Dire straits of leading shoemaker in China's largest shoe producing district speaks volumes about the consumption demand in China. Quanzhou, where Qingmei is located, produces 80% of made-in-China shoes. Quanzhou is the HQ for for leading PRC shoe brands like Anta, 360-Degrees, Qiaodan, Guirenniao, etc.
I don't know for sure if Qingmei has indeed stopped prodn and sold off its equipment. But reading the article(s) on the Chinese websites, I am appalled by the low quality of the information.
The article(s) talks about a reporter going to the factory to interview the management. He sees no factory operation and concludes that the place is shut down. That was 1 day in late Sept. That brief encounter led the conclusion that Qingmei had closed down, it appears. Did the reporter ask the management? The article doesn't say.
The reporter asked around & found that many shoe manufacturers were suffering from poor business. It forms the backdrop for the article.
It cites a technician saying Qingmei's factory equipment had been sold to highest bidders. Is that the best source for such an incredible tale? 1 technician......Does he even really exist? We will never know.
As for Qingmei, I gather that CFO Jackson Tso already knows about the existence of this article(s) on a number of Chinese websites. No question about it, he (or the management/board of directors) should step out and issue a statement regarding those articles. If the articles are unfounded, Qingmei should officially say so. If they are true, Qingmei would have a long stretch of time ahead answering angry shareholders about the shocking developments and the poor lack of disclosure.
Rock, if you have Q shares and you are worried and you feel like pulling the trigger, don't. These Chinese articles are misleading and talk nonsense based on thin observations.
