{"id":18801,"date":"2023-09-28T17:00:00","date_gmt":"2023-09-28T09:00:00","guid":{"rendered":"https:\/\/www.tejwin.com\/?post_type=insight&#038;p=18801"},"modified":"2024-06-06T15:51:27","modified_gmt":"2024-06-06T07:51:27","slug":"gu-family-taiwan-cement-group","status":"publish","type":"insight","link":"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/","title":{"rendered":"Taiwan Cement (1101.TW): Embark on the Journey of Taiwan\u2019s Cement\u00a0Empire!"},"content":{"rendered":"\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><\/p>\n<\/blockquote>\n\n\n\n<figure class=\"wp-block-image\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1800\" height=\"1013\" src=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/image-325.png\" alt=\"\" class=\"wp-image-18854\" srcset=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/image-325.png 1800w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-325-300x169.png 300w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-325-1024x576.png 1024w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-325-150x84.png 150w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-325-768x432.png 768w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-325-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><\/figure>\n\n\n\n<div style=\"height:22px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f10c9ac6b5c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f10c9ac6b5c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#Preface\" >Preface<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#First_Group_Split_of_the_Gu_Family\" >First Group Split of the Gu&nbsp;Family<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#The_first_separation_Taiwan_Cement_and_CTBC\" >The first separation: Taiwan Cement and&nbsp;CTBC.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#Taiwan_Cement_Corporation_Parent_Company\" >Taiwan Cement Corporation (Parent&nbsp;Company)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#Development_Journey_of_Taiwan_Cement_Group_1970%E2%80%931990\" >Development Journey of Taiwan Cement Group: 1970\u20131990<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#China_Synthetic_Rubber_Corporation_CSRC_Limited\" >China Synthetic Rubber Corporation (CSRC)&nbsp;Limited<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#Taiwan_Polypropylene_Co_Ltd\" >Taiwan Polypropylene Co.,&nbsp;Ltd.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#Ta-Ho_Maritime_Corporation\" >Ta-Ho Maritime Corporation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#Prosperity_Dielectrics_Ceramic_PDC_Co_Ltd\" >Prosperity Dielectrics Ceramic (P.D.C.) Co., Ltd.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#Development_Journey_of_Taiwan_Cement_Group_1991%E2%80%932020\" >Development Journey of Taiwan Cement Group: 1991\u20132020<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#Taiwan_Prosperity_Chemical_Corp_TPCC\" >Taiwan Prosperity Chemical Corp.&nbsp;(TPCC)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#FuYu_Property_Co_Ltd\" >FuYu Property Co., Ltd.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#E-One_Moly_Energy_Co_Ltd\" >E-One Moly Energy Co., Ltd.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#FDC_International_Hotels\" >FDC International Hotels<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tejwin.com\/en\/insight\/gu-family-taiwan-cement-group\/#The_Current_Taiwan_Cement_Group\" >The Current Taiwan Cement&nbsp;Group<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Preface\"><\/span>Preface<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Lukang Gu family is one of the renowned Big Five families. Its roots trace back to the era when XianRong Gu facilitated the entry of the Japanese army into Taipei, gaining numerous privileges and business rights during the Japanese occupation. In 1937, with China\u2019s full-scale resistance against Japan, XianRong Gu passed away due to illness. Breaking from the tradition of direct inheritance, the 20-year-old son, ZhenFu Gu, took over. Later, ZhenFu Gu married ZhuoYun Yan, and the couple moved to Hong Kong.<\/p>\n\n\n\n<p>In 1953, responding to the government\u2019s \u201cLand to the Tiller\u201d policy, ZhenFu Gu returned from Hong Kong and took the initiative to exchange the vast family land for shares in Taiwan Cement. Serving as an advisor to the Ministry of Economic Affairs, he assisted in privatizing Taiwan Cement. Subsequently, he gradually overcame other regional powers, such as the Chen family in Kaohsiung and the Lin family. Through intricate stock investments, ZhenFu Gu expanded and developed the group corporation into the He Shing Group (former Taiwan Cement group). This firmly established the Gu family\u2019s dominance within Taiwan Cement and constructed an impregnable kingdom in the cement industry.&nbsp;<\/p>\n\n\n\n<p>In this series on the Gu family\u2019s separation, we will introduce the family\u2019s separation process and narrate the development of the two resulting groups\u200a\u2014\u200aTaiwan Cement and CTBC. This article will focus on the initial separation of the Gu family and the subsequent development of the Taiwan Cement group. It will outline the timeline of Taiwan Cement\u2019s formation and growth, providing you with a deeper understanding of the Gu family and Taiwan Cement\u2019s developmental journey!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"First_Group_Split_of_the_Gu_Family\"><\/span>First Group Split of the Gu&nbsp;Family<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_first_separation_Taiwan_Cement_and_CTBC\"><\/span>The first separation: Taiwan Cement and&nbsp;CTBC.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As LianSong Gu grew up, a situation emerged where he, as the eldest grandson and his fifth uncle, ZhenFu Gu, simultaneously took center stage in the family\u2019s inheritance. ZhenFu Gu chose not to have his son inherit the family business to safeguard the greater family interests. Instead, he designed a succession system involving the <em>\u201c<\/em><strong><em>ZhenFu Gu\u200a\u2014\u200aLianSong Gu\u200a\u2014\u200aQiYun Gu (ZhenFu Gu\u2019s eldest son)\u200a\u2014\u200aZhongLiang Gu (LianSong Gu\u2019s eldest son)<\/em><\/strong>\u201d uncle-nephew succession.<\/p>\n\n\n\n<p>Since 1999, issues have arisen in the businesses managed by QiYun Gu. Firstly, a domestic financial crisis erupted, forcing the management of a debt of 3 billion NTD. As a result, Chinalife turned from a profit to a loss of 2.4 billion NTD. Additionally, the stock price of the U.S.-listed internet company GigaMedia dropped from $90 to below $1 within two months, experiencing a significant market value contraction. The cable television empire, established with tens of billions of NTD, suffered a massive loss of 6 billion NTD. Faced with QiYun Gu\u2019s business challenges, LianSong Gu chose not to clean up the mess but, instead, sought self-preservation, disrupting ZhenFu Gu\u2019s succession plan.<\/p>\n\n\n\n<p>In 2001, QiYun Gu was diagnosed with bile duct cancer, leading the Gu family towards a path of separation. Through negotiations between ZhenFu Gu and LianSong Gu, an agreement was reached to ensure that the listed companies under their control were not adversely affected. They transferred the ownership of shares held initially by QiYun Gu to LianSong Gu, completely severing ties with the listed companies. The traditional businesses, primarily led by Taiwan Cement, were managed by ZhenFu Gu\u2019s second son, ChengYun Gu. The financial industry, mainly consisting of CTBC, was spearheaded by LianSong Gu and his son. The leasing group was entrusted to LianSong Gu\u2019s third son, ZhongLi Gu.<\/p>\n\n\n\n<figure class=\"wp-block-image alignfull caption-align-center\"><img decoding=\"async\" width=\"1800\" height=\"1013\" src=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/image-322.png\" alt=\"LuKang Gu\u2019s Family Relationship.\" class=\"wp-image-18848\" srcset=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/image-322.png 1800w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-322-300x169.png 300w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-322-1024x576.png 1024w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-322-150x84.png 150w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-322-768x432.png 768w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-322-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption class=\"wp-element-caption\">LuKang Gu\u2019s Family Relationship.&nbsp;<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Taiwan_Cement_Corporation_Parent_Company\"><\/span>Taiwan Cement Corporation (Parent&nbsp;Company)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Taiwan Cement Corporation traces its roots back to the Japanese colonial period, founded in May 1946, with its primary business focused on cement production. Initially established as a public enterprise, it was officially registered in December 1950. Due to the government\u2019s implementation of the \u201cLand to the Tiller\u201d policy, Taiwan Cement, along with the other three major industries\u200a\u2014\u200aagriculture and forestry, mining and industry, and paper\u200a\u2014\u200awas used as compensation for landowners in the form of stocks. Consequently, in November 1954, it underwent privatization, and the management rights were acquired by the Gu family from Lukang. In 1962, Taiwan Cement became the first publicly listed company in Taiwan under stock code 1101.<\/p>\n\n\n\n<p><strong>According to data from TEJ as early as June 1996, the Gu family held approximately 8% of the shares, making them the second-largest shareholder below the government. They secured three of the 20 director seats, with ZhenFu Gu serving as the Chairman. Since pre-privatization data is unavailable, and considering that the Gu family has been leading the company since privatization, TEJ used the registration date of December 1950 as the point when Taiwan Cement was incorporated into the Gu family-controlled group.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Development_Journey_of_Taiwan_Cement_Group_1970%E2%80%931990\"><\/span>Development Journey of Taiwan Cement Group: 1970\u20131990<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image alignfull caption-align-center\"><img decoding=\"async\" width=\"1800\" height=\"1013\" src=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/image-324.png\" alt=\"The Development History of Taiwan Cement Group 1970~1990.\" class=\"wp-image-18852\" srcset=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/image-324.png 1800w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-324-300x169.png 300w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-324-1024x576.png 1024w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-324-150x84.png 150w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-324-768x432.png 768w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-324-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption class=\"wp-element-caption\">The Development History of Taiwan Cement Group 1970~1990. Source: TEJ Group&nbsp;Solution<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"China_Synthetic_Rubber_Corporation_CSRC_Limited\"><\/span>China Synthetic Rubber Corporation (CSRC)&nbsp;Limited<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>China Synthetic Rubber Corporation Limited was founded in June 1973 by 18 initiators, including BoShou Lin and ZhenFu Gu. The company signed a patent and proprietary technology usage agreement with the U.S.-based Continental Carbon Company to establish a carbon black plant. The primary product of China Synthetic Rubber is carbon black, holding approximately 6% of the global market share and ranking fifth globally in production capacity. China Synthetic Rubber went public in July 1986.<\/p>\n\n\n\n<p><strong>ZhenFu Gu was one of the initiators of China Synthetic Rubber. According to data obtained by TEJ as early as June 1996, the Gu family held approximately 20% of the shares, securing 8 out of 9 director seats. Gu ZhenFu Gu served as the chairman. Therefore, TEJ considers June 1973 the point when it became part of the Taiwan Cement Group.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Taiwan_Polypropylene_Co_Ltd\"><\/span>Taiwan Polypropylene Co.,&nbsp;Ltd.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Established in July 1973, Taiwan Polypropylene Co., Ltd. (TPP) is Taiwan\u2019s first polypropylene raw material producer, specializing in polypropylene production. In October 1988, TPP became a publicly traded company.<\/p>\n\n\n\n<p><strong>According to data obtained by TEJ as early as June 1996, the Gu family held approximately 4% of the shares, securing 4 out of 7 director seats, with ZhenFu Gu serving as the chairman. Therefore, TEJ considers July 1973 the point when it became part of the Taiwan Cement Group.<\/strong><\/p>\n\n\n\n<p>In 2006, as part of a strategic move to enter the general plastics field from the niche market of specialty chemicals, LCY Chemical Corporation acquired a 36% stake from TPP\u2019s largest shareholder, Basell Group. In the same year\u2019s June election, LCY Chemical obtained all 7 director seats, and MouWei Li, chairman of LCY Chemical, assumed the position of TPP\u2019s chairman. Thus, TEJ considers June 2006 as the point when it became part of the LCY Chemical Group.<\/p>\n\n\n\n<p>In 2008, as part of consolidating product lines and procuring raw materials (propylene), LCY Chemical decided to merge with TPP. On April 23 of that year, as the reference date, TPP was absorbed and ceased to exist after the merger.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Ta-Ho_Maritime_Corporation\"><\/span><strong>Ta-Ho Maritime Corporation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Established in September 1979, Ta-Ho Maritime Corporation was founded by Taiwan Cement and primarily engages in international bulk shipping and agency services, mainly focusing on cement transportation. Ta-Ho Maritime was listed on the Securities Market in January 2003.<\/p>\n\n\n\n<p><strong>According to data from TEJ as early as November 2002, the Gu family held approximately 92% of the shares, securing all 7 director seats, with ChengYun Gu serving as the chairman. Therefore, TEJ considers September 1979 the point when Ta-Ho Maritime became part of the Taiwan Cement Group.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Prosperity_Dielectrics_Ceramic_PDC_Co_Ltd\"><\/span><strong>Prosperity Dielectrics Ceramic (P.D.C.) Co., Ltd.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the 1980s, as the Japanese cement industry faced transformation, ZhenFu Gu foresaw the challenges that Taiwan Cement would encounter. Consequently, he established the Precision Ceramic Development Center, successfully developing ceramic powder and entering the downstream passive components sector. In May 1990, Da Mei Electronics, the first domestic producer of chip capacitors, faced financial difficulties and sold all its factories and equipment to Taiwan Cement. After taking over, Taiwan Cement established P.D.C., focusing on producing multilayer ceramic capacitors. P.D.C. was listed on the Over-The-Counter (OTC) market in April 2002.<\/p>\n\n\n\n<p><strong>According to data by TEJ as early as October 2001, the Gu family held approximately 92% of the shares, securing all 7 director seats. ZhengXiong Jiang, as the representative of Taiwan Cement, served as the chairman. Therefore, TEJ considers May 1990 when P.D.C.<\/strong> <strong>became part of the Taiwan Cement Group.<\/strong><\/p>\n\n\n\n<p>In 2005, WalSin Tech sought to acquire P.D.C. to secure raw material sources. On October 7, 2005, as the reference date, they exchanged shares at a ratio of 1.6 shares of P.D.C. for 1 share of WalSin Tech. WalSin Tech acquired 12 million shares of P.D.C., holding approximately 53% of the shares. Subsequently, in the October 2005 board election, WalSin Tech gained 4 out of 6 director seats, with YouHeng Jiao serving as the chairman. Therefore, TEJ considers October 2005, the share transfer date, as the point when P.D.C. became part of the WalSin Group.<\/p>\n\n\n\n<div style=\"border: 1px black; border-style: solid none; text-align: center; border-color: #296580; padding: 24px; margin-top: 24px; margin-bottom: 24px;\">\n<p style=\"margin: 0px; font-size: 24px; font-weight: bold; line-height: 1.5;\">Want to Learn More?<br \/>Check Out Our Comprehensive data on Corporate Governance!<\/p>\n<div style=\"margin-top: 32px;\"><a style=\"border: none; border-radius: 4px; background-color: #296580; color: white; font-size: 20px; width: fit-content; text-decoration: none; padding: 12px 30px 12px 30px;\" href=\"https:\/\/www.tejwin.com\/en\/solution\/credit-risk-solution\/\">Credit Risk Solution<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Development_Journey_of_Taiwan_Cement_Group_1991%E2%80%932020\"><\/span>Development Journey of Taiwan Cement Group: 1991\u20132020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image alignfull caption-align-center\"><img loading=\"lazy\" decoding=\"async\" width=\"1800\" height=\"1013\" src=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/image-323.png\" alt=\"The Development History of Taiwan Cement Group 1970~1990.\" class=\"wp-image-18850\" srcset=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/image-323.png 1800w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-323-300x169.png 300w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-323-1024x576.png 1024w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-323-150x84.png 150w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-323-768x432.png 768w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-323-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption class=\"wp-element-caption\">The Development History of Taiwan Cement Group 1991~2020. Source: TEJ Group&nbsp;Solution<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Taiwan_Prosperity_Chemical_Corp_TPCC\"><\/span>Taiwan Prosperity Chemical Corp.&nbsp;(TPCC)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Taiwan Prosperity Chemical Corp. (TPCC) was established in May 1991 through a collaboration between Taiwan Cement and CPDC Corporation, Taiwan. It stands as Taiwan\u2019s first specialized manufacturer of phenolic products, primarily engaged in the production of petrochemical intermediates. TPCC was listed on the Emerging Stock Market in October 2006 and on the main board in October 2007.<\/p>\n\n\n\n<p><strong>Data obtained by TEJ as early as April 2007 reveals that the Gu family held approximately 60%, securing 5 out of 8 director seats, with ChengYun Gu serving as the chairman. Therefore, TEJ considers May 1991, as the establishment date, when TPCC became part of the Taiwan Cement Group.<\/strong><\/p>\n\n\n\n<p>In September 2020, Taiwan Cement made TPCC its wholly-owned subsidiary through a cash exchange of NT$18 for every TPCC share. Subsequently, on January 18, 2021, TPCC was delisted and ceased public issuance. After TPCC\u2019s delisting, Taiwan Cement devised three strategies: <strong>(1) to continue holding and integrating group resources, (2) to introduce strategic alliance partners for joint operational improvement, and (3) to sell equity or assets.<\/strong> At this juncture, Chang Chun Group proactively approached Taiwan Cement, which promptly sold TPCC to Chang Chun Group for NT$2.4 billion, with the transaction completed in August 2021. TEJ considers August 2021, the completion date, as the point when TPCC became part of Chang Chun Group. However, due to TPCC\u2019s delisting, no board and supervisory data is available for reference.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FuYu_Property_Co_Ltd\"><\/span><strong>FuYu Property Co., Ltd.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>FuYu Property Co., Ltd. was founded in August 1988, with the founder remaining unidentified. In its early years, the company\u2019s main products were fiber optic terminals and loop transmission equipment. Initially named Zhen Hua Communication Co., Ltd., it was listed on the securities market in March 2002.<\/p>\n\n\n\n<p>With a vision to venture into wireless communication, ChengYun Gu acquired Zhen Hua Communication in 1997, leading to a name change from Zhen Hua Communication Co., Ltd. to Zheng Hua Communication Co., Ltd. <strong>According to TEJ data as early as October 1997, the Gu family held approximately 40%, securing 4 out of 7 director seats. Hence, TEJ considers October 1997 when Zheng Hua Communication became part of the Taiwan Cement Group.<\/strong><\/p>\n\n\n\n<p>In May 2003, Zheng Hua Communication merged with Lien Cheng Computer, marking the involvement of the United Microelectronics Corporation (UMC) Group. Due to continuous losses and the family\u2019s decision to divest, the Gu family sold its shares in 2004. As UMC became the largest shareholder at this juncture, the company was transferred to the UMC Group. TEJ considers April 2004 when Zheng Hua Communication became part of the UMC Group.<\/p>\n\n\n\n<p>Following Chairman Hao Ting\u2019s resignation in March 2007 and the UMC Group\u2019s withdrawal, Chairman WuHao Wang took over with a 1.3% stake. FuJuDe Industrial, holding one director seat, increased its shares and secured 3 out of 5 director seats in the subsequent election, making JianHsun Chen the Chairman.&nbsp;<\/p>\n\n\n\n<p>However, despite gaining control, FuJuDe Industrial showed little interest in management. At this juncture, GPS factory Zheng Han Tech spotted Zheng Hua Comm.\u2019s shell, aiming to transform it into a GPS service platform. In addition to acquiring FuJuDe Industrial, Zheng Han Tech sought additional equity in the market. In the directorial re-election of June 2008, Zheng Han Tech, holding about 32% of Zheng Hua Communication\u2019s shares, obtained 5 out of 7 director seats. Chairman JianHsun Chen of Zheng Han Tech assumed the role of Chairman, gaining operational control. TEJ considers June 2008 as the point when Zheng Han Tech was incorporated into the Zheng Han Tech Group.<\/p>\n\n\n\n<p>Despite challenges, Zheng Hua Communication struggled to turn losses into profits, leading to the official cessation of its GPS businesses in 2010. By June 2010, Zheng Han Tech Group withdrew from operational control during a directorial re-election. Former Zheng Han Tech representative ChunChu Lin assumed the role of Chairman, and the company rebranded as Chun Yu Development Co., Ltd. Lin increased his stake to 25% in 2012, signaling an intent to transform the company into a land developer. This move attracted the attention of FuYu Property, which acquired WeiShan Ni\u2019s equity and participated in the private placement.<\/p>\n\n\n\n<p>In April 2013, FuYu Construction held approximately 61% of Chun Yu Development\u2019s shares, securing 2 out of 3 director seats. QingQuan Zhang assumed the role of Chairman, gaining operational control. However, in September 2012, the company conducted a private placement of 100 million shares, with FuYu Construction purchasing all newly issued shares for 1.1 NTD per share. Becoming the largest shareholder, FuYu Construction became the new majority shareholder. TEJ considers September 2012 when Chun Yu Development was incorporated into FuYu Construction. After gaining operational control, FuYu Construction renamed FuYu Property Co., Ltd. in July 2013.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"E-One_Moly_Energy_Co_Ltd\"><\/span><strong>E-One Moly Energy Co., Ltd.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>E-One Moly Energy was founded by ChengYun Gu in March 1998, initially led by HanCheng Guo, a former senior manager of the R&amp;D department at Duracell and Vice General Manager of Nexcell Battery. The company focused on battery production. In 2000, following the completion of NEC\u2019s battery core factory in Japan, E-One Moly Energy acquired the Moli Battery plant in Canada for 1.9 billion, serving as a technological source. The company went public on the GreTai Securities Market in July 2004 but ceased trading in April 2015. Public issuance was officially revoked in June 2016.<\/p>\n\n\n\n<p><strong>According to data obtained by TEJ as early as March 2003, Taiwan Cement Group held approximately 33% of the shares. It secured 3 out of 9 director seats, with ChengYun Gu as the chairman. Therefore, TEJ considers March 1998 the point when E-One Moly Energy was incorporated into the Taiwan Cement Group.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FDC_International_Hotels\"><\/span><strong>FDC International Hotels<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Cloud &amp; Land International Group, established initially as CTBC Tourism Co., Ltd. in 1961, was a subsidiary of the CTBC Financial Holding Co., Ltd. When the company split during the family division, it was allocated to the CTBC Group. Later, ChengYun Gu and his brother-in-law AnPing Zhang acquired it from ZhongLi Gu for 3 billion, renaming it \u201cCloud &amp; Land International Group.\u201d In November 2012, Cloud &amp; Land International Group established FDC International Hotels, primarily engaged in international hotels, catering, and banquet services. FDC International Hotels was listed on the securities market in November 2015 and went public in November 2016.<\/p>\n\n\n\n<p><strong>According to data obtained by TEJ as early as July 2015, the Gu family held approximately 81% of the shares, securing 3 out of 5 director seats. ChihJen Sheng served as the chairman, representing Cloud &amp; Land International Group. Therefore, TEJ considers November 2012 as the point when FDC International Hotels was incorporated into the Taiwan Cement Group.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Current_Taiwan_Cement_Group\"><\/span>The Current Taiwan Cement&nbsp;Group<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following the split from the He Sheng Group, the Gu family, represented by brothers ZhenFu Gu and LianSong Gu, acquired different core businesses. Despite being allocated businesses with comparatively smaller market values, ZhenFu Gu actively managed the Taiwan Cement, leading the continuous expansion of the Group. Assessing the market value growth of the Taiwan Cement Group over 20 years, despite the deregistration or merger of some subsidiary companies into other groups, the overall market value has still astonishingly <strong>increased by 659%<\/strong>. In this context, the market value of the TCC\u2019s parent company, Taiwan Cement Corporation, has experienced <strong>an even more remarkable growth of 884%<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image alignfull caption-align-center\"><img loading=\"lazy\" decoding=\"async\" width=\"1800\" height=\"1013\" src=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/image-321.png\" alt=\"Market Value of Taiwan Cement Group.\" class=\"wp-image-18846\" srcset=\"https:\/\/www.tejwin.com\/wp-content\/uploads\/image-321.png 1800w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-321-300x169.png 300w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-321-1024x576.png 1024w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-321-150x84.png 150w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-321-768x432.png 768w, https:\/\/www.tejwin.com\/wp-content\/uploads\/image-321-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><figcaption class=\"wp-element-caption\">Market Value of Taiwan Cement Group (members&#8217; accumulated). Source: Integrated from TEJ&nbsp;Dataset&nbsp;<\/figcaption><\/figure>\n\n\n\n<p>The remarkable growth of the Taiwan Cement Group owes much to the reform efforts of its former chairman, ChengYun Gu. In 2003, ChengYun Gu assumed the role of chairman at Taiwan Cement. Soon after, the Gu family faced setbacks with the successive passings of ChengFu Gu and ChiYun Gu. At a time when external observers believed the Gu family\u2019s industrial position was at risk, ChengYun Gu took charge of the Taiwan Cement Group with his visionary management style. He launched an assault on the international cement market, propelling the company into a new growth phase.<\/p>\n\n\n\n<p>Beyond this, ChengYun Gu bestowed a mission upon TCC\u200a\u2014\u200ato achieve sustainable development. He once said to TCC, \u201c<em>Transform from being a major environmental polluter to an exemplary environmentally friendly entity, and even evolve into an environmental enterprise.<\/em>\u201d Sustainable development became another starting point for TCC, signaling the path it aimed to traverse in the future. Despite being in the high carbon-emitting cement industry, TCC has diligently worked towards realizing a green transformation, continuing the legendary legacy of the Gu family\u2019s cement empire. Today, TCC is accumulating strength over time, silently awaiting the arrival of the next glorious chapter for the group!<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-100 has-custom-font-size\" style=\"font-size:23px\"><a class=\"wp-block-button__link has-background wp-element-button\" href=\"https:\/\/www.tejwin.com\/en\/solution\/credit-risk-solution\/\" style=\"border-radius:15px;background:linear-gradient(135deg,rgb(243,226,151) 0%,rgb(104,209,174) 50%,rgb(35,143,166) 100%)\"><strong>Want to Learn More? <br>Check Out Our Comprehensive data on Corporate Governance!<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:16px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:24px\"><strong>Read More<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-tej wp-block-embed-tej\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"8TrYYRI0zX\"><a href=\"https:\/\/www.tejwin.com\/en\/insight\/hota-1536-tw-ownership-change\/\">Hota (1536.TW): Transferring Power and Driving Force Across Subsidiaries<\/a><\/blockquote><iframe class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Hota (1536.TW): Transferring Power and Driving Force Across Subsidiaries&#8221; &#8212; TEJ\" src=\"https:\/\/www.tejwin.com\/en\/insight\/hota-1536-tw-ownership-change\/embed\/#?secret=KBcjYcRfzS#?secret=8TrYYRI0zX\" data-secret=\"8TrYYRI0zX\" width=\"600\" height=\"338\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:24px\"><strong><strong>Get Access to Our Ultimate Database!<\/strong><\/strong><\/p>\n\n\n\n<div class=\"wp-block-group is-content-justification-center is-nowrap is-layout-flex wp-container-core-group-is-layout-9193781b wp-block-group-is-layout-flex\">\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-6c531013 wp-block-group-is-layout-flex\">\n<div class=\"wp-block-group is-vertical is-layout-flex wp-container-core-group-is-layout-fe9cc265 wp-block-group-is-layout-flex\">\n<p class=\"has-text-align-left has-text-color\" style=\"color:#328ec4;font-size:18px\">TEJ, with nearly 20 years of experience in corporate governance recognition, provides a consistent and verifiable basis for identifying the ultimate controllers of groups. By incorporating the TCRI (Taiwan Corporate Credit Rating Index), which has nearly 30 years of company credit rating data, TEJ introduces a quantified model to unveil the credit risk levels of these groups.&nbsp;<\/p>\n\n\n\n<p class=\"has-text-align-left has-text-color\" style=\"color:#328ec4;font-size:18px\">Through TEJ GCRI Index, you can access information about the affiliation of each company to its respective group, inclusion and withdrawal dates, and reasons for such actions. Additionally, comprehensive annual financial data and group credit risk levels (GCRI) are available for each group.&nbsp;<mark style=\"background-color:#f9e4ab\" class=\"has-inline-color\"><strong>For more information, please refer to <\/strong><span style=\"background-color:#00000000\" class=\"has-inline-background\"><a href=\"https:\/\/www.tejwin.com\/en\/solution\/credit-risk-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"ek-link\"><strong>TEJ Credit Risk Solution<\/strong><\/a>!<\/span><\/mark><\/p>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n<p>If you have any questions about this article or want to obtain further access to the TEJ database, please feel free to leave a comment, call, or mail us.<\/p>\n\n\n\n<p style=\"font-size:24px\"><strong>About us<\/strong><\/p>\n\n\n\n<p>\u2b50\ufe0f <a href=\"https:\/\/www.tejwin.com\/en\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">TEJ Website<\/a><br>\u2b50\ufe0f <a href=\"https:\/\/www.linkedin.com\/company\/taiwan-economic-journal-co-ltd-\/\" target=\"_blank\" rel=\"noreferrer noopener\">LinkedIn<\/a><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u2709\ufe0f E-mail\uff1a <a href=\"mailto:%20tej@tej.com.tw\" target=\"_blank\" rel=\"noreferrer noopener\">tej@tej.com.tw<\/a><br>\u260e\ufe0f Phone\uff1a +886\u20132\u201387681088<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>How did LuKang&#8217;s Gu family, particularly Taiwan Cement Group, fare after embarking on the path of separation?<\/p>\n","protected":false},"featured_media":18854,"template":"","tags":[2911,2913,2360,2940],"insight-category":[689],"class_list":["post-18801","insight","type-insight","status-publish","has-post-thumbnail","hentry","tag-company-control","tag-corporate-governance","tag-gcri","tag-group-ownership-transition","insight-category-market-research"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight\/18801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight"}],"about":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/types\/insight"}],"version-history":[{"count":7,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight\/18801\/revisions"}],"predecessor-version":[{"id":23933,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight\/18801\/revisions\/23933"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/media\/18854"}],"wp:attachment":[{"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/media?parent=18801"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/tags?post=18801"},{"taxonomy":"insight-category","embeddable":true,"href":"https:\/\/www.tejwin.com\/en\/wp-json\/wp\/v2\/insight-category?post=18801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}