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
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
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.
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
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
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
&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
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.