According to reports, Tu Jianhua, the former "richest man in Chongqing", became a dishonest person with tens of billions of debts, and 13 subsidiaries declared bankruptcy. It is reported that these 13 subsidiaries include Loncin Holding Group, which has been in the top 500 Chinese enterprises for 20 consecutive years.
Tu Jianhua's entrepreneurial experience
Tu Jianhua was born in an ordinary family, and his parents have been working outside the home for a long time. In order to reduce the burden on his family, Tu Jianhua went out to find a job after graduating from junior high school. At that time, Tu Jianhua found a job that was absent from work, although the salary was OK, but the risk in the work process was too great. After several accidents, Tu Jianhua decided to give up his career and go out to look for entrepreneurial opportunities. But Tu Jianhua didn't have a clue and didn't know what he could do, so he tried many fields, including paper towels, agricultural trade, and so on.
In the days of hard work, although it has not been stable, Tu Jianhua has accumulated some social experience and exercised his courage. Sure enough, the emperor did not pay off, and Tu Jianhua finally waited for the business opportunity.
At that time, the motorcycle industry was on the rise, but all families with financial conditions would buy it. There is a market where there is demand, and Tu Jianhua decided to devote himself to the motorcycle industry. After the target direction was determined, Tu Jianhua began to study motorcycles, from engine to configuration, and sometimes went abroad to study.
After some hard work, Tu Jianhua finally founded his own Loncin Machinery Factory, which mainly manufactures high-end motorcycle engines. Due to the high technical requirements, Tu Jianhua has no experience in this regard, and can only explore with the technical team while operating. Soon, Tu Jianhua's team independently developed a motorcycle engine. With this engine, the Tu Jianhua plant earned 50 million yuan.
This success greatly increased Tu Jianhua's confidence, he knew that relying on motorcycle engines alone was limited, so he planned to expand the scale of development. At that time, the parts needed for domestic motorcycle assembly were imported from abroad, and Tu Jianhua thought that since his factory could develop engines, why couldn't he study other parts? As long as other parts are developed, they can assemble the complete motorcycle.
With this goal in mind, Tu Jianhua and the team began to work. In this way, the first motorcycle manufactured by Loncin Machinery Factory came out. After only 5 years, Loncin motorcycles have been popularized in the national market. After another year, Loncin produced as many as 1 million engines, becoming China's largest motorcycle export brand. As of 2000, Loncin generated 1 billion annual revenues with motorcycles and engines. Since 2002, Loncin Real Estate and holding enterprises have been established, and then involved in logistics, banking and other fields.
In just ten years, Tu Jianhua has 86 companies under his name, and Loncin has also successfully listed. After the listing, Tu Jianhua acquired three listed companies, and his own value was also growing, once becoming a down payment in Chongqing. In 2019, Tu Jianhua ranked 320th on the Hurun Rich List, and his value at that time was 12 billion.
The debt crisis broke out
However, Loncin Holdings was exposed to debt of more than 9 billion. It turned out that as early as the second half of 2018, the group had overdue 1 billion debts, mainly due to the real estate business. In 2014, Tu Jianhua and his partners contracted a project, and later the two sides had a conflict, and 6 billion yuan could not be recovered.
Originally, Loncin's motorcycle industry developed well, and as of the third quarter of last year, the revenue of the business reached 9.3 billion. However, due to the excessive amount of money involved in Tu Jianhua's case, Tu Jianhua became a dishonest person and was restricted from spending. In this way, the former richest man in Chongqing has tens of billions of debts, and its 13 subsidiaries have declared bankruptcy.