enters the market, exits the market and then enters the market. The numerous entrepreneurial roads seem to be following such a process. Lin Li, a native of Zijin, Guangdong, was born in 1963 and has Linli Group and its subsidiaries. In the early days of
, Lin Li was unknown. His first pot of gold came from the stock market, which was almost a national movement in Guangdong. However, he did not indulge in the stock market, and then invested his money in industry. He co-founded Sigma Computer and Yijing. Mineral water company, etc. The industry in the early stage has accumulated some of the original capital for Lin Li, but what really made Lin Li expand rapidly and become the richest man in Shenzhen was his bold investment in Ping An Insurance's equity in 2003.
This successful investment that made Lin Li stand out shows Lin Li's vision. According to Lin Li, in 2003, Ping An Insurance shares that had not yet been listed were not as popular as they are now. At that time, the Shenzhen Investment Management Company, which held 16.09% of Ping An’s shares, listed and sold 88 million Ping An’s shares at the Shenzhen Equity Exchange at 5.93 yuan per share due to the restructuring of Shenzhen’s state-owned enterprises, accounting for 3.6% of Ping An’s total share capital at that time. . "Because the auction price was higher than the net assets at that time, the premium was 20%, many people felt that the equity was too expensive", so at the end of the auction, only a large group of Liye Group participated. Lin Li did not miss this opportunity. "Although many people were not optimistic about this price at the time, I believe that my country's insurance market is vast and has great potential. A high-quality company like Ping An Insurance with a first-class management team must have broad prospects and eventually go public." Lin Li said.
For Lin Li, in addition to this investment, his Linli Group has also successively involved electric power, high-tech, real estate, material supply and marketing, information consulting, computer software, communication products and other fields. The scope of radiation has also expanded to Nanjing, Wuhan, Many areas such as Changsha, Sichuan, Chongqing and Nansha.
Speaking of Ping An Insurance’s investment, Lin Li revealed one of his important investment ideas. For value-growing companies, you cannot look at the price based on the net book assets at the time, but should use future development and profitability as well as dynamic price-earnings ratios. In 2003, Lin Li sold several assets he held at the time, raised more than 500 million yuan in funds, and put all his family assets to buy this precious Ping An Insurance equity. Lin Li has done an audit at a bank and is very familiar with financial figures. He also said that Ping An’s investment return in 2003 was indeed not high. Earnings per share that year was only RMB 0.23, and the investment return was only 3.8%, which was even lower than the bank’s 6% in the same period. The loan interest rate.
But Ping An soon has a surprising return. In December 2003, with the approval of the China Insurance Regulatory Commission, Ping An increased its share capital from the capital reserve at the rate of 10 shares for every 10 shares. After the increase, the Liye Group’s shares in Ping An Insurance expanded to 176 million shares. Ping An Insurance has developed rapidly in China, and only one year later, in June 2004, Ping An was listed in Hong Kong. Although Liye Group held non-tradable corporate shares at the time, Lin Li believed that the day of full tradability would come. According to the institutional arrangements for listing, Liye Group once had the opportunity to sell some shares of Ping An Insurance in Hong Kong, but he was very patient and insisted on waiting for Ping An to return to A shares. Three years later, Ping An Insurance finally went public on the A-share market, and it was as high as 140 yuan in October this year, which is nearly 30% higher than the price of Ping An’s H-shares in Hong Kong. According to the one-year lock-up of legal person shares, all Ping An shares held by Liye Group will be circulated in March next year.
Many people from the banking industry all conceal their preference for the financial industry. In addition to Ping An Insurance, Liye Group was once a shareholder of Guangdong Development Bank and Rongtong Fund. "In the early years, the state imposed a lot of restrictions on private enterprises' investment in the financial industry. Now we have more opportunities." He said. At present, Hualin Securities, which is controlled by Liye Group and invested a lot of effort, is another high-quality asset in the financial assets of Liye Group. Hualin Securities was reorganized from the acquisition of Jiangmen Securities by Liye Group in 2003. "I made the two best investments in 2003, one is Ping An and the other is Hualin." Lin Li said.
is currently the 59th rich man on the Forbes China Rich List, but the outside world's evaluation of this rich man is "low-key" and "reliable." "He is a commoner, but he can meet high-level people very well. He is cautious and pragmatic. He is particularly keen on business opportunities and is easily appreciated." A person who has been with Lin Li for decades commented.
"Times Weekly" once in 16 yearsLin Li once reported that Lin Li was commented in the report: "Although he is the richest man in Shenzhen, Lin Li, chairman of Shenzhen Liye Group, rarely enters the public eye. 2007 Hurun Rich List, low-key and mysterious Ping An Insurance shareholder Lin Li has a net worth of 14 billion yuan. Lin Li, the hidden richest man in Shenzhen, has not only achieved substantial wealth appreciation through Ping An of China, but also the actual controller of Hualin Securities."
However, the historical path of Liye Group is extremely complicated. The timing of changes in the company's capital structure and rapid expansion of assets is a "coincidence" with the critical timing of external capital operations.
has a registered capital of 180 million yuan, and its business scope includes investment and establishment of various industries, operation of domestic commerce, various information consulting and property management, etc. It seems that it and the other two private enterprises that control Hualin Securities operate in different industries. The same, it seems unrelated.
According to the latest registration information of Liye with the Shenzhen Municipal Administration for Industry and Commerce: Sigma Computer, the third largest shareholder of Hualin Securities, is the largest shareholder of Liye Investment, with an investment of 70.2 million yuan and a 39% shareholding; Hualin Securities’ The second largest shareholder, Yijing Foods, is the second largest shareholder of Liye Investment, with an investment of 58.6 million yuan and holding 32.56% of the shares; Hualin Securities’ largest shareholder, Liye Investment, whose head Lin Li ranks third as a natural person as a natural person Shareholders, invested 39.2 million yuan and held 21.78% of the shares.
In May 2019, Lin Li formally stepped down as the legal representative and chairman of the Liye Group, while Lin Cong’s younger brother Lin Cong was promoted from the company’s director and general manager to the company’s legal representative, chairman and general manager.
Regarding the transfer, the Liye Group explained that the company’s overall revenue declined. At the same time, the Liye Group stated that the change in legal representative and chairman of the board can better manage the company’s daily operations and solvency. It will not be affected and will not harm the interests of the company, company shareholders and investors, and the effectiveness of the company’s board of directors’ resolutions will not be affected.
