A well-known entrepreneur died, his 14-year-old son inherited more than 2.4 billion market value stocks, and his "post-90s" daughter became the actual controller of 2 listed companies!

National Business Daily

2024-06-21 17:32Published on the official account of Sichuan Daily Economic News

On the evening of June 20, titanium dioxide giant Longbai Group (002601) and its subsidiary Oriental Zirconium (002167) simultaneously disclosed that due to the inheritance of the estate after the death of Xu Gang, the original controlling shareholder and actual controller of the company, Xu Gang's daughter Xu Ran and son Xu Moumou, a minor, obtained the company's shares through inheritance, which will not have a significant adverse impact on the company. After the completion of this equity change, the controlling shareholder and actual controller of the company will be changed from Xu Gang to Xu Ran.

Xu Ran is a "post-90s", and she is also the daughter of Mr. Xu Gang, the founder and former actual controller of Longbai Group.

One month ago, the board of directors of Longbai Group announced that Xu Gang, the actual controller of the company, passed away due to illness, and the company said at that time that the company's shares held by Xu Gang would go through inheritance procedures in accordance with laws and regulations.

After the "90s", the daughter inherited the power

Become the actual controller of 2 A-shares

Xu Gang, the former controlling shareholder, actual controller and honorary chairman of Longbai Group, passed away on May 20, 2024 at the age of 61 due to ineffective medical treatment.

The "Notarial Deed" issued by the Shanghai Jing'an Notary Office on June 12, 2024 shows that Xu Gang did not make a will before his death, nor did he sign a "Bequest and Maintenance Agreement" with others.

After notarization, Xu Gang held 627 million shares of Longbai Group (accounting for 26.25% of the total share capital) before his death, and his daughter Xu Ran inherited 500 million shares, accounting for 20.95% of the company's total share capital, and his son, minor Xu Moumou, inherited 127 million shares, accounting for 5.30% of the company's total share capital.

In view of the fact that Xu XX is a minor and his mother Wang Xia is the legal guardian of the minor Xu XX, all the rights corresponding to the above-mentioned company shares obtained by the minor Xu XX due to legal inheritance, including (but not limited to) the right to participate in the meeting, the right to nominate, the right to make proposals, the right to vote and other identity rights, are exercised by Wang Xia on behalf of Wang Xia in accordance with the law and registered in the name of Wang Xia.

According to the "Voting Rights Entrustment Agreement" signed by Wang Xia and Xu Ran, Wang Xia, as the legal guardian of the minor Xu Moumou, entrusted Xu Ran with all the identity rights corresponding to all the shares of Longbai Group that she exercised on behalf of the minor Xu Moumou. The entrustment period is until October 23, 2028 (that is, the date of the 18th birthday of the minor Xu XX). According to the analysis of the announcement of the listed company, Xu Moumou is a student who is only 14 years old.

So far, Xu Ran holds a total of 627 million voting rights of Longbai Group, accounting for 26.25% of the total number of voting shares, and Xu Ran has become the controlling shareholder and actual controller of Longbai Group. At the same time, because Longbai Group is the controlling shareholder of Oriental Zirconium, Xu Ran has also become the actual controller of Oriental Zirconium.

The second generation succession has already been planned

A year before the death of Xu Gang, the actual controller of Longbai Group, the company held a general election of the board of directors.

In March 2023, when the board of directors of Longbai Group was re-elected, Xu Gang, who had just turned 60, officially stepped down as chairman and nominally stepped down to the second line, while Xu Ran entered the board of directors.

At that time, Longbai Group also announced that in order to maintain the company's vitality and competitiveness for a long time and further optimize corporate governance, the company imposed restrictions on the nomination and age of non-independent directors, that is, in principle, those over the age of 60 should not be nominated or serve as non-independent directors of the company, which was written into the Articles of Association.

At the same time, Xu Gang nominated and many directors such as Benliu, Xu Ran, Wu Pengsen, Shen Qingfei, Chen Jianli, and Wang Xudong to join the board of directors of Longbai Group to form the eighth board of directors. Except for He Rushing, the rest are the younger generation of managers in their thirties and forties. It is worth mentioning that He Benliu (the current chairman), born in 1968 and 58 years old after the end of his term in 2026, can only serve as a non-independent director for one more term according to the Articles of Association.

In the research activities of Longbai Group in April 2023, in the face of a total of 80 personnel from Shenwan Chemical, GF Fund, E Fund, CITIC Securities, Gaoyi Assets and other institutions, Xu Gang said that in order to form a normalized mechanism of "replacement of old and new and continuous development", the number of directors has been adjusted from 12 to 9, including 6 non-independent directors and 3 independent directors. The new board of directors is younger, highly educated and professional. In addition to retaining the directors, presidents and Benliu of the post-60s, most of the new non-independent directors are post-70s, post-80s and post-90s, all of whom have graduate degrees or above.

Xu Gang also said, "I myself Xu Gang's resignation from the board of directors will not have any impact on the company, first of all, I am also the company's controlling shareholder and actual controller, which is a more common practice of A-share listed companies, and I will continue to pay attention to the company's major decisions; Secondly, my daughter Xu Ran has joined the board of directors, and she can also represent some of my ideas. ”

According to the past resume information, Xu Ran, female, born in 1990, Chinese nationality, no right of permanent residence abroad, master's degree, holder of Hong Kong resident identity card. Xu Ran holds a master's degree in business administration from Macquarie University in Australia, and has been working in Longbai Group since 2014, serving as the business manager of Longbai Group from October 2014 to March 2017, a director of Baili (Europe) since November 2014, a director of Baili (America) since May 2015, an assistant to the president of Longbai Group since March 2017, and the vice president of Jiaozuo Young Generation Private Entrepreneurs Federation since April 2021. Since June 2022, he has served as a director of Image Resources, and since July 2022, he has served as the vice chairman of Jiaozuo Federation of Industry and Commerce.

The 14-year-old son inherited more than 2.4 billion market value stocks

As the world's largest titanium dioxide enterprise, Longbai Group has a titanium dioxide production capacity of 1.51 million tons/year and a titanium sponge production capacity of 50,000 tons/year, both of which rank among the top in the world. The production capacity of lithium iron phosphate is 50,000 tons/year, the production capacity of iron phosphate is 100,000 tons/year, the graphite anode production capacity is 25,000 tons/year, and the graphitization capacity is 50,000 tons/year. The company's titanium industrial base is located in five provinces and six cities including Henan, Sichuan, Hubei, Yunnan and Gansu, and has initially formed a green industrial chain from titanium mineral mining and processing, to titanium dioxide and titanium metal manufacturing, and comprehensive utilization of derivative resources; Zirconium products are operated by the company's holding subsidiary, Oriental Zirconium.

At present, after Xu Ran and other younger generations take over, the overall operation of Longbai Group is relatively stable.

In 2023, Longbai Group will achieve operating income of 26.794 billion yuan, a year-on-year increase of 10.92%; The net profit attributable to the parent company was 3.226 billion yuan, a year-on-year decrease of 5.64%. In the first quarter of 2024, the company achieved operating income of 7.294 billion yuan, an increase of 4.54% year-on-year; The net profit attributable to the parent company was 951 million yuan, an increase of 64.15% year-on-year.

As of the close of trading on June 21, Longbai Group (002601. SZ) has a market value of 44.5 billion yuan, and Oriental Zirconium (002167. SZ) has a market capitalization of 4.5 billion yuan, and the combined market value of the two listed companies is 49 billion yuan. Based on a rough estimate of the current stock prices of Longbai Group and Oriental Zirconium, the market value of the shares inherited by Xu Ran and Xu Moumou is about 9.544 billion yuan and 2.415 billion yuan respectively.

Disclaimer: The content and data of the article are for reference only and do not constitute investment advice. Investors act accordingly at their own risk.

Editor|Cheng Peng, Du Hengfeng, Du Bo

Proofreading|He Xiaotao

Cover picture source: Photo by Liu Guomei, Daily Economic News

The daily economic news is synthesized from the company's announcement, 21st Century Business Herald, and Securities Times

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