Motorcycle enthusiasts must be familiar with the name Loncin. After all, from no one to a well-known brand of Chinese motorcycles, this legendary experience is enough to amaze people.
If that's all there is to it, then Loncin is definitely a legendary enterprise. However, on February 7, 2022, the richest man in Chongqing, who once sat on a 40 billion yuan business empire, fell to the altar, became a dishonest person, and had debts of nearly 10 billion, and 13 enterprises under Loncin were also found to be bankrupt.
Prior to this, the Loncin motorcycle brand created by Tu Jianhua was called "Chongqing Mobang Sanjie" together with Lifan created by Yin Mingshan and Zongshen created by Zuo Zongshen. Tu Jianhua's history of business empire creation is also a legend. From legend to bankruptcy, what kind of story has Loncin experienced?
First, the traces - the counterattack of coal miners
Tu Jianhua is a native of Chongqing, and he is not a child with a golden spoon, but a standard cold disciple. Both parents were ordinary workers. Due to family conditions, Tu Jianhua did not finish junior high school, but dropped out of school to enter the social subsidy family.
The children of the poor have long been in charge, and Tu Jianhua's early entry into society has also brought him a different mind and vision. With the help of his family, he found a job at the Zhongliangshan Coal Mine in Chongqing, and although the wages in the coal mine were not very high, it was also a stable job in that era.
However, the good times are not long, and although the work of the coal mine is stable, it still has a certain danger. Many accidents left Tu Jianhua injured and unable to continue the job.
Subsequently, Tu Jianhua began to explore the road of entrepreneurship. When he first entered the mall, he can be said to have done all kinds of work, pulled vegetables, sold fruits, and was willing to try whatever it was. The years after 1983 in the mall gave Tu Jianhua the agility and bravery as a businessman, and also brought him new opportunities.
In the 1990s, riding on the spring breeze of reform and opening up, the market economy gradually developed, China began to understand the world more, and many things in the world began to enter China.
At the same time, motorcycles, a means of transportation, began to rise on the mainland, and this vehicle instantly ignited the interest of young people. Therefore, the demand for motorcycles in the domestic market has gradually increased, and Tu Jianhua has captured this business opportunity with the smell of businessmen.
So Tu Jianhua spent two years studying motorcycles at home and abroad, and founded Loncin Transportation Machinery Factory in 1993, which mainly manufactures high-performance motorcycle engines. Under the leadership of Tu Jianhua, Loncin's first batch of self-developed engines were successfully sold and achieved a good response in the market.
At that time, the quality of the engine was an important criterion for measuring motorcycle manufacturing choices. Tu Jianhua earned more than 50 million yuan with this order and obtained rich follow-up research and development funds. At that time, limited to various factors, many brands of motorcycle production used foreign technology. Many friends who like cars know that the engine is the heart of a car. How well a car performs has a lot to do with the engine.
Therefore, when Loncin can produce its own engine, Tu Jianhua believes that the most difficult level of making a motorcycle has passed. The idea of making Loncin's own motorcycle was also put on the agenda by Tu Jianhua. With this idea, Tu Jianhua began to lead Loncin on the road of developing his own motorcycle.
As research and development progressed, it wasn't long before the first motorcycle made by Loncin entered the market. Received a good response. Then, under the leadership of Tu Jianhua, Loncin spent less than five years to successfully push the motorcycle with the Loncin traffic license plate into the national market.
Expansion – the gradual formation of a business empire
With the expansion of the scale of the factory and the enhancement of its own commercial strength, Tu Jianhua also began to consciously create a corresponding brand effect and expand the influence of the brand.
Since 1999, Loncin has continuously appeared in the public's vision as the title sponsor of the team and the sponsor of world-class sports events. On the other hand, in the broadcast of CCTV and other channels, vigorously put advertisements to repeatedly refresh their "sense of existence" to promote brand awareness. In this way, with Tu Jianhua's vigorous publicity, Loncin has accumulated a good audience popularity. It has also enhanced the potential audience of the Loncin brand.
In 1999, Loncin produced 1 million motorcycle engines alone. That is, in this year, in the export of mainland motorcycles, Loncin achieved the first position in China, and Loncin led by Tu Jianhua also became a famous private enterprise.
In 2000, the annual income of motorcycles and engines exported by Loncin reached 1 billion yuan, and the assets were already quite strong. In 2006, Loncin cooperated with BMW to develop high-end motorcycle products, which once again enhanced brand awareness and company competitiveness. This period of time can be said to be the highlight moment of Loncin in the motorcycle industry.
If Tu Jianhua can develop in the motorcycle industry safely and steadily, or just expand in moderation, he may have a different ending. But the reality is not if, and he does not want to stay in the motorcycle industry alone.
After the steady development of the company, in addition to the main motorcycle business, Tu Jianhua also began to focus on other fields to further expand the commercial territory. In 2002, Loncin Real Estate and Loncin Holdings were established one after another, and Tu Jianhua led Loncin to start building its own comprehensive business empire. Behind this seeming prosperity, it has also laid a huge crisis for Loncin.
Subsequently, Tu Jianhua set up a guarantee company, a shareholding commercial bank, and a warehousing and logistics company. In just a decade, Tu Jianhua owned 86 companies and then led Loncin to become a listed company.
After its listing, Loncin continued its pace of expansion, and successively acquired three listed companies, so that its business territory has been expanded again. In this way, Tu Jianhua was like a traveler in the desert encountering a water source, frantically expanding his business territory.
Behind the big stride development, Tu Jianhua's value has also risen again and again, and Loncin, which has expanded vigorously, has successfully won Tu Jianhua the hat of "the richest man in Chongqing". Not only that, in 2019, Tu Jianhua also appeared on the Hurun Rich List, when his value had reached 12 billion yuan.
Crisis - bankruptcy of 13 subsidiaries
The ups and downs of the commercial sea cannot be as good as the sun forever, after all, under the manipulation of capital, there can be no eternal winners. At the same time that Tu Jianhua led Loncin to expand in great strides, a huge crisis slowly emerged. In 2014, Loncin, led by Tu Jianhua, began to lose money in the real estate business. At the same time, other projects have also suffered losses.
In the second half of 2018, Loncin Holdings had a debt overdue business of 1 billion yuan. When the time came to June 2021, Loncin's debt figures had reached more than 9 billion yuan. On February 7, 2022, 13 of Loncin's enterprises were ruled bankrupt and reorganized, and a generation of business empires was destroyed.
For Tu Jianhua, the business empire he once single-handedly created collapsed and vanished in an instant, leaving him with tens of billions of debts and bankruptcy reorganization. The reasons that followed are lamentable. But in any case, Tu Jianhua's business acumen and Loncin's former business success are undeniable, and he is also a business legend.
epilogue
It is only natural for businessmen to want to expand their territory and expand their profits, but they must also know their abilities and sense of crisis. Blind expansion driven by capital eventually leads to its own hematopoietic ability lagging far behind its own expansion rate. And when you can't hold up the rising and growing tall buildings, what follows is a pile of ruins and broken walls after the collapse of the high-rise buildings.
This is true of doing business, and it is also true of people. Know what you need and what you should do, and not lose yourself in the praise that comes from the praise that comes from the roar. People often say that killing, that's it.
Therefore, at all times, we must think deeply and consider comprehensively. At the same time, we must also understand ourselves, understand our abilities and goals, so that we can always stay awake and not lose our way. The glory of Loncin has passed, I don't know what kind of ideas you readers have, we can discuss it together in the comments.