It’s time for the second generation to share the difficulties.

Picture source @Visual China

Text | True Story Research Laboratory, author | Lin Qiuyi, editor | Malu

One generation starts a business, the second generation maintains it, and the third generation destroys it. This sentence is often used to describe the phenomenon of intergenerational exchange among Chinese entrepreneurs. It is easier to start a business than to stay in business, and the second generation caught in the middle is most likely to be criticized. Society's expectation for the second generation is that they should not "cheat their parents". It never occurred to them that under the current situation, the second generation would appear in the company at a difficult time.

Wang Sicong, who appeared in Tai'an, Shandong, is rumored to be determined to inherit the family business. Sun Zheyi has also recently become the helmsman of Sunac Beijing region. Guo Wenjing and his father Guo Huaqiang even performed the "father is more valuable than daughter" in the A-share market. The second generation of entrepreneurs unanimously chose this end of the year to begin to show their ability to help their parents.

1Girls should be like Guo Huaqiang

After Midjourney and ChatGPT, AI video generation application Pika has become the latest darling of Silicon Valley capital. In the domestic market, related concept companies are once again being hyped, but the first to reap the benefits are not the so-called AI technology companies, but Xinyada, which is little-known in the software development industry.

On November 30, Xinyada issued an announcement confirming that Guo Wenjing, one of the founders of Pika, is the daughter of the company’s actual controller Guo Huaqiang. Since then, the stock has closed at the daily limit for 6 consecutive trading days. Therefore, Xinyada is affectionately called the "daughter concept stock" by the market.

Although in subsequent announcements, Xinyada tried its best to emphasize that the company has no artificial intelligence video business and has no investment or cooperative relationship with Pika, the Chinese believe that blood is thicker than water, and blood relations are the most reliable line of defense in the capital market. If you miss the American Altman, you must not miss the Chinese Guo Wenjing.

Xinyada's stock price trend in half a year, picture source is flush

Xinyada's stock price has been continuously pushed up in this belief, and the short-term high has doubled. Before that, Xinyada's stock price had been dormant at the bottom for many years. . Lao Guo may not have thought that after more than 20 years of hard work, with the help of Xiao Guo's overseas entrepreneurial news, another Xinyada would be created out of thin air.

Another entrepreneurial representative of "father is more valuable than son" is Zhang Lei, the founder of Envision Energy.

Zhang Lei's father, Zhang Shiquan, was a wealthy businessman in Jiangyin who was engaged in the foundry industry and served as the head of several machinery casting companies. The first question Zhang Lei encountered after graduating from university was whether to take over his father's footsteps and continue the development of the family business. In 2005, Zhang Lei subscribed 1.6 million yuan to become a shareholder of Jiangyin No. 3 Casting Machinery Co., Ltd. There are signs that the family may be considering letting him take over.

But Zhang Lei chose to study in London. After graduation, he stayed in London to engage in the design of global energy strategic architecture and energy financial products. It was this experience that led Zhang Lei to found Envision Energy after returning to China and embark on the road of wind energy.

In 2022, Zhang Lei ranked 138th on China's richest list with a net worth of 35 billion yuan, surpassing Zhou Jianping of Heilan House and becoming the new richest man in Jiangyin.

got on the new energy development train, Zhang Lei began to get involved in the field of new energy power batteries, and Envision Power became one of the three major domestic power battery suppliers alongside CATL and BYD. In June this year, Premier Li Qiang visited Germany, and the three Chinese battery entrepreneurs accompanying him were Zeng Yuqun, Wang Chuanfu and Zhang Lei.

Onlookers always pay keen attention to every move of the second generation of entrepreneurs. Some want to see them build tall buildings, while others want to see them collapse them. It seems that young people are unwilling to follow the old ways, and many rich second generations will choose to find new ways to try to escape the shadow of their parents.

Wang Sicong is one of the typical representatives.

In 2009, Wang Sicong returned to China after graduating from the University of London. Wang Jianlin originally wanted to arrange for him to work at Wanda. Obviously, Wang Sicong was not interested in Wanda. With the "five small goals" given by his father, he established Pulse Capital and turned around. Entered e-sports.

In the past ten years, Wang Sicong has done a great job in investing in the pan-entertainment industry. He not only entered e-sports and established the IG E-sports Club and Panda TV, but also got involved in acting agencies, established the "Banana Plan", and signed a contract with a Korean female Tuan T-ara. In 2017, Price Capital’s revenue reached 6.3 billion yuan.

Although he has prospered in the investment circle, for a long time, Wang Sicong's name has always been associated with a playboy. Public opinion believes that he often associates with Internet celebrities, buys sports cars, engages in e-sports and live broadcasts, and is not doing his job properly. With his performance, there has always been a question in the public eye: Can Wang Sicong take over Wanda's class well?

In 2018, IG won the League of Legends Global Finals that year, and the flames cooked the oil and the flowers bloomed. It was also this year that Wang Sicong's investment path began to decline, and Panda Live fell into a serious operating crisis. A year later, Wang Sicong's debts reached 2 billion yuan, and he suddenly became a "old man." After

, Wang Sicong briefly returned to Wanda in 2021 and co-founded Wanda Industrial Investment Co., Ltd. with his father Wang Jianlin as a director. This was regarded by the outside world as a symbol of his "succession". But more than a year later, Wang Sicong withdrew from his position as director and has been silent ever since.

Recently, Wang Sicong appeared at a signing ceremony with Shandong Tai'an Cultural Tourism. It was considered that he finally accepted his fate and inherited the family business. The reason is that Wang Sicong’s cultural tourism path closely overlaps with Wanda’s key businesses.

At the beginning of this year, Wang Jianlin emphasized the resumption of the cultural tourism business at the 2022 annual meeting. In August, Wanda Cultural Group changed its name to Wanda Cultural Tourism Group and regained its "cultural tourism dream." Therefore, although Wang Sicong’s cultural tourism project is not directly related to Wanda, it is difficult not to be regarded as a practice for succession.

2 It’s time for the founding generation to retire.

was founded in the boom of reform and opening up. The founding generation has reached their twilight years. Now, it is time for the second generation to inherit the throne, but not everyone is confident that they can shoulder the burden of maintaining the industry. Whether they are starting a new business, carving out their own world, or taking over the family business, both require their parents to work in front of and behind the scenes to pave the way for them.

Liu Yonghao of New Hope Group has mentioned his views on Liu Chang's succession on many occasions.

2023 At the Tencent ConTech conference, Liu Yonghao expressed his optimism for his daughter's succession and repeatedly emphasized Liu Chang's hard work and motivation. Behind the filter of loving father is to build bridges and pave the way for Liu Chang to take over this entrepreneur with tens of thousands of people.

Liu Yonghao, picture source Tencent ConTech

Liu Chang also lived up to Liu Yonghao’s expectations. In 2013, 33-year-old Liu Chang was appointed to take over the power of New Hope Liuhe from his father. In 10 years, Liu Chang almost created a new New Hope in terms of revenue scale. Financial report data shows that New Hope’s revenue in 2013 was 69.4 billion yuan, but New Hope’s revenue in 2022 has soared to 141.5 billion yuan, more than tripling its scale before and after.

Liu Yonghao said at the meeting that in the face of the downturn of the pig cycle, he and Liu Chang studied many specific measures, and he fully recognized his daughter's novel ideas, mentality and pattern. On September 28, Liu Chang sent a letter to all employees and wrote, "New Hope is in an unprecedented difficult environment. This winter battle is a battle for survival." He hopes that employees can tide over the difficulties together. "

At the China Business Leaders Annual Meeting, Liu Yonghao revealed that he is currently training the group's cadres under the age of 30 with Liu Chang, with the intention of training a "guard" for his daughter.

Like Liu Chang, Yang Huiyan, who officially took over Country Garden not long ago, also recently Extremely busy.

After the Country Garden explosion, Yang Huiyan, chairman of the board of directors, stabilized morale at the monthly management meeting on December 8. "The family will definitely support the company and explore an effective path to resume normal operations as soon as possible."

4 days later, Country Garden High School The director’s salary reduction action has been implemented. Country Garden announced that the company’s executive directors Yang Huiyan, Mo Bin, Yang Ziying and non-executive director Chen Chong took the initiative to request a salary reduction. The annual salary of Yang Huiyan and Chen Chong dropped from 370,000 yuan to 120,000 yuan. The annual salaries of Bin and Yang Ziying dropped from 3 million yuan and 2 million yuan to 120,000 yuan respectively.

In addition to the salary reduction, executives' car distribution, free canteens and physical examination reimbursements were also reduced.

In 2005, Yang Guoqiang transferred all his shares To Yang Huiyan, it was announced to everyone that the second daughter was the heir to Country Garden. From shareholder to co-chairman to chairman of the board of directors, Yang Guoqiang planned Yang Huiyan's succession step by step.

In August this year, it was revealed that Yang Huiyan had donated 6.4 billion yuan to her sister Yang Ziying’s foundation. It was once rumored that she was preparing a retreat for herself. In fact, since taking over the position of chairman of the board of directors in March, Yang Huiyan has never enjoyed the aura brought by "the world's number one real estate company". Instead, she has faced the pressure of its huge debt. In the past period of time, Yang Huiyan has been selling off assets and trying to find ways to pay debts and secure the property. Even her monthly salary has dropped to a mere 10,000.

This year has been a troubled time for the real estate industry, and another second-generation real estate agent has also begun to gradually take over the family business amid the storm. Recently, Sun Hongbin’s eldest son, Sun Zheyi, took over as the regional president of Sunac Beijing.

Sun Zheyi, 33 years old at the time, joined Sunac in 2014 after obtaining a double major in business administration and history from Boston College in 2011. Before joining Sunac, he worked at Bain Capital, Deutsche Bank, and Changrong Experienced in communications and Snow Lake Capital.

In 2017, Sunac announced on the Hong Kong Stock Exchange that Sun Zheyi would serve as the executive director of Sunac China. In 2019, Sun Zheyi would serve as the president of Sunac Culture Group, responsible for the operation and management of Sunac Culture Group.

Obviously, Sun Hongbin also trained, tested, and delegated power to Sun Zheyi step by step.

Every step of growth of the second generation reflects the careful training of their parents. From an educational point of view, the second generation have all had the experience of studying in top overseas universities. In terms of training, their parents have also guided and paved the way. It seems that it is difficult for so-called dandies to emerge under such education.

once seized the opportunity of the development of the times. The generation who started their business are already in their sixties. Aging brings not only physical inability but also path dependence in thinking, making it difficult to seize the opportunities of new economic development. pace.

The current popular new energy, e-sports, live broadcast, and iterations in emerging industries have overwhelmed the creative generation. It is no longer possible for traditional vision to adapt to the current trend of innovation. It is time for a new generation to step up.

Liu Yonghao said bluntly at the Tencent ConTech conference, "If the old don't step back, the young will not be able to go up at all. This is the greatest support for them." Hiding under the protection of their parents, the second generation will never grow their own wings. , it is an era when new industries and new economies are emerging, and it is also a time for the second generation to step out of their comfort zone.

3 Reference samples provided by overseas Chinese

Compared with the entrepreneurs who benefited from the domestic reform and opening up, most of the Southeast Asian Chinese entrepreneurs who made their fortunes earlier have completed the transfer of group rights between the first and second generations, and are even about to enter the stage of starting a business or destroying it. Although we are in the stage of career transition, there are also old people who are still working at the front desk.

Robert Kuok, who is always at the top of the list of Chinese richest people and is known as the "Asian Sugar King", is 100 years old, but he is still busy running the business on the front line. In August 1999, he tried to retire and stood aside to watch how the heirs ran the company. Although he no longer went to the company's office, customers and subordinates would go directly to his home to find him, and he still had to handle most of the business in person.

"My successors have always felt my presence. My ubiquitous presence prevented them from filling the vacuum. It should be said that there was no vacuum at all. I was just there. This experiment proved impossible to succeed." Kuok Henian said in his autobiography Li said.

Perhaps it has something to do with the fact that he delegated power too late. Robert Kuok's children still have lingering fears about his dominance.

In 2003, after returning to the front line, Robert Kuok yelled at his 48-year-old son at a board meeting of the South China Morning Post, telling him to get out. The directors present at the meeting were extremely embarrassed and did not know where to look.

In fact, in the families of Chinese entrepreneurs, the male patriarch is usually in an absolute dominant position. The head of the family is the king. Although the sons of these tycoons are now middle-aged, they still fear their fathers' anger.

Xie Guomin of Thailand's Charoen Pokphand Group asked his middle-aged sons not to talk at the dinner table. There are also certain restrictions on shopping, and Xie Guomin's sons "have to beg their father to give them new cars."

Li Ka-shing’s eldest son, Li Zeju, mentioned that he once took a nap during a meeting and was awakened by his father’s scream, as if he had received an electric shock.

Huang Zhixiang, the eldest son of Singapore's richest man Huang Tingfang, is in charge of Hong Kong Xinhe Real Estate, but in his 50s, he still lived in an apartment rented from the company, and Huang Tingfang called every day to check the company's cash balance.

The typical characteristic of Chinese tycoon families is paternalistic obedience. Another obvious feature is the emphasis on education.

Most entrepreneurs have good backgrounds. Among domestic entrepreneurs, Wang Jianlin, for example, studied in the army, Sun Hongbin graduated from a prestigious school, and Ren Zhengfei, Liu Chuanzhi and others were all the proud ones back then.

Robert Kuok was sent to the prestigious Johor Bahru English College in Malaysia when he was a child. After graduating from high school, he was admitted to Raffles College in Singapore and became classmates with Lee Kuan Yew. Although Fok Yingdong was born in a working-class family, he received a British government scholarship and entered an elite school.

Entrepreneurs with a certain educational background and foresight often send their children to study abroad to receive more up-to-date ideas and education, which can often bring significant vitality to the company after taking over. Therefore, the intergenerational exchange of Chinese enterprises does not actually worry about the academic qualifications and vision of the second generation. Every heir can be said to have a promising future.

Of course, there are also negative cases. None of the 11 children of Xu Shubiao, the former richest man in Thailand and the founder of Tencel Red Bull, could take over, and the only chosen grandson Vorayut was also overwhelmed with the responsibility. In September 2012, half a year after Xu Shubiao's death, Vorayut drove a sports car to take over. A police officer was hit and killed and fled.

When the Thai police tracked the Xu family, Vorayut also tried to push the driver to take the blame. Despite the public outcry, Vorayut was released from prison on bail of 500,000 baht by his father. In 2017, the Thai Procuratorate issued a arrest warrant for Vorayut, but he had fled overseas. It was not until 2020 that the Thai police announced that they had dropped the charges against Vorayut.

11 None of the children live up to expectations, which is the unanimous evaluation of the Xu family from the outside world. The biggest reasons for this result are considered to be spoiling and not paying attention to training, and these two points are also shown in his grandson.

Robert Kuok has never found the most suitable child to inherit the family business, and he is still working at the front desk at the age of 100. The family motto left by his mother Zheng Geru had a great influence on him, "If your children and grandchildren can be like me, why should you leave a lot of money; if your children and grandchildren are not as good as me, a lot of money will be in vain."