What Does Wong Kwong Yu Mean In His 14 Years?

The former richest man was sentenced to 14 years' imprisonment yesterday and fined 800 million yuan.

Wong Kwong Yu, who has been calling for rain in the home appliance circles, has not only left the leading figure with a negative impression, but also has a fine of 5 million yuan.

Can Guo Mei, who is trying to play down Wong Kwong Yu's influence, really get out of the way?

Gome can still be strong like SKYWORTH and wumi?

What kind of shock will this event leave to the home appliance industry?

What exactly does Wong Kwong Yu mean in his 14 years? The industry is full of misgivings.

Gome goes out of Wong Kwong Yu Era

The result of Wong Kwong Yu's decision is that after the Wong Kwong Yu incident, Gome has been pushed to the spotlight again.

Affected by Wong Kwong Yu's bribery, Gome and Peng run real estate were sentenced to 5 million yuan and 1 million 200 thousand yuan fine respectively.

Gome is still exploring whether to appeal.

Yesterday, Gome relevant responsible person interviewed by reporters said that the first instance of the judiciary for Gome 5 million Yuan fines, will not have a substantive impact on the operation of Gome.

Gome said it was actively discussing with the legal experts about whether the decision was appealed.

Gome said at the same time that through the internal governance and structural adjustment of last year, the strategic pformation strategy of Gome has achieved success, not only excellent business performance, but also abundant capital and sound capital structure.

As the case comes to an end, Gome will focus its efforts on the operation of the company and the sustainable development of the enterprise.

At the beginning of this year, Gome's strategic plan for the next five years began to be implemented.

Gome emphasized that with the joint efforts of the board and management team of Gome, and with the attitude of investors, partners, employees and society, Gome continued to build the enterprise into a respected, healthy and sustainable international appliance chain enterprise.

Gome (HK00493) yesterday closed HK $2.13, up 0.87%.

Getting rid of the sequela of "capsizing" is the key.

As the leader of Gome, Wong Kwong Yu was arrested after the end of 2008. Not only did the US stock market stop trading immediately, the chain of capital was tight, but suppliers' money was also raised.

In the case of emergency, Chen Xiao, President of Gome group, took the helm at risk and succeeded Wong Kwong Yu as chairman of Gome's board of directors.

This is known as the post Wong Kwong Yu era.

In order to change the plight of Gome, Chen Xiao, who hastily saved the fire, began to operate in a low profile to Gome, changing Wong Kwong Yu's "iron wrist" as "gentle".

Chen Xiaotong bought a stable supplier through large single purchase, and gave up the original expansion strategy of fast opening shop, and turned it into a closed shop with no benefit and improved the efficiency of single store.

As a professional manager, Chen Xiao led the management team to make Gome to family and introduce Bain Capital to solve the funding problem.

Huang family and board of directors deepen contradictions

According to the annual report released by Gome, about 5 billion 116 million shares of Gome shares under Wong Kwong Yu's personal name, which account for more than 30% of Gome's total shares, are the largest shareholder of Gome.

At a shareholder meeting in Gome recently, Wong Kwong Yu's voice in prison gave a vote against the succession of three directors of Bain Capital, but the board of directors of the United States Board of directors to protect three directors of Bain Capital.

At this point, the contradiction between Huang's family and board of directors, which is the largest shareholder of Gome, is publicly known.

Wong Kwong Yu and his wife, cuckoo respectively, were sentenced to pay 1 billion yuan in fines. Some people speculated that Huang's family might be liquidate through the reduction of Gome's shares.

Huang's control over Gome is likely to weaken.

"Wong Kwong Yu's three director who denied Bain Capital was worried about power."

An insider, who declined to be named, said the departure of the board from Wong Kwong Yu seemed to show that the impact of Wong Kwong Yu's views on Gome is weakening.

It believes that although Wong Kwong Yu is still a major shareholder of Gome, it has no doubt that its influence on Gome is weakened because there is no personal freedom and can not act as a parent to manage the company.

However, this person believes that Wong Kwong Yu's sale of Gome shares is unlikely.

"Gome is the lifeblood of Wong Kwong Yu, it is a little bit of hard work, even if it can not get a fine of 1 billion yuan, the Huang family can also raise money by other means, and Wong Kwong Yu will not take the initiative to sell Gome shares."

Guoxin Securities analysts believe that Wong Kwong Yu's direct influence on Gome will not be too great after being sentenced, which has already affected Gome at the beginning of the arrest, and this effect is weakening.

"Although the way of operation of Gome will not change much, Wong Kwong Yu, who has to bear criminal punishment, will definitely decentralization to Gome."

The analyst thinks.

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Huang's control will be weakened.

Yesterday afternoon, an insider from GOME said that most of the employees in the company knew the news of Wong Kwong Yu being sentenced and everyone was very calm about the verdict.

"In the past, Wong Kwong Yu was like a very strong dictator in Gome. During the meeting, very few people dared to refute his opinions. He had absolute decision-making power in the company. Every time he went out, he was a leader of the Gome and even a spiritual leader."

Gome, the insider told reporters that after Wong Kwong Yu's incident, because the case had a negative impact on the company, the company has been trying to downplay Wong Kwong Yu's influence on the company. From this month, Wong Kwong Yu even voted against the resolutions of the board of directors of the Gome. The contradiction between the management of the company and the Huang family has been very obvious. The management wants to be divorced from the influence of the "family mode" on the operation of the company.

"14 years of sentencing is a fatal blow to the career development of an entrepreneur. Gome's" Wong Kwong Yu era "will surely be gone forever.

The insider said.

Subtle changes in the pattern of home appliances

Although Gome has professional managers headed by Chen Xiao, the impact of the Wong Kwong Yu incident on Gome is irreversible.

Gome's latest quarterly report shows that its net profit is 333 million yuan, up 3.42% over the same period last year, and its revenue is 11 billion 782 million yuan, up 20.21% over the same period last year.

The first quarter report of its old rival Suning showed that its net profit attributable to shareholders of listed companies was 884 million yuan, an increase of 86.08% over the same period last year, resulting in an operating income of 16 billion 712 million yuan, an increase of 32.02% over the same period last year.

In the post Wong Kwong Yu era, Gome's first annual report showed that its sales revenue in 2009 was 42 billion 600 million yuan, behind the sales volume of 58 billion 300 million yuan in sunning year.

Suning has surpassed the top 100 list of the top 100 chain companies in China.

A senior analyst at home appliance industry pointed out that after the Wong Kwong Yu incident, the pattern of domestic appliance chain has undergone subtle adjustments.

Its rival, Suning, has narrowed the gap with Gome and even surpassed it by quickly opening stores and strengthening contact with suppliers.

Looking back at Gome's past leading position and the current stalemate of both sides, these are the consequences of the Wong Kwong Yu incident.

"Now, I think the key to Wong Kwong Yu's acquisition of Dazhong and Yongle was the introduction of professional manager Chen Xiao."

Liu Buchen, an expert in home appliance industry, pointed out that although Gome has hurt its vitality after experiencing the Wong Kwong Yu incident, it has not failed.

Guoxin Securities analysts believe that after the Wong Kwong Yu incident, the pattern of domestic appliances did not change much. Although some regional household appliance chain policies benefited faster development, the chain enterprises in the country still headed Gome and Suning.

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Even though the sentence should not be less than 7 years.

Wong Kwong Yu was sentenced to 14 years in the first instance. His family thought the sentence was too heavy. His mother and two younger sisters were emotional after listening.

However, the lawyer's analysis suggests that the possibility of maintaining the original judgment is more likely.

Record of punishment for personal crimes

Yesterday morning, the second intermediate people's Court of Beijing sentenced the first instance of the Wong Kwong Yu case.

The court found Wong Kwong Yu guilty of illegal operation, insider trading, unit bribery and three crimes. He decided to carry out fixed-term imprisonment for 14 years, and fined 600 million yuan, and confiscated part of his property by 200 million yuan.

Wong Kwong Yu, wife of cuckoo before bail pending trial for 5 months, was sentenced to 3 years and 6 months in court. He was detained in court and fined 200 million yuan.

Xu Zhongmin, chairman of Zhongguancun science and technology development company, was sentenced to 3 years' imprisonment and a fine of 100 million yuan.

The defendant unit, Gome, was fined 5 million yuan, and punun real estate was fined 1 million 200 thousand yuan.

The total amount of property punishment of the three defendants in the Wong Kwong Yu case amounted to 1 billion 100 million yuan, setting a record of punishment for individual criminal property in a single case since the founding of new China.

Wong Kwong Yu did not appeal in court if he appealed

According to the indictment of the second branch of the Beijing people's Procuratorate, the fact that the crime of illegal operation was involved was that from September 2007 to November, Wong Kwong Yu violated the relevant regulations of the state and sold more than 822 million Hong Kong dollars illegally.

According to relevant regulations, if Wong Kwong Yu appeals, the court of appeal will be the Supreme People's Court of Beijing within 10 days after the decision comes into force.

Wong Kwong Yu and others did not indicate whether to appeal in court, while their defense lawyers and family members considered the sentencing of this sentence to be heavy.

There have been reports that Wong Kwong Yu's sentencing will not exceed 10 years. His lawyer, Yang Zhaodong, said he would meet with Wong Kwong Yu to discuss the appeal and decide whether to appeal within 10 days.

The possibility of maintaining the original judgement is very great.

Liu Chuang, a lawyer at Hechuan law firm in Beijing, said that Wong Kwong Yu's sentencing is not important according to the charges alleged by the prosecution.

"The maximum sentence for a single crime is 15 years. The maximum sentence for illegal business operation is 10 years. The maximum sentence for insider trading is 10 years. The crime of bribery is 5 years, and the number of joint offense is not more than 20 years.

Wong Kwong Yu's three crimes and 14 years of punishment are not heavy. "

Liu Chuang believes that bribery or bribery is the focus of the case.

The final decision of the unit's bribery is that Tian Wenchang, Yang Zhaodong and other defense lawyers have done a good job of defense. The most controversial case is the crime of illegal operation, including Wong Kwong Yu and Tian Wenchang.

"If it decides to appeal, the possibility of maintaining the original judgment is very great."

Whether Wong Kwong Yu will be released for medical treatment after the final hearing or for some reason to be retrofit, according to the legal profession, according to our law, Wong Kwong Yu will not be reformed in prison for less than 7 years, even if he is retrofit for some reason.

Being in jail and running without control

Liu Chuang said that as the largest shareholder of Gome, Wong Kwong Yu and his wife were in jail, but this did not affect the control of the two people to Gome. His shares did not change and the control rights would not change. He could express his views on a major decision of the company through an agent. However, because two people could not attend the board of directors in person, their agents' opinions on the board meeting would not be too important.

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Those "leaders" left the business.

In the past year and a half since the Wong Kwong Yu incident, Gome has been cautious in the external questioning, which is very similar to the way of the new leader Chen Xiao.

In fact, the personal charm of the leader has made the enterprises grow rapidly, and the enterprises that have encountered the soul departing have more than the Gome. Before that, enterprises such as SKYWORTH, wumi, lotus and MSG were deeply left by Huang Hongsheng, Zhang Wenzhong and Li Huaiqing. Some of them made efforts by the successors to make the enterprises through the most difficult period. Others went downhill with the decline of the leader's aura.

Wumart emergency brake

As a private enterprise, Wuming has created many myths in the retail industry: the acquisition of beauty and beauty, the biggest mergers and acquisitions in Beijing's chain industry, the acquisition of Yinchuan Xinhua Department store, the entry into the department store industry and so on.

In November 2006, Zhang Wenzhong, founder of Wumart business group, resigned from Chairman of Wumart group on suspicion of embezzlement of funds.

After Zhang Wenzhong left, Wu Jianzhong, another founder of Wumart, took over as chairman.

In the eyes of Wu Jianzhong and Wuming group, although Zhang Wenzhong has left wumi, his early development of regional development strategy and information technology "home" has made wumi so far benefit and lead other peers.

SKYWORTH's revenue growth

In December 2004, Huang Hongsheng, chairman of SKYWORTH's former board of directors, was sentenced to 6 years for 4 counts of fraud of listed company assets.

At the beginning of Huang Hongsheng's being taken away by the police, SKYWORTH made a collective appearance to stabilize the army's heart and directors.

After the unrest of the souls in prison, SKYWORTH did not fall down on the team of professional managers.

4 years later, Huang Hongsheng was released early. A gift from SKYWORTH executives to Huang Hongsheng was that SKYWORTH achieved a total sales of HK $15 billion 329 million in 2008, up 12.5% over the same period last year.

The collapse of Kelon's imperial dream

Green Cole's founder, Gu Chu Jun, was once a well-known refrigeration giant in the industry.

In 2001, Gu Ling Jun's Shunde Green Green Co. spent 560 million yuan to acquire 20.6% stake in Guangdong Kelon Electric Appliance, which became the most direct inducement of Gu Chu's capsizing.

In April 2005, the China Securities Regulatory Commission formally filed a case to investigate the problem of Gu Zhi jun's Kelong period.

In January 2008, Gu Chujun was sentenced to ten years' imprisonment for committing false registration of capital, illegal disclosure and no disclosure of important information.

With Gu Chu's exit, its imperial dream of refrigeration also collapsed.

According to the speculation at that time, after the incident of Gu Jun army, the local government of Shunde could not sit on the funeral of Kelon.

Not long after, Gu went to tears in prison to sell the Kelon sold to Hisense. After losing Kelon, he became dim.