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Song Lin Decodes And Decodes Huarun's "Past And Present Life"

2014/4/24 11:28:00 17

Song Lin, chairman of the former chairman of the board of directors of P, and Fu Yuning, chairman of China Merchants Group, take over and integrate multiple pharmaceutical companies. Over the past few days, successive news has pushed Huarun to the top of the storm. After browsing Huarun for nearly 80 years, this large central enterprise with red background seems never to be exposed to the public view so highly. 
 Red origin: 76 years old central enterprises 
 unlike most central enterprises, Huarun group's headquarters is not in Beijing, or even in the mainland, but in Hongkong. The China Resources Building at 26 Harbour Road, Wan Chai, Hongkong, is backed by the Hongkong Convention and Exhibition Centre with the wing shape of ROC. 
It is not surprising that P, the central business with less than 5% of its business in Hongkong, has insisted that its headquarters remain in Hong Kong. Its predecessor, "Lianhe Xing", was set up in Hongkong in 1938. It aims at receiving and retaining donations and materials from all walks of life, and purchasing military supplies and medicines for the Anti Japanese base areas. This has laid a prominent red identity for Huarun in the next 76 years. 
 Huarun changed to its present name in 1948. "Hua" represents China, and "run" is taken from Mao Zedong's "run". Qian Chi Guang was the first chairman. 
At that time, it was founded in Hongkong together with the United Bank. There are also many Chinese banks and five Fung Hang companies that have the same red mission. The Union has absorbed all other businesses founded by the Communist Party in Hong Kong, and has been reorganized into "Huarun company", becoming the embryonic form of Huarun group today. 
During the war of Liberation (P), Huarun still played an important role. During the 1948-1949 years, four batches of Huarun sent more than 350 famous democratic personages and more than 700 cultural celebrities and patriotic overseas Chinese to Jiefang District. They then went north to attend the first People's Republic of China Political Consultative Conference. 
After the founding of new China, Huarun welcomed its first important transformation. In 1952, it was designated as the general agent of China's import and export companies in Hongkong and was placed under the central trade department's management in P. When western capitalist countries did not recognize the new regime, China's trade partners were confined to the Soviet Union and several new democratic countries. It was through the gateway of Hongkong that China opened up the trade access to the western capitalist countries. 
Until the mid 80s of last century, Huarun has been the general agent of China's import and export trading company in Hong Kong, Macao and Southeast Asia. It ensures Hongkong's market supply, assists the mainland to formulate export plans for Hong Kong and overseas, expand exports, link up the supply of goods and establish sales networks, strengthen trade links with other countries, and import foreign commodities needed by the mainland to earn foreign exchange. 
After the reform and opening up, Huarun gradually lost its special status as "general agent", and welcomed its second important transformation. It began to try industrial investment and set foot in the fields of retail, real estate, electricity, infrastructure and other fields, and the agency trade also turned to self trading. P In the late 80s of last century, Huarun began to contact the capital market. In 1992, Huarun group injected capital into listed company yongdali, renamed Huarun entrepreneurship, became Huarun's first listed company, and opened up the first step for Chinese funded enterprises to enter the capital market. In 2000, Huarun became the largest shareholder of Vanke. 
"P > in the capital market, let Huarun enter the fast lane of development, and let Huarun become an all embracing enterprise. The strategic sector includes consumer goods, electricity, real estate, cement, gas, medicine and finance. 
At present, 96% of Huarun's assets have been listed, and the group's overall listing is on the agenda of P. 
 strong > commercial empire: expand the huge industrial chain /p >
Since P last year, Huarun's successive capital movements have gradually brought Huarun into the public view. In March 2013, Song Lin proudly said at a financial forum in Shenzhen, "by the end of last year, Huarun's turnover has exceeded 410 billion (HK $), and our total assets have reached 910 billion (HK $). Our profit last year was almost over 40 billion." From the earliest two gold bars to the commercial giants that have 5 listed companies in Hongkong and the mainland, the big central enterprises, which have been developing for more than 75 years, have now become a diversified holding group of more than one trillion Hong Kong dollars. Last year, Huarun group ranked 187th in the world's top 500. The main strategic business unit of Huarun now consists of 19 first class profit centers, more than 2300 real enterprises and 400 thousand in-service employees. According to Huarun's latest financial report, the group's turnover last year was HK $500 billion 200 million, with a profit of HK $56 billion 300 million and a total assets of HK $11337. 
 it is understood that, from the beginning of the founding of new China to 1982, Huarun has been registered in Hongkong in private terms, and has been privately owned by the internal agreement. Although it has been reorganized with many enterprises such as five Fung Hang and Tokunobu Yuki, it has previously had no relationship with the executive subordinate relationship. In 1983, Huarun was restructured into Huarun (Group) Limited and formed an equity relationship with its subordinate enterprises. The registered capital expanded from HK $5 million to HK $200 million and moved to 26 Harbour Road, Wanchai, Hongkong, which is now the group headquarters. After the restructuring, Huarun venture was listed as its first listed company in Hong Kong. Huarun began to transform from state-run companies to state-controlled and diversified shares. At present, Huarun has 5 listed companies in Hongkong and the mainland respectively. Among them, the "blue chip three heroes" Huarun venture, Huarun power and Huarun land are listed in the Hang Seng Index constituent stocks of Hongkong. Huarun gas and Huarun cement are listed in Hongkong's Hang Seng Composite Index constituent stocks and Hongkong's Hang Seng Chinese Enterprises Index constituent stocks. 
 according to the annual report released last year by Huarun, Huarun has become an important profit block for the group. Its sales volume reached HK $71 billion 390 million last year, and its net profit was HK $14 billion 700 million, an increase of 60.9% and 39.1% respectively. Huarun takes account of the development of commercial and residential properties, and is currently the largest shareholder of Vanke. The turnover of Huarun electric power was HK $69 billion 580 million, with a net profit of HK $11 billion 20 million. Statistics show that Huarun's Huarun Chain Company Limited has become one of the largest retail chain enterprises in China. Among them, the supermarket business has been ranked first in China's chain supermarkets for many years. Its beer business, snowflake beer, ranks first in the country since 2005. Huarun five Fung Limited covers meat, aquatic products and comprehensive food business in Hongkong, mainland and overseas markets. 
Besides P, Huarun is still ploughing in many unknown fields. In 2010, the China Resources Coal Holdings Corporation Limited was registered in Hong Kong, mainly engaged in coal mine investment, construction and operation, becoming the first class profit center of Huarun group. Huarun medicine is also an important part of Huarun. Its overall scale has reached the second level of China's pharmaceutical industry. It is understood that Huarun pharmaceutical sales of over HK $100 million products, more than 20, of which 2 exceeded 1 billion Hong Kong dollars, that is, 999 cold and Dong'e Ejiao. A few days ago, Huarun medical department A shares Huarun 39, Huarun Shuanghe halted, causing the market to Huarun pharmaceutical assets integration, packaging and listing speculation. 
Huarun: < a href= > //www.sjfzxm.com/news/index_c.asp > > Song Lin < /a > period: entering trillions Club /p >
 from intern to head office, Song Linzhi and Yu Huarun are both lucky and evil. Without being reported and investigated, I am afraid no one has noticed that Huarun has gone through ten years of gold under the leadership of Song Lin. During this period, the scale of the group's assets rose from 100 billion to trillion. But shortly before being arrested for serious violation of laws and regulations, Song Lin painted an imperfect period in Huarun's 30 year's work, and affected by this, Huarun suddenly faced "very serious moment". 
 according to public information, the 51 year old Song Lin is a native of Rushan, Shandong. She graduated from Shanghai Tongji University with a bachelor's degree in solid mechanics. In 1983, Huarun, which belonged to the central trade department (now the Ministry of Commerce), reorganized Huarun (Group) Co., Ltd. Two years later, Song Lin entered Huarun group as an intern. Over the past 30 years, Song Lin has worked in Huarun group's asset management, petrochemical, power and semiconductor industries. From an intern who carried the measuring instrument to the oil depot, he went to the chairman of the board. 
 because now is a very unusual period, many of the Huarun group insiders and related units contacted by the Beijing Commercial Daily reporter do not want to talk more about Song Lin's affairs. But from the past news, we can see that Song Lin's pragmatic and iron style management style. In 2001, it was regarded as a turning point in Song Lin's life. At that time, Huarun group's Huarun venture share price continued to slump, and the market was constantly criticized. In November of that year, Song Lin was appointed Vice President and managing director of Huarun business as an assistant of Ning Gaoning, general manager of Huarun group, to plan the new development mode of Huarun entrepreneurship. Since then, he has handled 4 of the 5 listed companies in Huarun, Hongkong, and succeeded Ning Gaoning as general manager of Huarun group in 2004. Since May 2008, he has served as chairman of Huarun group. The promotion was so fast that the outside world once approved of Song Lin's ability. 
Another event widely quoted by the media is better than P. In 2005, Song Lin, the general manager of Huarun group, recalled the scene of his early drive to the left side of the new territories. Song Lin said that he was driving in Yuen Long and Sheung Shui, bargaining with the original residents and coping with the underworld. The Hongkong triad was very fierce, and in one negotiation, the two sides ended up throwing bottles together. 
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 < --EndFragment-- > when Huarun Group officially entered the Song Lin era, the development of the company also began to have the character of Song Lin. In recent ten years, Song Lin has been making big strides in mergers and acquisitions. According to incomplete statistics, since 2004, Huarun has made dozens of big acquisitions in energy, medicine, finance, retail, beer and other industries. 
 from 2008, Song Lin set seven strategic business units for Huarun group, including real estate, electricity, consumer goods, medicine, cement, gas and finance. These seven strategic units are selected based on smile curve and are customer demand oriented industries. Over the past ten years, Huarun has relied on Annexation and its total assets have been expanding. As of the end of 2013, Huarun's total assets amounted to HK $11337, which achieved a turnover of HK $500 billion 200 million, a 10 fold increase over the 101 billion 200 million yuan in 2004. 
 but this time, Song Lin was also reported from the acquisition. In July last year and April this year, the economic reference Daily reporter Wang Wenzhi reported two times that in the process of Huarun's acquisition of billions of billions of billions of dollars in assets acquired by Shanxi gold industry group, malfeasance resulted in the loss of billions of state-owned assets. It is also a shortcut for Huarun group to make a big fast. It also made Song Lin a magnificent sight, but eventually became a stumbling block for Song Lin's fall. 
Less than P, it is intriguing that Song Lin likes to express his management ideas in the form of words. He has a chairman's column in the official website of Huarun group. According to media reports, the column is sung Lin personally personally. In the March 27th "reform and departure" article, Song Lin said, "in the past, managers were more dependent on the requirements of the business level. In the future, we should emphasize the assessment of Germany. Because supporting your leadership and influence is not just your business capability, but more importantly, your virtue is your humanity, character and human virtue, otherwise you can't command a thousand forces. " Now, this column has been removed, and it also means the end of the Song Lin era, and perhaps he himself has made it clear. 
 new coach Fu Yuning: Huarun's new era 
 "he is a scholar and a businessman at the same time." Fu Yuning, who writes in media reports, has always maintained a gentle image. 
 the new chairman of the Huarun group who was born in 50s of last century, has experienced very rich work experience. In April 1975, he joined the ranks of educated youth in Luancheng, Hebei province. In October 1982, he graduated from Dalian Institute of technology with a master's degree. In October 1986, he received his doctorate degree in marine engineering from brnoor University and stayed in school. 
After P received a doctorate in engineering in England, Fu Yuning returned to China in 1988 and worked for an oil service company. The China Merchants Group is the largest investor in this oil service company. Ten years later, he was transferred to the parent company's China Merchants Group, when the group was trying to restructure its debts. "At that time, my duty was to deal with the Asian financial crisis. I started as vice president in charge of financial operations and group finance. Fu Yuning once said. 
 according to people familiar with the matter, Fu Yuning has a better understanding of the capital market and has a lot of experience in the diversified development of the group. He has a more "bold" side in front of the reform. In December 1998, he was the managing director and vice president of the group in the most difficult period when he was hit by the Asian financial crisis. He led the China Merchants Group out of the crisis with the main leaders of the group. 
 April 2000, Fu Yuning served as president of China Merchants Group. Since 2001, Fu Yuning and the group leaders have identified the new development strategy of the group, and determined to create the third brilliance in the history of China Merchants. Under the leadership of Fu Yuning, the reunification of China Merchants Group was reunified, and then drastic reforms were made. 
In the past 2001-2003 years, Fu Yuning and the leading group of the group led the company to reinvort an Investment Promotion Bureau in three years. The group's financial situation improved fundamentally and basically solved the problems left over by China Merchants' p. In the past 2004-2006 years, three years have been used to reinventing an Investment Promotion Bureau. The group's main financial and business indexes have doubled, and its comprehensive strength has been greatly enhanced. Since 2007, China Merchants has put forward the development strategy of "new reengineering", that is, to build China Merchants into a harmonious international competitive enterprise. 
In 2010, when Fu Yuning took over as chairman of China Merchants Group, the financial situation of P was very strong. By the end of 2013, China Merchants Group had a total assets of 453 billion 350 million yuan, a total assets of 4 trillion and 420 billion yuan and a group net assets of 210 billion 35 million yuan. In the same year, the operating income was 72 billion 358 million yuan, the total profit was 26 billion 866 million yuan, and the net profit was 22 billion 252 million yuan. 
 the industry speculated that, after Fu Yuning took charge of Huarun, this once crazy expansion "king of merger" might be somewhat convergent, instead of paying more attention to the management and reform inside the company. 
 < a > href= > //www.sjfzxm.com/news/index_c.asp > > Huarun < /a > next stop: take the run of the run. /p >
 some people say that in the time when diversification has changed from pie to trap and specialized company has become the trend, it is worth pondering whether Huarun is going to diversify its way through frantic acquisition and expansion. 
 an industry expert who does not want to be named is analyzed: "diversified development has made many enterprises lose their money, but the reason is that the funds are not strong enough, so it is very easy for a business sector to have problems and then drag the whole situation. But Huarun, backed by the state's central enterprises, is absolutely strong in terms of capital, which is also the foundation for its diversified development. But on the other hand, Huarun, which is constantly engulfing other enterprises, is also facing some sequelae, including executives who are prone to self inflating and losing control in the process of rapid expansion. 
 in addition, business integration after mergers and acquisitions has also become a major test of Huarun group. Taking medicine as an example, since 2000, Huarun has been growing rapidly through the integration of a number of pharmaceutical giants such as Dong'e Ejiao, Huayuan Group and 39 group. However, the industry generally believes that Huarun's acquisition strategy is still at the tactical level, but not to a strategic height, its original intention is to build up the volume, so that after integration, it has not molded the core competitiveness, like the small sampan together, the aircraft carrier is big but not strong. 
In addition, the reason for Huarun's rapid expansion can be attributed to buying and merging with the advantage of capital, breaking the rhythm of natural integration and quickly becoming the monopolist of the industry. P Generally speaking, the industry concentration chosen by Huarun is relatively low, there is no industry leader, and there is no market standard and industry direction. But the acquisition is easy, but the subsequent integration is not only based on abundant funds, but in many M & A cases, Huarun has been challenged in the aspects of enterprise revitalization and cultural running in. 
 it is noteworthy that Huarun's new coach Fu Yuning has been known as "very understanding of the market". He also mentioned the role of the market more than once in his media interviews. "As an enterprise, more consideration is given to the needs of the market, and the products we launch will be launched as long as there is real demand in the market." Fu Yuning told the media in 2006. 
"In the past 30 years, we have proved that state-owned enterprises can take the market road and compete effectively in the commercial market by serving the market and realizing returns for shareholders," P said. This has become a development mode of concern. " Fu Yuning said in an interview last year. 
Compared with P, Huarun group, which has expanded its assets through financial leverage and acquisition and merger, seems a bit dull. "Huarun group gives people a more closed sense of the whole, more like a branch of the government, with a poor openness." An analyst with Zhang's energy industry told the Beijing Commercial Daily reporter that such a closed company is more likely to breed problems. 
 > a href= "//www.sjfzxm.com/news/index_c.asp" > China Merchants Group < /a > group and Huarun group have the common foundation of "pluralism". Fu Yuning's sudden drop in Huarun caused more speculation. The more concentrated view is that it is still stable for the short term. Shen Qinghong, director of Tengqi fund management investment management, said Huarun group's business is clear, and there may not be any significant changes in the development mode and operation for a period of time. At present, the market is concerned about whether there are any other greedy personnel in the group and whether there are other similar high priced acquisitions. Besides, the length of the entire investigation and the transition period is also unknown. On the whole, Fu Yuning's biggest role as chairman of Huarun group is to stabilize the army's internal military spirit. 
 in the long run, the above analysts believe that although Huarun group has said that it is implementing the "12th Five-Year" development strategy, it will build a number of strategic business units with a turnover of over 100 billion and a profit of over 10 billion on the basis of giving full play to the advantages of diversified enterprises, but the Huarun group in the Fu Yuning era may shift from its crazy expansion to a more rational internal development stage. "Fu Yuning is more familiar with the operation of capital market, and has long experience in industry and solid engineering background. He has successfully integrated the resources of China Merchants Group. He may extend this ideal to Huarun group, making it more in-depth in internal management and reform. And Fu Yuning's idea of radical reform in the China Merchants Group moved to Huarun group, which may gradually become lively. However, the Huarun system has been expanding for 30 years, and it is not so easy to catch the rush.