Paper is an important invention of ancient China, condensing the wisdom of working people and shining the glory of human civilization. In modern times, excellent entrepreneurs are all over the industry, waste paper recycling seems inconspicuous, and even disliked, but the rich woman Zhang Yin has stepped out of her own wealth road.
Zhang Yin is the richest woman in China's history, and her path to prosperity is particularly clear. Zhang Yin was born into a military family in Heilongjiang, and she was the eldest of eight siblings. When she was young, her family was poor, and the children of the poor were in charge of the family early, and she had a sense of responsibility and responsibility from an early age, and it was this experience that allowed her to set a career goal from an early age.
In her 20s, Zhang Yin went south to work in finance and trade at a company in Shenzhen, which exposed her to the wrapping paper business and was out of control.
In 1985, the 27-year-old Zhang Yin went to Hong Kong alone with 30,000 yuan to start a business, running the company with two partners, the business is to recycle waste paper in Hong Kong and other places, and transport it to Paper Mills in China.
In 1990, considering that the United States waste paper resources are rich, the supply is stable, and the market prospects are broad, Zhang Yin and her husband Liu Mingzhong founded the United States Zhongnan Co., Ltd. in Los Angeles, the United States, and began a second venture, and later the company became the world's largest exporter of paper raw materials.
In 1996, Zhang Yin saw the opportunity in China's paper market and invested $110 million in Dongguan to establish Nine Dragons Paper, extending the business downstream. She bought waste paper in the United States at a low price, took advantage of the lower cost of domestic production of high-grade products, and started a papermaking business.
In 2006, Zhang Yin's company was successfully listed in Hong Kong, and in the same year, her family wealth was worth 27 billion yuan, ranking first in the Hurun list, which Hurun called "the world's richest female self-made starter", and since then she has been hailed as "China's richest woman".
Zhang Yin has created myths in the management and operation of family businesses, and has also been strategic in the inheritance and planning of enterprises. Zhang Yin's husband, Liu Mingzhong, was a former doctor and owned several clinics in his 20s, but because Zhang Yin's business became larger, Liu Mingzhong gave up his job to join Nine Dragons Paper as president.
Zhang Yin gave birth to her eldest son, Liu Jinsong, at the age of 24, and a younger son at the age of 35, both of whom had outstanding grades, attending Columbia University and Harvard University respectively. Zhang Yin once said, "If I want to quit my career, I will definitely raise my two children first and let them inherit my career." Therefore, during his MBA studies, Liu Jinsong was assigned as an independent non-executive director of the company, participating in the management and construction of the enterprise, and was transferred to the executive director of the company 3 years later, when he was only 27 years old. This move is obviously a succession arrangement for the centenary foundation.
In 2013, there were media reports that Zhang Yin and his wife divorced, and on the same day, Nine Dragons Paper issued an announcement on the exchange to clarify the divorce rumors, but in the divorce rumors of Zhang Yin, one of the few female billionaires in China, the family trust equity relationship was involved, so that many people began to pay attention to the family trust as a financial tool.
At the beginning of the listing, ND Paper held 37.1%, 37.1%, 10% and 15.8% of Best Result through four trusts, and indirectly held a total of 74.7% of the equity of ND Paper.
The first trust was called YC 2006 Quick GRAT, and in the United States, the cost burden of gift and inheritance tax will be incurred in excess of gift and inheritance tax exemptions during the transfer and inheritance of assets. "GRAT" refers to the "donor retention annuity trust", if the trust property can grow rapidly in a short period of time, then the trust can be used as a gift tax, inheritance tax planning plan.
The second trust, MCL Living Trust, is a special existence, which is a living trust where both the settlor and the beneficiaries are Mr. Liu Mingzhong. If the settlor and beneficiary are the same, it will significantly reduce the segregated protection function of the trust, so it can be boldly guessed that the trust may be a transitional trust, which will change in the future.
The latter two trusts, The Zhang Family Trust and The Golden Nest Trust, are both the younger brothers of Zhang Yin, and the beneficiaries are Mr. Zhang and his family, except for the different shareholding ratios, the other information is consistent. Both trusts are discretionary trusts, meaning that the trustees are given the right to distribute according to the actual situation. The mention of the distribution of trust benefits is enough to show that this is a trust used to provide financial support for family members, so the establishment of these two trusts takes more into account the isolation protection and inheritance functions of family trusts.
We can see that the four trusts of Nine Dragons Paper are different, but they also perform their own duties and missions. Later, with the development of enterprise and environmental changes, the trust structure of ND Paper changed again, YC 2006 Quick GRAT disappeared, and MCL Living Trust became The Liu Family Trust. What has changed is the specific arrangement of the equity structure, what has not changed is the beautiful vision of the evergreen foundation, and in the change and change, the family trust will surely accompany the family business to go further.
The way the rich woman Zhang Yin's family trust holding has taught many mainland entrepreneurs a lesson, and the family trust has natural advantages in corporate inheritance, wealth preservation, tax planning and so on. Wu Yajun, chairman of the board of directors of Longhu Real Estate, who is also a rich woman, and her family trust is also a textbook case. In 2012, Wu Yajun divorced her husband Cai Kui, although Cai Kui received 30.2% of the equity of Longhu Real Estate, but did not cause the major shareholders to fall, Wu Yajun relied on the family trust to successfully cope with the corporate risks brought about by the marriage crisis.
Across the river from Hong Kong, many domestic companies in the listed companies hold shares through family trusts, and even in the IPO stage, the establishment of family trusts has become an indispensable process.
In the mainland, more and more high-net-worth individuals have completed the original accumulation of wealth, and their wealth goals have gradually changed from "creating wealth" to "enjoying wealth" and "passing on wealth", the awareness of family trusts has been continuously improved, and the scale of existence has increased sharply. According to China Xindeng data, as of the end of 2020, the scale of family trusts increased by 80.29% compared with the beginning of the year, and continued to rise for four consecutive quarters, with a month-on-month increase of 11.2%, 8.34%, 35.94% and 10.09%, respectively, and family trusts also ushered in new opportunities and development.
Comments
Family trusts are wealth management tools with risk isolation functions, and once a family trust is established, it is separated from the name of the settlor and operated independently. Therefore, the independence of property is a necessary prerequisite for family trusts to have the function of risk isolation. In recent years, well-known people in China have frequently broken out divorce incidents, which are often mixed with various disputes such as the transfer of marital assets, the dispute over the control of the company, and the encroachment of personal property before marriage. What role can family trusts play in marriage?
I. Premarital estate planning to prevent marriages for special purposes. Premarital property may be converted into joint property of husband and wife due to the flow and realization of wealth after marriage, while the family trust property is independent and the ownership of assets is clear, and the establishment of a family trust before marriage is conducive to clarifying personal assets and avoiding "empty people and wealth".
Second, prevent the control of enterprises from falling by the wayside, and lock up the equity of enterprises. If there is a property division in the marriage process of high-net-worth individuals, the impact on the control and development of the enterprise is no less than the impact of the huge earthquake in the capital market, and the provisions of the indivisibility of property and the transfer or irrevocability of the trust in the family trust can effectively prevent the impact of marital changes on the enterprise.
Third, isolate the marriage risks of children and prevent capital outflows. Assets such as real estate, cash, and equity are handed over to professional trust institutions for management, and children are set as trust beneficiaries, so as to realize the orientation of property to their children. The beneficiary rights of the family trust will not be divided due to changes in marriage, ensuring that the family assets are passed on within the scope of family members
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