WH Group’s founder quits, leaving world’s biggest pork producer without a successor after son was fired for ‘aggressive behaviour’

[The_King]

Wan Long, the founder of WH Group, the

world’s largest pork producer

, has stepped down as the company’s chief executive, leaving his empire in the hands of non-family members after his son was

unceremoniously booted out

two months ago.

 

The Hong Kong-listed firm has appointed Guo Lijun, who assumed the role of chief financial officer in 2016, to succeed 80-year-old Wan, according to a filing to the stock exchange.

The personnel change, effective immediately, followed the sacking of Wan Hongjian, 52, in June for misconduct. WH said he was guilty of “aggressive behaviour” against the company’s properties, without elaborating on the circumstances.

Wan Long, who owned 23.34 per cent of the company at the end of 2020, will continue to be its chairman.

Wan Hongjian, the 52 year-old son of outgoing CEO Wan Long, was stripped of his roles as executive director, deputy chairman, and vice-president. Photo: SCMP Handout

“Succession of family businesses in China often has a huge impact on the companies’ fundamentals,” said Zhou Ling, a fund manager with Shanghai Shiva Investment. “Power transfer can cause some turbulence in the businesses if the family members cannot get along with each other well.”

 

 

In the filing, the company said that Wan Hongwei, 47, another son of the founder, would be appointed as an executive director and deputy chairman.

 

His older brother, Wan Hongjian, was an executive director and deputy chairman before he was stripped of his roles. He was responsible for WH’s international trading business.

 

WH, whose

operating base is in Henan province

, owns US-based pork producer Smithfield Foods, which it acquired in 2013.

 

 

Guo, 50, is a veteran accountant with more than 20 years of experience in overseeing financial operations at various companies.

He became an executive director of WH at the end of 2013 and took the CFO role three years later.

 

Dozens of China’s public companies are undergoing major reshuffles as their founders pass control to the next generation.

The first generation of Chinese entrepreneurs set up companies in the sectors of manufacturing, construction, property and trade in the 1980s and 90s as the country embarked on a market-based reform process.

 

Their enterprising spirit and high risk appetite netted them vast fortunes and made some of them the richest people in the country.

A transition of the

Chinese economy

into a consumption-driven pattern has prompted many family businesses to conduct overhauls to survive a slowdown. Many second generation members of family-run companies are now considering entering into businesses with a more global perspective.

 

 

Part of the families’ wealth might be allocated to foreign equities or properties as a way of diversifying assets.

[meng.huat]

this is a big problem with Asian family business that gets big.

Capable father doesn't mean son is capable.

 

After the 1st gen, operations should be handed over to the professionals. 

the family can retain majority ownership, collect dividends and continue with their luxuries privately.

 

in b4 loong pic.

[socrates469bc]

3 hours ago, meng.huat said:

this is a big problem with Asian family business that gets big.

Capable father doesn't mean son is capable.

 

After the 1st gen, operations should be handed over to the professionals. 

the family can retain majority ownership, collect dividends and continue with their luxuries privately.

 

in b4 loong pic.

 

loong loong is passe liao.

 

latest poster kgk is this boy boy.

 

he is jin sakti as to burn sgd1.9bln within 1yr, more sakti than loong loong.

 

[The_King]

55 minutes ago, socrates469bc said:

 

loong loong is passe liao.

 

latest poster kgk is this boy boy.

 

he is jin sakti as to burn sgd1.9bln within 1yr, more sakti than loong loong.

 

I take umbrage at your post.

 

 

Move aside la. Who can burn as much as umbrage. 2 company you know