On March 31, the reporter of China Economic Weekly confirmed from Delixi Holding Group (hereinafter referred to as "Delixi") that Hu Yuxuan had taken over from his father Hu Chengzhong Delixi As the president, he is fully responsible for the management of the Group. Hu Chengzhong is no longer the president of Delixi. Delixi is a well-known private enterprise, one of the top 500 enterprises in China, and a leading enterprise in China's electrical industry.
Hu Yuxuan is lucky because he has just turned 35 and seems to have taken over tens of billions of assets without much effort, becoming the envy of many peers. However, it remains to be seen whether he can shoulder the burden of family business development when he is young.
"Although Hu Chengzhong seldom mentioned Mr. Hu in public, Mr. Hu's sense of existence in the group has always been strong, and he can be seen in every group meeting." Delixi insiders told China Economic Weekly. In fact, the electrical industry in which Delixi is a member ushered in the succession as early as 2005. People's Electric and Huayi Electric, both of which are in Yueqing, Zhejiang Province, have completed the succession.
Nationwide, the past few years have also been a special period for China's top billionaires to concentrate on transferring their wealth to the next generation, such as New Hope, Country Garden, Guangsha Holdings and Wahaha Behind the change of the controllers of these companies is the inheritance of the huge wealth empire.
Hu Yusheng's succession is a very common mode of intergenerational inheritance of private enterprises - first studying abroad, then gradually accumulating business management experience, and gradually taking the pilot as the platform to take over.
According to a person close to Hu Yuxuan, Hu Yuxuan went to study in the UK and was assigned as president of Delixi Hangzhou Branch in 2013. Although Hu Yuxuan has been in Delixi for more than 6 years, there are not many public reports about him. As a child, Hu Yuxuan adopted her father's friend in Shanghai, where she spent her middle school years.
Delixi Its predecessor is Yueqing Qiujing Switchgear Factory, which was founded by Hu Chengzhong in his hometown of Zhejiang. In the early 1980s, Hu Chengzhong was not satisfied with the tailoring skills handed down from generation to generation and started his business together with his classmate Nan Cunhui.
At the beginning of his business, Hu Chengzhong was confronted with "fake and inferior" products that flooded the market. With a keen sense of business, he and Nan Cunhui aimed at this market pain point, played a "quality card", and quickly opened their own world.
In 1990, the Six Ministries of the State appointed a working group to investigate "fake and inferior commodities" in Liushi Town. Qiujing Switch Factory in Yueqing County became a positive example, with an annual sales revenue of 10 million yuan at that time.
However, like many break-up partners, Hu and Nan broke up in 1991. Later, Nan Cunhui founded Zhengtai Group, becoming an important member of China's electrical industry.
Different from Chint's focus on electricity business, Delixi has embarked on a diversified path since 1998 and gradually entered the fields of real estate, logistics, etc. In 2007, the electrical business and the French electrical giant Schneider established a joint venture, with each party holding 50% of the shares.
However, some market analysts believe that Delixi may suffer from diversification, so Chint has been left behind in terms of group size and revenue.
The "1+X" strategy outlined by Hu Chengzhong refers to taking the electrical industry as the core, developing strategic emerging industries such as health industry, environmental protection industry and transportation industry, and creating enterprise groups with outstanding comprehensive advantages.
Hu Chengzhong's practice in these fields is not to build his own factory, but to become the actual controller of many listed companies such as Guangdong Jiangxi Chemical (000576). SZ) and Dexin Jiaoyun (603032. SH) through capital operation.
In 2011, when Hu Chengzhong was in charge of Guangdong Ganhua, the domestic LED industry developed rapidly. Guangdong Ganhua transformed from a sugar and paper producer to an LED, but it ended in failure. Subsequently, Guangdong Ganhua was transformed into a big health, and still had no results.
"Guangdong Ganhua has tried many times to transform, but failed," Delixi insiders told China Economic Weekly. At the end of 2018, Guangdong Ganhua announced that Hu Chengzhong proposed to resign as chairman of the Board of Directors for personal reasons.
On March 22, Guangdong Ganhua disclosed its 2018 annual report. The company realized an operating revenue of 409 million yuan, down 13.85% year on year; The net profit attributable to shareholders of the listed company was 98.0712 million yuan, turning losses into gains on a year-on-year basis. However, Guangdong Ganhua's non net profit deduction index was -71.1132 million yuan.
The performance report previously disclosed by Delixi's Dexin Transportation Company shows that the total operating revenue in 2018 was 170 million yuan, down 13.67% from the same period last year; The net profit attributable to shareholders of the listed company was -26.83 million yuan, down 254% from the same period last year.
"Blind confidence is not advisable, but also pragmatic. My ideas have changed a lot in recent years." Hu Chengzhong responded in an interview at the end of 2018, "In the past, I focused on how to make Delixi one of the world's top 500, and worked hard for this goal, but I ignored some things. Today, this is still my goal, but I prefer to make Delixi healthier, rather than blindly expanding the scale of the enterprise. "
"Many manufacturing enterprises in China have only decades of development history. Private enterprises have less than 40 years of experience in management. Making such a good hand is a test for key executives to maintain their advantages." A senior electrical industry analyst made an analysis to the reporter of China Economic Weekly.
From the perspective of the electromechanical industry where Delixi is located, the relationship between supply and demand of products with oversupply and excessive competition has not changed. "The situation faced by the electromechanical industry in 2019 is more severe and complex, and the task of achieving stable operation of the industry is still arduous." Chen Bin, former director of the Industry Coordination Department of the National Development and Reform Commission, told China Economic Weekly.
According to the interview of China Economic Weekly, the electric appliance industry is highly competitive, with many strong players. Globally, ABB, Siemens, Eaton and other foreign brands are aggressive in the Chinese market, with products ranging from high-end to low-end. Wenzhou Corps, including Zheng Tai and People's Electrical Appliances, has also made great achievements in their respective fields.
"At present, there is overcapacity in the field of low-voltage electrical appliances, the profit space is compressed, and the survival pressure of enterprises is not small. I still can't see Delixi's ideas in this field." He Zai, senior engineer of the Science and Technology Department of the China Machinery Industry Federation, said in an interview with China Economic Weekly.
In addition, the product positioning of Delixi Electric is vague. "In the field of low-voltage power, Delixi is neither high-end nor low-end, which is awkward in the market and is not conducive to its growth and strength." An insider familiar with Delixi analyzed.
Whether Hu Yuxuan can focus on industry remains to be seen. "The failure of the previous Delixi real estate project has led to a shortage of funds, which is a living reality." A person in the electrical industry who did not want to be named told China Economic Weekly that the swing of the group's strategy may also make it difficult for the young commander to concentrate on his main business.
Moreover, management is also the main problem that Hu Yuxuan has to face. As a joint venture under Delixi, Delixi Electric introduced the management mode of the joint venture - Schneider, but Delixi Group has not yet established a modern enterprise system. "Chint has solved the management problems many years ago and established a modern enterprise management system, while Delixi is still in the exploration stage of modern enterprise system," said He Kangde.
