Missionary Guofanseng: The stock experiment of HC net

Guofanseng The second time he was at the Hong Kong Stock Exchange, he was happier than when he landed on the gem in 2003. While the motherboard is not as much of a concern as the first IPO, it is a case of pride for Guofanseng, who is obsessed with stock reform and family business research.

Experimental field

Guofanseng and HC Network in the Internet industry is known, due to the 2007 or so popular concept of business-to-business, this is the most important business, Alibaba, from the traditional market directory transformation of the Internet's HC network, no less and Alibaba fight.

Over the years, "old rivals" Alibaba, by virtue of the subversion of Consumer-to-consumer, Business-to-consumer and payment tools, grew into giants. and focus on business-to-business wisdom in the domestic vertical industry continued to develop, into a slow and arduous road, and even missed the consumer electric Company's big cake, but in Guofanseng heart have a different consideration.

This and Guofanseng "sea" founder Hui Cong background. Born in 1955, Guofan, experienced countryside, enlisted and went back to college. 1982-1990, Guofanseng in the Inner Mongolia Autonomous Region party Committee Research Center, the National Restructuring China Economic System Reform Research Institute, engaged in the western development and the enterprise system aspect study.

As early as the 80 's, Guofanseng began to study the reform of private enterprise shares, and proposed a share called "body shares." This idea stems from the Jin business way: Work take 60%, investment to take 40%, to ensure that the Shanxi merchants 300 years of growth. Guofanseng wrote many articles and books based on this idea, but at the time these were spring and no one supported it.

1990 Guofanseng launched the Hui Cong Network, the main business directory. From the system into the system, Guofanseng based on the research results in the establishment of the rules: Although the company by several shareholders, but the implementation of the labor joint-stock system, the company's profits not only divided shareholders, 70% of the annual profit is also divided into the employees do not share.

1999 Hui Cong won venture capital, the company carried out the reform, so that more than 100 employees have the company shares. The 2003 IPO in Hong Kong, 126 employees became millionaires, which was a huge sum.

However, it was not smooth sailing and the share price fell from HK $2 to HK $0.3 in 2008, when the Internet suffered and the economic crisis. How to motivate employees at this time? Guofanseng said that at that time, HC bought 15% shares and then issued an option in accordance with HK $0.6, which rose to HK $1.6 in 2011, with employees earning HK $ more than 75 million. In the same year, HC also decided to take out 50 million buy shares, as bonuses issued to employees.

"Must let the capital market to move, overflow big staff income, this is the system." In this system, there are no bosses and no workers, in this system our family still controls more than 50% shares of Hui Cong, but such a system allows the right to gain and management of socialization, we do not have labor conflict. "Guofanseng said.

Businessmen have their shares

Hui Cong to the motherboard on the day of the listing, there is a team called "partner". And Alibaba founder partner concept is different, Hui Cong partner is HC all business senior, even including the director of HC Park. Including CEO Guo is a member of the partners, the 47 partners, most of whom worked for more than 10 years in HC.

This is also a new attempt to study the system of Guofanseng reform. 2013 Middle-level employees want to share, Guofanseng given the program is the staff out of 1 yuan, the company to borrow 2 yuan to buy stocks, locking period of three years. Out of the total of 20 million yuan employees received wisdom 40 million yuan loans, in the price of about 3 Hong Kong dollars to buy Hui Cong, the 47 employees are partners, is also an important strategic decision-making group.

In addition to the options awarded by the post performance, the HC partner system makes the middle and senior executives more motivated, especially in this year's 3-4-fold rise in the price of HC. Of course, this is only the book wealth, at the end of the lockout period, they need to work harder to improve performance, in order to stabilize the stock price to achieve substantial returns.

In addition to being motivated at the core level, Guofan survivors hope to retain new employees. From 2004 to 2013, HC issued a total of 11 options, last year also issued a red scarf options to young employees, the right time is 5 years, to today each red scarf option has been worth hundreds of thousands of Hong Kong dollars.

On the eve of the motherboard, Guofanseng also with Guo from the individual shares in part to the whole staff to increase shares, the minimum 1000 shares, with the current market value of more than 100 million Hong Kong dollars.

In fact, the concept of the joint-stock system in this year's internet industry has been "standard", and VC intervention and IPO, so that countless employees become rich, labor and capital to achieve communion. "China's internet industry has completely defeated the old system, the Internet is a thorough knowledge economy era." "Guofanseng said.

Hui Cong do traditional business-to-business business, perennial and tens of thousands of small and medium-sized enterprises to deal with, Guofanseng see the Internet popularization of the labor system to bring much productivity, see Small and medium-sized enterprises in the development of how much resistance. Based on such a judgment, 2008 Guofanseng the company to nephew Guo, painstaking research reform issues.

Evangelist

In the bustling area of Zhongguancun, which is wrapped by modern architecture, there is a courtyard called "Hui Cong Academy" called "Quiet".

From the name of the courtyard can be seen that this is Guofanseng assets, after the resignation of the CEO of his small courtyard as a gathering point, the formation of more than 70 people's team, the main research labor joint-stock and private enterprise reform, and for growth-oriented enterprises to do share reform solutions.

Over the past few years, Guofanseng has given lectures to more than 100 entrepreneurs each month on the subject of how to do the share reform program, each 5-hour course cost 450,000 yuan per person, and then assist in the program landing. This price is not expensive, Guofanseng prefer to use "value is not worth" to discuss, for him the higher the price, means that their research more valuable.

At present, Guofanseng has been guiding more than 10 companies to the landing program, these enterprises are catering, chain, medicine, manufacturing-type traditional companies. "In this process, I really see the direction of further development of Chinese enterprises." ”

2009, Guofanseng to Tianjin, a hardware chain store reform. The company has 26 chain stores, giving the group a profit of 3 million yuan, continuing downhill line. Reform of the scheme on a page, one from the level of accounting into two-level accounting, the second is the company to implement labor dividends, set a profit base, more than part of the boss to take 40%, shop long take 40%, deputy store length and staff take 20%.

The biggest promotion is the enthusiasm of the store, he began to consider cost savings and improve efficiency issues, 26 stores a total of 40% redundant staff. After the change in the profit structure, the first year the company turned over to the group of profits rose to 8 million yuan, the second year up to 16 million yuan, the boss profits rose 9 times times, the store long average income from 30,000 to 300,000 yuan, employee income also increased by more than one times.

"Is this not just a rise in fairness and efficiency?" In the past, economic management and wage research have never entered the place, is how to improve efficiency through the initial distribution of corporate profits, to ensure efficiency and fairness at the same time. "Guofanseng said. Such cases in the Hui Cong College many, some pharmaceutical companies, KTV chain have carried out the Guo-style reform.

As the Hui Cong shareholder, IDG Li Jianguang and Guofan have a long time friendship, in his eyes Guofanseng is a diligent "missionary", spare no effort in various occasions to promote his views on the reform. Nearly 60 years of Guofanseng life experience rich, with a very contagious speech eloquence, but not all of the bill, from Do Hui Cong began, many people think he is "big cheat".

Guofanseng also admits that this set of reform system is the boss itself: the mind is not big enough, in the sub-unit is not when the bonus but the system innovation. But the human heart is the most difficult to change, but also led to the Guofanseng of the reform of the system is mixed.

However, Guofanseng did not care about this: "The Labor joint-stock system I have been doing for more than 20 years, now want to refute my people, I only say: Have you done reform?" You didn't do anything to contradict me? ”

Old Guo sum small guo Total

China's traditional private enterprises, the biggest feature is the family business, the beginning of the first is a clear blood relationship or a family of families or family composition, the interests of the relationship in accordance with the lineage, Hui Cong is no exception. Take the CEO burden is Guofanseng nephew Guo, Guo 1996 joined Hui Cong, from the business manager, 2002 became vice President, 2008 as CEO.

Early Hui Cong, executive exclusively is Guo Surname, Guofanseng's brother, two nephew, niece even nephew's girlfriend, all work in Hui Cong. Guofanseng thought that the age of the entrepreneurial relatives are more laws, but the company is big enough to gradually solve this problem. Guofanseng's approach is to send shares and funds to relatives to leave the company with satisfaction.

As elders, Guofanseng in these younger generation after leaving the company, all give the biggest financial support, such as red children and film and television drama "Qiao Courtyard", are under the support of Guofan students to do entrepreneurial projects. And take over the CEO of the Guo, get Guofanseng 5% of the shares donated, and in the wisdom of the difficult development of all the way to grow, the formation of the second generation of HC management team.

At the motherboard thank you dinner, Guo recalled the 2008 almost ammunition years, sigh if not because of nephew relationship, I am afraid to be Guofanseng expelled more than 10 times, but it is uncles (including and Guofan life generation of investors) help, wisdom can survive the crisis and from hundreds of millions of market value to tens of billions of market value.

In 2011, Guo Wei, chairman of the China Digital Board of Directors of the Hui Cong, lamented that Guofan had a good nephew who could take over the business of HC. In fact, this is from the system to the outside of the system entrepreneurs face the common problem: where the successor of the enterprise.

"Our generation of entrepreneurs, whether Feng, Guo Wei or Wang Shi, you ask them a question, if you are not, the company will, they can not answer." "These entrepreneurs have not devised an exit mechanism, and they have realized years ago how unreliable it is for more than 50-year-old people to earn 80 of their money," Guofanseng said.

Although Guofanseng that the current family business is still the most important issue is the ownership structure, but also need to pay attention to the issue of inheritance, especially the majority of descendants do not want to take over, even if willing to take over, from a BMW to live in a mansion, completely did not experience the entrepreneurial hardships of the rich second-generation,

Of course, Guofanseng does not think that inheritance must be immediate family, he stressed that the family to the enterprise control, if the equity reform and incentive scheme, even professional managers, can allow enterprises to continue to develop. For him, the worst case is for the family to lose control, such as Lehman Brothers and Bear, which eventually had to fall into bankruptcy.

At present, Weiying, Feng, Wukegang and so on are frequent regulars of Hui Cong Academy, they often gather together to study enterprise system. Guofanseng's latest research results will be tested in HC first. At present, he wants to confirm that the three conclusions already have two realization: first, the labor conflict causes the laborer to be unable to distribute the profit, the Chinese family enterprise is wasted the efficiency is higher than the profit; second, all the private enterprises in China, especially the state-owned enterprises, labor resources are idle and wasted.

and Guofanseng most want to prove a conclusion is that this system revolution is no longer determined by the central document, but by the growth of a new generation of entrepreneurs with their own ideals, glory and dream to achieve. "This requires more business to demonstrate through practice." "Guofanseng said.