GALAXY ENT(HK:00027) 经济观察报·2025-08-05 12:06Core Viewpoint - The successful inheritance of the family business and wealth by the Lu family serves as a model for family business succession, emphasizing the principle of "division of labor without separation of family" [2][4]. Family Business Succession - The Lu family completed the transition from the first to the second generation smoothly, with significant changes in shareholding and management announced by their listed companies, K Wah International Holdings Limited and Galaxy Entertainment Group [2]. - The Lu family's succession philosophy focuses on maintaining complete ownership while dividing management responsibilities based on family members' expertise and interests [2][4]. Family Business Structure - The Lu family has a diverse business portfolio, including K Wah International and Galaxy Entertainment, along with other companies like Shidefu International Hotel Group and K Wah Materials [4]. - The family has established a clear ownership structure, with the family retaining significant control over their listed companies through trusts and family holding companies [5][6]. Ownership and Control - Before his passing, the Lu family held 66.80% ownership in K Wah International, with specific shares allocated to each family member [5]. - Following the transition, the family's ownership in K Wah International decreased to 61.47%, while management roles were adjusted, with the eldest son taking over as chairman [5][6]. Management Responsibilities - The management roles within the family were assigned based on individual qualifications and interests, ensuring that each member's background aligned with their responsibilities [10]. - The eldest son, for instance, oversees the Macau operations, while the second son manages the U.S. hotel business, reflecting a strategic division of labor [10]. Family Cohesion - A strong family cohesion is essential for the "division of labor without separation of family" model to succeed, as it fosters collaboration and minimizes conflicts [11]. - The Lu family has cultivated this cohesion through shared experiences and a commitment to family values, which has been reinforced by their philanthropic efforts [12]. Philanthropy and Social Responsibility - The Lu family has engaged in various philanthropic activities, including supporting education and establishing awards for contributions to sustainable development, which enhances family identity and cohesion [12]. - Their focus on civic education and community engagement has further solidified their family values and societal respect [12]. Lessons for Other Families - The Lu family's approach can serve as a reference for other multi-child families facing complex business structures, particularly in the context of family business succession in mainland China [2][8]. - For single-child families, adopting elements of the "division of labor" concept can still be beneficial, such as involving non-family stakeholders in management to ensure balanced decision-making [19][20].