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JuneYao Committed to Building Century Enterprise
ReleaseDate: 2013-10-30

October 30, 2013 China Business Times

“JuneYao Group’s future development approach is to build ‘Century Enterprise’.” said Chairman of Shanghai JuneYao Group Wang Junjin when receiving reporter’s interview recently. Under his leadership, today’s JuneYao Group has developed into an enterprise group in the modern service industry dominated by aviation transport and commercial retail as main business, meanwhile it is also engaged in cultural education undertakings.

In 2004, Wang Junjin appeared in front of the public as the chief decision-maker of the Group. Before that, although he was in charge of aviation business, JuneYao Group’s primary business, he had kept a low profile. According to relevant industry insiders who had been in close contact with the three brothers of the Wang family, among the three brothers, the second brother Wang Junjin was good at accounting, which made him the “Chief Shopkeeper” in the “Back Kitchen” of JuneYao Group.

Wang Junjin’s takeover is a case of being entrusted with a mission at a critical moment. Founder of the Group Wang Junyao suddenly passed away due to illness, with little prior preparation. Wang Junjin was pushed to the “front stage”. It is exactly due to this reason that the public felt doubtful about this handover, and made various speculations toward JuneYao Group’s future development trend.

Wang Junjin disclosed that in the last year, 90% of JuneYao Group’s income came from commercial retail and aviation industry business units, both of which are industrial chains after transition. Judging from this, the answer sheet he delivered is enough to let the public look at him with fresh eyes. He said, the early death of his elder brother made him more acutely aware of the importance of sustainable development mechanism for an enterprise. As a result, he wanted to establish the target of building Century Enterprise to continually do “physical checkup” on the enterprise health.

Adhering to the notion of reform

“If not for that great tide of Reform and Opening up which had waken the entrepreneur spirit hidden in our heart, I might still be an honest fisherman like people in my father’s generation.” speaking of today’s achievement, Wang Junjin insisted on saying the generation to which he belongs is the biggest beneficiary of the Reform and Opening up.

The three brothers of the Wang family were born in Dayu Town, Cangnan County, Wenzhou, the generation of their father and those before depended on fishing to make a living. In the 1980s, against the background of Reform and Opening up, the tide of nationwide participation in commodity economy for poverty alleviation emerged, in the rural area in China this tide was particularly strong. It was also in this period that the three brothers of the Wang family followed their townsfolk to leave the hometown and travelled far and wide to do small business.

Wang Junjin reminisced that in the early days of business startup, they had picked up many trades in succession, such as adhesive stickers, meal coupons, and badges; in other words they started from the simplest money-earning business. “Sleeping over a dozen hours under the bench on trains is a common thing, and they tasted all kinds of hardship. In 1990 they earned the first pot of gold. For that year, the Asian Games was held in China, and the demand for flags, badges, and posters was huge; yet the production was easy. They grasped this opportunity, the brothers of the Wang family quickly became millionaires.

Soon afterwards, the three brothers of the Wang Family embarked on the road of entrepreneurship with their first pot of gold. In 1991, they did a sensational thing, for which the media at that time labeled them “heaven daring”, for they contracted the first chartered flight service from Changsha to Wenzhou, which is also the first private chartered flight route in China.

In 1996, Wang Junjin put forward the bold vision to set up their own airline company. In August 2002, JuneYao Group purchased 18% equity of “China Eastern Airlines Wuhan Co., Ltd”, to become the first one to let private capital soar into the blue sky. In 2005, the State Council unveiled “Non Public Economy 36 Articles”, which further relaxed restriction for private capital to enter aviation field, their dream came true. In September 2006, the JuneYao Airlines made its maiden flight to Changsha, Hunan, to become one among the first batch of private airlines to conquer the blue sky.

Cherishing the heart of gratitude

In 2004, JuneYao Group met its biggest sudden change in its history ——Founder Wang Junyao suddenly passed away. Before that, Wang Junyao, the eldest among the three brothers, was JuneYao Group’s external signboard. There were numerous speculations from the public about where JuneYao Group would head for in the future.

When receiving reporter’s interview, Wang Junjin said frankly that back then he had many worries. He was worried that the media’s excessive concern would put pressure on the enterprise to affect operation, that shareholders would sell stocks of Wuxi Commercial Mansion at the crucial moment of tender offer, and was worried the society would not accept his unfamiliar face, and that the common ideal of the three brothers in the years before would waver.

In the face of the crisis, he demonstrated his maturity with his action. He immediately published “A Letter to All Employees”, which was both an internal notice to reassure the staff and a declaration to the public; he held a press conference with members of the new Board of Directors, in front of reporters from more than 30 media, he frankly introduced the company’s status quo and the work that must be done; he visited local party and government agencies and key business units to deliver briefing and express appreciation. The openness and sincerity showed by Wang Junjin soon earned him unanimous approval from the society. At the end of 2004, JuneYao Group acquired Wuxi Commercial Mansion Group according to schedule.

“Without the care and support from all social circles, JuneYao Group will not tide over this crisis so smoothly.” For this matter, Wang Junjin said that the most unforgettable thing is that at this critical moment for JuneYao Group, the United Front Work Department, the Federation of Industry and Commerce and officials of related government departments immediately inquired about JuneYao’s difficulty. Chief officials of the Shanghai CPC Municipal Committee and the Shanghai Municipal Government instructed to give JuneYao “timely assistance”; officials of Zhejiang Province dispatched special personnel to pay a consolation visit, and friends from all social circles volunteered to offer help.

Based on the positioning of Shanghai to give priority to developing modern service industry, he formulated a ten year development strategy for the JuneYao Group, and put forward the target of making transition to the modern service industry ——dedicated to building globalized “Century Enterprise” in the modern service industry.

Persisting in ideals and beliefs

“Century Enterprise is not something that can be achieved on the spur of the moment; it is a thousand-li journey that begins with the first step.” Wang Junjin is very clear-headed about the difficulty of establishing “Century Enterprise”.

According to his understanding, “Century Enterprise” contains very rich connotation: The century concept means it must restrain itself with the thinking approach of a century enterprise, the behavior pattern of a century enterprise, and the value system of a century enterprise. In decision-making, it must be willing to abandon immediate interest in the short term, and refrain from earning “quick money”, from seeking windfall profit, from doing things that “kills the goose that lays the golden eggs”, and avoid short-sighted behaviors. As the saying goes: “Range Far Your Eye Over Long Vistas”, and depart from long term perspective in everything. In daily management, it must examine itself by centering on the century concept, get used to simulating risks and considering pre-plans, continually reform governance structure and mode. In enterprise development, it should give full consideration to the interest of customers, employees, shareholders and the society.

“Only by insisting on doing so will it become a responsible enterprise, enterprise development can be longer.” Wang Junjin said the JuneYao Group today is making explorations on this road. JuneYao Airlines is a rookie in the civil aviation circle, it cannot access many hot flight routes and money-earning flight routes, but it has no complaint. JuneYao Airlines has opened flight routes to some old revolutionary base areas, areas inhabited by minority nationalities, frontier areas and poverty-stricken areas such as Shanghai to Liancheng and Shanghai to Bijie routes. These flight routes are ignored and shunned by others, nor will they earn profit in the short-term. Nevertheless, he considered it to be of social value if it can drive forward local economic and social development. If there is social value then sooner or later there will be commercial value, after the local area has developed, his flight routes will surely face a promising market.

On JuneYao Group’s new industrial chain, Wang Junjin extended business to education industry. He said, through education, on the one hand JuneYao Group can cultivate one after another generation of talents for the society, and promote value growth of the society. JuneYao all the more has the meaning of continual existence; on the other hand, the future generation brought up by he education industry will more or less cherish appreciation toward the enterprise. Under equal consumption circumstances, they will give priority to choosing JuneYao Group’s products.

At present, JuneYao Group’s investment aims to develop industry under the guideline of offering addition to the society. Starting from “Guangcai Three Gorges Tour”, it has invested and built two dairy product processing production bases and one demonstration pasture in Yichang and Dangyang. The “10 Thousand Dairy Cow Breeding Plan” brought direct job opportunities to over 1,000 migrants in the “Company + Farmer” mode, and the industrial chain indirectly provided jobs to more than 5,000 persons, which solves the difficulty employment problem for many Three Gorges migrants. After that, over the past one dozen plus years, JuneYao Group continually invested over one billion to establish enterprises in old revolutionary base areas, areas inhabited by minority nationalities, frontier areas and poverty-stricken areas and Three Gorges Reservoir Zone to help with local employment.

“If there is no Chinese opportunity today, it would be empty talk to discuss ‘Century Enterprise Dream’. Without China’s Reform and Opening up, private enterprises will have no opportunity of development. Such belief is exactly the real source of motivation for JuneYao’s development. With belief, trust and confidence, the mental status also becomes calm, so that in the face of momentary and local difficulty, problem and setback, we can think about things rationally and handle things correctly.”