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Billionaires die, and huge inheritances become obsessed

author:Manxiao Sword

1

On a cold winter day in the 90s, howling north winds swept up snowflakes and rustled a wooden house.

Inside the house, a trembling old man held a carving knife and carefully divided a pill in his hand into eight petals.

The middle-aged man with the bowl by the bed looked at this scene dumbfounded, and kindly reminded: "It's useless to take medicine like this..."

The old man's answer was unusually calm and poignant: "The price of medicine has risen again, if you can live for one day, count it as one day." ”

This is a scene from the 2021 online hit short film "I Am the People", and the middle-aged man in the film is Zhao Zhiquan, the founder of Lunan Pharmaceutical.

"I Am the People" is a main theme film that carries forward the spirit of Yimeng, and selects the deeds of typical characters such as Zhao Zhiquan, a model of the times, Liu Jiakun, a contemporary fool, Yu Aimei, the inheritor of the spirit of the Red Sister-in-law, and the Volunteer Service Group for Orphaned and Poor Children.

Billionaires die, and huge inheritances become obsessed

After the short video was released, it caused widespread heated discussions on overseas social media, with more than 10 million views.

The story of the protagonist Zhao Zhiquan is moving: he was born in poverty, and it took him 27 years to develop a small pharmaceutical factory on the verge of bankruptcy into Lunan Pharmaceutical, which has a net worth of more than 6 billion.

Even though he was still working with illness after suffering from cancer, when he died, he did not forget to ask the factory to raise the wages of all employees again.

He himself lives in an old house of only 40 square meters, but has built more than 4,000 welfare housing units, so that every employee can live and work in peace.

In the eyes of Lunan Pharmaceutical's employees, he is like a big parent, and he will help employees buy what they lack when they are lacking.

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In 2014, after Zhao Zhiquan passed away, tens of thousands of employees spontaneously came to bid farewell, and the scene was tearful.

Because of Zhao Zhiquan's contributions before his death, he was posthumously awarded as a "model of the Qilu era" by the Propaganda Department of the CPC Central Committee.

When the film was released, the Eastern Caribbean Supreme Court, far away in the South Pacific, was hearing a protracted equity dispute.

The final judgment will determine who spends the crucial 25.7% stake of Lunan Pharmaceutical.

Zhao Zhiquan, who has passed away, must not have expected that his heart to play in order to enjoy tax incentives would plant a thunder for his family, almost letting the family business that had worked hard for decades fall into the hands of others.

On July 22, 2021, Zhao Zhiquan's only daughter, Zhao Long, posted on Weibo that she sued her father's dying lawyer for "orphaning" for embezzling family property, and finally won.

The two sides of this family trust lawsuit, the plaintiff is the only daughter of the weak Zhao Zhiquan, and the defendant is a professional lawyer of Jiuzhanquechao, and the lawsuit has been fought for more than four years.

Because of the bizarre story and complex shareholding structure, this case was also written into the teaching case by the Renmin University Business School.

This judgment not only exposes the secret "palace fight" plot within Lunan Pharmaceutical, but also exposes the huge risks that may arise from Chinese private enterprises holding equity in the family trust mode through BVI companies (offshore companies).

Zhao Zhiquan certainly did not expect that his family would encounter a thrilling equity battle, and the whole thing was "stabbed" in the back by the person he once trusted the most.

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In 1987, the whole country blew the wind of enterprise contracting, and the 31-year-old Zhao Zhiquan contracted the Tannan Pharmaceutical Factory (the predecessor of Lunan Pharmaceutical) under the unanimous recommendation of all the employees of the factory.

Zhao Zhiquan, a native of Feixian, Shandong, was assigned to Tanan Pharmaceutical Factory as a technician after graduating from Shandong Institute of Chemical Technology, and grew up all the way from the position of head of equipment power section and head of technical section.

For Zhao Zhiquan, those who know him are "kind and capable".

At the inauguration ceremony, Zhao Zhiquan was full of ambition and said: "We make medicine well and live a good life together." ”

He also boasted that Haikou achieved an annual output value of 10 million yuan and a profit of 1.2 million yuan in four years.

The 235 employees of the factory applauded warmly, but their hearts beat the drum.

At that time, the Tanan Pharmaceutical Factory, with a net book worth of only 190,000 yuan, could only maintain 3 days of raw materials in inventory, and the profit was almost zero.

Everyone wants to live a good life, but the precarious status quo of the enterprise makes it difficult to believe the promise of the new factory director.

Zhao Zhixin's three fires when he took office, from personnel reform, labor reform to distribution reform, and drastically reorganized, not only mobilized the enthusiasm of the workers, but also let everyone see his determination.

In the first year of contracting, with the newly developed "Yinhuang oral liquid", the pharmaceutical company immediately turned a profit.

In the following two years, "Yinhuang Oral Liquid" and another new drug "Xintong Oral Liquid" became the ace products of pharmaceutical companies, with a total output value of 17 million yuan and a profit of more than 1.2 million yuan.

Zhao Zhiquan's promise when he took office was fulfilled a year ahead of schedule.

However, with the hot market economy, these drugs for mild colds produced by Lunan Pharmaceutical are not competitive in the face of similar products with lower prices.

At the same time, due to excessive investment in the early stage, pharmaceutical companies have stagnated sales and cannot collect the payment.

Billionaires die, and huge inheritances become obsessed

Zhao Zhiquan was also very worried and wanted to take a loan, but the bank looked at the current situation in the factory, and the money bag was covered tighter; I called an acquaintance to help solve the problem of funds, and before I finished speaking, I was hung up.

In the winter of 1996, Zhao Zhiquan convened a meeting of all the cadres of the factory to make plans and find a way out.

The sales department hopes to develop imported alternative drugs for severe diseases that are more urgently needed in the market, and the technical department has a stall and says with a bitter face, there is no money, let alone equipment.

Some people proposed: "Either cut the staff, cut in half, and last half a year." ”

Zhao Zhiquan was very angry and said to the person who proposed: "Which half?" Cut or not? ”

The conference room was silent, and it was difficult for the woman to cook without rice. If you don't have money, you can't do anything.

Zhao Zhiquan sighed and said, "Cut people, how can people live?" ”

4

Zhao Zhiquan decided that since the phone could not be reached, he would cheekily come to the door to "make a fortune".

So, he drove a Poussin to 18 cities in the three northeastern provinces in nine days, from raw material factories to hospitals and banks, asking for help everywhere.

Along the way, when hungry, I eat my own pancakes and pickles; When you are tired, just squint in the car for a while.

After eating countless "closed-door soups", Zhao Zhiquan remembered that an old leader in Inner Mongolia was in charge, and after trying to get in touch, the other party agreed to meet and talk.

Driving to Inner Mongolia, he encountered a snowstorm and Zhao Zhiquan was trapped in the thick snow. He had to get out of the car and hike for several kilometers against the wind and snow, almost freezing to death in the wasteland.

Fortunately, cold and hungry, he found a wooden house in the ice and snow.

The old man in the wooden house rescued him, invited him into the house to keep warm, and brought him a hot noodle soup.

When Zhao Zhiquan drank the soup, the old man was preparing to take medicine.

Because he has suffered from coronary heart disease for many years and eats expensive imported drugs, the old man is reluctant to take one pill at a time as prescribed by the doctor, but cuts it and eats it eight times.

Faced with Zhao Zhiquan's persuasion, the old man said with a wry smile: "That's better than not eating!" ”

Zhao Zhi didn't have a taste in his heart, but he couldn't help it.

At the old leader, Zhao Zhiquan finally raised a life-saving money.

On the way back, the scene of the old man taking medicine made him very worried.

He knows that there are many more such old people in the country. And isn't it to set up your own pharmaceutical factory to benefit the people and make patients no longer unable to afford medicine?

Zhao Zhiquan decided that in the future, the price of drugs in pharmaceutical factories must be cheap, and they must also find ways to create affordable drugs that can replace imported drugs, which is for pharmaceutical companies, but also for thousands of ordinary people who cannot afford imported drugs.

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To develop new drugs, the old leader's little money is simply not enough.

Zhao Zhiquan gathered all the employees of the factory and tried to create low-cost alternative drugs through employee fundraising.

Zhao Zhiquan said: "Let the people under the world be healthy, so that they can afford conscience medicine and rest assured medicine, this is our duty!" I know it's a big bet, but it's worth it! ”

In the end, the employees of the factory were touched by Zhao Zhiquan's spirit and all participated in the production of alternative drugs.

It is necessary to introduce the medical background at that time.

In the early 90s, domestic drugs in severe fields such as cardiovascular and cerebrovascular and tumor were almost monopolized by imported drugs. The price of an ordinary drug for the treatment of coronary heart disease is roughly 400 yuan / bottle, and a course of treatment is at least 3,000 yuan.

At that time, the average monthly wage of urban workers nationwide was less than 500 yuan, and the income in remote or rural areas was even lower.

Therefore, Zhao Zhiquan and all the employees knew very well that the old man was actually just the epitome of countless patients who could not afford imported drugs and wanted to live.

For this reason, Zhao Zhiquan gambled on everything.

The old man in the film eats a German special drug for the treatment of cardiovascular and cerebrovascular diseases "Ibilidine", which has seized nearly eighty percent of the market share and is priced at about 200 yuan a bottle.

Because cardiovascular disease must be taken for a long time and cannot be insured, many patients can only "look forward to medicine".

Zhao Zhiquan riveted vigorously, benchmarked "Imeladin", and with the unremitting efforts of R&D personnel, finally developed China's own special drug "Lunan Xinkang", a box only sold for 50 yuan, not only so that hundreds of millions of cardiovascular and cerebrovascular patients can afford to eat, but also successfully squeezed "Ipledine" out of the Chinese market.

Unlike many pharmaceutical companies that shrink their R&D funds after having fist products, since 2001, Lunan Pharmaceutical's annual scientific research investment has accounted for more than 7% of sales revenue, reaching 18% at its peak, far exceeding similar pharmaceutical companies.

The equipment bought is the most advanced, and Zhao Zhiquan's thinking is also "keeping pace with the times".

In September 1994, Zhao Zhiquan restructured Tangan Pharmaceutical Factory into Lunan Pharmaceutical Co., Ltd. through enterprise restructuring.

Billionaires die, and huge inheritances become obsessed

No one noticed that there was an extra college student named Zhang Guimin in the workshop of Lunan Pharmaceutical.

At that time, Zhao Zhiquan's mind was all about how to enjoy tax incentives.

After transferring 16 million of the 22 million state shares to Luxin, a US-funded company owned by Yantai Development, Lunan Pharmaceutical finally became a Sino-foreign joint venture that also enjoyed tax incentives.

Subsequently, through the capital increase, Lu Xin's foreign capital holdings increased to 21 million shares, accounting for 25.7% of the total share capital of Lunan Pharmaceutical.

In 2000, due to major differences in business policy between Lunan Pharmaceutical and Yantai Development, the two sides reached an agreement and broke up amicably.

However, in order to keep Lunan Pharmaceutical as a foreign capital, Zhao Zhiquan quietly bought back the equity in the hands of his subsidiary and handed over the equity of Lunan Pharmaceutical held by Luxin to Karen Industrial Company.

In other words, since the money for the repurchase of equity is Zhao Zhiquan's own pocket, the equity is the family property that he has worked hard to save for many years.

Unfortunately, Zhao Zhiquan met people, and the disaster was buried.

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At that time, Zhao Zhiquan was no longer the director of a small pharmaceutical factory, but a super-rich man with more than 100,000 employees and assets of more than billions of yuan.

In order to buy back 25.7% of the shares, Zhao Zhizhen paid 75.6 million yuan, which was by no means a small amount twenty years ago.

Since his status is so unusual, it is also unusual for a lawyer to be seen by him.

As a result, lawyer Wang Jianping made a brilliant appearance and became Zhao Zhiquan's most trusted family lawyer.

Wang Jianping studied law at Peking University and Harvard University and worked at King & Wood Mallesons, one of the eight "red circle firms" in China.

The so-called "Red Circle" refers to the eight top law firms in China, all of which cooperate with more than 10 million commercial legal entrustments.

Billionaires die, and huge inheritances become obsessed

Zhao Zhiquan got acquainted with "Wang Dazhuo", naturally because he liked the latter's glamorous resume and business level, and also believed in his personality.

Because the operator behind Karen Industrial is called Wei Xinmin, she is Wang Jianping's wife.

However, Wang Jianping is talented and immoral, taking the 80,000 yuan of legal fees paid by Zhao Zhiquan every year, but he is worried about nearly a quarter of the equity of Lunan Pharmaceutical held by his name.

Although Lunan Pharmaceutical has not been listed, it has good benefits, with an annual output value of nearly 10 billion, which is an astronomical amount converted into equity.

Wang Jianping didn't know when he moved, but he must have been planning for a long time.

As they cooperated more and more, Zhao Zhiquan also trusted Wang Jianping more and more and regarded him as a confidant.

In March 2001, Lunan Pharmaceutical was preparing to issue bonds, and Wang Jianping was responsible for all legal consulting projects, taking the opportunity to "brainwash" Zhao Zhiquan.

Wang Jianping suggested that Zhao Zhiquan convert his equity into trust property and entrust it to his husband and wife for safekeeping, on the grounds that short-term financing bonds protect the identity of Zhao Zhiquan behind the scenes.

Zhao Zhiquan also heard about overseas trusts as a way to spread family wealth, and he agreed to Wang Jianping's suggestion to transfer 25.7% of Lunan's equity to Karen Industrial established by Wei Xinmin in the name of "Zhao's Trust".

A month later, Karen Industrial signed an "equity transfer agreement" with Luxin Company, buying 25.7% of the latter's shares, but the actual investor was still Zhao Zhiquan.

At the same time, Wang Jianping and Wei Xinmin registered a company in the British Virgin Islands called Anderson Corporation.

In 2005, Karen Industrial quietly transferred its shares to Anderson through the new company BVI, trust and other means. At this time, Karen BVI holds 100% of Anderson's shares, and Zhao Zhiquan holds 100% of Karen BVI's shares.

The story ends here, because the shares are still in the hands of Zhao Zhiquan, that is, a commonplace means for domestic rich people to skillfully transfer assets.

However, the situation changed in July 2011, when Zhao Zhiquan listened to the couple's plan to establish the "Zhao Trust" and agreed to transfer all of the shares held by Anderson to Wei Xinmin.

Zhao Zhiquan may feel that he is the real shareholder and holds the power of the enterprise, so he trusts Wang Jianping and his wife very much, feeling that they are really "thinking" about the future of their family.

But he never expected that the secret he had been keeping was quickly reversed after the lawyer couple who were planning to steal equity were known.

7

In 2002, Zhao Zhiquan was diagnosed with advanced cancer.

In order to maintain the normal operation of the enterprise, Zhao Zhiquan and his wife decided to keep it a secret.

At that time, only the few people around Zhao Zhiquan who trusted the most knew about it, and he gave a death order: "Can't say, no matter who you can't say!" ”

Even the specific treatment details, Zhao Zhiquan did not even tell his daughter.

After chemotherapy after surgery, his hair fell out, and Zhao Zhiquan wore a wig and continued to appear in the enterprise.

Zhao Zhiquan did not tell Wang Jianping about this at first.

But in 2011, as Zhao Zhiquan's condition gradually deteriorated, he had to seriously consider the aftermath and felt that it was necessary to arrange everything through a lawyer.

This may also be an important factor in the sudden appearance of "Zhao's Trust" soon after.

At this time, Zhao Zhiquan also found his successor, Zhang Guimin, who like himself, stepped from a technician to a management position.

Late at night on November 14, 2014, Zhao Zhiquan was still working overtime in the company, and then asked the people around him to go back to rest first.

Early the next morning, the staff pushed the door in and found that 57-year-old Zhao Zhiquan had passed away.

On the table, there was a document that had just been signed agreeing to another salary increase for all employees in the factory.

According to Zhao Zhiquan's will, Zhang Guimin took over as chairman of Lunan Pharmaceutical, and 25.7% of the shares were left to his daughter Zhao Long, who studied law.

Leaving the tens of billions of enterprises he founded by himself to an outsider instead of his daughter, Zhao Zhiquan must have considered it from the perspective of the company's development, and felt that professional things were still left to professional people to do.

He may feel that if he lets his daughter inherit a huge amount of money, he should eat and drink in this life.

Leave these things to Wang Jianping and his wife, who they trust, to take care of, and there should be no problem.

It is a pity that Zhao Zhiquan overestimated his vision of people and underestimated the greed and shamelessness of human nature in the face of huge wealth.

In fact, until his death, Zhao Zhiquan twice proposed to Wang Jianping to transfer his equity and property to his daughter Zhao Long as soon as possible, but he shirked them for various reasons.

Regrettably, Zhao Long was an intern at King & Wood Mallesons where Wang Jianping worked at that time.

On the surface, Zhao Long also had to call Wang Jianping "teacher".

After Zhao Zhiquan's death, Wang Jianping proposed to Zhao Long many times to set up a family trust, but Zhao Long felt inappropriate and did not agree.

But this "teacher" was too unauthentic, not only dragged out the non-fulfillment of Zhao Zhiquan's will, but also secretly transferred the nominee shares under his name to the newly established Hengde Company without Zhao Long's knowledge, and established a new "Bodhi Trust".

Not only that, in order to stabilize Lunan Pharmaceutical, Wang Jianping and his wife also transferred 10% of Anderson's assets to Wang Buqiang and Zhang Guimin, hoping to completely isolate Zhao Long and privately divide the equity between each other.

In March 2017, Zhao Long planned to convene a general meeting of shareholders in order to clarify the company's shareholding structure and other matters.

This plan was blocked by Wei Xinmin, who jumped out, saying that Anderson and himself were the only legally registered foreign shareholders and directors of Lunan Pharmaceutical.

Zhao Long, who had been kept in the dark, finally saw the faces of Wang Jianping and his wife and formally filed a lawsuit with the Linyi Intermediate Court.

8

Before the lawsuit, Zhao Long also wanted to protect the face of his internship unit, and wrote a sincere letter to King & Wood Mallesons, hoping to help him uphold justice.

After the credibility is issued, the stone sinks into the sea.

In court, Wang Jianping cleverly wrapped the embezzlement of the Zhao family's equity as Zhao Zhiquan's deathbed trust, saying that he treated Zhao Long as if he were his daughter.

Wang Jianping's wonderful performance was indeed superb, and after losing the case, Zhao Long had to file a lawsuit and change it to the Eastern Caribbean Court.

As for why he went to this overseas court to litigate, it is because Anderson is registered in the British Virgin Islands and is under the jurisdiction of the Eastern Caribbean Court.

During the lawsuit between Zhao Long and Wang Jianping, there was also "internal strife" within Lunan Pharmaceutical.

Four directors on the board of directors of Lunan Pharmaceutical requested an extraordinary board meeting to remove Zhang Guimin from the position of chairman.

But soon, one of the directors "turned against the water" and joined Zhang Guimin's camp, and the other three directors were forcibly turned away, and they have been deadlocked with each other.

In 2018, due to the internal strife in Lunan Pharmaceutical, which seriously affected the interests of social shareholders and interfered with normal production, the Linyi government sent a working group to the company to deal with related matters.

What happened later was even more dramatic, and in July 2019, Zhao Long and his mother accused Zhang Guimin of pretending to be the "heir" and demanding a change of the board of directors.

Zhang Guimin questioned the identity of Zhao Long's inheritance of equity according to the "Nominee Holding Agreement" obtained after prying open Zhao Zhiquan's office.

At this time, because of Zhao Long's lawsuit against Wang Jianping, another big melon was involved.

The court brought up a list of beneficiaries of "Bodhi Trust", on which the trust manager was Hengde Private Trust Management Company, of which Wang Jianping was the sole shareholder and sole director, but the beneficiaries were Wang Luming (Wang Jianping's daughter) and Zhao Long.

This extra daughter, who came out of thin air, made the outside world question Wang Jianping's professional ethics as a lawyer, because the eating was too ugly.

Immediately, the style of painting changed. In May 2019, Lunan Pharmaceutical sued Anderson to the Linyi Intermediate Court, demanding that Anderson return the shares held by Anderson to Lunan Pharmaceutical.

On April 3, 2020, the Linyi Intermediate Court made a judgment, and the nominee holding agreement of Anderson Company was automatically terminated.

On July 21, 2021, the Eastern Caribbean Court issued a ruling, finding that Wang Jianping had deliberately misled domestic courts and concealed key evidence in order to seize equity by using "extremely high qualifications in company law and trust law".

The court eventually declared Zhao Long the legal heir to Lunan Pharmaceutical's 25.7% stake.

Billionaires die, and huge inheritances become obsessed

At this point, the four-year Lunan Pharmaceutical equity battle case has finally come to an end.

The notorious Wang Jianping was subsequently removed from King & Wood Mallesons, and the couple seemed to have evaporated from the world and were never heard from again.

This verdict vividly portrays such a scene: the founder left his young daughter alone at the end of his life; Unscrupulous lawyers secretly cross Chen Cang, woo company executives, and collude with each other to try to embezzle the equity in the girl's hands; The only daughter was not willing to be deceived, went to court with it, and finally won.

However, the case was decided by an overseas court, and the overseas nominee shareholding is very sensitive, and the final outcome of the matter has not yet been completely concluded in the context of the very different judgments of Chinese and foreign courts.

This incident also reminds those who want to use trust as a tool for family wealth inheritance that family trust looks beautiful, and if it is not entrusted to people, it may be a chicken and egg.

Because of his dedication to the people, Lunan Pharmaceutical, founded by Zhao Zhiquan, has developed from a small remote factory to a ten-billion-dollar pharmaceutical company.

It is a pity that medicine can cure diseases, but it cannot eradicate greed in human nature.

Resources:

Yimeng Chizi, the head of the reform tide wrote in charge - remembering Zhao Zhiquan, former chairman of Lunan Pharmaceutical Group, People's Daily

Lu Nangong Dou, Zhao orphan! This big melon, how many rich Chinese are intimidated, financial gossip female channel

Lunan Pharmaceutical "Infernal Affairs": Who is the real major shareholder, China Business News

Lunan Pharmaceutical's controlling stake "Palace Dou" may end! Senior partner of well-known law firm reprimanded by judge in judgment: "complete loss of integrity", legal firm Legal Insights

The author of this article: Fengshengjun by the sea, exclusively authorized by Fengsheng Island to release Wan Xiaodao Toutiao.

Write celebrities, write gossip, there is evidence; The image is positive, the shadow is oblique, all taken by yourself, welcome to follow @wanxiaodao headline number.

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