Aokang controllers to sell 12% stake for $55M as retailer returns to profit
What's the deal? Aokang InternationalDealroom has a profile for this one. Try Dealroom → (603001) said on September 17 that its controlling shareholder, Aokang Investment HoldingDealroom has a profile for this one. Try Dealroom →, and actual controller Wang Zhentao will sell a combined 48.07 million shares — 12.0002% of the company — at US$1.12 each, for roughly US$54M.
The buyers are Zhejiang Hangshu Technology DevelopmentDealroom has a profile for this one. Try Dealroom →, a limited partnership, and an individual, Chen Haifeng. Hangshu will take 28.07 million shares (7.00%) and Chen 20.05 million shares (5.0002%), placing both among Aokang's top three shareholders.
Why now? The company said the transfers stem from the sellers' funding needs. Of Aokang Investment's 111 million shares, 77.11 million are pledged, while 60 million of Wang's 60.56 million shares are pledged; the deal specifies that proceeds will first go toward releasing those pledges.
What's the endgame? Aokang stressed the sale will not change its controlling shareholder or actual controller. Both buyers are described as financial investors seeking no control, and have pledged not to increase or reduce the holdings for 12 months after registration.
Hangshu is a limited partnership newly set up in September 2026 with US$30.3M in capital, focused on technology services and management consulting. Chen was verified as not being a defaulting debtor.
By the numbers: Aokang, a footwear retailer, posted first-half 2026 revenue of US$105.7M, down 28.88% year on year. Net profit attributable to shareholders reached US$2.42M, reversing a US$12.7M loss a year earlier.
The turnaround came from sharp cost cuts. Gross margin rose to 42.93% from 34.93%, and selling expenses fell 32.82%. Store count has shrunk from a peak of more than 2,600 to 1,757, with all agency-run SkechersDealroom has a profile for this one. Try Dealroom → outlets now closed.
The signal: The stake sale shows a Chinese consumer brand trading equity to unwind pledged shares while restructuring to survive weaker sales. Aokang is prioritising margins and a leaner store network over top-line growth — a pattern common among traditional retailers squeezed by shifting demand.
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