Well-known shoe factory successfully listed! Annual output of 180 million pairs of shoes

On April 26, at 9:25 a.m., Zhongshan Huali Industrial Group Co., Ltd., the world's second-largest manufacturer of sports shoes, was listed on the Shenzhen Stock Exchange GEM.
Mayor Wu Weihan, Deputy Director of the Provincial Taiwan Affairs Office Fang Tao, Deputy Mayor Ye Hongguang attended the listing bell-ringing ceremony. Huali Group issued a price of 33.22 yuan / share, the opening price of 76 yuan. At 10:40 a.m., Huali Group's market capitalization reached 108.2 billion yuan, making it the first company in Zhongshan to have a market capitalization of more than 100 billion yuan.

Taiwan's Zhang Congyuan family, including his wife Zhou Meiyue and their children Zhang Zhibang, Zhang Wenxin and Zhang Yuwei, together own 87.48 percent of the shares, with a market value of 93.27 billion yuan.

It is reported that Zhongshan Huali Industrial Group Co., Ltd. (stock code 300979), was established in 2004, registered in Zhongshan City Torch Development Zone.
The company is engaged in the development of sports shoes design, production and sales, is the world's leading professional manufacturer of sports shoes.
By the end of 2020, the company has 43 subsidiaries, in accordance with their respective location advantages and functions, jointly build "Zhongshan as the management and development design center, Hong Kong, Zhongshan as a trade center, Vietnam, China, Dominica, Myanmar as a processing and manufacturing center" business layout. In 2020, Huali Group's operating income was RMB13,931 million, resulting in a net profit of RMB1,878 million.
The listing, with a total equity of 1,167 million shares, resulted in a public offering of 117 million shares and an IPO of 3,887 million yuan. It will be used for "Vietnam shoe production base expansion construction project," "Myanmar Shichuan shoe production base construction project," "Zhongshan Tengxing annual output of 35 million pairs of woven footwear expansion project" and so on.

Mysterious Shoe King" Zhang Congyuan

Born in 1948 to a Taiwanese native, Zhang Congyuan is 72 years old and has more than 50 years of shoe-making experience. Media reports called it the "mystery shoe king", this time to be listed in the A-share market, the prospectus also opened his "shoe kingdom" mystery corner.　　
According to the prospectus, Zhang Congyuan and his wife Zhou Meiyue, eldest son Zhang Zhibang, eldest daughter Zhang Wenxin, and second son Zhang Yuwei, five members of the Zhang Congyuan family, is the actual controller of Huali shares, the family through Charm Smart Holdings Limited Junyao Group Co., Ltd. (hereinafter referred to as Hong Kong Junyao), Zhongshan 浤 Footwear Co., Ltd. (hereinafter referred to as Zhongshan 浤) indirectly control 97.23% of Huali shares.
In addition, the remaining shareholders of Huali shares are Yongcheng Wu and Yongcheng Lu, new shareholders for June 2019, holding 1.54% of Huali shares and 1.23% of the shares, respectively, by Yongcheng Capital as executive partner, belonging to the equity investment fund.　　
Huali's prospectus revealed that before the introduction of the above-mentioned investors, 100% of its shares were originally controlled by the Zhang Congyuan family, in order to make the equity structure more diversified and reasonable, so the introduction of external investors. Yongcheng Wu, Yongcheng Lu at that time optimistic about the development of Huali shares, but also optimistic about the sports shoes clothing industry and market prospects.
According to historical changes disclosed, Yongcheng Wu, Yongcheng Lu into Huali shares, the latter has not yet carried out stock reform and audit, therefore, pricing based on the price-earnings ratio of the same industry companies and the company's net assets negotiations to determine the post-investment valuation of 6.5 billion yuan capital increase.
Huali shares in the prospectus also suggested that if the actual controller through the exercise of voting rights on the company's major operations, personnel decisions, etc. to adversely affect the interests of other shareholders will bring certain risks.

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