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Wang Junjin: Three Years’ Tempering
ReleaseDate: 2007-12-27

December 27, 2007, Business Times

During its founding and development process, JuneYao Group has repeatedly become China’s first due to its boldness to seek exploration and innovation, for which it has always been one of the private-owned enterprises attracting widespread public attention from domestic and overseas media and other related parties. When Wang Junyao, the chief founder and former Chairman of the Group, passed away, social circles also became concerned about JuneYao Group, was the new chairman Wang Junjin able to shoulder the burden, could he keep on carrying forward JuneYao Group’s businesses in a healthy and steady way?

Repeated “China’s First”

JuneYao Group was founded in July 1991, at a time when China’s Reform and Opening up was making progress toward deepened development, and on the eve of Deng Xiaoping’s Southern Tour. The general situation back then is as follows: Domestic non-public economy had acquired prosperous growth, but many industries were still forbidden zone for private-owned enterprises. On July 28 that year, Wang Junyao and Wang Junjin opened a chartered flight route from Changsha to Wenzhou with astounding determination, at an age when China’s civil aviation industry was still closed to private-owned enterprises. The two brothers became the pioneers of China’s private-owned chartered flight service, and also founded China’s first private-owned chartered flight company: Wenzhou Tianlong Chartered Flight Co., Ltd. The first one who eats crab is naturally the focus of public attention and the media. After that, Wang Junyao and Wang Junjin became widely known public figures.

Since founding the chartered flight company, Junyao and Junjin brothers have developed their own aviation dream, hoping one day they would be able to set up their own airline company. As China’s civil aviation industry gradually opened up to the public, on August 18, 2002, with approval from the Civil Aviation Administration of China, JuneYao Group successfully became shareholder of “China Eastern Airlines Wuhan Ltd”, making it China’s first private-owned enterprises to enter the exclusively state dominated aviation field; in June 2005, JuneYao Group obtained approval to set up Shanghai JuneYao Airline Company; 9 months later, JuneYao Group made another move, it successfully controlled the stock of the first domestic private-owned airline company: Tianjin Okay Airways Company Limited, so as to become the largest private-owned airline company in China. Since its maiden flight in September 2006, JuneYao Airline introduced four aircrafts in one year, making it the company taking the fastest step to introduce aircrafts in China’s private-owned airline companies. At present, it owns 6 brand-new Airbus aircrafts.

The Beijing 2008 Olympic Games and the World Expo 2010 Shanghai are two major events in China in recent years. JuneYao Group participated in these key national projects as franchise operator and retailer of Beijing 2008 Olympic Games and senior sponsor of the logo franchise products for World Expo 2010 Shanghai respectively, making it the first enterprise among Chinese private-owned enterprises to take part in both the Olympic Games and the World Expo.

Unforgettable transition period in 2004

During the 13 years from 1991 to 2004, with efforts from former Chairman Wang Junyao and the whole team, JuneYao Group acquired rapid development.

Just at the critical moment when the enterprise was planning its second-time business startup and glorious takeoff, on November 7, 2004, Wang Junyao, the main founder and former Chairman of JuneYao Group, passed way due to illness. Former President of the Group Wang Junjin accepted the mission at a critical moment, and succeeded his elder brother to act as Chairman of the Group. At this moment, Wang Junjin had to endure the tremendous grief of losing his brother, and confront the concern from social circles and employees. At this critical juncture, with support from Group CPC Party Committee, Board of Directors and related parties, Wang Junjin calmly handled the situation, and displayed his unruffled quality as a senior executive.

After the Board of Directors elected Wang Junjin as Chairman on November 9, on the same day Wang Junjin published “Notice to Employees” in the name of the Board of Directors, to inform the employees of the facts, and required everyone to continue all business tasks as usual. The next day, he published message of condolence on the media, and reported the company situation to superior CPC Party Committees, and key institutions including municipal and district federations of industry and commerce. On November 18, Wang Junjin led all members of JuneYao Group’s Board of Directors to interview major media from the central government and Shanghai Municipal Government, at the press conference, Wang Junjin solemnly promised to the public: JuneYao brand name would remain unchanged, and its social responsibility would remain unchanged. Thereafter, under the guidance of Wang Junjin, the Group completed the acquisition of Wuxi Commercial Mansion Co., Ltd according to schedule. At that time, domestic and overseas media reported the successful acquisition of Wuxi commercial Mansion by JuneYao Group, and highly acclaimed Wang Junjin’s calm demeanor. In the subsequent days, Wang Junjin focused more energy and time on integrating the Group’s development strategy, he highlighted the adjustment of industry structure according to the state government’s industry policies, made effective integration and adjustment in the transformation of growth model, and put forward the target of building a ‘century-old enterprise’ in modern service industry. He wanted to use his action to announce to the society: JuneYao Group has smoothly completed the transition to the “Age of Wang Junjin”.

Transformation toward modern service industry

From November 2004 to November this year, it was exactly three years since Wang Junjin assumed the leading role of the company. Recently, when the reporter interviewed him with the questions “back then why did you say JuneYao brand name would remain unchanged, the Group’s social responsibility would remain unchanged, why did the Group make adjustment in growth model by revolving around ‘century-old enterprise’ and modern service industry?” Wang Junjin replied, about saying JuneYao brand name and its social responsibility would remain unchanged. On the one hand, it was to commemorate his elder brother; although he has passed away, his business must continue, so this is the best commemoration for him. On the other hand, JuneYao Group was after all an enterprise with more than ten years of history; it has established its reputation over the past years, and possessed brand value. JuneYao brand is very special in that it is named after his elder brother; after he passed away, it is hoped that the public could remember JuneYao and this enterprise, therefore the name could in no way be changed.

There are many factors involved when speaking of ‘century-old enterprise’, firstly, entrepreneurs must develop awareness of unexpected disaster, since in nature there are unexpected storms and in life unpredictable vicissitudes, and it is no exception for an enterprise, so it must develop vision for long term development. To become a ‘century-old enterprise’ needs reform, it needs to review the existing inadequacies, and must set up 5-year, 10-year and even longer strategic targets. Secondly, ‘century-old enterprise’ can facilitate social harmony and social stability, and the stability of national economy and society needs a group of steadily growing enterprises. An entrepreneur’s thinking must stay synchronized with the economic and social development of a country, as a result enterprises must not only consider the situation today, so they must also consider tomorrow and the day after tomorrow.

The decision to set enterprise positioning to develop modern service industry is made according to the features of Shanghai. Shanghai has all the resources, here you can find info, talents, and convenient logistics, but there are not much land resources. Under such circumstances, doing modern service industry should be a wise option. The businesses we are developing now including “JuneYao Creativity”, “JuneYao Airline”, “JuneYao Plaza” and the e-commerce business under development all belong to this category. During this period, we adjusted the Wenzhou taxi and engineering upgrading projects in the previous industries, the dairy scale was also adjusted to certain degree, the entire action was based on the thinking of the state government, Shanghai Municipal Government, and also the enterprise to develop modern service industry. Furthermore, modern service industry produces green GDP; it can also serve the whole nation, which coincides with the slogan to serve the whole nation as proposed by Shanghai.

Wang Junjin summarized the above practice into ten words, namely: Clarify main business, develop main business, diversify capital, and enhance management.

Three years to sharpen a sword

Wang Junjin said, over the past three years I mainly did 6 things: Aviation transport received initial results, we were moving closer to the first target for 2010. Following its first holding of private-owned airline company Tianjin Okay Airways Company Limited, the Group’s exclusively owned JuneYao Airline also started operation in September 2006, after that it also participated in the stock of Chengdu’s United Eagle Airlines, with which it completed its strategic deployment, and developed into a formidable force in the private-owned aviation industry.

Commercial department store business grew steadily, with its business area further expanded. Wuxi Commercial Mansion, the leading enterprise in Jiangsu’s commercial sector, only had a business area of over 40,000 sqm at the time of acquisition, at present it has been expanded to over 70,000 sqm, which enabled this listed company to improve its operation ability, profit-earning ability, sustainable development ability, and service ability. Giving it solid foundation for follow-up growth, it is one of the listed companies with the most stable share price on the market today.

Cultural industry started from scratch, and has developed into a creativity brand. Since JuneYao Creativity Co., Ltd was approved as the exclusive retailer and dealer for F1 match in Greater China region, up till now it has served the World Expo and the Olympic Games, next year it will also enter cooperation with NBA and FIFA, its content is becoming richer every day. The core of JuneYao Creativity is to communicate 5,000 year long Chinese culture, and bring cultural value to the society, meanwhile it aims to promote processing and employment, and offer service to the whole nation and fulfill social responsibility.

Yichang JuneYao International Plaza started construction only three years ago, now it has been launched into operation. This is a Guangcai Program project, with a total investment of 700 million yuan. The Plaza includes a theater, a five-star hotel and a shopping center, totaling 108,000 sqm. This year the closing ceremony of the 8th China Culture & Arts Festival was held in Yichang JuneYao Theater, in the past Yichang had no five-star hotel, and could not attract foreigners to stay, after the completion of the Hotel, foreign investors could stay at our hotel when visiting Yichang. The completion of this Plaza also created more than 1,000 jobs for the local area, which also fulfilled our social responsibility.

It also invested over 60 million yuan to participate in the system reform of “World Foreign Language Primary School” and “World Foreign Language Middle School” in Shanghai Xuhui District, in order to cultivate students with strong global communication ability for the nation and the society.

Go all out to promote team building, introduce high caliber career manager. Following its move to put forward the development strategy of full transformation toward modern service industry in November 2005, it offered its President post for the first time to an outsider by introducing career manager Huang Hui, and further broke up private-owned enterprise’s family management pattern.

Wang Junjin sharpened his sword in three years. Under his guidance, the enterprise developed steadily, and the brand appreciated in value. Since its announcement to construct modern service industry ‘century-old enterprise’ target in 2005, the enterprise has developed into an enterprise group in modern service industry focusing on the main business in aviation transport and marketing service, with involvement in real estate and investment fields. In 2006, it fulfilled 7 billion yuan in sales, ranking 88th among private-owned enterprises nationwide.

Resolutely fulfill social responsibility

When receiving interview, Wang Junjin said his elder brother walked at the frontline in fulfilling social responsibility, our social responsibility remains unchanged, and on top of that we must also expand it. Over the past three years, I associated all the Group’s business behaviors with social responsibility, which aimed at continuing social responsibility with the help of industry development, and contributing to social harmony. If you look at our existing businesses closely, every project is related to social responsibility. Apart from adding more jobs to the society, our businesses also included helping the country develop special talents, promoting economic growth in Western and Central China, communicating 5,000 year long Chinese culture. To continue its development, an enterprise must correctly place the position of “Big self”, and “Small self”, only when the nation becomes prosperous and the population becomes well-off will it facilitate enterprise development, to become an outstanding builder of socialism with Chinese characteristics, one must develop correct outlook on obligation and interest.

It has been learned that in the three years since Wang Junjin assumed the post of chairman, the Group did not change JuneYao brand name; on the contrary the brand had become more well-known. JuneYao Group’s social donation and public welfare investment also grew in amount. In those three years, it contributed a total of more than 70 million yuan in the form of donated Guangcai schools, public welfare donation money and public welfare investment to Central and Western regions. With these actions, it honored its solemn commitment “the brand name remains unchanged, its social responsibility remains unchanged” announced at the press conference three years ago.

Joint prosperity through distribution of wealth

Three years time is merely a short moment in the long river of history. To build a ‘century-old enterprise’, Wang Junjin still has a long way to go. Nevertheless, Wang has already set his sight on the future 10-20 years and even longer time. When receiving the interview, he said that entrepreneurs must develop such an attitude, the larger an enterprise grows the more it no longer belongs to you. A number of years later I will only be a shareholder of JuneYao Group, with only 15%-20% stock. Why do I think it this way? This is because we are walking a path of joint prosperity. Prosperous population means letting more employees become rich first, so that we have joint prosperity through distribution of wealth. The first step is to let the management have space for development and wealth, through profit incentive, stock option incentive and share incentive. First we will let the operation team become rich while creating wealth. When the company becomes a listed company, it will be a public enterprise; so long as the enterprise is continually developing, more people will become rich.

Wang Junjin also thought of risks when considering the future. He said building a ‘century-old enterprise’ needs to develop the enterprise into one with powerful cash flow, so that it will have no fear for risks. At present, the Group’s cultural industry, aviation industry and retailing industry all have healthy cash flow, the enterprise has considerable risk resistance, and it has no worry about macro regulation. So long as the enterprise’s mid to long term development strategy comply with the state government’s industry policy and industry planning, meanwhile it has a heart of gratitude to reward the society, and contributes to national development, it is believed that it could surely develop healthily. Our target to create a ‘century-old enterprise’ in the modern service industry will definitely be fulfilled.

Notes by the reporter:

Chinese private entrepreneurs are becoming mature

After the interview with Chairman of JuneYao Group Wang Junjin, my first impression is that Chinese private entrepreneurs are becoming mature.

During the period in the early days of Reform and Opening up, private-owned enterprises thought more about how to earn money, and how to maximize their profits. Some of them would even take advantage of policy loopholes, and bend the rule in order to gain profit, so they thought little about how to make contribution to the nation and the society.

The next year marks the 30th anniversary of China’s Reform and Opening up initiative. Over the past 30 years, growing with encouragement from the Party and state policies, private-owned enterprises have made tremendous contribution to the country’s economic construction and social harmony, meanwhile the macro environment of Reform and Opening up have created a group of entrepreneurs who love Chinese Communist Party, resolutely follow the path of socialism with Chinese characteristics, develop enterprise according to the national industry policy guidance, abide the law, and cherish strong sense of social responsibility. Wang Junjin is only one of them.

Saying that Chinese private entrepreneurs are becoming mature at least has several signals: Firstly, maturity in politics, which is reflected in love of the Party, love of the country, and resolute pursuit of socialism with Chinese characteristics. They stand together through thick and thin, and show utter devotion to the Chinese Communist Party. They have political aspiration, and a considerable number of them have become NPC delegates and CPPCC members at different levels and leaders of federations of industry and commerce, and actively support enterprise party building and trade union work. Secondly, maturity in ideology, which can be mainly manifested in the face that they voluntarily follow the state government’s industry policies to develop enterprises, combine enterprise growth with the construction of harmonious society, and undertake social responsibility. They can actively take part in Guangcai Program to relieve poverty based on the requirements of the Party and the state government to build a prosperous society, and guide all employees to take the path of prosperity for all. Thirdly, maturity in operation management, which is mainly shown in their action to go beyond family management prevalent among Chinese private-owned enterprises in the early stage. They boldly introduce talents from the society, and manage the enterprise according to modern enterprise system. Meanwhile, they actively bring out the role of party organization, Youth League organization, and trade union in corporate management.

Of course, “maturity” is a general concept; entrepreneurs’ maturity could also include self attainment, character, and moral integrity. During the long time process of dealing with private entrepreneurs, the reporter has come to deeply recognize that in recent years a large group of private entrepreneurs were making progress to varying degrees, and had become builders of socialism with Chinese characteristics and representatives of non-public economy which greatly satisfied both the Party and the state government.

I’m a friend of Wang Junjin for many years. When watching him how he tempered himself during the development process of JuneYao Group, I could also feel his progress and growth. In particular, since acting as Chairman of JuneYao Group, his vision has broadened, and his considerations have gone farther. What’s more precious is that as a private entrepreneur, he was able to go beyond the framework of enterprise to consider the needs of the country, and combine enterprise growth to develop it into a ‘century-old enterprise’ with the implementation of the CPC spirit of building harmonious society and assuming social responsibility. He considers national prosperity and wealthy population as his bounden duty. Such behavior is the model of this generation’s advanced private entrepreneurs.

We hope more private entrepreneurs will join the rank, so as to make their due contribution to the efforts to speed up the construction of socialism with Chinese characteristics, and achieve the great rejuvenation of the Chinese nation.