Li Zhaohui, once the richest man in Shanxi, has become an "old man" when he reappears in the public eye.
On November 6, 2018, the Taiyuan Intermediate People's Court announced a list of persons who were dishonest and executed, and Li Zhaohui was among them.
Li Zhaohui was born in Wenxi, Shanxi in 1981. He took over Shanxi Haixin Group at the age of 22 due to his father's death. In 2008, he became the richest man in Shanxi with a net worth of 12.5 billion and has been on the Hurun China 100 Rich List for many years.
In 2010, Li Zhaohui also married the movie star Che Xiao.
Li Zhaohui, who was sitting on tens of billions at the time, might not have imagined that his fate would turn so great many years later.
The Paper noted through combing public information that due to factors such as overcapacity in the steel industry, market downturn, financial sector lending, and internal management, Haixin Group was forced to suspend production on March 19, 2014. This is also an important node in Li Zhaohui's business life from prosperity to decline.
In December 2017, Li Zhaohui was restricted from leaving the country due to the company's insolvency; in 2018, he was included in the list of untrustworthy persons subject to enforcement.
’s father was killed at the age of 22 and succeeded him. He was once the youngest and richest man in Shanxi.
Li Zhaohui’s father Li Haicang was once known as the “Shanxi Iron and Steel King”. It has developed into the second largest steel enterprise and the largest private company in Shanxi Province. It is also the vice chairman of the National Federation of Industry and Commerce and a member of the Ninth National Committee of the Chinese People's Political Consultative Conference.
However, a sudden shooting case changed the history of the Li family and Haixin Steel.
On January 22, 2003, Li Haicang was shot and killed in the office of Wenxi Dong Town Company due to a personal conflict. He was 48 years old. The murderer also committed suicide on the spot.
Later, Li Zhaohui, who was still studying overseas and under 22, interrupted his studies and returned to China to take over the family business and became the chairman of Haixin Steel with total assets of more than 4 billion.
"The company belongs to my father, and I can't let it fail in my hands." When taking over, Li Zhaohui once stated this to the media. In the first few years in charge of Haixin Iron and Steel, Li Zhaohui will seize the opportunity of rising steel, and the business has flourished, which has made the outside world look at him.
Haixin Iron and Steel released a document at the time that Haixin’s total output value exceeded RMB 5 billion in 2003, and the profit and tax paid exceeded RMB 1 billion, contributing RMB 300 million to the local finance, making Haixin the fastest and best development in the past. In 2004, Haixin completed a total output value of 7 billion yuan and realized profits and taxes of 1.2 billion yuan. In the same year, Haixin was rated as the nation's first private enterprise in tax payment.
Haixin Steel’s internal employees once said in an interview with "Chinese Entrepreneur" that unlike his diligent father in the factory all day, Li Zhao would not be interested in steel. He shifted his focus from industry to finance, focusing on investment, and his role in the company. It's more like a hand shaker.
One of Li Zhaohui's major moves after he took power was to invest 600 million yuan in a stake in Minsheng Bank, and then to buy shares in many financial institutions.
In 2008, Li Zhaohui became the youngest and richest man in Shanxi. In 2010, Hurun Report ranked 85th with a wealth of 10 billion yuan.
flourished and declined: Haixin Iron & Steel announced bankruptcy
In the 2013 list of China's top 500 private enterprises, Haixin Iron & Steel ranked 184th with a revenue of 16.55 billion, and remains the largest private enterprise in Shanxi Province. But I didn't expect that the steel giant, which had been on the top of the industry for many years, collapsed a year later.
"Beijing Youth Daily" reported that because a 3 billion yuan overdue loan in early 2014 could not be repaid in time, the "Pandora's Box" was quietly opened, and the six blast furnaces of Haixin Steel were all turned off. This "10,000 mu steel mill", which once had more than 9,000 employees and accounted for 60% of the county's tax payment, has been suspended. How much did
Haixin Steel owe, which eventually led to bankruptcy?
Xinhua News Agency reported on November 17, 2014 that the Yuncheng Intermediate People's Court has recently formally ruled to accept the Haixin Iron and Steel Group's 4 creditors' application for reorganization. "Due to factors such as overcapacity in the steel industry, market downturn, loans from the financial sector, internal management and other factors, Haixin Group has been tight for funds since the end of last year and was forced to suspend production on March 18 this year."
Xinhua News Agency disclosed , Haixin Steel’s liabilities and external guarantees are about 10.459 billion yuan, and the entireHaixin Group's book assets are only 10.068 billion yuan, which means that its debt ratio exceeds 100%.
On September 10, 2015, Haixin Group held the second meeting of creditors. On September 22, under the on-site supervision and notarization of the notary department, the Yuncheng Intermediate People's Court and the Haixin Iron and Steel reorganization manager made statistics on the voting status of creditors. The data shows that Haixin’s ordinary creditor’s rights group has 981 creditors with voting rights, and the total amount of creditors represented is 19.707 billion yuan.
"In ten years, Haixin Steel became the cash machine of Li Zhaohui's game capital market. Li Zhaohui continued to draw blood from Haixin Steel to the capital market, and then a lot of funds disappeared invisible." "Southern Metropolis Daily" stated in a report.
"has no property to execute temporarily." Haixin, whose subject matter was executed as high as 2.4 billion yuan after the bankruptcy of
, left Li Zhaohui with huge debts.
On December 5, 2017, the Shanghai High People's Court website published a piece of information about the enforcement of restrictions on exit, and the person to be enforced was Li Zhaohui. The information shows that Li Zhaohui, the person subject to execution, has been restricted from leaving the country by the court due to his failure to perform the obligations determined in the legal document.
According to the execution information, The Paper found that Li Zhaohui was restricted from leaving the country, mainly related to the dispute over the right of recourse between Meijin Energy Group Co., Ltd. and Shanghai Haibo Xinhui International Trade Co., Ltd. The total amount involved was 216 million. yuan. As the guarantor, Li Zhaohui and others shall bear the joint guarantee responsibility.
On December 1, 2017, the Shanghai No. 1 Intermediate People's Court issued an execution ruling stating that after the execution notice was issued, Li Zhaohui and his company have not yet implemented it. Meijin Company applied to the court for this "restricted exit" request. As a result, Li Zhaohui was restricted from leaving the country this time. The court has also ascertained that Li Zhaohui has "temporarily no property available for enforcement."
The Paper used "Li Zhaohui, Shanxi" as keywords to search the China Judgment Documents Network, and a total of 133 judgment documents were displayed. These cases are mostly related to the former chairman of Shanxi Haixin Group.
"The Beijing News" reported that the main real estate under Li Zhaohui's name has been auctioned by the court, and the courts in Yuncheng, Shanghai and Ningbo have confirmed that there is no executable property under Li Zhaohui's name.
On November 6, 2018, the Taiyuan Intermediate People's Court announced the latest list of 200 untrustworthy persons subject to enforcement, and Li Zhaohui was listed on the list of untrustworthy persons of the Taiyuan Intermediate Court.
The effective documents on which it is based show that Shanxi Jinhai Xuanluo Trading Co., Ltd. will repay the plaintiff’s 50 million yuan loan from the Taiyuan branch of CITIC Bank and its interest within ten days after the judgment becomes effective. Xin Iron and Steel Group's bankruptcy creditor's rights of more than 53.62 million yuan.
Li Zhaohui has to face more than just one or two debts. The Paper searched for "Li Zhaohui" through the China Enforcement Information Disclosure Network and revealed 36 enforcement cases related to it. Among them, the case with the case number "(2018) Jing 03 Zhihui No. 6" executed by the Beijing Third Intermediate People's Court has a subject matter of 2.4 billion yuan.
"Li Zhaohui was only 22 years old when he took over. If his father died unexpectedly, he could take care of his succession training. Haixin Iron and Steel and Li Zhaohui may not come to this point." Former Gao who worked at Haixin Iron and Steel for 13 years Guan Zhuwen (pseudonym) said in an interview with The Beijing News.
