hanhai Xinghe Technology Co., Ltd.: 0.5%

Zhejiang Provincial Economic Cooperation Group is primarily engaged in bulk trade, import/export business, equity investment, securities investment, and asset management. It has been recognized as one of the "Top 500 Zhejiang Merchants." After equity penetration, the company is indirectly owned by Zhejiang Provincial Finance Development Group Co., Ltd., a provincial state-owned enterprise. Meanwhile, Shanxi Xiangguan Technology is backed by coal company Gujiao Changkai Coal Industry Co., Ltd.

Post-Transaction Shareholding Structure

If the share transfers are completed:

• Aokang Investment's stake in the listed company will decrease from 27.7273% to 18.2210%
• Wang Zhentao's personal stake will decrease from 15.1022% to 12.6083%
• The combined stake of Aokang Investment and Wang Zhentao will drop to 30.8293%, just above the 30% control threshold

Hangshu Technology and Chen Haifeng will hold 7% and 5.0002% of the listed company's shares, respectively, becoming among Aokang International's top ten shareholders.

Both Hangshu Technology and Chen Haifeng have stated in the announcement that their investment is for financial purposes only and they do not seek control of the company. They have committed not to increase or decrease their holdings of the subject shares for one year from the date of registration of the share transfer.

Market Reaction and Recent History

Following the disclosure of the equity transfer, Aokang International's share price hit the daily limit up on September 18, closing at 10.43 yuan per share.

Just three months earlier, in late June, the company had disclosed plans for a major asset purchase, but the deal was terminated in early July due to disagreements over certain core terms.

In a June 25 announcement, Aokang International stated it was planning a major asset purchase and applied for a trading halt starting June 25. However, on July 2, the company announced the termination of the plan, citing failure to reach agreement on key terms.

The stock price experienced significant volatility following the aborted deal. According to Wind data compiled by the 21st Century Business Herald:

• From mid-May to June 24, the stock price surged 60%, closing at 14.14 yuan on June 24
• After resuming trading on July 2, the stock price fell sharply, dropping 49% in seven trading days (July 2–10)
• After hitting a low of 5.37 yuan on July 21, the stock rebounded nearly 80% from July 21 to September 18

Financial Pressures and High Pledge Ratio

Behind the stock price fluctuations lies the high pledge ratio of Wang Zhentao's shares, highlighting his urgent need for capital.

According to the latest disclosure on June 25 regarding the release and re-pledge of shareholder shares:

• Wang Zhentao personally holds approximately 60.5567 million shares of the listed company, of which about 60 million shares are pledged (including the current pledge), representing a pledge ratio of 99.08%
• Aokang Investment and its concert party Wang Zhentao collectively hold approximately 172 million shares of the listed company, of which about 137 million shares are pledged (including the current pledge), representing a pledge ratio of 79.84%

Declining Performance

Aokang International, once known as the "first men's shoe stock" and the "Shoe King," has seen lackluster performance in recent years. From 2022 to 2025, the company's net profit attributable to shareholders and net profit excluding non-recurring items both recorded losses for four consecutive years.

In the first half of 2026, although the company achieved a net profit attributable to shareholders of 17.5743 million yuan, its core indicator of net profit excluding non-recurring items remained in the red at a loss of 6.607 million yuan.