html On the evening of August 17, Wan Hongjian, the eldest son of WH Group Chairman Wan Long, published an article titled "Wan Hongjian: Father and Bandung in My Eyes" on the public account "New Meat Industry", once again The conflict between father and son escalated publicly.
The article pointed out that Bandung transferred the interests to major shareholders through related transactions, causing losses of RMB 800 million to China Shuanghui. Wanhong also broke the news that "Wanzhou is a money-making tool carefully designed by Wanlong and Yang Zhijun in Hong Kong, with the advice of barrister Li Shufeng."
Two months ago, as the founder of Wanhui and Asia's "Food God" Wanlong His eldest son, Wan Hongjian , discussed the issue of executive appointments with his father’s office, but the two disagreed, and Wan Hongjian was reprimanded by his father. Under the "stimulation", Wan Hongjian became so emotional that he smashed the door with his fist and hit his head on the glass wall cabinet.
After the fierce conflict, Wan Hongjian was removed from all positions including executive director, vice chairman and vice president.
Regarding Wan Hongjian’s accusations in the public account article, at noon on August 18, WH Group issued an announcement stating that the accusations about Wan Hongjian were untrue and misleading, and would reserve any action against Wan Hongjian. Right to legal action.
The infighting between father and son escalates!
"Deposed Prince" exposed his father's illegal related party transactions
html Late at night on August 17, Wan Hongjian, the eldest son of the chairman of Shuanghui Development and WH Group , reported his father Wanlong in real name, pointing out that Wanlong had caused Shuanghui through illegal related party transactions. The loss exceeded 800 million yuan.
The article stated that Wanzhou has no actual production operations. It is actually a platter of Shuanghui and Smithfield . Its function is to use various dazzling financial means and complex structures to hide the money of domestic Shuanghui. There are traces of transfers out of the country, and there has never been a reverse flow back.
The article pointed out that on February 26 this year, Wanlong and Wanzhou CFO Guo Lijun jointly issued the "Recommendation on Adjusting the Price of U.S. Six-Splits" and ignored the strong opposition of domestic Shuanghui management personnel and continued to import large quantities of American six-splits. "2 At the end of the month, the average market price of imported sextets was only 21,500 yuan, but you forcibly raised the import settlement price of U.S. products from 21,000 yuan/ton to 25,800 yuan/ton, with the import volume approaching 100,000 tons. "
The current batch is from Smith of the United States. The six splits exported to China caused losses of more than 800 million yuan to China Shuanghui. Such related-party transactions are obviously illegal and involve the transfer of interests of major shareholders.
According to Wan Hongjian’s previous article, Bandung focused on the United States over China in business. As a result, foreign exchange outflows of US$3.5 billion (approximately 22.6 billion yuan) made the United States easily profit.
Specifically, in 2013, Shuanghui spent US$7.1 billion to acquire Smithfield, the largest pig breeding company in the United States. After that, it began to promote American meat products, including ham, sausages and bacon, and also invested 800 million yuan to build a meat industry in Zhengzhou. American factory.
Wan Hongjian believes that bacon, hot dogs, and ham are popular in Western countries. Although China’s processed meat products include sausages and hams, traditional ethnic foods still dominate the market. The meat products of China and the United States are not very common. Not very portable.
But the key point is that Shuanghui imported a large amount of frozen meat from the United States. The frozen meat replaced the chilled meat that the company had previously promoted. Shuanghui's domestic slaughtering plants and chilled meat sales network were severely impacted.
Wan Hongjian said that Shuanghui’s domestic slaughter volume has dropped from 12.3 million head in 2015 to 7.1 million head in 2020. On the other hand, in the United States, Smithfield is busy renovating factories, building cold storage, and expanding pork exports to China. From 2014 to now, Smithfield’s capital expenditure has reached US$3 billion.
Shuanghui has successively remitted as much as 3.5 billion US dollars overseas. Wan Hongjian bluntly said that this regional differentiation strategy that emphasizes the United States over China "directly weakens the development momentum of China Shuanghui."
In addition, Wan Hongjian broke the news that his father Wan Long used his strong power to rob Xingtai Company, a company owned by employees, at half the low price, and profited from the situation. More than 5 billion Hong Kong dollars.
later used the successful acquisition (Smithfield) as an excuse to reward himself with more than 5 billion Hong Kong dollars with his secretary. Still not satisfied, he used the 350 million WH shares originally promised to the management team to enrich himself in 2017.
Profit transmission, tax evasion of US$200 million
The article also stated that in 2007, Shuanghui's state-owned enterprise restructuring came to an end. For some reason, CDH Company, which participated in the state-owned enterprise restructuring, privately granted Wanlong 5% of Shuanghui shares free of charge. Because both parties Unable or unwilling to make the transaction public, the 5% stake was sold directly to a company in Hong Kong, and Wanlong privately received a consideration of US$200 million and deposited this huge sum of money in DBS Bank in Hong Kong.
It is worth mentioning that Wan Hongjian said that 15 years have passed since 2007, and this huge income has not yet been declared or paid.
The main trigger of this escalation of conflicts lies in the selection of CEO.
Wan Hongjian said that he hopes that in the later stages of Bandung's development, the CEO candidate will be virtuous and able to convince the public; he will have the comprehensive ability to control Shuanghui's various businesses, and it is best to be able to stably span more than ten years and achieve the stability of Wanzhou International transition.
He believes that it is inappropriate for CFO Guo Lijun to serve. Although Guo Lijun is proficient in finance and sincerely considerate, he does not understand Shuanghui’s production, supply, sales, and research. The cumulative losses caused by Wanzhou exceed 10 million US dollars. "
" This year, in order to cater to Wanlong's strategy of focusing on the United States, it forcibly increased the price of imported American six-part products by 5,000 yuan/ton, despite Shuanghui's strong opposition. Frozen meat is lying in Shuanghui's warehouse, becoming Shuanghui's huge potential loss, and a lot of money has floated from the Pacific to the United States," Wan Hongjian said.
But when Wan Hongjian put forward his own suggestion, he was reprimanded by Wan Long. Under the "stimulation", Wan Hongjian became so emotional that he smashed the door with his fist and hit his head on the glass wall cabinet. Soon, Wan Hongjian was pushed to the ground by the bodyguards and others, his head covered with blood. At this time, Wan Long "asked to take photos to collect evidence."
After the fierce conflict, Wan Hongjian was removed from all positions including executive director, vice chairman and vice president on June 17.
html On August 12, WH Group issued a personnel appointment and dismissal announcement. Wan Long has resigned as CEO and his replacement as CEO is Executive Director and former Chief Financial Officer Guo Lijun.
wanzhou international also announced that Wan Hongwei, assistant to the chairman and vice chairman of Shuanghui Development , has been appointed as vice chairman of the board of directors of wanzhou international . Wan Hongwei is the second son of Wan Long.
Affected by "internal strife", the stock prices of wanzhou international , shuanghui development have been in a downward channel this year, and today they opened low again with heavy volume. As of the close, wanzhou international fell nearly 11.33%, reporting 5.95 Hong Kong dollars, Shuanghui Development fell 5.53% to 26.29 yuan, with transaction volumes of 1.064 billion Hong Kong dollars and 1.612 billion yuan respectively.
Regarding Wan Hongjian’s accusations, at noon today, WH Group issued an announcement stating that it has noticed the recent decline in the company’s stock price and increase in trading volume, and noted media reports about the accusations made by the company’s former director Mr. Wan Hongjian against the group. , the Board would like to clarify that the allegations are untrue and misleading. The company reserves the right to take legal action against Wan Hongjian and those responsible for the allegations.
Source: Securities Times
