Gu Chujun

Gu Chujun is a Chinese entrepreneur from Yangzhou in Jiangsu Province . From 1991 to 2000, Gu Chujun worked in Hong Kong. In 2001, Gu Chujun acquired a stake in the Chinese refrigerator manufacturer Kelon. A rapid rise followed and Gu became an internationally known model entrepreneur in China. From 2004, however, there was a quick entrepreneurial crash. Gu Chujun was arrested in 2005 and sentenced in 2008 to 12 years' imprisonment and a fine of $ 994,900 for fraudulent accounting and embezzlement. Kelon was acquired by Hisense in 2006 .

Entrepreneurial advancement

Gu Chujun worked in Hong Kong from 1991 to 2000. In the early 1990s, Gu founded the refrigerator company Greencool, with which he also exported refrigerators to Great Britain in the late 1990s. In 2001, Gu Chujun took over 20.64 percent of the refrigerator company Kelon, which held a 20% share of the Chinese refrigerator market, but at that time was in massive economic problems and became the company's CEO.

Under Gu Chujun's leadership, the company initially developed very well despite the difficult economic environment, and Gu invested in other companies. These were Hefei Meiling, Xiangyang Automobile Bearing and Yaxing Motor Coach. Gu became internationally famous as a star and model entrepreneur in China. In 2003, Gu was named the Most Notable Entrepreneur in China by China Central TV (CCTV) and was named “Entrepreneur With Greatest Economic Contribution to China”. In November, an interview with Gu appeared in the “Business Week” magazine in which he confidently announced: “We'll beat Siemens.”

Economic problems

As early as 2004, however, economic problems arose in the Gus companies. It turned out that the unclear ownership structure at Kelon, there were strong private shareholders but also a large state stake in the company, caused the company to falter.

accusations

Growing up with economic problems, Gu's business conduct was scrutinized and serious allegations followed.

The Lang - Gu Debate

In the context of the collapse of the Kelon company, Hong Kong University economics professor Harry Lang Gu investigated business conduct. Following the investigation in August 2004, Harry Lang accused Gu of taking over several companies valued at 13.6 billion yuan with only 900 million yuan in capital through unfair financial transactions. These statements led to a completely unusual public debate and Gu filed a defamation lawsuit against Lang. The debate came to a climax when more than ten recognized financial experts held a seminar in October 2004 in which they stated that Gu's behavior was in line with reforming the Chinese economy. However, the matter remained controversial.

Fraudulent government support

Gu was charged with exploiting dubious relationships with government agencies for personal gain. In September 2002, Gu bought a plot of land in the British Virgin Islands for US $ 587,700 from the local government. Two months later, the property was valued at US $ 56.89 million, almost a hundred times its value. There was also support from government agencies in Gus' negotiations with banks over loans without adequate collateral. Jiangxi Province leaders complained that Kelon received the promised support but failed to create the 10,000 jobs it had promised.

Allegations of falsification of accounts

In September 2005, Gu was arrested along with eight other company executives. The accusation was that in 2004 Gu had presented the sales and profits of the Kelon company far too positively and falsified the balance sheets. He also embezzled 313 million yuan. In January 2008, after a long trial, Gu was sentenced to twelve years' imprisonment and a fine of 6.8 million yuan for fraudulent accounting and embezzlement. (2)

Footnotes

1. ↑ ^{a b} Top entrepreneur Gu condemns acr-news, April 14, 2009
2. ↑ Fridge-maker Kelon implodes Asia Times, p.3 10 August, 2005
3. ↑ Fridge-maker Kelon implodes Asia Times, page 3 10 August, 2005
4. ↑ Fridge-maker Kelon implodes Asia Times, page 4 10 August, 2005
5. ↑ The dramatic collapse of Kelon Caijing.com.cn, p. 3 and 4, May 9, 2005 ( Memento of the original from May 3, 2015 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. 
6. ↑ Former Kelon chairman hit with ban chinaview.cn, July 17, 2006 ( Memento of the original from July 19, 2006 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. 
7. ^ A forger of accounts must be in custody Welt.de, February 1, 2008