Deconstructing Delong

Author: Tang Lijiu
Publisher:
Publish Date: 2005-09-01
Features: The author, a "De Long Researcher," has known the Tang brothers for over 20 years and has tracked the rise and fall of De Long for 18 years. He has compiled and organized tens of millions of words of material, spending over a year to complete this significant work of case study on Chinese companies. Without fully understanding De Long, one cannot grasp the hidden rules of China's capital market! This book is written by a scholar from "Cold Insider," a true insider of De Long, and its historical record and management reflection value far surpasses other publications on De Long on the market.
—Zhao Xiao, Director of the Macro Strategy Department, National State-owned Assets Supervision and Administration Commission (SASAC)
There are already many books about De Long on the market. Why did Tang Lijiu write another one? I believe he has at least three advantages over others:
1. Personal Connection: He has close personal relationships with the Tang brothers and many top leaders of De Long.
2. Geographical Advantage: As a native of Xinjiang, Tang Lijiu has worked in the region for a long time, giving him a deep understanding of De Long's development process and social background.
3. Professional Expertise: As a consultant, he can analyze De Long from the perspective of a professional consultant.
—Zhong Pengrong, Director of Beijing Vision Consulting Center
De Long has collapsed, but we firmly believe that every famous failure or tragedy in the Chinese business world can leave valuable lessons for future generations. We believe this book will inspire more people to study the cases of Chinese private enterprises, learn from failures, and gain wisdom from lessons. Only in this way can more Chinese private enterprises go global and become world-class companies.
—Liu Jiping, Professor and Expert in Joint Stock and Securities Research at Capital University of Economics and Business
Tang Wanxin's cunning and ruthless entrepreneurial style seemed to be what Xinjiang could rely on. In this sense, it is indeed necessary to thoroughly summarize Tang Wanxin and De Long. It's not just about the so-called news value; it also serves as a reference or model for promotion. Regardless, Tang Wanxin and his De Long have become a complete modern fable in Xinjiang's folklore.
—Yu Xiangdong, Special Researcher at the Shanghai Urban Development Research Center
This book dissects De Long and Tang Wanxin from a genetic perspective. It is a book about the rise and fall of Chinese private enterprises. The author, a "De Long Researcher," has known the Tang brothers for over 20 years and has tracked the rise and fall of De Long for 18 years. He has compiled and organized tens of millions of words of material, spending over a year to complete this significant work of case study on Chinese companies. Without fully understanding De Long, one cannot grasp the hidden rules of China's capital market! From the entrepreneurial city of Urumqi to the political center of Beijing and the financial center of Shanghai, De Long has staged a "living drama" of Chinese companies and the capital market in the early 21st century. However, the tide of history ultimately led to the collapse of De Long's myth. By facing De Long's gains and losses head-on, one can glimpse the shadow of the 20-year growth of Chinese private enterprises! De Long, a private enterprise that rose from western Xinjiang and rapidly expanded to a billion in capital within a decade, has now become a vivid case of the failure of Chinese private enterprises. Amidst the clamor, we still maintain respect for De Long. It thrived within the operating mechanism of the socialist market economy while alsoing unprecedented space. The purpose of dissecting De Long is not to conduct research, nor to gather obscure materials or make common remarks, nor to indulge in a dense interweaving of lamenting, imagining, guessing, and sighing. Instead, it aims to engage in deep and systematic consideration, attempting to place Tang Wanxin back in the historical context and reveal the historical inevitability of his personality. Through this book, you will gain a close and relatively comprehensive understanding of De Long's growth story, especially the origins of Tang Wanxin's entrepreneurship, the complex structure of the De Long group, and the unique operation of the De Long model. The main body of the book is divided into four parts: De Long's Past, De Long's Creation, The Causes of De Long's Downfall, and De Long's Warning.
Part 1: De Long's Past begins with Tang Wanxin's participation in the student movement in Xinjiang and tells the story of De Long's initial establishment, pre-history in industrial enterprises, financial expansion, and eventual collapse, creating a guide map for readers to understand De Long's development history.
Part 2: De Long's Creation focuses on the five major propositions for which De Long is praised: Opportunity, Financial Technology, and Capital Operations; Industrial Integration and Strategic Investment; Financial Holding and Industrial-Financial Integration; Financing Chains, Debt Chains, Industrial Chains, and Value Chains; Elite Clubs and Business Models. The narrative combines detailed discussions with in-depth analysis, allowing readers to discern De Long's subtleties, even clearly see its evolution and cycles, hopes and despair, and the interdependent coexistence of good and evil.
Part 3: The Causes of De Long's Downfall first discusses various theories of failure, then starts with the surface-level capital chain rupture that led to De Long's collapse. It delves into six major defects: imbalance in diversified structure, wandering overall strategy, Tang Wanxin's contradictory personality, lack of corporate governance, entropy change in corporate culture, and patiently constructs a narrative of De Long's failure for readers.
Part 4: De Long's Warning focuses on six aspects: Adaptation is more important than excellence; Value Winning; Prudent Operations; Strategic Choices; Execution Promotion; and the Game of Eastern and Western Management Thoughts and Cultures. It solves the puzzle of De Long and reveals the solutions for Chinese enterprises to address challenges!
The appendix includes: a collection of evaluations of De Long by outstanding figures from all walks of life; tables of De Long's core enterprises, listed companies it holds stakes in, affiliated financial institutions, non-listed companies it holds stakes in, affiliated listed companies, shadow and illegitimate shell companies, and related personnel, aiming to give readers a comprehensive understanding of De Long.