Aokanginternational(SH:603001) Xin Lang Cai Jing·2026-01-27 08:36Core Viewpoint - The traditional leather shoe industry, represented by Aokang International, is facing significant challenges due to the rise of athletic and casual footwear, leading to declining sales and profitability [1][4][12]. Industry Overview - The leather shoe market in China is experiencing a contraction in both production and demand, with production dropping to 3.591 billion pairs and demand to 2.92 billion pairs in 2023, and further declines expected in 2024 [4][12]. - The industry is shifting from "quantity expansion" to "quality enhancement," resulting in a polarization where leading brands are gaining market share while traditional companies like Aokang and Red Dragonfly struggle [4][12]. Company Performance - Aokang International's revenue is projected to decline by approximately 24.55% in 2025, with expected losses of about 237 million yuan in net profit and 264 million yuan in net profit after deducting non-recurring items [1][9]. - In the first three quarters of 2025, Aokang's revenue fell by 21.65%, and net profit dropped by 54.02%, resulting in a loss of 209 million yuan [4][12]. - Aokang's non-recurring net profit has been negative for seven consecutive years, accumulating losses of approximately 1.162 billion yuan over this period [1][9]. Competitive Landscape - Competitors such as Red Dragonfly and Tianchuang Fashion also reported revenue declines of 9.84% and 7.12%, respectively, with Red Dragonfly's net profit plummeting by 316.4% [5][13]. - Despite some companies like Tianchuang Fashion and Hason showing double-digit growth in net profit, they remain in a loss position, with Hason expected to lose between 24 million and 36 million yuan in 2025 [5][13]. Strategic Responses - Aokang is focusing on brand rejuvenation and channel improvement, launching a new trendy series aimed at younger consumers and reducing its store count from 2,235 to 1,928 by the end of Q3 2025 [6][15]. - The company is also managing costs, with sales and management expenses decreasing by 25.83% and 12.94%, respectively, although the sales expense ratio remains high at 36.08% due to declining revenue [7][16]. - Aokang's management plans to adopt a dual strategy of focusing on core business and seeking external growth opportunities, although the effectiveness of this strategy in countering declining core business performance remains to be seen [8][17].