More than a decade ago, when most people had not yet heard of new energy, Wang Chuanfu began to develop new energy vehicles, and Lu Xiangyang also began to invest in spodumene mines. Subsequently, when many people were still ignorant, Lu Xiangyang invested in electronic ink, smart education, space energy, terahertz technology... These are all things that most people can't think of.
Text | Financial Gossip Female Author: Shuye
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In 2022, a mysterious man became the new richest man in Guangzhou with a net worth of 125 billion, and his wealth was twice that of Xu Jiayin. After an overnight fortune, he was called "China's Buffett".
In fact, he started BYD earlier than Buffett. Buffett invested in BYD for 14 years and only made more than 30 times.
He invested in BYD for 27 years, exchanging 2.5 million for 100 billion, a full 40,000-fold expansion, not counting his reduced shares.
This mysterious guangzhou richest man is Lu Xiangyang, the cousin of Wang Chuanfu, the owner of Rongjie Group and the founder of BYD.

▲ Lv Xiangyang Station C bit Image source: network
Lu Xiangyang is Wang Chuanfu's "noble man descended from heaven" and the driving force behind BYD. If he hadn't lent money to "poor relative" Wang Chuanfu to start a business, perhaps there would be no BYD now. In addition, he also quietly laid out a huge "capital empire", many fields that you dare not think of.......
1.
/ Lent 2.5 million to "poor relatives",
Billionaire /
In fact, in the 1990s, Lu Xiangyang was able to save 2.5 million, which was not easy. Because he started from scratch, his family was poor and white.
Lu Xiangyang was born in 1962 to a peasant family in Wuwei County, Anhui Province, and dropped out of school to work before he was a child. At the age of 16, he was offered the opportunity to work at the Anhui branch of the Chinese Bank. He worked hard for 15 years, gradually emerging from a group of ordinary employees, and was promoted to bank president before the age of 30.
Until 1993, inspired by the wave of entrepreneurship in the times, 31-year-old Lu Xiangyang resolutely resigned from the "Golden Rice Bowl" despite his parents' opposition and went south to Guangdong to start a business. ”
Initially, Lu Xiangyang engaged in traditional industries such as real estate and textiles, and successfully harvested the first pot of gold in his life with his shrewd mind and extremely extensive contacts.

▲ Lv Xiangyang Image source: Network
In 1995, Lu Xiangyang founded Rongjie Investment Holding Group Co., Ltd., and since then he has played a more devious and fickle capital game.
At the same time, Wang Chuanfu heard that Japan, the largest supplier of rechargeable batteries, was going to stop production, and felt that the industry had a lot of potential. Therefore, he decided to leave the state-owned unit and create a battery company to enter the mobile phone battery market that was in the ascendant at that time.
But there is a real problem that cannot be bypassed: where does the startup capital come from?
To this end, Wang Chuanfu was in a mess, he could not pull the start-up funds, but also could not borrow a lot of money, tasted the embarrassment of "a penny is difficult to defeat the hero".
When he was cornered, he ran to his cousin Lu Xiangyang to "ask for help". Lü Xiangyang was very angry, and he lent his cousin 2.5 million with a big wave of his hand, so he became Wang Chuanfu's "heavenly nobleman".

▲ Wang Chuanfu (left) and Lu Xiangyang (middle) in their youth Image source: Network
Later, Lu Xiangyang once revealed to the media, "Almost out of trust and understanding of Wang Chuanfu, I invested in BYD." ”
Of course, Wang Chuanfu did not treat his cousin badly, not only let Lu Xiangyang be the second largest shareholder, but also praised him as the vice chairman of BYD, counting him as one of the founders of the company.
Don't look at the problem of money solved, but at that time both of them were under great pressure. 2.5 million was not a small amount at that time, and Lu Xiangyang also earned it with great efforts.
And Wang Chuanfu is also very competitive, and the development after BYD is actually far beyond Lu Xiangyang's imagination.
In July 2002, BYD was listed on the main board of the Hong Kong Stock Exchange, and rose by more than 70% in only two months, surpassing Li Ka-shing Changjiang Life Science and Technology, which was listed in the same period. In one fell swoop, it raised up to HK$1.6 billion, setting a record for the highest issue price of 54 H-shares at that time.
That year, the cousins Wang Chuanfu and Lu Xiangyang were listed for the first time on forbes' Chinese mainland rich list, ranking 41st and 48th with assets of $152 million and $145 million, respectively.
In 2003, Wang Chuanfu has made BYD the first and second largest mobile phone battery manufacturer in China and the world, becoming the "battery king", and then entered the automobile industry and became the industry leader of new energy vehicles.

▲Wang Chuanfu Image source: Visual China
Lu Xiangyang also continued to follow his cousin to "drink soup and eat meat", and he fully trusted Wang Chuanfu, did not participate in BYD's daily decision-making, and only asked questions when he wanted to make major investments.
In 2008, Buffett bought a 10% stake in BYD for $230 million. BYD also became Buffett's first company to invest in China.
Today, with a market value of more than 700 billion yuan, BYD has become the largest automobile company in China and the third largest in the world, and is regarded by many as "Moutai in the car". Buffett invested in BYD for 14 years and made more than 30 times.
At present, Lu Xiangyang is still the third largest shareholder of BYD. By the end of 2021, Lv Xiangyang held 239 million shares of BYD A shares, with a shareholding ratio of 8.36%.

▲ BYD's top ten shareholders (as of the end of 2021) Image source: Flush
According to BYD's closing price of 268.12 yuan on December 31, 2021, the market value of Lu Xiangyang's personal holding of BYD has reached 64.1 billion yuan.
At the same time, Rongjie Group, jointly controlled by Lu Xiangyang and his wife Zhang Changhong, is also BYD's fifth largest shareholder, holding a total of 155 million shares, with a shareholding ratio of 5.33%. Rongjie Group holds BYD with a market capitalization of 41.6 billion yuan.
That is to say, Lu Xiangyang directly and indirectly controls 13.68% of BYD's shares, with a market value of more than 100 billion yuan.
From 2.5 million to 100 billion yuan, a full 40,000 times larger! And that's not counting the shares he cashed out.
However, the more "godly" ones are still to come...
2.
/ Skillful financial skills to turn the tide and save the "Rongjie system" /
As we said before, Boss Lu created the Rongjie Group and used this as a platform to carry out a large-scale capital operation.
In 2014 and 2018, Lu Xiangyang set his sights on listed companies, successively took control of Luxiang shares and LG Health, and changed his name to Rongjie shares and Rongjie health to create his own "Rongjie system".
However, it is not easy to "transform" them, and factors such as aging diseases and industry restrictions have made them fall into the situation of continuous losses and once encountered the danger of delisting.
A bunch of messes are here, can Lu Xiangyang turn things around?
First look at Luxiang shares, which was originally based on asphalt, and later switched into the lithium resources track. After Lu Xiangyang took over, he began to transform lithium batteries. He has successively acquired and established Rongda Lithium, Changhehua Lithium and Dongguan Derui, etc., involved in the mining and processing of spodumene mines, lithium salt processing and lithium battery equipment manufacturing.
However, at that time, the development of the lithium battery industry was flat, and the initial transformation of Rongjie shares continued to be weak in operation, and the income remained low for many years.
From 2018 to 2019, Rongjie co., Ltd. achieved net profit attributable to about -7.04 million yuan and -326 million yuan, respectively. Due to two consecutive years of net profit losses, Rongjie shares were also delisted in April 2020 and became *ST Rongjie.
Facing delisting, Lu Xiangyang invited his elder brother Wang Chuanfu to be a "rescue soldier".
In 2019, BYD, the head enterprise of lithium batteries and new energy vehicles, became a strategic shareholder of Dongguan Derui, a lithium battery equipment subsidiary of Rongjie Co., Ltd.
After BYD entered the shares, Rongjie shares won a large number of orders for lithium battery equipment from BYD through bidding.
In 2020, Rongjie successfully turned a loss into a profit, with a net profit of 21.04 million yuan, avoiding the situation of delisting.
This is not nothing, Rongjie shares just "took off the hat" in the next year, and staged a "big counterattack" drama.
Not long ago, the company's latest performance was released, in 2021, Rongjie shares achieved operating income of 921 million yuan, a year-on-year increase of 136.09%; net profit attributable to shareholders of listed companies of 68.29 million yuan, an increase of 224.49% year-on-year.

In the first quarter of 2022, the performance of Rongjie shares was even more "explosive", with a net profit of 250 million yuan, a surge of nearly 140 times. Shareholders have said that it is too "burning". So what's the mystery behind this?
It turned out that this was a "carnival" brought about by the soaring price of lithium resources. In the past year, the sales volume of new energy vehicles in the world has risen all the way, lithium carbonate as a raw material for new energy batteries, the downstream market demand is strong, and the price of lithium resources has ushered in "explosive growth".
From the beginning of 2021 to the beginning of 2022, the price of lithium carbonate rose from 50,000/ ton all the way to 500,000 / ton. The 10-fold increase in a year is breathtaking.
And Lv Xiangyang has long been laid out in advance, Rongjie shares planning production capacity of 2.5 million tons / year of the second phase of Kangding Rongjie lithium mine selection project, after the completion and operation of 470,000 tons of lithium concentrate energy, with the existing 1.05 million tons of mining capacity, is expected to produce about 200,000 tons of lithium concentrate per year.

▲Image source: Rongjie shares 2021 annual report
In the past year, the stock price of Rongjie shares has also soared all the way, from 44.4 yuan in April 2021 to a high of 193.9 yuan, an increase of nearly 337%, and Boss Lu naturally made a profit.
Under The exquisite financial skills of Lu Xiangyang, the same person who was rescued from the quagmire of loss was Rongjie Health.
In 2018, after Lv Xiangyang and Zhang Changhong joined the ownership, along with the substandard acquisition of assets in the previous period, Rongjie Health began to continuously carry out goodwill impairment, resulting in successive losses for the company.
From 2018 to 2020, Rongjie Health lost money three times in a row, with a net profit of about -782 million yuan, -716 million yuan and -65.73 million yuan, respectively.
However, in 2021, Rongjie Health successfully turned losses into profits through "slimming", and the company disposed of the equity of the loss-making enterprises participating in the company, while the main business income also increased, and the final net profit was about 24.2 million yuan.
In the first quarter of 2022, the net profit of Rongjie Health was about 5.163 million yuan, and the company was on the right track under the operation of Lv Xiangyang. And this is just the tip of the iceberg of the "Rongjie system"...
3.
/ Investment Experience of "Buffett China" /
Recently, Lu Xiangyang has "won the hemp" again, once again verifying the vision of "China's Buffett".
In May 2022, Rongjie Health intends to transfer 15.58% of the equity of the participating company Zhongsheng Traceability for a total price of 212 million yuan.
According to the previously disclosed announcement, Rongjie Health paid the full price on August 27, 2021, and used 110 million yuan to obtain 15.58% of the equity of Zhongsheng Trace.
This also means that between one buy and one sale, Rongjie Health made 102 million yuan, nearly doubling. In fact, this is not an accident.
With the gradual expansion of capital, Lv Xiangyang has long formed his own investment philosophy, and established three main investment directions: real estate, industry and finance, and established a huge "capital empire".
Lu Xiangyang entered the real estate early and experienced the "era of huge profits" in the industry. When developing real estate projects, he values the stability of cash flow.
He laid out the Dongtai Garden Project with an area of more than 200,000 square meters in Lane 271, Dapu Road, Shanghai, the high-rise commercial residential building project with a total construction area of 40,500 square meters, and the building materials market jointly developed by Shenzhen International Airport - Shenzhen Meiwanjia International Decoration Materials City...
In 2001, when investors still couldn't figure out what lithium battery was, Lu Xiangyang entered the field of lithium-ion battery materials with a forward-looking vision and invested in the establishment of Rongda Power Materials Co., Ltd. In 2005, he turned to mining and invested 110 million yuan in Ganzi Prefecture, Sichuan Province, to establish Rongda Lithium to develop the Heikika spodumene mine.

▲ Lv Xiangyang Image source: Visual China
When laying out the financial field, Lu Xiangyang felt that banks or securities companies with high entry thresholds were too risky, and asset business was his more ideal choice. Therefore, Rongjie Group has extensively carried out credit guarantee, customer wealth management, project operation, venture capital, asset management and other businesses in the investment and financing management service industry, and has established cooperative relations with a number of financial institutions.
In the big health industry, Lv Xiangyang won Rongjie Health, mainly producing and selling sauna equipment, air purification products, fitness equipment and other related products, through a series of acquisitions, gradually transformed into a domestic health industry integration platform integrating production, supply and marketing health services.
It is said that as early as around 2014, Lu Xiangyang revealed to the media: "I now have the world's second largest lithium mine, the second largest battery production plant, and deep processing bases for lithium and cobalt in Guangzhou and Nansha." Once these seemingly decentralized investments can support each other and form an industrial chain, they can produce huge benefits. ”
According to the official website of Rongjie Group, there are currently 24 member institutions of the company, and the industry involves new energy vehicles and fuel vehicles, new energy materials and environmental protection materials, lithium battery equipment, microelectronics and flexible display materials, digital education, financial investment and insurance, capital operation, etc., and has become a multinational enterprise with diversified operations.
Among them, Rongjie Group invested in 5 listed companies, including BYD, BYD Electronics, Rongjie Shares, Rongjie Health and Huaxun Ark.
Today, Lv Xiangyang has been in charge of Rongjie Group for more than 20 years, and the market value of the invested enterprises has exceeded 900 billion yuan, the asset scale has exceeded 300 billion yuan, and the operating income has exceeded 350 billion yuan.
In 2022, in the Hurun Global Rich List, Lu Xiangyang, chairman of Rongjie Group, ranked first in Guangzhou with a net worth of 125 billion, twice as much as Xu Jiayin.

▲Image source: Network
Over the years, Wang Chuanfu has held the title of "Battery King" and led BYD all the way to great progress. Lu Xiangyang hid behind him, providing financial support and obtaining huge returns.
The combination of the two is also considered by the outside world to achieve a win-win situation between industry and capital. If you ask, what is the trick to their success?
We can see that more than a decade ago, when most people had not heard of new energy, Wang Chuanfu began to develop new energy vehicles, and Lu Xiangyang also began to invest in spodumene mines.
Subsequently, when many people were still ignorant, Lu Xiangyang invested in electronic ink, smart education, space energy, terahertz technology... These are all things that most people can't think of.

▲Wang Chuanfu Image source: Visual China
In addition, for Lu Xiangyang, his success also stems from lending 2.5 million to "poor relatives"! However, this is also something that most people cannot learn.
Resources:
"2017 Guangdong Annual Fengyun Emblem Business List of "Heroes": Lv Xiangyang", Anhui Chamber of Commerce of Guangdong Province
"The major shareholder is also the founder of BYD, why does Rongjie only raise 300 million yuan of the 1 billion gap?" Sina Finance
"Lv Xiangyang: The Most Mysterious Huishang Rich Man", Huishang Magazine