Text: Feng Law lectures
The article was first published by Feng Lu Lecture Headlines
Recently, a sensational news came out in the business world: Xu Jiayin was arrested! I believe everyone must have heard of "Evergrande Real Estate", and Xu Jiayin is the founder of Evergrande Real Estate.
The big boss with the same scenery was saddled with a debt of 2.57 trillion in an instant. There are many rumors in the market that Xu Jiayin, a child who came out of a poor mountainous area, can have today, and there is a protective umbrella behind it.
After the news of Xu Jiayin's arrest came out, it was even reported that Xu Jiayin had confessed the protective umbrella behind him in order to save his life.
What is the truth? Is there really an umbrella behind Xu Jiayin? How did Xu Jiayin get to where he is today?
From poor boy to rich
In 1958, Xu Jiayin was born in a poor mountain village. The poverty in this mountain village is beyond people's imagination.
And Xu Jiayin's family is the "leader" in this poor mountain village, and sometimes they can't even afford to eat. Xu Jiayin's mother has been sick since she gave birth to him, but the family can't afford to see a doctor.
In this way, when Xu Jiayin was one year old, Xu Jiayin's mother was dragged to death by illness. After the death of his mother, Xu Jiayin relied on his father and grandmother for his life.
In order to feed Xu Jiayin, Xu Jiayin's father and grandmother were very frugal, they did not dare to eat an extra bite of food, but gave all the food saved to Xu Jiayin, the only child in the family.
Since childhood, Xu Jiayin has spent his time in a poor and tense family atmosphere, and has hardly lived a happy day. When Xu Jiayin was about to go to school, the life of the family was even more worried.
In order to allow Xu Jiayin to go to school, Xu Jiayin's father traveled almost all over the village to borrow a little money to make up enough for Xu Jiayin's school tuition.
The school where Xu Jiayin went to school was also in the village. It is said to be a school, but in fact it is just a few simple adobe houses, and the desks are also made of mud, and there are no benches.
The students in the village squatted in this way, listening to lectures and writing. This continued until Xu Jiayin entered high school. The high school is not located in the village, so the conditions are much better.
The students finally have decent desks and benches, so they don't have to squat every day to listen to lectures. Although the learning conditions have improved, Xu Jiayin's family is still as poor as ever.
Therefore, Xu Jiayin can only eat the cheapest sweet potatoes and wowotou every day. The poverty of the family also made Xu Jiayin understand a truth early, if you don't study, you will be trapped in this poor mountain village for the rest of your life!
Therefore, although the conditions are difficult, Xu Jiayin is still studying hard every day. Although he studied hard, the reality hit him hard.
In the first college entrance examination, Xu Jiayin failed the list and failed to be admitted to university. This huge setback almost made Xu Jiayin unable to raise his head, is he going to be trapped in this poor mountain village for the rest of his life?
Fortunately, Xu Jiayin's father and grandmother have been by his side to encourage him and enlighten him. With the encouragement of his father and grandmother, Xu Jiayin gradually came out of the shadows and made up his mind to fight the college entrance examination again.
After that, Xu Jiayin worked hard for five months. In the past five months, Xu Jiayin has not come out, and he only eats sweet potatoes and wowotou.
In this way, in 1978, Xu Jiayin was admitted to the Iron and Steel Institute with the top three results in Zhoukou City, starting his new life.
At that time, college students were very rare identities, so after graduation, Xu Jiayin was directly assigned to the steel factory as the deputy of the workshop director. This position has a lot of upside and can be said to have a promising future.
During his tenure as the deputy director of the workshop, Xu Jiayin also formulated a special management system based on his own observations.
There is a very harsh system in which employees can easily be identified as lazy and then heavily fined. Although this system is very harsh for employees, it can please the leaders.
Xu Jiayin's unique management system attracted the attention of the upper leaders, and soon Xu Jiayin was promoted to the director of the workshop, and the leaders praised him for being very good at management.
Xu Jiayin has been working in the steel mill for ten years, but except for the appreciation of the leadership at the beginning, Xu Jiayin has not been promoted again.
Xu Jiayin felt that there was no room for growth in this steel plant, so he didn't want to work in this factory anymore. At this time, Xu Jiayin caught up with the wave of "going to the sea", and many people chose to go to Shenzhen, Guangdong for development.
Xu Jiayin also adapted to the development of the times, resolutely resigned, and chose to go to Shenzhen to work hard. While in Shenzhen, Xu Jiayin came into contact with the real estate industry by chance.
At that time, the real estate industry was just emerging, and the huge profits in it were eye-catching, and Xu Jiayin was no exception, so he turned around and devoted himself to the real estate industry and entered a real estate company.
Xu Jiayin's performance has always been good, so the boss entrusted him with the important task of going to Guangzhou to develop new markets. Xu Jiayin didn't expect that this business trip would make him have an unexpected joy.
After arriving in Guangzhou, Xu Jiayin has not promoted much, and the sales have reached 200 million, which makes Xu Jiayin reused in the company.
Over the years in the real estate company, Xu Jiayin has continued to accumulate contacts and many customers. In 1997, Xu Jiayin resigned from the real estate company and started his own entrepreneurial road.
The bigwigs helped to go public
Xu Jiayin's entrepreneurial road was very smooth, and Evergrande Real Estate expanded rapidly, allowing Xu Jiayin to become a rich man at that time from a poor boy in just a few years.
In 2007, Xu Jiayin planned to list Evergrande Group in 2008, so from 2007 to 2008, Evergrande Group was extremely high-profile and bought land everywhere in order to pass the inspection of listing.
But unexpectedly, the financial crisis broke out in 2008, and Xu Jiayin's behavior of buying land everywhere led to the rupture of the company's capital chain, and the debt ratio was as high as 96%.
This situation has put Evergrande's plan to go public on hold for the time being. At this moment of crisis, someone instructed Xu Jiayin to seek help from Hong Kong tycoon Cheng Yu-tung.
After several tosses, Xu Jiayin finally met Zheng Yutong. Xu Jiayin was respectful to this bigwig, and tried his best to persuade this bigwig to invest in Evergrande Group.
Xu Jiayin said all the good things, but Zheng Yutong was still unmoved, and even a little impatient.
Zheng Yutong himself is in real estate, how can he not understand the benefits?
It's just that the benefits of this are not worth letting him go. Helpless, Xu Jiayin could only find another way to let this big guy invest.
Xu Jiayin worked hard to squeeze into Zheng Yutong's game, and in the game, Xu Jiayin kept coaxing Zheng Yutong to be happy, and took the opportunity to talk about Zheng Yutong's investment.
In fact, after Xu Jiayin told over and over again, Zheng Yutong already believed that Evergrande Group could bring him a lot of benefits, but on the surface he was still unmoved, holding the shelf as a big man, so Xu Jiayin had to be anxious.
With his three-inch tongue, Xu Jiayin finally let the big man willingly acquire the shares of Evergrande Group.
In the end, Zheng Yutong injected 4 billion Hong Kong dollars in cash into Evergrande Group, solved the urgent need of Evergrande Group, and saved Xu Jiayin from fire and water.
Zheng Yutong's help not only enabled Evergrande Group to tide over the difficulties, but also enabled Evergrande Group to go public smoothly in 2009.
Zheng Yutong's investment in Evergrande Group seems to be a move to achieve both benefits, which not only benefits himself, but also saves Evergrande Group.
Without Zheng Yutong's help, Evergrande Group may have been on the verge of bankruptcy. It can be said that Zheng Yutong is Xu Jiayin's "life-saving benefactor".
Therefore, Zheng Yutong can also be called the backer and umbrella behind Xu Jiayin. Since then, in order to repay Zheng Yutong, Xu Jiayin has also purchased several luxury houses under Zheng Yutong's banner.
The husband and wife lost tens of billions of dollars in investment
And Xu Jiayin's second backer is Liu Luanxiong, who is known as a "female star sniper". The three words Liu Luanxiong often appear in lace news, and many female stars in Hong Kong and Taiwan have been his lovers.
Therefore, many people ignore the capital behind Liu Luanxiong. In fact, he is also a real capital tycoon, especially in the field of investment.
Liu Luanxiong has a unique vision, and when investing, he is often surprised, but he is invincible. Later, he also trained his wife Gambi to become a business wizard.
It was also because of Liu Luanxiong's wife Gambi that Xu Jiayin was able to meet Liu Luanxiong.
In 2009, shortly after Evergrande Group went public, there was a huge financial crisis within the company, with sales and cash flow problems.
It just so happened that Xu Jiayin and Liu Luanxiong's wife Gambi had a mutual friend, and through this friend Xu Jiayin met Gambi. Gambi thought it was profitable, so he made a match and introduced Xu Jiayin to Liu Luanxiong.
Unexpectedly, the couple looked away this time. Liu Luanxiong and Gambi invested more than 10 billion yuan in Evergrande Group, and this 10 billion also saved Evergrande Group in time.
With the continuous development and growth of Evergrande Group, Xu Jiayin began to consider diversification.
He led Evergrande Group to enter the fields of finance, health and culture, and rapidly expanded the group's territory through mergers and acquisitions and cooperation.
In 2017, Xu Jiayin began to invest and finance desperately in order to develop Evergrande Group. At the beginning, Xu Jiayin gave Evergrande Property Runzi, and then injected capital into Evergrande Automobile.
However, Evergrande Group is still a real estate company in the final analysis, and its financing in other aspects has not been smooth. But because of Liu Luanxiong's help, Evergrande Property and Evergrande Automobile have developed smoothly.
Today, Evergrande Group has become one of the most influential real estate companies in the world, involved in multiple industries, with strong brand strength and market share.
Liu Luanxiong and his wife have injected 7.5 billion Hong Kong dollars into Evergrande Group, and if it were not for the capital injection of Liu Luanxiong and his wife, Evergrande Property and Evergrande Automobile would have developed.
Therefore, Liu Luanxiong is another backer of Xu Jiayin. It's just that this investment boss has stumbled in Evergrande Group this time.
When they first invested, Liu Luanxiong and his wife did not expect that Evergrande would be thunderous and the stock would depreciate rapidly. Even if the two quickly withdrew, they still lost more than 10 billion.
Escorted by many backers
Xu Jiayin's third backer is Liu Liange, secretary of the party committee and chairman of the Bank of China Co., Ltd. When Liu Liange was the chairman of the Bank of China, he used his position to help Evergrande Group with loans on many occasions.
For the convenience provided by Liu Liange, Xu Jiayin naturally wanted to give him benefits. According to news reports, Liu Liange accepted bribes amounting to 4.5 billion yuan, most of which were given to him by Xu Jiayin.
Liu Liange's illegal operation, although it brought convenience to Evergrande Group, but it affected the assets of Bank of China. Therefore, Liu Liange can also be regarded as Xu Jiayin's third backer.
Xu Jiayin's ambitions are huge, and he continues to expand the Evergrande Group, from finance to automobiles to football clubs, with Evergrande Group in many fields.
Speaking of football clubs, I have to sigh that Xu Jiayin has indeed made contributions to Chinese football. In 2010, Xu Jiayin bought out all the shares of Guangzhou Football Club for 100 million yuan and changed its name to Guangzhou Evergrande Football Club. This move allowed Evergrande Group to get involved in the sports industry.
Xu Jiayin is well aware that football is a sport with extensive social influence, and by investing in football, it can bring more brand exposure and market opportunities to the group.
In the following years, the Evergrande football team won many good results at home and abroad, leaving a brilliant mark in the history of Chinese football.
Xu Jiayin is an ambitious and intelligent capitalist, but he is not a good boss.
Evergrande Group has had many crises, and when Evergrande Group had a second crisis, Xu Jiayin actually issued perpetual bonds within the company, ruthlessly pit his own employees, and did not care about the life and death of the bottom employees.
So later, many employees of Evergrande Group were angrily scolding Xu Jiayin. But Mr. Xu's ambitions are expanding. In 2015, Cheng Yu-tung and Liu Luanxiong withdrew from the mainland market one after another.
Xu Jiayin took over the assets in their hands as a matter of course. Xu Jiayin took over nearly five million assets from Zheng Yutong and Liu Luanxiong, among others, which reduced Evergrande Group's debt to a certain extent.
By 2022, Evergrande Group has more and more debts, with debts as high as 2.4 trillion yuan, and there are more and more default events.
In the end, Xu Jiayin and a group of executives of Evergrande Group were taken away for investigation.
Xu Jiayin's success is inseparable from his own efforts and the escort of the umbrella behind him. These umbrellas helped him as well as harmed him.
From a generation of rich people to prisoners, it was his ambition that prompted Xu Jiayin to end up today. He could have sat in the position of the founder of Evergrande Group in peace, but unfortunately the people's hearts were not enough.
After all, his ambition was to his own detriment.
Reference: Xu Jiayin confessed all to save his life! Confessed the three major backers behind him, no wonder he can be like a fish in water - Zhihu (zhihu.com)
Xu Jiayin: In order to save his life, he provided the three major backers behind it! It's not just three backers, right? - Zhihu (zhihu.com)
The three major backers behind Xu Jiayin also lost miserably! One is dead and the other is willing to pay for his wife's loss of 10 billion_Tencent News (qq.com)