Liwenjun: unwilling to be a "Prince" to create entrepreneurial dreams
when it comes to the rich second generation, many people think they are a group of WANs who only know how to eat, drink and play? Li Wenjun, the son of Li Wenjun, the CEO of Liwen paper (02314), who is also a rich second generation, is unwilling to be a stable "Prince" in his father's company. He joined the then popular industry of paper making more than ten years ago, but in the four years from preparation to entrepreneurship, he encountered countless deceptions and paid a "tuition fee" of more than 30 million yuan. However, these setbacks did not make Li Wenjun shrink back, but also aroused his ambition to do a career and explain to the world. Finally, with years of efforts, Liwen became the second largest paper maker in the country, and Li Wenjun won the reputation of "king of paper making"
like other rich second generation, Li Wenjun has been carefully cultivated by his father "Hong Kong handbag king" Li Yunqiang since childhood. During the summer vacation every year, Li Wenjun helps in his father's company to learn the way of doing business. Sometimes, he has to go as far as possible to practice in mainland factories. "The more unforgettable experience is that I went to Dongguan factory from 1984 to 1985. In those years, the transportation was inconvenient, and I had to go to the factory by ship after passing the customs. At that time, I really felt so hard, referring to the troubleshooting methods." Recalling how he helped in his father's factory when he was a teenager, Li Wenjun admitted that it was very hard, but he developed an interest in doing business, so it was very worthwhileAfter graduating from Canadian University in 1993, Li Wenjun worked in his father's company for more than a year. At that time, the handbag factory needed to use a large amount of wrapping paper, but he found it difficult to order wrapping paper in the mainland, and the price of paper once doubled. He touched the machine and inquired everywhere. Only then did he know that most of the finished paper in the mainland was imported from foreign countries, so he decided that the papermaking business had great prospects. Seeing such a huge business opportunity in the paper industry, the father and son thought it was an opportunity to lose, Li Yunqiang decided to "hit the book" for Li Wenjun to enter the paper industry. "In those years, I conducted a market survey and found that there were few paper mills in the mainland. However, with the rapid development of the manufacturing industry in the mainland, the demand for packaging paper will rise sharply. Therefore, I determined that there were unlimited business opportunities in this industry and decided to join the paper industry."
as the saying goes, every line is like a mountain. Handbag and papermaking are two completely different industries. With Li Wenjun as a novice in the paper industry, the four years from preparation to opening can be described as twists and turns. He said that when he started his business, he was only a young man in his twenties, with limited social experience. The preparatory work alone had been under great pressure. He faced different tests in buying land, finding water and finding talents, and encountered many painful experiences of deception. For example, because the factory needed to build a power plant, the power plant engineer said at that time that it needed to build a drainage channel with stones. As a result, the stones alone had been transported from his hometown for hundreds of thousands of yuan. Finally, I learned that in fact, as long as cement and bricks can be used to build drainage canals, it is obviously the engineer who takes care of his friend's factory and earns profits from it
the more frustrated, the more brave they become industry experts
another unforgettable example is that they wanted to buy a batch of water storage tanks. At that time, after comparing suppliers around, they found a supplier whose price was more than 10% cheaper than other suppliers. In order to be cautious, they visited the factory in person and found that all aspects of the factory were good, so they ordered from this factory. However, after giving the other party a 30% deposit, the other party suddenly said that it would charge another 20% deposit to deliver the goods, which was very different from the original practice of paying a 30% deposit first and paying the balance only after the goods arrived. However, the other party was eloquent and successfully lobbied Li Wen to agree to pay an additional 20% deposit. Unexpectedly, after paying the 20% deposit, the company was empty, causing Li Wen to suffer losses. "I was cheated many times in the four years from preparation to just opening, but these four years are very valuable experience, which made me from a layman in papermaking to an expert in the industry." Li Wenjun revealed that Liwen invested about 300 million yuan in the first phase, and it is estimated that about 10% will be used to pay "tuition fees"
due to a lot of deception during the preparation, the preparation time of the paper mill was extended from 3 years to 4 years. During this period, Li Wenjun felt that every day was like a year, because he continued to spend money on equipment and various construction, but he failed to put into production, which increased his pressure day by day. He admitted that it was hard to endure these days, but he never thought of giving up. He just hoped that the factory would be put into operation as soon as possible. In fact, after the completion of the first phase of investment, Li Wenjun has greatly increased his understanding of the industry, and joked that he had been a "fool" in the past and would not be cheated in the futureAfter hard work, the paper mill was finally put into operation in 1998. When it thought it was finished, it was God's will. When it opened, it encountered the Asian financial storm. The price of paper once fell by half, which made Liwen fall into a low tide as soon as it opened. Fortunately, the market began to improve at the end of that year, making Liwen earn 500-600 yuan per ton of paper, which made Li Wenjun really relieved, It also proves that four years of persistence is a correct decision. "In the past four years, brittle materials have been used in product design every day. I don't know when there will be results. It's really a taste in my heart."
when it comes to the turning point of Liwen, it turned out to be related to a bumpan visit to Japan. At the end of 1998, a good friend invited Li Wenjun to travel to Japan. At that time, seeing that the business was gradually stable, Li Wenjun, who had worked hard for many years, also wanted to take this opportunity to enjoy the scenery of Mount Fuji, so he agreed and stopped by to visit the local paper machine factory, and unexpectedly bought a paper machine with a capacity of 200000 tons at a 60% discount. "The initial production capacity of Levin was only 80000 tons. Originally, Levin didn't intend to buy this machine, so he casually said that he would buy it at half price. After bargaining, the other party agreed to sell it at a 60% discount. It turned out that the previous buyer had ordered it because of financial difficulties, and at that time, Levin's opponent had bought a new machine, so he decided to buy this new machine." Because Liwen bought this new paper machine, the production speed and quality were greatly improved, making Liwen a big player in the industry. After years of rapid development, Liwen has become the second largest paper maker in China, and Li Wenjun has won the reputation of "king of paper making"
from "printing paper like printing money" to acting according to his ability
Li Wenjun benefited from the fact that more and more aircraft components began to use advanced polymer composites. He has been in the business world for many years. From the preparation of Liwen paper to the beginning of the business, he admitted that the days were very difficult, but the most unforgettable thing for him was the rapid expansion and the sudden financial tsunami between 2006 and 2008, which had always been a smooth business, Suddenly fell into an unprecedented dilemma
"in 2000, the market condition was very good. Some people even described printing paper as printing money. At that time, Liwen earned more than 1000 yuan per ton of paper. In those days, the bank called every day and begged Liwen for loans. At that time, Liwen's production capacity doubled every two years, and the company had no sense of crisis." A financial tsunami taught Li Wenjun a valuable lesson and he has been prudent in doing business since then. That year, the financial tsunami suddenly came, which not only reduced the price of paper, but also changed the face of bankers who had always welcomed people with a smile. Fortunately, the government took the timely action to rescue the market, which made the management of cultural insurance go overboard
mentioned that Li Wen had expanded rapidly in the past. Li Wenjun admitted that his career was too successful at that time, which made him arrogant. He said that in those days, the market was very good, and almost every business made a lot of money. At that time, all the news in the market was good news, which made people feel that it was easy to make money. Therefore, he thought of many "developed" plans, such as producing cultural paper, and even going to Guangxi to buy a forest. Looking back on the past, he now understands that in doing business, he can't expand too many areas, but be "professional". At the same time, it also makes him more cautious in doing business, and strive to reduce inventory and liabilities. Even if he expands, he will do what he can and will not blindly pursue increasing production capacity
don't invest in new shares, select neiyinneifang
Li Wenjun has made Liwen papermaking impressive, while for personal investment, he adheres to two rules: first, only invest in familiar industries, and second, he would rather have a lower return than lose money. As for the return requirement, I hope it can reach 10% every year, with a return of 10% a year. After 25 years, I will make a lot of profits. When it comes to stock selection criteria, Li Wenjun prefers domestic bank stocks, saying that the risk of domestic banks is very low and the share price is not high, so it is a stable choice. In addition, although many people are bearish on the housing stocks, they will buy some high-quality housing stocks with PE less than 5 times
in addition to buying stocks, Li Wenjun is also fond of bonds, especially some domestic housing stock bonds with a return of up to 10% to 20%, which make him a lot of profits. As for new shares, he said, "there are so many good shares with cheap stock prices available in the market. Why buy new shares? Unless you buy some for your face and good friends, you won't get involved in new shares."
help young people understand the mainland
in recent years, Li Wenjun has also actively participated in charity activities after working. He served as the chairman of the board of directors of Renji Hospital, and recently took up the post of chairman of the main "Bairen fund". He said that there is no denying that the members of the "Bairen fund" are all rich second generation, but the identity of the rich second generation itself has no original sin. Moreover, all members have forced feedback to the society, hoping to contribute to the society, and also hoping that the outside world can change their outlook, so that people know that they are not some boring people who only know "eating and drinking" and chasing female stars
talking about the goal of taking up the post of chairman of the "Bairen fund", Li Wenjun hopes that within two years as chairman, the main focus will be on the needs of young people, so that they can have a platform to give full play to their strengths. He said that the fund has great flexibility. If college students need to organize activities, they can also apply. Once, there was a university student union to organize magic activities, but there was a lack of funds. They applied for funding from the fund and were approved, but the Fund asked them to perform for the elderly. As a result, both the performing students and the audience were happy. As for the fund funding, Li Wenjun said with a smile that all members tried their best to support it. I believe it will not be a problem. I also donated 10million yuan to show support, and I can donate more money when necessary
Wen Jun fine Zhang Yin bold
whenever Liwen paper is mentioned, investors always like to compare him with Nine Dragons Paper, the country's largest paper maker. When it comes to Zhang Yin, chairman of nine paper, Li Wenjun believes that their styles are very different, "Nine paper's production capacity is greater than Liwen's. It's not easy to manage such a large factory. Moreover, Zhang Yin is bolder and more enterprising than me. She has the courage to continuously expand production capacity. She is a table maker in the industry. On the contrary, my advantage is fine management. The cost per ton of paper is one thousandth more. I will immediately know that I will deal with the problem immediately the next day, because Liwen has a good computer management system."
Li Wenjun frankly said that compared with Zhang Yin's brave and enterprising, he tends to be more conservative and strives to keep the company's debt low, because he doesn't want to repay all the hard-earned money to the bank, and if the debt exceeds twice, the pressure will be too great. As of December 31 last year, the net debt ratio of Levin was 58%, down 7 percentage points from 65% at the end of March last year
the production process is better than that of his peers
although their business styles are quite different, Li Wenjun is full of confidence in his company's products. "Speaking of the quality of kraft linerboard, I think Liwen is always better. Of course, in the competitive environment, everyone will make progress."
many people believe that the peak of the mainland paper industry has passed, and is facing the problem of oversupply. Li Wenjun pointed out that competition always exists because
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