Chen Feng, it's a pity.
01
HNA has another big problem
In recent times, it can definitely be recorded in China's economic history and commercial history.
First, a certain big thunderstorm caused chickens and dogs to jump all over the country; then at the press conference held by the State Council New Office to ensure the comprehensive construction of a well-off society in an all-round way, Liu Guixiang, deputy ministerial-level full-time member of the Adjudication Committee of the Supreme People's Court and a second-level chief justice, came out and shouted that the rights of entrepreneurs should be protected.
Just a day later, Ye Fei, a well-known "stock market tidalist," was arrested.
The people of the whole country have not yet digested the melon that has followed, and HNA has another accident!
At the most critical juncture of bankruptcy and restructuring, the biggest executives were taken down in one fell swoop...
On September 24, HNA Group issued an announcement that it had received a notice from the Hainan public security organs that Chen Feng, chairman of HNA Group Co., Ltd., and Tan Xiangdong, ceo of HNA Group Co., Ltd., had been taken compulsory measures in accordance with the law for suspected violations of the law.
Chen Feng, born in June 1953 in Huozhou, Shanxi, is the main founder of HNA Group.
From 2000 to 2018, Chen Feng was the Chairman of the Board of Directors of HNA Group Limited. From July 2018 to January 2021, he served as Party Secretary and Chairman of HNA Group Co., Ltd.
Born in March 1967 in Jiangsu, Tan Xiangdong has served on the board of directors of HNA Group since 2001. From 2013 to 2016, Tan Xiangdong served as Vice Chairman and President of the Board of Directors of HNA Group, and from 2016 to 2020, he served as Vice Chairman and Chief Executive Officer of the Board of Directors of HNA Group. Since 2020, Tan Xiangdong has been a director and chief executive officer of the board of directors of HNA Group.
Although there have been rumors of criminal responsibility, many HNA sources still said that the incident was sudden. Gu Gang, a state-owned assets representative, is in the process of bankruptcy reorganization. In this sensitive period, it is indeed surprising that such news suddenly came out.
In fact, the fate of Chen Feng's "out" was already set at the end of January this year when the announcement of the bankruptcy reorganization of HNA Group was released.
On January 26 this year, HNA Group's new party committee was re-elected, and Chen Feng was no longer a member of the party committee of HNA Group.
This also means that HNA's Chen Feng era has ended.
On the afternoon of January 29 this year, HNA Group issued a statement saying that it had received a "Notice" issued by the Hainan Provincial High People's Court, the main contents of which were:
The relevant creditors applied to the court for bankruptcy reorganization of our group because our group could not pay off its debts as they fell due. The Group will cooperate with the court in judicial review in accordance with the law, actively promote the disposal of debts, support the court to protect the legitimate rights and interests of creditors in accordance with the law, and ensure the smooth progress of production and operation of enterprises.
Since this moment, Chen Feng has basically been able to smell a little taste when he is going to be on the board of justice. But what really made Chen Feng eat "prison meal" was the HNA employee and the woman behind a man.
02
If you don't report it, is it still HNA?
At HNA, whistleblowing is nothing new, it is simply a traditional art.
In July this year, a number of self-media published an article on June 30 in which more than 20,000 employees of HNA Group collectively wrote to report the chairman, which listed a number of crimes.
1. Black-box operations to redeem and pay the collected funds privately
Between 2018 and 2020, the Group has continuously disposed of more than 300 billion yuan of fixed assets. However, under the circumstances of not disclosing and unfairly, Chen Feng used his power and power to privately use nearly 10 billion yuan of funds to give priority to the redemption of the principal and interest of the fund-raising products purchased by himself, his relatives and friends, and some senior executives of the yan family group.
Second, greed and delusion to turn HNA into a family business
Chen Feng's son, Chen Xiaofeng, "parachuted" into the board of directors of HNA without any legal compliance procedures of the group, and Chen Feng asked his son, who did not understand management and aviation business, to participate in and control the group's business.
Third, use their powers to enrich themselves in gangs and factions
HNA Group's fundraising products for employees have different income distribution ratios, which are treated separately according to whether they are management cadres, employee fundraising quotas, and job levels.
In the case of the same project, the income of the fund-raising product purchased by the group executives is as high as 30%, and the average employee is only 8-11%, and this matter has never been publicly released.
As soon as the whistleblower letter came out, it immediately shocked the industry, and the condemnation of Chen Feng was also endless.
However, what people really did not expect was that the wind of 20,000 employees reporting letters has not yet passed, and a bigger melon is still behind.
On August 1, Weibo netizen "HNA cf shi yuming sent a wife" to publicly report that HNA cfo Shi Yuming used the convenience of his position to amass wealth, tax evasion and tax evasion, and the amount of wealth was huge, conservatively estimated to be over 100 million!
As soon as the news came out, there was an uproar.
HNA really sucks?!
Seeing that public opinion really couldn't stand it, HNA came out and issued a statement.
A long paragraph, the core of the meaning: HNA knows, HNA is looking up.
However, the incident did not end there, and a series of reports led the wind from the bankruptcy of the HNA Group company to the criminal offenses of HNA executives.
Needless to say, understand everything, they have a big deal.
Therefore, Chen Feng's arrest is only a continuation of this series of events; the original reporting door has a result, and HNA executives are likely to sit in jail.
03
Everything is spent in laughter
Then again, Chen Feng is really a pity.
In 1993, the Hainan Provincial Government invested 10 million yuan to found Hainan Airlines by Chen Feng, who was born in civil aviation. This 10 million yuan, in the words of Chen Feng:
Even an airplane wing can't be bought.
However, he gave full play to his entrepreneurial talents and became a so-called fourth-largest airline in China.
Later, the famous Wang Jian was also recruited by Chen Feng from the Civil Aviation Academy.
In 1993, HNA had only 10 million.
In 2017, its total asset size reached 1.2 trillion yuan, ranking second in the list of China's top 500 private enterprises, and the first place was Huawei.
In just 24 years, HNA's assets have swelled up a hundred thousand times! With a revenue of more than 600 billion yuan and 13 listed companies, it is a veritable diversified business empire.
However, desire is infinite, and so are people or businesses.
People want to survive and enjoy, capital must appreciate and expand; with this desire to stop the car, HNA Group has opened the road of expansion.
$6 billion acquisition of Ingram Micro, $10 billion acquisition of Irish aircraft leasing, $6.5 billion acquisition of a 25% stake in Hilton Hotels Group, $2.2 billion purchase of New York's Paek Ave Building, the purchase of Caijing magazine and a series of other big-scale operations.
HNA is too rich, and it is too easy to borrow money. Borrowed to buy, buy, buy, buy at home, buy abroad.
This makes it never good at controlling its own desires.
In 2018, Wang Jian died unexpectedly in France, has retreated to the second line, only the chairman of the board of directors of the group, Chen Feng, was appointed to the defeat of the army, was ordered in the midst of danger, as the chairman.
At that time, HNA Group was in the midst of a debt crisis. From 10 million yuan to 1 trillion yuan, it took 25 years; from the peak to the bottom, it only took two years.
The total amount of claims brought by 67,400 creditors reaches:
1.2 trillion yuan.
Among them, about 405.7 billion yuan of confirmed claims have been confirmed, 353.5 billion yuan of unrecognized claims have been denied, and 156.5 billion yuan of debt recognition has been suspended, exceeding the GDP of Hainan Province in that year.
To this end, Chen Feng changed HNA from "buying, buying and buying" to "selling and selling".
In 2018, it sold 300 billion assets and sold more than 300 companies, and the degree of madness is probably no group can compare.
Sold 48% of the shares of Tianjin Airlines, sold the Credit Suisse Building in London at a loss of 900 million yuan, and sold the controlling stakes of 3 listed companies.
In January 2021, HNA plans to sell its IT outsourcing company Pactera for 500 million yuan.
When it acquired Pactera that year, it cost $675 million, a loss of nearly 10 times. Assets bought at a large price, before they are hot, they have to sell, and they want interest + fees.
Selling assets is often the final step in the company's handling of the crisis.
All efforts are a return to the light before the asset crisis. The main source of profit for these so-called large enterprises is not products and services, but capital operations. Once the game of capital cannot be played, it is the day when their history ends.
In January this year, after three years of holding out, it finally could not hold on, and HNA opened the road of bankruptcy and restructuring.
Looking at what Chen Feng did in the past three years, he was just a framer who decorated the broken house.
Barely embellished, false appearance, not revealing it can be perfunctory.
A broken house, patched from the east to the west by a framer, turned out to be a clean room, although it was known to be paper paste, but it was not certain what material was inside.
Even if there is a small wind and rain, it will be made into several holes, and it can be replenished at any time, and it can also be dealt with.
However, no matter what kind of transformation, one day the truth will be revealed, and it will be out of control, so how can the framer be responsible?
His ending may have been written since the time he came forward to take over the mess.
When you think you can do anything, you can do anything, and the disaster is buried.