He was once a billionaire on the 2016 Hurun Global Rich List, and was the richest man in Shandong on the list with a wealth of 19 billion yuan that year.
Two years later, his soybean kingdom was lost along with the title of the richest man.Recently, a ruling issued by the Ju County Court in Shandong has attracted the attention of the outside world.
▲Image source: Visual China
On July 16, Shandong Chenxi Group Co., Ltd. applied to the court for bankruptcy and reorganization on the grounds that it could not pay off due debts and obviously lacked solvency.The court found that: Shandong Chenxi Group Co., Ltd. was established on December 1, 1999. It is now insolvent and unable to pay off due debts.
Recently, the court ruled that the application for bankruptcy reorganization of the applicant Shandong Chenxi Group Co., Ltd. should be accepted.This ruling takes effect immediately.
Shandong Chenxi Group is a key industrial enterprise in Shandong Province. It has formed four main businesses of petrochemical, grain and oil processing, international trade, and cultural tourism, with more than 6,000 employees.In 2016, the total output value of petrochemical enterprises was 16.85 billion yuan, and the total output value of grain and oil processing enterprises was 1.59 billion yuan; the sales revenue of trade business was 26.1 billion yuan.In 2016, the entire group achieved sales revenue of 43.2 billion yuan.
In the domestic business circle, Chenxi Group has also had extraordinary strength: the group has been shortlisted in the top 500 private enterprises in China for 7 consecutive years, ranked 26th in the top 500 private enterprises in China announced in 2015, ranked 3rd in the top 500 foreign trade private enterprises, and ranked 2nd in the top 100 private enterprises in Shandong, ranked 20th among the top 100 Chinese chemical companies.
The chairman of Chenxi Group is Shao Zhongyi, who is currently the deputy director of the Standing Committee of the Ju County People's Congress and the vice chairman of the Shandong Provincial Federation of Industry and Commerce.He was successively elected as a member of the 7th Rizhao CPPCC, a standing member of the 8th, 9th and 10th Rizhao CPPCC, a representative of the 15th, 17th and 18th Rizhao Municipal People's Congress, and a representative of the 12th National People's Congress.
On the 2018 Hurun Global Rich List, Shao Zhongyi of Chenxi Group ranked 1344th on the list with a wealth of 13.5 billion yuan.
Shao Zhongyi's business journey is quite legendary.
According to the Economic Observer, in 1992, 24-year-old Shao Zhongyi was a temporary worker at a foreign trade company in Ju County.Two years later, he said that he was unwilling to be lonely, and he took over a small township enterprise with only a dozen people and started his own business.The business-minded Shao Zhongyi spent six years turning a workshop-style blow molding company into a large-scale plastics processing company and obtained the right to import and export.In 2003, during the reform of state-owned enterprises in Juxian County, Shao Zhongyi completed the first merger in his entrepreneurial career—reorganizing the Juxian Fertilizer Factory, which was about to close down.After that, five local state-owned enterprises were successively merged, and Shandong Chenxi Group Co., Ltd. was established, which also opened the road to diversification.In 2003, Chenxi Group's revenue was 300 million yuan, and it reached 76.2 billion yuan ten years later.
Although the business is getting bigger and bigger, Shao Zhongyi also encountered cold eyes from the bank.
On the official website of Chenxi Group, an article published in March 2017 shows that Shao Zhongyi said helplessly in an interview with China.com.Facing a very difficult situation, Guo Shuqing, who was the governor of Shandong Province at the time and now the chairman of the China Banking Regulatory Commission, personally came forward to coordinate with various parties to win a chance for us.
I believe that Chairman Guo Shuqing is well aware of the difficulties faced by China's real economy enterprises, and I hope he can make more reforms in the banking industry so that the banking industry can truly return to the essence of serving the real economy, said Shao Zhongyi.
As a representative of the National People's Congress, Shao Zhongyi also loudly called for financial support for the real economy.
At the National Two Sessions in 2017, Shao Zhongyi said in an interview with the media that although the central government has repeatedly emphasized the need to support the development of the real economy, the real economy has still experienced the most difficult period in 2016; if relevant policies and reforms to support the real economy are truly implementedIn place, the future is still full of hope.
Shao Zhongyi said that the real economy has long been troubled by the shortage of funds, which is closely related to the way my country's financial services support the development of the real economy.The return on investment in the real economy is low, and there is insufficient motivation for market funds to flow to the real sector.
▲Image source: Chenxi Group official website (http://www.chinachenxi.com.)
Shao Zhongyi suggested to further actively build the source of fresh water, increase market liquidity supply and optimize bank credit allocation structure, increase commercial banks' tolerance of corporate non-performing loans and lending enthusiasm, improve financial institutions' ability to lend to the real economy, and closely monitor the flow of funds, promote social funds to accelerate to become the industrial capital of the real economy, and promote more and better funds to support the real economy.
Entering 2018, along with the tightening of market funds, there have been waves of corporate defaults, and Shao Zhongyi's Chenxi Group is by no means an isolated case.
According to data, as of July 17, 2018, there have been 27 bond default incidents, involving a total amount of nearly 28.387 billion yuan, including 15 issuers such as Fuguiniao, Kaidi Ecology, and Shenwu Environmental Protection.
According to the official website of the China Banking and Insurance Regulatory Commission, on the morning of July 17, Guo Shuqing, Secretary of the Party Committee and Chairman of the China Banking and Insurance Regulatory Commission, led a team to the head office of the Bank of China to host a symposium, emphasizing that to actively help difficult companies with development prospects, it is necessary to classify and implement policies.To send charcoal to difficult companies, seek a win-win situation, and resolutely abandon the simple one-size-fits-all approach. This meeting is considered to be a signal that funds are expected to loosen.
