Li Zhaohui , which has disappeared from the public eye for a long time, has reappeared in the public eye, but this time it is not the rich list, but the list of old people.
On November 6, 2018, the Taiyuan Intermediate People’s Court announced a list of persons subject to execution for breach of trust, which is also commonly known as the list of Lao Lai, and Li Zhaohui was among them.
The effective judgment document shows that Shanxi Jinhai Snail Trading Co., Ltd. will repay the plaintiff China CITIC Bank Taiyuan Branch’s loan of 50 million yuan and interest within ten days of the judgment taking effect. Li Zhaohui will bear joint and several liability for the above debt, confirming that CITIC Bank Taiyuan The branch has bankruptcy claims of more than 53.62 million yuan against Haixin Iron and Steel Group Company.
fell from the rich list to the list of old people. The second generation of rich Li Zhaohui did not hold on to the country his father built, but no matter whether it was prosperous or declining, he was tightly tied to Haixin Steel.
01
Unexpected succession
The topic of succession among the second generation of enterprises is actually very "hateful".
Not long ago, Wang Sicong, who led the IG club to win the championship, was unwilling to take over. Wang Jianlin gave him 500 million to establish Pulse Investment "Wanwan". "If he doesn't play well, he will go back to Wanda to work"; Suning Zhang Kangyang of Shaodongjia is best known as the chairman of the Italian club Inter Milan. The newly acquired Suning store business increased capital through his own company and became the largest shareholder.
"Hand on the horse, give a ride" , this model is actually the most conventional development method for the "second generation". Even if they are not interested in their main business, they can still thrive in other areas and gain support.
But obviously as the "big brother" among the "second generation", Li Zhaohui was forcibly roped in, but did not enjoy the opportunity of being "given a lift" by his father.
On the eve of the Spring Festival in 2003, a gunshot changed his fate. 48-year-old Haixin Group Chairman Li Haicang was shot to death in his office with his own pistol. 22-year-old Li Zhaohui had to interrupt his studies in Australia and return home. Arrive at Wenxi County.
Li Haicang passed away in his prime. With his grandfather’s decision, government support, and “no objections” from all parties, Haixin Steel completed the “transfer of corporate management rights” and “inheritance of family property,” pushing Li Zhaohui to the top. This is still the stage where seniors are active.
2003 was very important for the iron and steel industry, especially the private steel industry, and it was also a relatively good development stage for the "private steel kings".
In Changzhou, Jiangsu Province, Dai Guofang shouted the slogan that the privately-owned Tieben Iron and Steel will "surpass Baosteel within three years and catch up with Pohang within five years"; in Rizhao, Shandong, Du Shuanghua and Shandong Laigang jointly founded Rizhao Iron and Steel. From foundation laying to steel tapping, the production speed of 181 days is unique in the history of Chinese steel; Zhangjiagang, Jiangsu, has bought Shen Wenrong of Germany's Phoenix Steel Works. Shagang is aiming to become a world-class steel company and has launched its 6.5 million-ton steel plate project.
Li Haicang once said during his lifetime that he did not want his children to engage in business and that he did not want them to be as tired as himself. Obviously there is no chance of realizing this wish.
Li Zhaohui, a "returnee from overseas studies," made great ambitions when he took over, "The company belongs to my father and cannot be allowed to fail in my hands. The current conditions of the company are more than a thousand times better than when my father started the business. I will do it again." No, it’s just that I’m incompetent.”
02
"Palace Fight" Drama
On February 18, 2003, 28 days after Li Haicang's death, Li Zhaohui officially took over Haixin Iron and Steel.
The succession of a family business is sometimes similar to the stories of many young emperors in history. The indispensable path is, "the young emperor ascends the throne, and the old ministers assist the government" . The "auxiliary ministers" left behind by Li Haicang are his entrepreneurial partner Xin Cunhai and his younger brother Li Tianhu. The former serves as the executive vice chairman and party committee secretary of Haixin Group, while the latter serves as the general manager. It can be said that they are both powerful figures in Haixin.
In the early days of Li Zhaohui's succession, the main decision-maker of Haixin's decision-making team was positioned as Li Tianhu, while Xin Cunhai did some external coordination work to assist Li Zhaohui's growth.Nine days after taking over, Li Zhaohui went out for his first inspection, accompanied by his fifth uncle Li Tianhu. Afterwards, Li Tianhu also took Li Zhaohui to visit Li Haicang's partners and some institutional investors.
But by 2004, the management of Haixin Group changed frequently. "The leader is strong and suspicious, but the capable minister can protect himself" . Li Tianhu, general manager of
, sadly left after being assigned a cement factory owned by Haixin. Not long after, Xin Cunhai, who had followed Li Haicang for 17 years, also left Haixin and went from Shanxi to Guangxi. Li Zhaohui shouldered the duties of chairman and general manager, and his sixth uncle Li Wenjie, who was close to Li Zhaohui, became president of Haixin Group.
Li Zhaohui has indeed achieved good results after taking office. According to
data, 's total output value in 2003 exceeded 5 billion yuan, and profits and taxes paid exceeded 1 billion yuan. contributed 300 million yuan to the local finance, making it the fastest and best year for Haixin's development in the past. In 2004, Haixin achieved a total output value of 7 billion yuan and realized profits and taxes of 1.2 billion yuan.
03
"Second Battlefield"
However, whether it is inside Haixin Steel or in the market, everyone knows that this young master does not like the main business of steel, but aims at the lighter financial industry. , Compared with "Haixin Steel", he prefers "Haixin Capital"; Compared with sitting in Wenxi County, he also prefers to be based in cities with developed financial industries such as Beijing and Shanghai, no matter how bad it is, Taiyuan, the provincial capital . In the second year after taking over
, Li Zhaohui opened up a new battlefield in the capital market.
On November 12, 2004, Haixin Industrial, a subsidiary of Haixin Steel, acquired the 3.16 billion shares of Minsheng Bank held by China National Nonferrous Metals Corporation for nearly 600 million yuan. became Minsheng Bank’s No. 1 shareholding with a shareholding ratio of 3.1%. Top ten shareholders. After Minsheng Bank completed its shareholding reform, Haixin Industrial held a total of 180 million shares, once ranking second among the top ten shareholders of tradable shares. At the peak of the bull market in the first half of 2007, Haixin Industrial sold nearly 100 million shares of Minsheng Bank, and cashed out more than 1 billion yuan. Minsheng Bank's investment became Li Zhaohui's most successful investment in the capital market.
Also in 2004, Li Zhaohui acquired 21.5% of the equity of Huaguan Technology (now known as Wanxiang Denong) from Heilongjiang Fuhua Group and became its second largest shareholder. The transfer price was 57.97 million yuan. On May 26, 2006, Li Zhaohui transferred all the above-mentioned equity for a transfer price of 65.875 million yuan, and received a profit of 7.905 million yuan.
Since then, Li Zhaohui has successively invested in the equity of Everbright Bank , Industrial Securities , Shanxi Securities and other companies. cashed out after these companies went public. In the secondary market, Li Zhaohui also invested in listed companies such as Chinalco, Yimin Commercial, Industrial Bank, Luneng Taishan, etc., but he failed to replicate the successful experience of investing in Minsheng Bank.
In addition to cashing out and making money from his investment in Minsheng Bank, Li Zhaohui's biggest gain was probably his acquaintance with Shi Yuzhu, who was the director of Minsheng Bank at the time.
Although there was no time when the two met, as the major shareholders of Minsheng Bank, the two at least had communication on Minsheng Bank issues, but the two soon began to cooperate publicly.
In September 2013, Liaoning Chengda, a shale oil development company, released a plan for a private placement of shares worth up to 1.8 billion yuan. There were only two stock issuance targets: Giant Investment controlled by Shi Yuzhu and Shanghai Haibo Xinhui controlled by Li Zhaohui. Among them, Shi Yuzhu subscribed for 800 million yuan, and Li Zhaohui subscribed for 1 billion yuan.
This has also become the most successful case of interaction between Li Zhaohui and famous entrepreneurs.
04
"China's Good Ex-husband"
The most talked about is the marriage between Li Zhaohui and the famous actress Che Xiao.
It is said that the two met at Jackie Chan's dinner. Li Zhaohui fell in love with Che Xiao at first sight and launched a fierce pursuit. This love affair, which was kept very secret, finally came to fruition.
On January 25, 2010, Li Zhaohui married Che Xiao in Wenxi County. Different from the low-key wedding method of some "actresses marrying into wealthy families", this wedding can be called a vigorous and one-of-a-kind wedding.
There were more than 200 luxury cars and more than 600 tables of banquets. Local officials cheered. It is said that even the employees of Haixin Steel received 500 yuan in red envelopes.
Of course, such a scene was not a big problem for Li Zhaohui at that time. In the year when he took over, Li Zhaohui ranked 19th on the Hurun Rich List with a net worth of 2.4 billion. In 2008, he became the richest man in Shanxi. In 2010, when he got married, Li Zhaohui ranked on the Hurun Rich List. 85th on the rich list, but his net worth has jumped to 10 billion.
However, the good times did not last long. The marriage only lasted for 1 year and 3 months. In April 2012, Li Zhaohui and Che Xiao broke up peacefully. Rumor has it that Che Xiao received a breakup fee of 300 million yuan.
After the divorce, Che Xiao denied the rumors of a breakup fee of 300 million, and every time she talked about her ex-husband Li Zhaohui, there was a lot of praise. Che Xiao commented that Li Zhaohui was "like a child with a gentle personality."
Market analysts analyzed the timing of their marriage and divorce and found that when Li Zhaohui and Che Xiao got married, the wind steel industry index was still above 3,500, but by the time of their divorce, it had fallen below 2,000. In some emotional forums, this "ex-husband" who caused a sensation in the country, before hitting rock bottom, was confident that the woman he loved would find a way out, and he could be called "China's good ex-husband."
05
The collapse of the empire
2012 was not the bottom of Haixin Steel, and it was even still at its peak to some extent.
In 2013, the list of the top 500 private enterprises sponsored by the All-China Federation of Industry and Commerce was released. Haixin Steel occupied the 184th place with a revenue of 16.55 billion, becoming the top private enterprise in Shanxi on the list.
But in 2014, the media exposed that more than 3 billion of Haixin Steel's debts were overdue and unpaid. became the first domino to be pushed to Haixin Steel. What is even more worrying is that Haixin's six blast furnaces have been successively installed. Stop production. According to
data, at the end of 2002, Shanxi Haixin Iron and Steel Co., Ltd. had total assets of 4.036 billion yuan, including 1.563 billion yuan in current assets and 2.177 billion yuan in fixed assets; total liabilities were 1.606 billion yuan, including 1.027 billion yuan in current liabilities and 576 million yuan in long-term liabilities. Yuan, asset-liability ratio is 39.28%.
This is the family fortune left to him by his father Li Haicang. But by the time of liquidation, Haixin Steel had become an empty shell.
Xinhua News Agency Data disclosure at the time showed that Haixin Steel’s liabilities and external guarantees were approximately 10.459 billion yuan, while the entire Haixin Group’s book assets were only 10.068 billion yuan, which meant that its debt ratio exceeded 100%.
In September 2015, Yuncheng Intermediate People's Court made statistics on creditor voting. Haixin's general creditor's rights group had a total of 981 creditors with voting rights, and the total creditor's rights represented by were 19.707 billion yuan.
The grand scene when creditors came to Haixin Steel to collect debts and blocked the door was somewhat similar to the situation of Li Zhaohui's Shanxi fellow Jia Yueting. Creditors from all walks of life rushed to Wenxi County and surrounded the Haixin Steel headquarters building, hoping to get in front of it. Haixin received part of the arrears before bankruptcy.
06
Who has shaken the foundation?
The Haixin Empire collapsed in just an instant, but the reasons that led to the collapse did not happen overnight.
In fact, hidden worries have emerged as early as 2008. The most obvious signal is that the blast furnace of Haixin Steel has stalled. For steel companies, the shutdown of blast furnaces is fatal. Of course, this is related to the general environment. Affected by the global economic crisis, from June to November 2008, in less than half a year, the steel index fell by 72%.
However, thanks to the good economic fundamentals that year, Haixin survived with its own strength in the end, but its vitality was severely damaged. Li Zhaohui, who is still racing in the capital market, does not care about this. He has become accustomed to drawing blood from his main business to water his capital achievements, but has no intention of feeding back. In fact, since 2008, Haixin Steel has already Starting to lose money.
Since the Li Haicang era, the local government has given many green lights to this heavyweight private enterprise, just because Haixin is so important. Wenxi County relies on Haixin for 70% of its fiscal revenue, and the Wenxi County Party Committee The secretary once said bluntly: "Li Haicang gives you two of your three steamed buns every day."
But in the Li Zhaohui era, the local government, which Haixin had always valued, was a little powerless because Li Zhaohui could not be seen at all.
At the end of 2011, the Yuncheng City Party Committee held a meeting. At the meeting, the Municipal Party Committee Secretary "selected" Li Zhaohui: Many times, provincial leaders want to go to Haixin to visit, but since you are not there, they will not go. Li Zhaohui immediately stated that he would stay at Haixin for 200 days in 2012.
However, he still broke his promise. The good relationship that my parents had worked so hard to build was ruined in one day.
The main business is not good, the debt is heavy, and the bank cannot sit still.
After Industrial and Commercial Bank of China's 3 billion debt became overdue, various banks began to face up to their lending to Haixin. The Wenxi County Banking Regulatory Office said that in addition to Industrial and Commercial Bank of China, Haixin also owes debts to nearly 30 banks including Minsheng Bank and China Everbright Bank.
At that time, the state's strict control measures on steel, cement, electrolytic aluminum and other industries were still continuing. Steel began to show the characteristics of a "sunset industry". At this time, the disadvantages of private enterprises also became apparent. In the relevant state-owned enterprises When all are facing bankruptcy, it is a consensus that gives priority to supporting state-owned enterprises, and shrinking private enterprises is a routine operation.
After the Haixin debt crisis broke out, only "old friend" Shi Yuzhu posted on Weibo to support Li Zhaohui, calling on "society to tolerate young industrialists born in the 1980s" and even pointed out that "banks borrowed 4 billion yuan, causing liquidity problems. ".
Shi Yuzhu’s words have no effect.
In November 2014, Yuncheng Intermediate People’s Court officially accepted Haixin Steel’s reorganization application. Later, the well-known steel company Jianlong Group, with its subsidiary Jilin Jianlong as the main body, acquired all the shares of Haixin Group, and then merged five companies including Haixin Group and Haixin Steel into one, and changed its name to Shanxi Jianlong Steel Co., Ltd. The company officially resumed production in April 2016.
However, the debt issues related to this have not all been resolved. Li Zhaohui is still tightly tied to his Haixin Steel in numerous judgment documents.
On December 5, 2017, the Shanghai High Court website published an enforcement information on travel restrictions. The person subject to enforcement was Li Zhaohui. The document shows that the court has restricted Li Zhaohui from leaving the country in accordance with the law because he failed to perform the obligations specified in the legal document.
Now, Li Zhaohui, like Jia Yueting, has become a old , but the creditors are relatively lucky, because Li Zhaohui, who is restricted from leaving the country, cannot go to the United States.
This article comes from Big Cat Finance
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