More and more people have found that since the impact of the epidemic, whether at home or abroad, economic development has slowed down, although the mainland's successful epidemic prevention and control measures have won new opportunities and space for domestic economic development, but it is undeniable that due to the repeated epidemics around the world, the economic development of each country has also been hit to varying degrees, which is one of the reasons why people are increasingly feeling that money is difficult to earn.
Although under the influence of the epidemic, some emerging formats have continued to emerge and achieved good development, some traditional industries are facing the pressure of life and death. Just like the Loncin 13 enterprises that were quickly searched for a while ago because of the news of the bankruptcy reorganization, they could only go bankrupt and reorganize because they could not repay the debts due.
What was once one of China's top 500 private enterprises is now heavily indebted
As one of the four municipalities directly under the central government of the mainland, the mountain city of Chongqing has been very fast in recent years in terms of economic development and social development, once became a well-known internet red city in the mainland, in Chongqing, from the 1980s onwards, the motorcycle industry has been developing rapidly, forming a complete motorcycle industry chain and industrial cluster, in the past people are familiar with Chongqing Loncin, Lifan is typical.
But in the past few years, Chongqing's motorcycle industry has fallen into a crisis, careful people should have noticed that the famous motorcycle brands such as Lifan, Zongshen, Loncin and so on are now basically non-existent.
The general environment is not strong, and the development of enterprises in it is also limited. For example, the Loncin enterprises that are deeply in debt crisis have now come to the road of bankruptcy reorganization, and the Chongqing Fifth Intermediate Court has ruled to accept the bankruptcy reorganization case of 13 Loncin enterprises such as Loncin Group and Loncin Holdings, which has aroused heated discussion as soon as it is released, and the business scope of these 13 enterprises almost covers the entire Loncin hotel, real estate and mining businesses.
The total assets of the grand territory of the Loncin system exceeded 40 billion yuan at the peak, and its helmsman Tu Jianhua was once considered to be the big man of the "Chongqing Mo Gang" and the "richest man in Chongqing", for Tu Jianhua, these glories may have passed, and the former richest man in Chongqing is now in debt of tens of billions and has become a dishonest person.
From scratch to the Hurun rich list
Tu Jianhua began to go out to work to subsidize his family after graduating from junior high school, but he never found a better job, and then he came up with the idea of starting a business, but after trying various industries, it was still fruitless. Until a coincidence, he caught the business opportunity.
At that time, motorcycles as a new thing just emerged, many people with economic conditions will buy a motorcycle, which means that there is a huge demand in the market, after seeing the business opportunities in this, Tu Jianhua immersed himself in the study of motorcycle engines and body configurations. Finally, Loncin Machinery Factory, which aims at high-end motorcycle engines, was born, and later became popular with a certain engine developed by itself, and obtained 50 million yuan in revenue.
Since then, Tu Jianhua intends to take a long-term view, in addition to the engine, other parts of the motorcycle are also within the scope of research and manufacturing, since the parts can be manufactured, then why not assemble into a motorcycle directly to sell the finished product? After having a determined goal, Tu Jianhua led the team members to launch a fierce attack on the target.
Just five years after the first motorcycle came out, Loncin-made motorcycles have become the "darling" of the market. By 2000, Loncin continued to grow and develop, with an annual revenue of up to 1 billion, which also laid a deep capital foundation for the expansion of Loncin, involving real estate, logistics, banking and so on.
Tu Jianhua only took ten years to successfully bring Loncin to the market, the number of companies under his own name was as high as 86, and the total assets of Loncin Group once reached 40 billion yuan. In 2019, Tu Jianhua jumped to 320th place on China's Hurun Rich List with a value of 12 billion.
Rapid expansion eventually loses the main business
Since 2018, Loncin has begun to default on bonds, and as of the end of the third quarter of 2021, Loncin Holdings' current assets were 22.101 billion yuan and current liabilities were as high as 28.915 billion yuan. As a result, Tu Jianhua has been included in the list of "Lao Lai" many times and has been restricted from high consumption.
As one of the top 500 private enterprises in China, Loncin Group has gone bankrupt and reorganized, and the most direct reason is the rupture of the capital chain. The result of the continuous and rapid expansion of Loncin Group is that it has neither grown its main business nor its side business, the core motorcycle business has been cold, although other fields have achieved good results in some years, but the debt crisis brought about by continuous expansion has tied Loncin tightly like a rope.
Although the tiger has now fallen to Pingyang, for Loncin, bankruptcy reorganization is also an opportunity for the rebirth of a broken arm, depending on whether Loncin can grasp it.