Guirenniao was China's 'shoe king' worth ¥42.7B — it closed 3,000 stores, pivoted to rice

Guirenniao was founded in 1987 as an OEM sportswear manufacturer in Jinjiang, Fujian. The brand launched in 2002 and grew explosively after signing Andy Lau as its celebrity endorser. From 2009 to 2011, its store count surged from 1,847 to 5,057 outlets. By 2015, its market capitalisation peaked at ¥42.7 billion (US$5.5 billion), earning it the nickname 'shoe king of China'.

At its peak, Guirenniao diversified aggressively into unrelated businesses. It invested ¥239 million for a 16.1% stake in Hupu (a sports media platform), planned a ¥2 billion investment fund, acquired 45% of a Spanish soccer agency, bought the Greater China rights to Prince Global Sports for US$20 million, and invested ¥260 million in Ankang Life Insurance. The company also acquired offline retailer Jiezhixing, online distributor Ming Shoe Library, and gaming company Xingyou Technology.

The diversification failed. By 2018, Guirenniao was selling assets at a loss — Jiezhixing alone cost ¥1.3 billion. In Q1 2019, over 2,000 stores closed, leaving about 2,800. It logged a US$136.9M net loss in 2019. In August 2020, Guirenniao entered court-led bankruptcy restructuring. Taifujingu bought a 20.4% stake for ¥417M in 2021 and pivoted it into food. By 2023, grains were its largest segment. In March 2024, Guirenniao was delisted after its stock stayed below ¥1 for 20 days. In Jan 2025, it changed its name to Jinhe Agriculture, ending 36 years in sportswear.

Diversified into insurance, gaming, and soccer agencies, burning cash; when bets failed, sold assets at losses like ¥1.3B for Jiezhixing, forcing a pivot to rice.

Guirenniao expanded wildly into unrelated businesses — sports media, insurance, gaming, soccer agencies — during its peak, burning cash on investments that had nothing to do with making shoes

The core sportswear business was neglected: by 2018 only 4 directly-operated stores remained, the rest were franchises with no brand control, and quality declined as management focused on finance

When the diversification bets failed, Guirenniao sold assets at catastrophic losses — Jiezhixing alone cost ¥1.3B — and the sportswear business was too weakened to recover, forcing a pivot to rice

A sportswear company that stops making shoes and starts buying insurance companies is no longer a sportswear company. Guirenniao's diversification destroyed the core business it was meant to protect.