Li Shuirong, a native of Xiaoshan, Zhejiang, is currently the chairman of Zhejiang Rongsheng Holding Group Co., Ltd. Buffett’s phrase “Others are fearful, but I am greedy” was vividly interpreted by him. Annual revenue exceeds 30 billion yuan. It controls two listed companies and participates in one listed company. The investment industry involves petrochemicals, chemical fibers, real estate, trade, finance and other fields, forming a “prosperous system” layout with a diversified business structure. , is becoming more and more complete in the hands of this creator. In 2015, Rongsheng Group achieved sales of 100 billion yuan and profits and taxes of 10 billion yuan.
Starting with 200,000 yuan, he decided to sell all his belongings and switch to a cloth factory
Director Li Shuirong’s name is not often mentioned in the media. This is related to his low-key nature.
In 1989, Li Shuirong, who ran a small lumber shop, became interested in the Chinese cloth industry market. At that time, the domestic cloth industry market was turbulent, and a price war was about to break out. However, Li Shuirong had a unique view on the cloth industry crisis. He said: “Under relative conditions, there are business opportunities behind the crisis. There are also business opportunities in the business before the storm.” But now. Shaoxing and Xiaoshan are only separated by a road. Why can’t Xiaoshan people do the business that Shaoxing people can do?”
After a year of watching and analyzing the cloth industry market, , in 1990, we started with 8 shuttle looms. The starting capital was 200,000 yuan from selling the lumber shop and all our belongings. The factory buildings were rented from 6 idle old bungalows in the town at that time and hired local people. More than 20 workers started their business on the tidal flats where there was never a train or a decent road.
Li Shuirong’s behavior was called “somewhat impulsive” by many people at the time, and most people were skeptical about whether Li Shuirong could “make it happen”. It is difficult for anyone to understand that he sold all his belongings and the lumber business he had worked so hard to run, and then jumped into a market with high risks, fierce competition, and unpredictable changes.
Choose again, choose the right direction to save the company during the industry trough period
However, in 1996, the entire textile and chemical fiber industry entered the During the trough period, some large and medium-sized enterprises closed down or changed production one after another. Some people expected that the textile industry had come to an end.
Going downstream means that the company will develop in a labor-intensive direction, and the products are easy to be imitated; but going upstream, there will be less competition among peers and the added value of the products will be high. , high investment will bring high returns. Li Shuirong decided to go upstream.
At that time, China’s chemical fiber industry was entering a trough, and many companies were switching industries to seek other development. At this juncture, Rongsheng’s “abnormality” was met with many sarcastic remarks: Until it is “locked in”! Of course, Li Shuirong’s decision to place this “order” was not just a big talk. He firmly believed that his decision-making would not be biased. Faced with the fierce price competition in the cloth industry, profit margins are very narrow.
At critical moments, Li Shuirong’s entrepreneurial nature was revealed, and soon after, the facts proved that Li Shuirong’s decision was correct. In 1998, the textile industry became warmer and the demand for polyester and stretch yarn increased significantly. This year became a bumper year for Rongsheng. The company’s output value soared to more than 100 million yuan, occupying a leading position in Xiaoshan’s textile industry. From 2001 to 2006, in just 6 years, Rongsheng went from an output value of 1 billion yuan to an output value of over 10 billion yuan.
Attach importance to education and provide tuition for young candidates to return to school for further studies
Lu Ming, the publicity manager of Rongsheng Group, recalled such a detail when talking about Li Shuirong. When he applied for a job at Rongsheng ten years ago, Li Shuirong, as the interviewer, did not ask too many professional questions. Instead, he asked him who came from afar: “What do your family think about you coming to work here? Are you relieved?”
When Lu Ming entered Rongsheng, he also participated in several Rongsheng recruitment interviews. More than once, he saw Li Shuirong showing regret to the young people applying for the job in front of him: “A very smart person. It’s a pity that he left school so early just because of poor family conditions!” What surprised him even more was that Li Shuirong immediately paid for these young applicants in the name of Rongsheng. Tuition fees allow them to continue going back to school for further studies.
“People often ask me, is it hard to run a business? I want to say, if you don’t feel hard, it won’t be hard.” Li Shuirong said, “Be optimistic! In my opinion, When we run a business, we encounter many tangled things every day. If we get discouraged when we encounter a little setback, and hide in a corner smoking cigarettes and drinking alcohol, how can we run a business?”
On August 20, 2010, Rongsheng Petrochemical’s IPO application was reviewed and approved by the China Securities Regulatory Commission, thus creating a wealth legend for the Li Shuirong family.
The “real prosperity” behind the list
At the end of August 9 During this period at the beginning of the month, lists of the top 100 companies of various types were announced one after another, and it was a lively scene: On September 2, the list of “Top 500 Chinese Enterprises in 2018” was released. In this list, Shandong Weiqiao, Hengli Group, andLeading companies in the textile and apparel industry represented by Xingjihua, Heilan Group and Rongsheng Holdings are all on the list; in the field of chemical fiber manufacturing, Rongsheng Holdings is ahead of many similar companies, second only to Hengli Group. “Second place”, proudly standing at the forefront of the chemical fiber field.
“Interlopers”: private petrochemical giants that are following the trend
There is another company announced before and after the above two lists. The big list – “2018 China Petroleum and Chemical Industry Top 500 List”, this list is jointly released by the China Petroleum and Chemical Industry Federation and the China Chemical Enterprise Management Association. Among them, together with Sinopec, PetroChina, and CNOOC, the list Barrels of Oil” are also on the list, including Hengli Petrochemical, Rongsheng Holdings, Hengyi Group, Shenghong Petrochemical and other familiar names in the field of textile and chemical fibers.
Chemical fiber companies’ “moving upstream” has been a major trend in recent years. In particular, after decades of development, the above-mentioned major industry leaders have embarked on a one-stop development model from downstream chemical fiber production to upstream petroleum refining, and this development model has also been proven in practice during many cyclical fluctuations in the industry. The ability to withstand risks is more conducive to the stable development of enterprises.
As a private enterprise, Rongsheng has entered the refining and chemical industry dominated by state-owned enterprises and central enterprises as an intruder. In recent years, Rongsheng has attracted much attention from the market. The most important reason why it has attracted much attention is its refining and chemical integration project of Zhejiang Petrochemical.
The Zhejiang Petrochemical Refining and Chemical Integration Project is invested and constructed by Zhejiang Petrochemical Co., Ltd., which is owned by a private enterprise, Rongsheng Petrochemical (accounting for 51% of the shares) ), a mixed-ownership enterprise jointly established by the provincial state-owned enterprise Juhua Group, the private enterprise Tongkun Co., Ltd. and Zhoushan Ocean Investment, which is a privately held and state-owned enterprise with equity participation. The 40 million tons/year refining and chemical integration project invested and constructed by it, It is constructed in accordance with the overall requirements of “refining and chemical integration, large-scale equipment, clean production, and high-end products” with a total investment of 173 billion, and the total investment in supporting projects by the Canadian government exceeds 200 billion. The project is constructed in two phases. Each phase can process 20 million tons of crude oil per year, with an annual output of 5.2 million tons of aromatics and 1.4 million tons of ethylene. It is a landmark project for private capital to enter the petrochemical industry, far exceeding the current largest refinery in China, Sinopec Zhenhai Refinery. , is currently the largest refining and chemical integration project in China, and is also one of the largest refining and chemical integration projects in the global industry.
Li Shuirong said: “Rongsheng is not only marching forward on its ideal path, but also increasingly assuming the glorious mission of revitalizing national industries.”
“Persistence”: A polyester filament giant pursuing excellence
Rongsheng Petrochemical has grown from a small weaving factory to a private petrochemical and chemical fiber giant, and has gone through nearly 30 years of development. Through ups and downs, the main business started from the polyester chemical fiber business and grew into the first listed company in China with an integrated industrial chain of “fuel oil, naphtha-aromatics-PTA-polyester-spinning-texturing”. Rongsheng Lucky We have found the direction of development and persisted along the way.
It is reported that in order to continue to produce good products in the field of polyester filament, the company attaches great importance to the development of research and development work, and has established a high-tech R&D center, academician expert workstations, corporate technology centers, and post-doctoral research centers. Scientific research workstations and other scientific and technological innovation platforms, and has established cooperative relationships with institutions of higher learning such as Zhejiang University, Zhejiang University of Science and Technology, and Tianjin University of Technology. New technologies and products come out every year. Currently, in the field of chemical fiber, Rongsheng has participated in the formulation and revision of 10 national standards, 15 industry standards, and 2 “Made in Zhejiang” standards.
Since Rongsheng’s “polyester low elastic yarn” was included in the second batch of “Made in Zhejiang” standard formulation plan in August 2016, it has experienced “Made in Zhejiang” standards within two years. “The release of standards and certification implementation details, and the passing of the “Made in Zhejiang” certification in December 2017, marked that Rongsheng’s “polyester low stretch yarn” products have reached the domestic first-class and internationally advanced levels.
Li Shuirong said: In the next stage, Rongsheng will adhere to the requirements of “good company + good products” of “Made in Zhejiang” and strive to achieve the “Made in Zhejiang” standard for all the company’s flagship products. Develop and certify.
“Innovator”: Zhejiang’s never-ending private textile giant
2018 is the 40th anniversary of reform and opening up. For Rongsheng It is undoubtedly a beneficiary of the dividends of reform and opening up.
It should be said that along the way, Rongsheng has taken advantage of the opportunities of the times and its own continuous innovation. As an outstanding representative of Zhejiang merchants, Li Shuirong once said: “Others are fearful, but I am greedy.” Looking back at Rongsheng’s development history, almost every step of Rongsheng’s bold innovation is the initiator of the industry. From 1998 to 2018, Rongsheng Group achieved a leap from total assets of 100 million yuan to total assets of 100 billion. During this period, Rongsheng followed a development path of “high investment and high output”, and high investment There are potential high risks behind it. Who gave Rongsheng such courage?
Every industry has leaders, and Rongsheng is the leader in the development of China’s chemical fiber industry. What is the most obvious characteristic of a leader? That is persistence in innovation.
From “intruders” to “persistent” to “innovators”, each one is Rongsheng, and every aspect is necessary for Rongsheng to achieve today’s achievements Quality. At present, China is the world’s largest producer and consumer of chemical fiber. The responsibility for the future upgrading and development of the chemical fiber industry has fallen on our shoulders. We look forward to and believe that with the promotion of leading companies such as Rongsheng, a strong country in chemical fiber is just around the corner.
�, the responsibility for the future upgrading and development of the chemical fiber industry has fallen on our shoulders. We look forward to and believe that with the promotion of leading companies such as Rongsheng, a strong country in chemical fiber is just around the corner. </p
