VIEWS: 23 PAGES: 5 POSTED ON: 8/21/2010
Liu Zhongtian: richest man in a new era of crisis Lead: Liu Zhongtian successfully buck the trend today, from 5 years ago, one against all the odds in the strategic transformation. Listing, he can maintain a very calm and quiet you old? Crisis era, immobility. Long-silent capital market badly needs a exciting characters and stories emerged. And Liu Zhongtian, a farmer has to maintain a character of private entrepreneurs, a still Pianju northeast corner of the aluminum maker, and thus was added the &quot;richest man in China&quot; crown. Liu Zhongtian, of course non-等闲之辈. May 8, the third scale of global production, Asia&#39;s largest aluminum manufacturer in China Zhong Wang Holdings Limited (1333.HK) in the Hong Kong Stock Exchange. Raised 1.3 billion more than the recent NYSE Chung Mong-listed Mead Johnson (and fund-raising amount of 830 million U.S. dollars), in September last year, has become the world&#39;s largest capital market, a single IPO, has become a global economic recession and decline in the confidence booster of a single IPO. Holds a 74.1% stake in listed company chairman Liu Zhongtian The resulting book net worth of 26 billion Hong Kong dollars, more than the mainland media, just the Top &quot;richest man in China,&quot; Shen Wenrong. Investment banks are out of practice has long been re-ignited the passion. Successful listing of the evening, the celebration dinner, Gongchoujiaocuo between the emotional investment banks who had Zhong Wang. UBS involved in the project the longest, CITIC Securities team, even with tears. I just Liu Zhongtian, the &quot;richest&quot; This top labels to quite objectionable. Away from the hustle and bustle of Vanity Fair, in Hong Kong 2000 kilometers away from Liaoyang, Liaoning Province, this is named Chung Mong of aluminum manufacturing is at full capacity to 530,000 tons of annual capacity, throughout the year to the domestic and international rail , shipyards, and various industrial enterprises in transport aluminum. Wang Group, a Shintada the door is greeted by two roadside several tall white bird cage with, cranes, and could not utter the name of the size of the birds, 56 Peacock Lane, a white peacock is open Yingying screen. Car in the open road ahead of cement, can be seen along the neat new tender vegetation, plant outside the walls covered with lush vines. A large area of the factory around the corner a large truck parked 78, filled a large silver ingots. Almost no one on the road. If the machine is close to the huge roar came, the whole plant to clean and virtually inaccessible to the illusion to give birth. Listed, for the time being loyal not to the business atmosphere and rhythm Mong bring any change. The same is true for Liu Zhongtian. Chung Mong listing the day after, the wearing orange collar T-shirt, dark skin, little man, &quot;the new richest man&quot; in the lobby of the Four Seasons Hotel Hong Kong to stay with a full day, shuttle between the guests, and the absence of farewell to hanging around with the guiding. May 11 7:30 am, from the back to Liaoyang is not even eight hours, Liu Zhongtian has been the same with the past began in the plant where it is too deterred from three to four hours of. Back at the office, Liu Zhongtian go watch the stock price, at noon to close at 7.2 Hong Kong dollars, compared with 8 closing price of 6.63 Hong Kong dollar has rebounded 8.5%, quite satisfactory. He previously said: &quot;Price I do not care about the same concern, my concern is not necessarily up, do not care about it are likely to rise.&quot; But he could not care. Early years of transition, &quot;This is the sixth ... ... I did the seventh richest man.&quot; May 8, listed in the Exchange site, Chung Mong&#39;s sponsor UBS chairman of investment banking for Asia, Cai Hongping sit there straight-finger to the &quot;Chinese entrepreneurs &quot;&#39;s number. &quot;China&#39;s richest man, the gardener,&quot; the name of Cai Hongping, unique in the field of private enterprise IPO is especially good at refining and packaging concepts to the business after the Mengniu, Huiyuan, Country Garden, Nine Dragons Paper and other projects, he has not Popular performance. However, reading countless Cai Hongping who admitted Zhong Wang is his past IPO project has special significance in a single: &quot;First, the world&#39;s largest, rare during the financial crisis, Chung Mong to its maximum issue size, and the highest price-earnings ratio, the biggest attraction for investors, has opened a global financial crisis of a new global capital markets Page; Second, Chung Mong rise in China&#39;s rapid economic development and support of railway construction, 4-trillion stimulus package and transport the huge demand, means that late in the financial turmoil, China&#39;s attitude to a new giant tower in the world; Third, Chung Mong-end in its own access to the equipment manufacturing industry, opened to the world as an industrial base in northeast China&#39;s genetic inheritance, and the revitalization of Northeast China, the concept of a new page. &quot; Skilled in elaborate packaging investment banking terms, the concept behind the man is loyal Wong Northeastern roots as a private enterprise to the international capital markets docking difficult. Why market? This is the road show period, almost every investor will be pointing to Chung Mong financial statements for the year 2008 nearly 5.6 billion of bank balances and cash, with 28% of the consolidated gross profit margin Chung Mong asked questions. This problem, as long as 4 years in Chung Mong-half to the listing process, Liu Zhongtian also constantly asked myself. Back in 1997, he gave up a chance in the A share market. August 1997, Chung Mong once got off A-share listed in the index. At that time, the amount of financing constraints in policy rules, and so Liu Zhongtian abandoned the idea in the domestic market. In 2003, Liu Zhongtian Building a formal decision from the production of industrial aluminum profiles to the transition, almost all the liquidity have hit in the plant construction and equipment customization, while this transition has a long investment period should alone device manufacturing cycle 3 years . Private enterprise to find bank loans very passive, shortage of working capital for Liu Zhongtian again had the idea of listing. Liu Zhongtian transformation of concepts from transnational peer Alcoa&#39;s touch. In 1997, Chung Mong&#39;s aluminum production capacity has more than 100,000 tons, equivalent to today&#39;s peer-tenth the level of national rankings. This year, Liu Zhongtian gave up A-share listed in the index. Also in that year, Alcoa acquired loyal to Liu Zhongtian Wang confided the will. After several years of due diligence and negotiations, around 2001, Alcoa opened a 450 million yuan out of the price for all acquisitions. But the request was that Chung Mong Liu Zhongtian continue to dry for three years, the purchase price accordingly delivered in batches: the first after a deal to pay 200 million yuan in the first year after the full payment of 100 million yuan, after the second year of full pay 100 million yuan in the third year after full payment of 50 million yuan. Re-sell their work for others for three years and then do better than their own, Liu Zhongtian rejected Alcoa. This mortality of foreign mergers and acquisitions, but accidentally started another one Wang Chung &quot;Destiny Gear&quot;: Alcoa to engage in exchanges with the same time, Liu Zhongtian smell great industrial aluminum market outlook. &quot;He went to Alcoa, Alcoa president to come, talked a lot, his thoughts, ideas inspired by many. He also noted that China&#39;s development direction, that the aluminum industry will gradually shift industrial demand.&quot; Zhong Wang, Vice hook hi-hui, president recalled. &quot;I tell you ah, reading thousands of books, not as by one thousands of miles.&quot; Liu Zhongtian said. He never forgot that he was a farmer, was able to casually on a few out due to family strife and the decline of Yaohan, Toyota to make money for design innovation. In order to prove at that time, he took the initiative to the United States, Canada, Germany, Italy, investigated similar enterprises. By the end of 2002, Chung Mong-house, he opened a management meeting, proposed to make a transition in industrial profiles. Idea came out, move seat all scared. It was a time when building materials in short supply, Chung Mong door with a long row of trucks team produced building materials had time to storage, it was back to the car dealers are directly taken away. And industrial aluminum profiles, at the time was a sign of the area see the development. To risk too much ground, Liu Zhongtian brother, General Manager Liu Zhong Ren Zhongwang lock when strong opposition, while others use silence to express their views. &quot;At the time of the construction market well, he (Liu Zhongtian) brought up, we have Bu Zhisheng. On that face the truth, afraid of his face stuck atop. Anyway, who asked, who do not speak.&quot; Once again recalls the decision-making, in Zhong Wang worked for 14 years, hook hi-hui some and upset &quot;when everyone can not see him so far.&quot; Liu Zhongtian this year against all the odds to explain: &quot;We were business performance by high-level market that sounds good, market growth, product mix are very good and profit. But always around existing products turn, the enterprise will not have development. &quot;He decided to cut the company&#39;s building profile production into an industrial aluminum. 2003, Chung Mong has invested more than 20 billion yuan for the construction of factories and the German Order 6 sets of large-scale extruder. One of the biggest one 125MN extrusion machine, aluminum products corresponding to the target market directly at the train and airplane parts. Production of this equipment in the same industry in China no one can match his, but the corresponding cost of manufacturing a long period of 3 years and 2 years after completion of equipment installation and debugging. &quot;People were afraid to so many extrusion machine, he would dare, the device more than one he could pick a different one. Other firms may only take small quantities of the single, he can take a variety of products.&quot; Mg industry consulting firm - is still light, general manager of Dong Chunming Times commented, &quot;This requires the capacity of the market, market well how to do, turn the machine does not open how to do, need to be taken into account.&quot; During this period, China&#39;s building materials market, more and more fire. &quot;Of course there are regrets! Watching others make money, but also regret. But do not look back to open bow arrow, the money has to be taken out.&quot; Now go say sorry, Liu Zhongtian is laugh. Later figures show how patience is worth a moment of loneliness: 2005, Chung Mong custom manufacturing equipment for industrial profiles gradually put in place, to be subordinate to the Ministry of Railways Qiqihar Railway Equipment Co., Ltd., CSR Zhuzhou Rolling Stock Works, CSR Group Beijing 27 vehicle plant, Baotou North Venture (10.75, -0.12, -1.10%), Ltd. and other companies supply train, frame, used for domestic and light rail metro aluminum conductor rail orders are followed and in 2007 years. Texture profiles for industrial use and construction requirements are different for each one of the alloys have their own differences and performance ratio. Liu Zhongtian Alcoa to play the &quot;heat&quot;, the six foreign technical experts hired from Alcoa, the number of 100 million yuan investment in research and development center in Liaoyang, the technology used to accumulate huge reserves. Before listing the reorganization, he again made their hands together with aluminum mold of assets into the listed companies. The complete integration of its own supply chain, the Chung Mong delivery cycle can be shortened to two weeks to three weeks. 2008, 125MN extruder officially opens, Chung Mong industrial aluminum products in one fell swoop from the annual income of 1.6 billion in 2006 jumped to 6.2 billion in 2008, the contribution to total revenue more than 55%, while gross margins far much higher than building profiles of 12% to 40%. Successful transition. Dong Chunming that in order to close the market, most aluminum products manufacturers in China are located in the Pearl River Delta, Yangtze River Delta and Bohai Rim. And Chung Mong resources from Liaoyang a client does not highlight the areas stand out, with Liu Zhongtian style, courage has a lot to. Liu Zhongtian containment strategy is to abandon the construction industry customers in economically developed areas, to concentrate on attacking the industrial market. In 2008, Chung Mong more than 1.9 billion yuan in annual net profit to surprise the industry and its 530,000 tons of production capacity and domestic production is the second in Asia, 14 million tons of aluminum pull away. This year, Chung Mong is the creation of the first 16 years. Prior to that, 1978, 14-year-old Liu Zhongtian carries borrowed 200 dollars on the timber trade started in Changbai Mountain. In 1984, the northeast trade environment gradually Zhejiang businessmen outshine, Liu Zhongtian then converted to chemical, fire-resistant coating to the local steel production. In 1992, declining steel, cement popular, Liu Zhongtian has set up a way-way woven plant, cement supply bags nearby. In 1993, less than 30-year-old Liu Zhongtian joint venture company established the Liao Ning Zhongwang, Liu I hold 100% interest in the company, specializing in the construction industry with the aluminum door frames. If not 56 years ago that the transition field decisively, Chung Mong perhaps today more than 600 sizes with the other domestic manufacturer of architectural aluminum, as is increasingly diluted gross margin and excess capacity languishing between. Later, there would be no period of the turbulent market road by now.
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