For decades, Aokang International stood as the undisputed titan of China’s men’s footwear industry. As the first listed leather shoe company in the country, it was a staple of the burgeoning middle class's wardrobe. However, the company's latest financial disclosures reveal a brand in structural retreat, marking its fourth consecutive year of losses and a total deficit of 924 million RMB (approximately $127 million) since 2022.
The 2025 annual report paints a bleak picture of a legacy retail giant struggling to maintain its footing in a rapidly evolving market. Revenue plummeted by over 24% year-on-year to 1.92 billion RMB, while its core men’s shoe segment—which accounts for 60% of total sales—saw income drop by 27%. Perhaps more telling is the physical disappearance of the brand from Chinese streets; the company executed a net closure of 399 stores in a single year, bringing its total count down to 1,836 locations.
Aokang’s woes are compounded by the total collapse of its international agency business. Once a distributor for global brands like Skechers and Puma, Aokang has seen its partnership revenue from these labels effectively zero out. Skechers revenue alone fell by over 55%, reflecting a broader trend where international brands are increasingly opting for direct-to-consumer models or more agile local partners, leaving legacy distributors like Aokang marginalized.
While the first quarter of 2026 showed a technical return to profitability, the underlying health of the firm remains precarious. Most of the quarterly gains were attributed to changes in the fair value of equity investments and aggressive cost-cutting measures rather than a resurgence in consumer demand. With major shareholders like Xiang Jinyu liquidating significant portions of their holdings, the market’s confidence in a long-term turnaround for the 'Number One Men’s Shoe Stock' appears to be wearing thin.