Peng Xiaofeng’s road bureau: starting with 20,000 yuan, 10 years later became the richest man in Jiangxi province, why will owe 23.1 billion yuan?
The older generation of people often to “young should not be too successful” to advise the younger generation, in this era of fame as early as possible environment, pompous and impatient ethos permeated the whole society, it seems that everyone has forgotten the elders of the Dundun teachings.Peng Xiaofeng’s experience is the best portrayal of this sentence, from an ordinary person to become the youngest hurun rich list, he only took 10 years, smart is the best description of him.However, it is regrettable that such a highly intelligent man has become an international fugitive on the red List.Born in 1975, Peng Xiaofeng was gifted in mathematics since he was a child. He often got full marks in the exams, and his talent in mathematics also proved his intelligence.In 1990, Peng Xiaofeng entered Jiangxi Institute of Foreign Trade to study with the highest graduation exam score in the county (full score in mathematics). After graduation, he entered a foreign trade company to work.During his time working in a foreign trade company, Peng accumulated 20,000 yuan in savings and left for Suzhou in 1997 to set up his own foreign trade company.With the client relationships he had built up while working in a foreign trade company, Peng’s company prospers and he founded Suzhou Liuxin Group in the same year.Peng Xiaofeng was very talented in language, especially English, so he could ignore middlemen in the negotiation with customers and obtain high profits. By 2004, the annual export quota of Liuxin Group exceeded 1 billion yuan, and it became the largest labor protection products manufacturer in Asia.In the development process of the company, one thing can reflect peng Xiaofeng’s strategic vision ahead.In 2002, Peng xiaofeng was in Europe when he learned that Europe was about to amend its traffic laws to make reflective vests standard equipment on cars.At that time, many domestic enterprises had not given feedback to this news, Peng Xiaofeng immediately ordered his factories to increase the production of products, and a large number of stockpiling goods.When the law was officially introduced in 2004, Peng Xiaofeng broke into the European market with his hoarded products and occupied more than 30% of the European reflective vest market. At this time, many domestic manufacturers of reflective vests were still preparing for production, and they could not compete with Peng Xiaofeng at all.Peng Xiaofeng is an ambitious entrepreneur, his goal is to make a world-renowned enterprise like Microsoft and Intel.At the same time, he also learned from Li Ka-shing’s development model, starting from simple industries, step by step to the high-end industry.Although he achieved great success in manufacturing, Peng Xiaofeng was not satisfied with staying in this industry, but quickly transformed and upgraded.After full market investigation and research, Peng Xiaofeng focused on the field of photovoltaic power generation, and spent 300 million start-up capital to establish Jiangxi SAIwei in Xinyu, Jiangxi province, which is based on the global supply of solar polysilicon.Before the establishment of the company, Peng Xiaofeng went to Europe, Southeast Asia, Japan and South Korea to purchase large-scale production capacity and raw materials, which enabled the company to have a huge scale at the beginning of its establishment.The company settled in Xinyu is the result of the consultation between Peng Xiaofeng and the Xinyu municipal government. The Xinyu Municipal government hopes Peng Xiaofeng will put the photovoltaic power generation project in Xinyu very much. Peng Xiaofeng also made requirements to the Xinyu Municipal government in terms of capital, talent and power supply, and the Xinyu Municipal government accepted Peng xiaofeng’s requirements and provided investment amount of 200 million yuan.Peng Xiaofeng’s photovoltaic power generation project not only attracted the investment of the government, but also attracted a large number of investment institutions and financial institutions to join in. After two years of development, Jiangxi LDV officially landed in New York to achieve IPO.In the same year, Peng xiaofeng’s wealth soared to 40 billion yuan, making him the youngest person on the Hurun rich list.It only took Peng Xiaofeng 10 years to grow from 20,000 yuan to 40 billion yuan.But Peng Xiaofeng’s darkest hour soon came, at the end of 2008, LDK reached the market expectations of the point, is expected to become the world’s largest solar polysilicon supplier.However, in 2011, the global photovoltaic industry ushered in violent fluctuations, overcapacity problems made the high prices of products no longer sustainable.From January 2012 to June 2012, the price of polysilicon dropped sharply from the highest $50 / kg to $23.60 / kg, and the product price was cut in half.Jiangxi LDV, which had been expanding rapidly for years, was hit hard with a first-half loss of 1.08 billion yuan and an asset-liability ratio of 88 percent.A heavy blow on the business side triggered the debt crisis of Jiangxi LDV. Peng Xiaofeng not only saw his personal wealth greatly shrink, but also owed a total of 23.1 billion yuan to 12 financial institutions.In the same year, Peng xiaofeng resigned as chairman of the company, and the company survived for three years before declaring bankruptcy reorganization in 2015.Peng Xiaofeng did not give up his ideal. After the failure of jiangxi Saiwei, Peng Xiaofeng spent 1 billion to set up “Feifan Beauty Club”, expecting to achieve 10 million members and 20 billion sales in 2015.But only passed the time of half a year, the plan of extraordinary United States agency aborted.Peng later launched lvnengbao, a subsidiary of SPI that borrows from Musk’s early “Solarcity” model.Investors can purchase Lvnengbao’s products and sign a lease agreement on the SPI platform to gain the right to profit from the wealth management products.As an intermediary, Lvnengbao rents solar power to power stations, and uses electricity fees and government subsidies as a source of income for investors.However, this income model is highly dependent on the timely receipt of financial subsidies from the government, otherwise the company will have to pay the investors’ income by itself.In 2017, the government delayed the issuance of photovoltaic subsidies, and Lvnengbao officially fell into a business crisis.In that year, the accumulated unpaid income amounted to 308 million yuan, losing the confidence of investors and losing the survival soil of Lvnengbao as a financial product.In December 2017, Peng Xiaofeng was arrested by the public security organs on suspicion of illegally absorbing public deposits, but he had already left China and fled overseas.For Peng Xiaofeng, who is proficient in English, life abroad may not be so hard, but as a person on the “red Notice” list, it must be very uncomfortable.To sum up, it only took Peng Xiaofeng 10 years to grow from 20,000 yuan to 40 billion yuan. It only took Peng Xiaofeng 7 years to become a millionaire and owe 23.1 billion yuan.It seems that being young is not something to be proud of, and such success is just a flash in the pan.What do you think about that?