---
title: "Breaking | Shuanghui's \"Deposed Crown Prince\" Case Takes New Turn, Stock Price Plunges, Market Value Evaporates Over 13.5 Billion in a Single Day"
description: "The father-son battle at Shuanghui continues as Wan Hongjian publicly accuses his father Wan Long of seven 'sins', including improper related-party transactions and tax evasion. The allegations caused the market value of Shuanghui's two listed companies to plummet by nearly 15 billion yuan in one day."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2021-08-18"
language: "en"
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---

# Breaking | Shuanghui's "Deposed Crown Prince" Case Takes New Turn, Stock Price Plunges, Market Value Evaporates Over 13.5 Billion in a Single Day

> The father-son battle at Shuanghui continues as Wan Hongjian publicly accuses his father Wan Long of seven 'sins', including improper related-party transactions and tax evasion. The allegations caused the market value of Shuanghui's two listed companies to plummet by nearly 15 billion yuan in one day.

**Click to read the original article for details**
After the recent "deposed crown prince" drama at Shuanghui, another episode of the father-son battle unfolded last night, with accusations of "seven sins" and "righteousness over family ties."
On the evening of August 17, Wan Hongjian published an article titled "Wan Hongjian: The Father in My Eyes and Wan Long," attacking his father Wan Long for illegal related-party transactions and revealing a large amount of insider information about Wan Long and Shuanghui. The article mainly elaborated on the "seven sins" of Wan Long, the current chairman of WH Group:
**"Forcibly conducted low-price transactions with the employee shareholding company Xingtai, profiting over HK$5 billion;**
**Used the successful acquisition (of Smithfield) as an excuse to reward himself with over HK$5 billion;**
**Took for himself 350 million shares of WH Group incentive shares that were promised to the management team;**
**Forcibly raised the price of American split carcasses, causing a loss of RMB 800 million to China's Shuanghui;**
**Arbitrarily promoted Guo Lijun, who has no business acumen, to be CEO of WH Group;**
**Privately accepted US$200 million from CDH Company without declaring it for tax;**
**Lived with a mistress for nearly 20 years, abandoning Wan Hongjian's mother in Luohe."**
Wan Long is the leader of Shuanghui Group and WH Group. Under his leadership, Shuanghui transformed from a debt of RMB 5 million into one of the Fortune Global 500 companies. WH Group also ranked 67th in the 2020 Fortune China 500 with revenue of RMB 166.27 billion, ranking first in the food industry.
However, compared to this, the outside world is more interested in the issue of succession for the 81-year-old Wan Long. Previously, it was widely believed that his 52-year-old eldest son, Wan Hongjian, would succeed him in leading the group, as Wan Hongjian started as a worker in the cooked food workshop and has been with the group for over 30 years.
Moreover, Wan Hongjian had only been an executive director and vice chairman of the board of WH Group for three years. In June of this year, Wan Hongjian was re-elected at the shareholders' meeting with a 91.13% vote rate. In contrast, Wan Long's vote rate had been declining since 2015, which was seen as a signal worth pondering.
Sure enough, the day after Wan Hongjian's re-election, he had an extremely intense conflict with Wan Long. Two weeks later, Wan Hongjian was removed from all positions by a WH Group announcement.
On the evening of August 17, after the announcement of new personnel adjustments at Shuanghui, Wan Hongjian suddenly spoke out, publishing a signed article, **claiming that the trigger for the conflict with his father was the choice of CEO, and attacking Wan Long for turning public assets into private, nepotism, tax evasion, and other crimes**. From corporate governance to family relationships and even personal morality, the "father-son battle" escalated further.
In response to Wan Hongjian's accusations, at noon on August 18, WH Group issued a clarification announcement stating:
"The company has noted the recent decline in its stock price and increase in trading volume, and has also noted certain media reports regarding allegations made by Mr. Wan Hongjian (a former director of the company who was removed for misconduct) against the Group.
**The board clarifies that the allegations are untrue and misleading.**
This announcement is made on behalf of the company, and the board accepts joint and several responsibility for the accuracy of this announcement."
At the same time, WH Group emphasized that the company reserves the right to take legal action against Mr. Wan Hongjian and/or those responsible for the allegations.
As of August 18, the stock prices of the two listed companies in the "Shuanghui system" fell sharply. WH Group in Hong Kong suffered a heavy blow, falling 11.33% to close at HK$5.95 per share; A-share company Shuanghui Development fell more than 7% at one point, finally closing at RMB 26.29, down 5.53% from the previous trading day.
This means that **due to the Wan father-son dispute**, overnight, **the market value of the two listed companies in the Shuanghui system evaporated nearly RMB 15 billion**.
It was thought that this farce would end with "deposing the eldest and establishing the youngest," with Wan Hongwei (Wan Long's second son) taking over, but instead, bombshells such as valuing the US over China, money laundering, benefit transfer, and mistresses continued to be exposed.
At the same time, more industry insiders believe that this "infighting" is far from over, and behind this farce, they also hope that relevant supervisory departments will keep up with supervision in a timely manner.
**1. Wan Hongjian once again expressed his opposition to the acquisition of Smithfield.**
Wan Hongjian stated that WH Group has no actual production operations; it is essentially a combination of Shuanghui and Smithfield. Its role is to use various dazzling financial methods and complex structures to transfer money from domestic Shuanghui overseas without leaving a trace, and it has never flowed back in reverse.
**2. Wan Hongjian claimed that Wan Long's "illegal related-party transactions" caused Shuanghui losses of over RMB 800 million.**
Wan Hongjian directly accused Wan Long and Guo Lijun of "illegal related-party transactions," ignoring the strong opposition of domestic Shuanghui management, continuing to import large quantities of American split carcasses, forcibly raising the import settlement price from RMB 21,000/ton to RMB 25,800/ton, with imports close to 100,000 tons.
At present, this batch of split carcasses exported from Smithfield in the US to China has caused losses of more than RMB 800 million to China's Shuanghui.
**3. Wan Hongjian claimed that Wan Long "enriched himself at the expense of the public" and encroached on the interests of old employees.**
Using his powerful influence, Wan Long took advantage of the employees' disorganized and weak position to seize assets, forcibly conducting half of the transactions at low prices from the employee shareholding company Xingtai, profiting over HK$5 billion himself.
Then, impatiently, using the successful acquisition (of Smithfield) as an excuse, he rewarded himself with over HK$5 billion along with his secretary. Still not satisfied, Wan Long also took all 350 million shares of WH Group incentive shares that were originally promised to the management team into his own pocket in 2017.
**4. In the article, Wan Hongjian proactively discussed the conflict with his father, with the trigger being the choice of CEO.**
Wan Hongjian pointed out that he hoped that in the late Wan Long period, the CEO should be virtuous and able to win over the public; have the comprehensive ability to manage all of Shuanghui's businesses; and ideally be able to stably span more than ten years to achieve a smooth transition for WH Group.
In his view, the 14th Five-Year Plan for Shuanghui formulated by WH Group CEO Guo Lijun and Wan Long was a point of divergence between him and Wan Long, which hollowly stated that Shuanghui's meat product sales should reach 1.7 million tons in 2021, and "the basis for formulating the plan is really absurd."
**5. Wan Hongjian also accused Wan Long of benefit transfer and tax evasion in the article.**
"In 2007, the restructuring of Shuanghui's state-owned enterprise was coming to an end. For unknown reasons, CDH Company, which participated in the restructuring, privately and gratuitously granted Wan Long 5% of Shuanghui's shares. Since both parties could not or were unwilling to make this transaction public, these 5% shares were directly sold to a Hong Kong company, and Wan Long privately received US$200 million in consideration. Afterwards, Wan Long deposited this huge sum in DBS Bank in Hong Kong."
Wan Hongjian believes that "15 years have passed since 2007, and this huge income has not been declared or taxed to this day," and speculated that the shares of Wan Long's former secretary Yang Zhijun were able to be fully circulated on the Hong Kong Stock Exchange, "Yang Zhijun may have evidence of Wan Long's private acceptance of the US$200 million, which forced Wan to yield to Yang Zhijun."
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