Author | Liang Chunfu Gao Yuanshan
Source | Mustang Finance
But in three years, Wan Hongjian, the eldest son of Shuanghui Empire, was “kicked” out of the core power circle by his father, Bandung. His second son, Wan Hongwei, had a play?
Recently, Wanzhou International (0288.HK), the world’s largest pork processing company, suddenly announced that it intends to remove Wan Hongjian from the positions of executive director and vice president, with immediate effect.
The reason for the recall was that Wan Hongjian had recently committed an “improper attack” to the company’s property, making the company believe that he was “unable to perform his responsibilities as a director, prudence and diligence.”
▲ Picture source: Wanzhou International Announcement As soon as the announcement came out, there was an uproar. Wan Hongjian is the eldest son of Wanlong, the founder of Wanzhou International, and has been in the company for many years. . It is worth noting that the inscription of this dismissal announcement is: “Bandung, Chairman and Chief Executive Officer of Wanzhou International Co., Ltd. by order of the board of directors”, which means that this is a “recall order” signed by Bandung himself. What happened between the 81-year-old founder and the 52-year-old eldest son? How will Wanzhou International’s scepter handover plan follow up? Only 16 days have passed since the high vote was elected In China’s pork products industry, no one can match Shuanghui. Under Bandung’s iron fist, Shuanghui has grown from a small meat factory on the verge of bankruptcy to a multinational giant with an annual sales revenue of more than 20 billion U.S. dollars. Bandung is also known as the “king of pigs” and “the world’s number one butcher”. . Bandung, now in its elder age, still owns two listed companies, Shuanghui Development (000895.SZ) and Wanzhou International, with a total market value of more than RMB 190 billion. ▲Image source of Bandung: the company’s official website Wan Hongjian, the eldest son of Bandung, was once regarded as the successor of the “Pork Empire”. Public information shows that Wan Hongjian was born in 1969. From 1990 to 2010, he started as a front-line worker in the deli workshop, and then successively served as the sales director of the Beijing office of the sales department of Shuanghui Group and the deputy director of the foreign trade department. Since February 2012, he has served as Deputy General Manager, Director of International Trade Department, and Vice President of Rotex, the parent company of Shuanghui Development. In 2018, Wan Hongjian was elected as the executive director of Wanzhou International and entered the core decision-making level. At the Wanzhou International Shareholders’ Meeting on June 1, 2021, Wan Hongjian had just been re-elected as an executive director, with 91.1% of the votes in favor, which was even higher than the 75.2% of his father, Bandung. At this time, there are still 16 days before he is removed… ▲Image source: Wanzhou International Announcement After this vote, Wanzhou International immediately announced its intention to repurchase 1.917 billion shares at a price of HK$7.8 per share, involving a capital of HK$14.95 billion. The purpose is to optimize the company’s capital structure, increase the earnings per share of the shares, and reduce the group’s capital cost. Generally speaking, if the stock repurchase plan from public shareholders goes well, the shareholding of listed companies will increase, and the corresponding right to speak will be even greater. As the eldest son, Wan Hongjian is not associated with many companies under the Shuanghui Department. According to Tianyan, he only worked in Guangzhou Shuanghui Commercial Chain Co., Ltd. (hereinafter referred to as “Guangzhou Shuanghui”), Qingyuan Shuanghui Commercial Investment Co., Ltd. (hereinafter referred to as “Qingyuan Shuanghui”), and Wuhu Shuanghui Import and Export Trade Co., Ltd. (hereinafter referred to as “Wuhu”). Shuanghui”) has served as a shareholder and executive. In addition, he has served as the legal representative of Luohe Industrial Investment. Among them, Wan Hongjian is the largest shareholder of Qingyuan Shuanghui. Through this company, he controls 14.67% of Guangzhou Shuanghui’s shares, but both companies have been cancelled. Wuhu Shuanghui, where he served as an executive, is still in existence and is controlled by Rotex. Who will take over? With Wan Hongjian’s sudden dismissal, the succession issue of the Shuanghui system will become complicated and confusing again. Regarding the issue of succession, Bandung said in an interview with CBN in March 2015 that it had already considered ten years ago that it must be resolved through mechanisms. When the succession team matures in 2017, they will withdraw. “I will solve this problem first from the mechanism. The first is to quantify the standards, and the corresponding levels must meet the corresponding standards, that is, to bear the corresponding responsibilities; the second is to compete for posts. All managers at all levels are competing for posts, and A special assessment mechanism is required to be assessed every month and every year. It is precisely because of this set of methods that successors and management teams must rely on this mechanism to generate them.” Bandung said. In March 2018, Wanzhou International announced that the vice president Wan Hongjian was appointed as an executive director. Only a few months later, Wan Hongjian was promoted to vice chairman of the board of directors and held multiple positions at the same time. While Wan Hongjian was entrusted with the important task, Wan Hongwei’s second son Wan Hongwei was also nominated as a non-independent director candidate for the board of directors of Shuanghui Development. According to the data, Wan Hongwei was born in 1973, has a bachelor’s degree, and is a Hong Kong resident. In his early years, he was the director of the Hong Kong branch of Shuanghui Group, the deputy manager of Shuanghui Group Import and Export Company, and the secretary to the chairman of Shuanghui Group. This also means that both Bandung sons have entered the core management of Wanzhou and Shuanghui, which is interpreted by the media as Bandung is preparing for retirement. At the beginning of 2019, Shuanghui Development announced that it intends to issue shares to Rotex, the sole shareholder of the controlling shareholder Shuanghui Group, and rarely adopts the acquisition method of absorbing and merging the parent company by subsidiaries, with the intention of realizing the overall listing of Shuanghui Group. This is also another major capital operation undertaken by Bandung after the acquisition of Smithfield and the promotion of the listing of Wanzhou International. Public information shows that the shareholding structure of Shuanghui Development is quite complicated. Its ultimate actual controller is Xingtai Group Co., Ltd. (hereinafter referred to as “Xingtai Group”) registered in the British Virgin Islands. Its specific shareholding structure is: Xingtai Group holds Xiongyu Investment holds 100% of the shares. Xiongyu Investment is the largest shareholder of Wanzhou International listed in Hong Kong. Wanzhou International holds 100% of Rotex through its wholly-owned subsidiary, Glorious Link, and Rotex holds 100% of Shuanghui Group. % Equity, Shuanghui Group holds Shuanghui Development. Exploring all the way down, from Xingtai Group to Shuanghui Development, its shareholding structure has as many as seven layers. A financial person familiar with Shuanghui told Yema Finance, The overall listing of Shuanghui Group through mergers and acquisitions is an optimization of the equity relationship between Shuanghui Development, Wanzhou International and Xingtai Group by Bandung for its succession plan, which is conducive to strengthening its family’s control over Shuanghui Group. ▲Photo by Yema Finance After Wan Hongjian’s related positions were removed, Wanzhou International currently has only four executive directors: Bandung, Guo Lijun (CFO), Dennis Pat Rick Organ (President and Chief Executive Officer of Smithfield Foods), and Ma Xiangjie (Henan Shuanghui Investment Development) President of the company limited by shares). Wanlong’s second son, Wan Hongwei, also served as an assistant to the chairman of Wanzhou International, but was not a member of the board of directors. The eldest son is frustrated, will the second son Wan Hongwei be pushed to the front? China Food Industry Analyst Zhu Danpeng told Yema Finance, Bandung is more cautious and suspicious. Wan Hongjian’s dismissal is not just about performance, but also some deep-seated problems, including strategy and business philosophy. “So I think Bandung’s youngest son will go to the front of the stage. .” In addition, there are also reports that Wan Zihao, the grandson of Bandung, had served in Shuanghui as early as the vice president of Shuanghui Development. Tianyancha shows that a person named Wan Zihao serves as a director in all seven companies under Shuanghui. However, in the Shuanghui Development Announcement, Wan Zihao’s name was not retrieved. The chairman of the board of directors is still controlled by Bandung, and the “successor candidate” seems unclear. It’s not uncommon to “destroy the long and raise the young” Fathers start their own businesses, and there are many “family succession” paths passed down by their children, and it is not uncommon for second sons to succeed. Linyuan Group is the largest private enterprise group in Taiwan. It was founded by well-known Taiwanese entrepreneur Cai Wanlin. Its predecessor and core company is Cathay Life Insurance. The “Cai Family” represented by Cai Wanlin is Taiwan’s top consortium and Taiwan’s leading financial capital. In July 1995, the US “Forbes” announced the world’s top ten richest people. Cai Wanlin ranked sixth in the world with 8.5 billion US dollars, and was once the world’s richest Chinese. On September 27, 2004, Cai Wanlin unfortunately passed away at the age of 81. Linyuan Group is now succeeded by Cai Hongtu, the second son of Cai Wanlin. According to the data, Cai Hongtu is 69 years old this year, graduated from the Department of Law of National Taiwan University, and later went to the United States for further study. At the age of 28, he obtained a doctor of law and returned to China. At the age of 38, he formally took over the post of chairman of Cathay Life Insurance from his father Cai Wanlin. Cai Hongtu is not the only “second generation” who was born with a golden spoon, studied abroad, and returned to the country to inherit his father’s career. Recently, the China Securities Regulatory Commission’s “Advance Notice of Administrative Penalties and Market Banning” has brought Yihua Life, a listed furniture company and the Chaoshan wealthy Liu Shaoxi family behind it, to the attention of the public. According to the “Administrative Punishment Letter”, after investigation, the China Securities Regulatory Commission determined that Yihua Life’s periodic reports from 2016 to 2019 contained serious false records, and the former chairman Liu Shaoxi was prohibited from entering the securities market for life. Liu Shaoxi is a Chaoshan capital boss. He was born in woodworking in his early years. With the enthusiasm of Chaoshan people to “work hard to win” for many years, Yihua Life has been transformed from a small furniture factory into the first private enterprise in Shantou. It is understood that in Chenghai District, Shantou, there is a jingle, “Chenghai Sanmo die (in dialect, meaning can’t die), Xuemin, must filial piety, Liu Shaoxi.” It means that the three people, including Liu Shaoxi, are in this small place in Chenghai. Turn your hands for the clouds and cover your hands for the rain, and you can’t die. Yihua Life is a typical Chaoshan family business. Many companies under the “Yihua Department” have Liu Shaoxi’s family. Liu Shaoxi’s eldest son Liu Zhuangqing is responsible for the health and capital sectors of the “Yihua Department”; Liu Shaoxi’s second son Liu Zhuangchao takes over Yihua Wood; Liu Shaosheng, the younger brother of Liu Shaoxi, once took over the real estate sector of the “Yihua Department”. Among them, the second son, Liu Zhuangchao, inherited the life in Yihua, the origin of the “Yihua family”. According to data, Liu Zhuangchao went to study in the United States when he was 16 years old. After graduating in 2010, he was only 22 years old and joined the Yihua Life management team. In 2017, Liu Zhuangchao was elected as the chairman of the new board of directors of Yihua Life. At that time, Liu Zhuangchao took the top position of the “Yihua Department” at the age of 29. The “second generation” of Chaoshan family businesses and the real estate company Hesheng Chuangzhan. Zhu Jurong, 32, is the jewel in the hands of Zhu Mengyi, founder of Hopson International. Zhu Jurong started working as an assistant to the president in the company as early as 2009, when he was 20 years old. In 2012, she was appointed as executive director and executive vice president, and was promoted to vice chairman of the board of directors in 2013. On January 10, 2020, Zhu Jurong took over the burden of Zhu Mengyi and became the new chairman of the board of directors of Hopson Chuangzhan. It is understood that Zhu Jurong has two older brothers, both of whom are also working hard in the family business. Some analysis pointed out that Chaoshan people have a tradition of “preferring boys to girls”. Zhu Mengyi’s ability to hand over important listed real estate companies in the hands of young women is evident in his preference for his daughters and Zhu Jurong’s strength. The quasi “post-85” born in finance did not disappoint his fathers. In the first year at the helm, he handed over a beautiful report card in equity investment, which is a typical “one generation engaged in industry and the second generation invested.” Hesheng Chuangzhan, which she is in charge, bought shares of Ping An Insurance, Xiaomi Group, Ping An Health, HSBC Holdings, and China Mobile. As of November 19 last year, except for China Mobile’s loss of HK$186 million, all other stocks have achieved profitability. It brought a book profit of over 3.7 billion Hong Kong dollars for Hopson Development, or about 3.1 billion yuan. For comparison, in the first half of 2020, Hopson Development’s net profit was HK$5.1 billion. If we take HK$3.7 billion as the net profit yardstick for real estate companies, only 22 real estate companies outperform Hopson Chuangzhan, but their revenue is much higher than Hopson Chuangzhan. But not all private companies will choose family members to succeed, compared to how to enjoy the Midea Group, which has a market value of more than 500 billion yuan. Although the sons, daughters, and daughters-in-law of the He family are all talents, the business of Midea mainly relies on the team of professional manager Fang Hongbo. Midea Group’s 2020 semi-annual report data shows that Fang Hongbo, chairman and president, will receive 9.63 million yuan of pre-tax remuneration from the company in 2020; vice presidents Yin Bitong, Gu Yanmin, and Zhu Fengtao will be 7.65 million yuan, 3.48 million yuan, and 4.94 million yuan respectively. yuan. “Sharing” may be the most important secret of “beauty”. ▲He Xiangjian Picture Source: Midea’s official website Li Delin, the well-known financial big V and the founder of Delin News, told Yema Finance, The most critical aspect of Midea’s succession issue is to “manage one’s own power and make good use of the people who can use it.” The He family has mastered the equity and control rights, and made good use of a team of professional managers like Fang Hongbo. And the most important question under the diversified expansion of the United States is whether it can find the second and third Fang Hongbo. Midea Group may be the most adept at using professional managers in the entire A-share listed company, and family members have built a huge “Midea Department” through investment and collaboration. According to incomplete statistics from Yema Finance, the He family members currently control 8 listed companies, including 6 A-shares, 1 Hong Kong stocks, 1 Germany, and 1 NEEQ company. They have also participated in more than 10 financial companies. Institutions spanning manufacturing, automotive, medical, real estate, environmental protection, film and television, finance and other industries, and are still expanding… This model also brings enlightenment to many family-owned private enterprises facing inheritance problems in the A-share market ! Which succession model is most suitable for family-owned private enterprises? Welcome to leave comments.
You must log in to post a comment.