Chen Yihong: Entrepreneurship To Grasp The Future Trend

Metersbonwe's Zhou Chengjian ranked first in the 17 billion hurdling list of the Hurun clothing industry list. In 2007, Chen Yihong ranked 8 billion 500 million in the second place.

Landing capital market has become the only way to get rich in the field of clothing.

From Lining to Anta, from trend to Metersbonwe, this mode has been the top four in the field of clothing industry in China. But the most special one is Chen Yihong, who is obscurity not only before becoming the richest clothing industry, but also a series of means of capital operation.

When Chen Yihong was thought to have gone through a special way to get rich, Chen Yihong told everyone that such success is not easy to replicate. "What is unusual is that it is a brand management company, not an agent company. Although it is also an agent at the beginning, it is a business company under the brand management model.

Many agencies are distributed, and they are sold. "

Before the "Lining era", Chen Yihong was nine years old and was chosen to attend amateur sports school training. He played table tennis as a youth representative in Tianjin District until eighteen years old.

The competition played a very important role in Chen Yihong's boyhood. Sports competition is the most direct competition.

Whether a player can get applause, flowers or respect is closely related to his achievements.

Achievement is the embodiment of the vitality and charm of an athlete.

At that time, self expression and personal heroism were Chen Yihong's pursuits.

Today, Chen Yihong, who knows "destiny knows", does not hide his approval and affection for those who have personal heroism.

He said, "I like people who have strong points, and like those who can fully express their expertise.

People who live in clouds are unable to survive.

Therefore, Chen Yihong's character and preferences determine the trend in the market performance, forge ahead and change constantly, breaking the balance of power in the original market.

Chen Yihong likes the competitive character and comes from his military career.

At the age of 18, Chen Yihong had the chance to become a professional table tennis player. He participated in the PLA for 5 years because he did not conform to strict physical measurement standards.

"The soldier's experience has deeply influenced the values of my life.

Troops are a place to exercise their will and hone good qualities. "

From a soldier to a migrant worker, then become an entrepreneur with an international brand.

Chen Yihong began to engage in sports apparel industry in 1980 and joined Lining sports in 1991. He successively served as the manager of Lining Shoes Department of Guangdong, vice general manager, general manager and chief executive officer of Beijing Lining. In July 1997, Chen Yihong became the general manager of Lining sporting goods group company, and reached the peak of his career.

In August 1997, Lining made the first round of reform in sports. Chen Yihong and his husband held 2.45% stake in Shanghai Lining, the main body of the "Lining Department" company. This share was second only to the Lining family and became the most senior executive.

In 1998, when Lining sports was restructured for the two time, Chen Yihong had 3.53% of the company's shares, which was also second only to the Lining family holding more than 2/3 shares.

In 2001, Chen Yihong suddenly shifted from the position of the president to the legal representative, because the main subsidiary companies such as Beijing and Lining were in charge of the general manager, and they were directly responsible to Lining sports board. This is a disguised unemployment for a 43 year old president.

As a boss, he must take professional managers as his partners to provide him with enough room for development and help professional managers consider his career development from the beginning to help them realize their pformation smoothly.

Chen Yihong expressed his thoughts on different occasions. "Managers who do not want to be bosses can not become good professional managers."

However, soon fate began to favor him, and the opportunity came.

Chen Yihong, who has lost his stake in Li Ning Co, has acquired the right of Li Ning Co in Beijing Sports Development Co., Ltd. (the predecessor of China's trend, hereinafter referred to as "Beijing trend").

In February 24, 2002, Beijing Lining and Italian company BasicNet entered into the exclusive use and operation right of the famous international professional sports brand Kappa in mainland China and Macao. In April 18, 2002, the trend of Beijing was officially established, and Lining sports held 80% shares, and Chen Yihong had 20% private shares.

In December 31st of the same year, Beijing inherited the rights of Lining, Beijing, and became the exclusive franchisee of Kappa brand in mainland China and Macao.

Chen Yihong now has a new task, which is to manage the operation of Kappa brand.

Such an arrangement can no doubt see Lining's painstaking efforts, on the one hand, it can satisfy Chen Yihong's desire to start a business and open up the market, thereby bringing economic benefits to the company. On the other hand, he can arouse his enthusiasm through linking the interests of the bond and Chen Yihong's own interests.

However, the subsequent development is not so.

Beijing trend can develop, manufacture and sell sports clothes named Kappa brand, and only pay a certain royalty to BasicNet every year according to the concession agreement. While Kappa as an internationally famous brand, Beijing's trend can also be given a higher price, so the gross profit margin of selling Kappa brand is even higher than that of Lining sports brand. Taking 2004 as an example, the gross profit margin of Lining's own brand is about 46%, while the gross profit margin of Kappa brand is as high as 57.5%.. In 2004, the trend of Beijing began to turn a deficit into profit, with sales of 105 million yuan and net profit of 5 million 700 thousand yuan.

For a new brand that has just entered the Chinese market, this achievement is not easy.

But just as Beijing moves towards a healthy development track, Lining sports suddenly announces the pfer of Beijing's stock interest.

In July 25, 2005, Lining sports announced that in June 30, 2005, Lining sports's wholly-owned Affiliated Companies Shanghai Yue AO and Shanghai Lining and Chen Yihong's Private Companies Shanghai Titan respectively entered into the equity pfer agreement and the debt pfer agreement.

Shanghai Yue Ao agreed to pfer its 80% stake in Beijing to Shanghai Titan at a cost of 8 million 614 thousand yuan.

While pferring shares, Lining, Shanghai, agreed to pfer the right of Beijing's outstanding debts to Shanghai Titan according to the pfer agreement. The cost is RMB 36 million 200 thousand yuan.

The total amount of the two pactions is 44 million 814 thousand yuan. Within 14 days after the entry into force of the agreement, Shanghai Titan will pay the cash in one lump sum.

Shanghai Titan was founded in March 14, 2005. Chen Yihong and his wife held 93% of the shares. Another 7% of the shares were held by Qin Dazhong, general manager of Beijing.

Through the above series of capital portfolio pactions, Chen Yihong became the absolute majority shareholder of Beijing.

In the future, Italy's BasicNet group, which owns the Kappa brand, is willing to sell the brand ownership and permanent management rights of Kappa in mainland China and Macao at a price of 300 million yuan because of its urgent need for cash.

Chen Yihong decided to sell the company 20% stake at the cost of 38 million dollars, introduce Morgan Stanley as a strategic investor, and sign a bet agreement with Morgan Stanley before the listing: if the company fails to meet its target in 2008, its main shareholder will pfer the issued share capital to the largest 20%.

If China's profit next year is 15% lower than its target, major shareholders will have to pfer the 17.6% stake up to June 29th to Tai Mo.

On the contrary, if the company's earnings in the period exceed 55 million 900 thousand dollars, it will pfer the 1%. issued to the major shareholders. At this point, Chen Yihong obviously decided to make a clean boat. Later, facts proved that his decision was right. It was Chen Yihong's nature to seek the change in opportunity.

China's net profit in 2005 is only 37 million 800 thousand yuan, but according to the bet agreement, the net profit in 2006 will be about 180 million yuan, that is 4.8 times the net profit in 2005.

In 2006, Chen Yihong anticipated a large proportion of the overfulfilled task. The financial data of China showed that sales increased from 148 million yuan at the end of 2005 to 859 million yuan at the end of 2006, sales revenue increased by 480%, and after tax profits increased from 37 million 810 thousand yuan to 306 million yuan, an increase of 705.. China's trend was also officially listed on the Hongkong stock exchange in October 10, 2007.

At 16 hours on that day, the first day of China's listing on the Hongkong stock exchange closed at HK $5.43.

At this price, the total market value reached 29 billion 870 million yuan, surpassing Lining and Anta, which were listed in Hong Kong earlier.

The fortunes of the Chen Yihong family, which controlled 64.7% of the shares in China, reached 19 billion 300 million Hong Kong dollars, while Chen Yihong's personal worth of 53.32% was 15 billion 900 million yuan.

Far beyond the "old club" Lining's 10 billion yuan.

In this way, in less than 20 years, Chen Yihong was ranked thirty-sixth among China's richest people from an ordinary salesperson.

Since then, Chen Yihong has wholly owned the "Beijing trend" and reorganized it into "China's trend".

"Life is always so dramatic!"

Speaking of this process, Chen Yihong responded.

However, the Kappa Chen Yihong was well prepared. Although he deliberately changed, Chen Yihong changed his blueprint every time in his mind.

When he worked in the Li Ning Co, he noticed that Kappa had another production line of fashionable products. At that time, sporting goods in the mainland tended to be practical in sports and lack fashion elements.

As a result, Beijing has taken over the Kappa route in the past to focus on sportswear and turn it into a fashion style in sports elements.

In April 25, 2008, the Chinese trend released a notice of HK $38 million 430 thousand to buy a 91% stake in Phenix, which owns Kappa brand in Japanese ownership and management rights. This is the first acquisition after China's listing and is the first attempt to internationalize China's trend.

Chen Yihong, who became the richest man after rocket speed, will copy the "movement" myth overseas.