Gong Jialong Fall of a private oil tycoon - China Business News

 This is a tragic ending. <> Gong Jialong, has won the prestigious reputation of the entrepreneurs come to the fate of the inflection point. In this year, the outside world is full of his hair and his group created a lot of rumors day . When the story of his final walk, we have a chance to glimpse entangled in this story of desire, the game scores .<><> with the complex from the Gong Jialong entrepreneurs showed character, We get a glimpse of not only the fate of an individual, but also the era of mapping a group back .<><> <> line survey <> Jingzhou, Jianghan Tianfa Industrial Group (hereinafter referred to as days-fat) Headquarters Building, a bleak. <> This ten-storey building was in the recent auction, has changed hands. <> Although the days reimbursement does not move out of this building, but the office is deserted exceptions, most of the office door closed. For this big, fat days, carefully avoiding the officers do not want to mention. <> according to Hubei police sources, the economic case has been declared days of investigation and issued statement. Tianfa involved 3.1 billion, of which the main suspect Gong Jialong involving tens of millions. suspects include alleged false financial bills, illegal transfer of land use rights, the provision of false financial reporting, misappropriation of funds, job occupation and other aspects. <> leveraging on the Albatron <> leveraging on the Albatron. rarely wear 'red hats' business can be done at this point like him. > In 1988, Gong Jialong Light Industry Bureau of Jingzhou in the name of the local credit unions and banks from a total of 20 million loans, up set up a . The following year, Jingzhou Prefectural Administrative Office of Hainan selected Gong Jialong to strengthen and engage in business management, and is also the Hainan, and in November that year created a ; twin companies changed its name twice again in 1993, Hubei Tianfa Enterprise (Group) Co., Ltd. was established. <> days made a birth, identity unknown to chaos. <> from the original name of the Light Industry Bureau 20 loans from the bank million started, the day issued by the predecessor to the face of state-owned enterprises appear. <> The Government does not invest a penny more than 20 years, only had staff stationed in the management of enterprises settled. If that is not state-owned enterprises, but from the date of registration, the day had been scheduled to send a sexual nature. ;-day course of development of hair loss is also a state-owned enterprises continue to mergers and the course of Jingzhou. <> clearly state property loss-making enterprises to join, let the day made more ambiguous nature of property rights. <> In 1994, fought in the oil and gas field operation a few years Gongjia Long thought of as assets. He began to Jingzhou, Hubei Provincial Government and the Government for assistance. <> On the one hand, and Gong to the provincial government promised to raise funds after the listing, in addition to pioneering the field of petrochemical industry, but also take part in helping the relief offered by state-owned enterprises in Hubei responsibility. The two sides signed an agreement in principle, the day after the listing sent to help the province to solve a difficult industry. In addition, Gong Jialong issued 631 million shares will be days allocated to the state-owned Assets Administration Bureau of Jingzhou District, to further enhance the interests of both sides tied state-owned enterprises and its own color. <> In this case, the day has been issued listing the full support of Hubei's the end of .1996, the day of shares (later renamed the days of hair oil) successfully listed on the Shenzhen Stock Exchange, stock soared 70 times, fund-raising over 800 million yuan. <> In the same year, the day returned to the Three Gorges Project for supporting a gas transmission project. In the case of lack of funds, Gong Jialong the same with strong government support and its own Relations In 1998, Jingzhou city shot, sent to fight for the day to refined oil wholesale, retail and import and export of crude oil licenses. This makes the days progress made in the petrochemical field of a key strategic step forward. into the oil, Sinopec, as the area outside the third-party power - power of the representation of private oil companies. <> in the series of gas stations, two large gas storage, oil storage tanks, and a joint venture of a transport company, including oil and gas industries. <> defeat in the capital chain <> It also is not the culmination of days of hair. Gong Jialong reputation and the size of the business will go all the way up and expansion. but let him headaches not far off. <> days after the listing of shares in the success, enjoy a variety of policy support and benefits to the Government Gong Jialong need to meet him commitment - to help the acquisition of the difficulties of state-owned enterprises. This is Gong Jialong nightmare start. followed by a series of financial black hole, property disputes are beginning to spread on that basis. <> Chinese enterprises in the history of a this appears. in Hubei under the guidance of local government, Gong Jialong days within two years after another made the annexation of the 15 state-owned enterprises in Hubei, the rapid expansion of a giant enterprise group. the number of employees from the hundreds of people in 1996, grew to about nearly two million people, assets swelled to nearly the peak of 7.0 billion. related to the industries, including paper, livestock, metal materials, real estate, timber, washing, and other fields. which includes the famous energy had 28 groups, including listed companies. Gong to his business into one of rapeseed oil, its reorganization as a days of acquisition over the Group made most of the enterprises are long-term mismanagement of the old state-owned enterprises, with a heavy debt burden and the operating pressure. For days, hair, in order to better integrate so many enterprise group involved in a wide range of categories is almost impossible to complete task. <>, but Gong Jialong is to provide the full down. On the one hand, this is made for government support can not help but return. And on the other hand, Gong Jialong also have their own separate plans. <> Gong Jialong also use These enterprises made for the day the idea for more bank loans. Meanwhile, the day also made in the business strategy developed strategies to walk more than feet, not just to look at the oil a line. Gongjia Long tried to rely on their own hand > On the one hand, since 1999, the state to rectify the gas station as an object, the day of oil from profit into loss of hair, can not give the day to bring effective hair pulling. In addition, affected by the policy, made in the petrochemical field day substantial investment can not be put into operation on time, does not produce benefits. <> on the other hand, the day issued in the acquisition of many businesses, the commitment of these companies a lot of debt, coupled with days of fat in the process of restructuring these enterprises are large-scale from bank loans, the pressure of huge debt service each year. In the above types of investment in new projects, the day issued a 20 billion yuan per year for maintenance. <> In the case of capital chain taut, the day issued the two listed companies as financing pumps to use. <> listed several billion rights issue to finance capital investment projects in the allotment has poor efficiency. The two began to reverse the performance of listed companies, since 2002 have large loss. In addition, a large number of days occupied by listed companies in return for other areas of investment funds. <> Gong Jialong listed companies to retain the financing capacity of capital markets, including financial channel being cut off, since 2001, began ordered his large-scale financial fraud. <> This raises the concern of the Commission. soon to be opened investigations hair days, being public reprimands and administrative penalties. <> huge losses in the case of long-term, day-fat its two listed companies in 2004 have entered into the ranks of ST. In a series of scandals in the capital markets, so that day made the financing of the capital market can not unobstructed access. <> after the public security organs according to the identification, issued to-day listed companies to maintain the financing channel, wantonly false financial ticket to 2003 In 1996, Gong Jialong inflated profits and others to defraud the SFC approved the allotment status, financial companies instigating hair days, fat days, a subsidiary of liquefied petroleum gas companies, financial officers forged Jinzhang Dan, money orders, checks and other financial bills and transfer 556, the total amount of 10 million yuan. <> In addition, the police investigation that day aging technology to defraud the SFC approved the allotment inflated profits qualifications, inflated 2001 to 2004 the financial indicators, which inflated the main business income of 891 million yuan, 712 million inflated expenses, inflated operating profit 179 million yuan, to the days of aging caused by Shareholders of billions of dollars loss. <> continued tension in the capital chain case, the day began to use a variety of improperly issued to obtain funds, such as the illegal transfer of land use rights. day of hair by the name of cooperative development in order to leave joint venture in the form of deception land administration department, the Group has spent several years as the illicit transfer of 116 acres of land to Ningbo, Wuhan, three companies, involving up to 68.88 million yuan, profit 36.88 million yuan of illegal hair days. and these funds are largely Gong Jialong order to alleviate the financial pressure to make the illegal move. <> Gong Jialong released from the police involved in the content of view, including the above case of the Police Investigation Results, many of them should be made of capital and had the time of day the product. including Gong Jialong 800 million yuan to obtain a bank loan to invest in the form led to the bank and other relatives of eight million yuan. <> In fact, initiate an investigation by the Securities and Futures Commission, the days of the financing channels for sources of the Corporation can only focus on Bank loans above. to the strong pressure of investment funds and repayment pressures, the day finally made the path to credit repayment does not go far. <> crisis finally broke out in November 2003. <> at day Bank of China issued a 50 million yuan of loans to maturity, but the days of hair can not afford to pay, Industrial and Commercial Bank Xudai want to continue to pay interest, but the Industrial and Commercial Bank was rejected. Jingzhou banks followed Banking sector organizations in the local check the situation at a meeting found that day at the local banks made the loans in arrears has been up to nearly 20 billion yuan. plus days of hair other than bank loans in Jingzhou, the total amount to 29 billion, the banks involved in 9 home, day hair and its subsidiaries have been gradually assets mortgaged to banks. <> days later the bank loans issued to End the day made from local bank financing was fully blocked the path, and forcing the bank followed step by step debt actions. day has finally made the capital chain crack, its many businesses and gas stations, docks into a suspension, cessation of .2004 by the end of Jingzhou City Zeyi days made on behalf of state-owned enterprises, to recover a day made its best assets - days of aging technology. <> During this period, from 2000 to Gong were arrested before the end of 2006, also mixed with Gong Jialong and Jingzhou up to four rounds between the Government of the property game war, had caused by the outside media attention. Although the public has said, Gong Jialong the final days of his arrest was issued because the issue of property rights a serious confrontation with the Government. But the case of Hubei police investigation and released the results of view, does not reflect the area problems. <> a final effort <> In 2004, Gong Jialong unexpected fame again. This time, his reputation is no longer confined to Jingzhou and Hubei, but the country's oil industry. It comes from He initiated the establishment of the National Federation of Petroleum Industry Association and later the Great Wall United Oil Holdings Limited. <> This time, he was hailed as the challenges of the outside world in the petroleum, petrochemical monopoly of the private oilman spokesman. <> and In fact, in that period, it was Gong Jialong of funds for the days when the most intense, hopeless capital markets, banks stopped lending, property rights repeatedly tangled. At this time, Gong Jialong has put a major share of Jingzhou worry about the intricate things, north, huh a vigorous private oil industry, industry consolidation exercise. Gong trying to do? <manifest. He northward at this moment, one of the aims is to find a free day sent to the crisis. <> March 2000, Gong Jialong to the China Federation of Industry and Reform Commission and other ministries set up the oil industry associations put forward ideas strong support by the relevant departments .9 months later, the National Federation of Petroleum Industry Association was formally established as the first president Gong Jialong. in the Chamber of Commerce was first established, Gong Jialong had thought hundreds of billion of capital to set up a Industrial Fund patterns and other issues also attracted the industry's challenge. Gongjia Long hair for days through the Chamber of Commerce, the goal predicament has not been realized. <> then in June 2005, Gong Jialong has initiated the formation of the country's largest private oil joint venture - the Great Wall United Petroleum Holding Co., Ltd. (hereinafter referred to as long joint), Gong Jialong Joint Chairman of the Board as long. and its proposed joint goal is still a long long linked to large multinational oil group into a company looking for overseas oil and gas resources for the private enterprises involved in overseas competition . <>, but is still a long full of joint internal disputes and objections. for Gong Jialong, the long joint also assume another role, that is, through the long days together to transfer the shares issued. Tianfa Although in deep trouble, But it is the only refined oil wholesale license, retail license refined oil, refined oil and domestic fuel oil import and export licenses permit mineral development permits complete four domestic private oil enterprises. and this is the lack of long-linked resources. <s oil assets and oil operating license into a long joint. then shot by Lehman Brothers Holdings and the Hubei talk made the banking sector debt restructuring. After debt restructuring, Xinjiang Chalkis Co. shares issued will then set the day's days of aging and technology assets equipment. middle twists and turns, but it is not until below. <> December 21, 2006, Gong Jialong incident. Jingzhou in the day of days at a guesthouse in the oil market sent the tenth anniversary of the opening ceremony, Gong Jialong by Hubei Provincial Public Security Department task force officers away, and since then it has not returned to the days of his hair for 20 years. <> depth <> day hair line endings: no oil in the days <> in the Gong Jialong arrest, Days Group (hereinafter referred to fat days) will go from the outside world has been the topic of concern. especially the day of its two listed companies issued S * ST Tianfa (000,670) and S * ST days Yi (600,703) fate. < > With the December 11 S * ST Tianfa oil assets sold, S * ST day of S * ST-day development and aging of the shares and assets of the basic end of the auction, after the reorganization of two listed companies generally show business direction . In addition to S * ST day of aging will continue to maintain the restructuring of rapeseed oil processing business,, S * ST Tianfa the main business of the future will no longer be associated with the oil. were moving moment, the most complete day of petroleum licenses will be issued oil disappear from history. <> Department issued equity and asset-day auction was started from October, in the speedy completion of two months. action so quickly is because S * ST day of development and aging S * ST day of the year May cause losses for three consecutive years face suspension. in accordance with the relevant provisions of the two companies can not be completed within one year if the restructuring will face the fate of delisting delisting. as in capital markets to keep the two listed companies, Jingzhou City government had to accelerate the pace of restructuring of both companies. <> re-opened the curtain, the first activity is S * ST day of aging. <> Oct. 20, S * ST day yi 5429.7 million legal person shares options auction to 0.303 yuan per share, starting price, total price of 16.78 million yuan, Fujian three security groups are competing. It is understood that S * ST-day aging as a reorganization of parties, Fujian three security industry involves iron and steel metallurgy, optoelectronics, hydropower, real estate , trade and other industries. In addition to the three security outside of Fujian, Hainan Coconut Island (600,238) as a strategic investment in the days of the main business asset restructuring Yi. In the photograph Yi S * ST-day occupation of this Part are core business assets to blocks of land use rights, will be purchased day of S * ST Fujian Yi main assets jointly set up three joint ventures safety, and stronger Yi S * ST days the main edible oil processing industry. <> and S * ST days Yi reorganization to maintain than its main business, S * ST-day fate will no longer be issued by oil-related. <> As the license to get a third oil company, according to the first local government restructuring plan, is hoped that a strong central enterprises will S * ST Tianfa shell and petrochemical assets bought together. To this end, Jingzhou city government announced the auction in its stake in the requirements, S * ST Tianfa equity bidder should be a domestic oil industry of large state-owned enterprises, should have the perfect source of oil supply channels, ; It is understood that CNPC, Sinopec, CNOOC to come to the Big Three have been Jingzhou site visits, days in the S * ST complex property rights issued before the fight eventually backed away. desperation, S * ST days made the final only to equity and assets separate from the auction. <> S * ST Tianfa shell resources in the Nov. 10 auction at the Shanghai Shun Yuan Enterprise Investment Development Co., Ltd. photographed, according to the plan re-side , S * ST Tianfa the future direction of the main industry is real estate. <> and S * ST Tianfa ownership of the major oil assets in the December 11 moonset set. these auction of assets, including S * ST-day and long-term debt issued by the Foreign Investment, S * ST-day shipping company issued shares held by Yan, Yangluo library assets oil and gas, construction materials (tankers, etc.), days of economic medicine of assets, S * ST Tianfa Changde gas companies such as equity. The auction total price of 1.45 billion. <> which, among oil and gas bank assets WIT Ning Chemical Co., Ltd. Hubei three competing to 58 million yuan, the Shanghai Shun Yuan Enterprise Investment Development Co., Ltd. Zeyi 1,000 million won a day sent oil prices of building and related assets. Jingzhou ancient city of the remaining assets are owned asset management investment and development company owned limited liability company Jiangjin competing. <> The days of gas station issued its , due to the complexity involved in the lease, subcontract, mortgages and other issues, did not come up with a separate auction. Jingzhou city government, but said, spun off from the days of hair. day of fat will only paper, real estate, logistics and other assets. This is a petroleum industry. Gongjia Long lasted 20 years, dreams of creating a character scale mergers to his dramatic arrest last. since 2004, about his not stopped the controversy has been before. He was a mighty entrepreneurs, the darling of the media also. appreciate him, call noisy, and sometimes impossible to judge us. <> 10 years with Gong Jialong intersection head Cui Xinsheng oil industry funds when talking about this speech Gong Jialong: Gong Jialong private entrepreneurs behind the whole a microcosm of reflection should lead to private entrepreneurs. <> for the time being put aside the controversy on the Gong Jialong cases, Cui Xinsheng sincere and profound evaluation. <> years ago, the market is now so far from lively, Gong Jialong to to the unique vision spotted the oil industry, large-scale investment, except in one fell swoop to create the domestic oil, Sinopec has all the oil outside the only licensed private enterprises. in the country more than 80,000 private oil enterprises camp, most are still small scale local enterprises, Gong Jialong has been taking a step, with the listed companies Tianfa oil. even he founded the extreme, using Government resources to strengthen the ability of enterprises have fully demonstrated the wisdom of Gong Jialong successful in the business side. until he later set up single-handedly led the oil chambers of commerce, long joint, although there are many doubts of the outside sound, but whether he really was the and objectively make the demands of private oil enterprises to be more known by senior government officials and the outside world. <>, but business intelligence, strategy ultimately did not allow Gong Jialong smart way to go in the end successfully. his arrest, reflect deep-seated corporate personality defects. <> . He walked the road, in fact, in many ways no different from other private enterprises: emptied of listed companies, large-scale false accounts of money and even to clear the way for resources. From this point of view, his business does not go beyond the road private enterprises in general. It is also a fatal flaw in this area, so Gongjia Long's 80 years old old, Gong Jialong has a deep reverence. He said that hope as dry as the 80-year-old Wang. However, Gong's ending, let it all more than a hint of irony in color. why they can not do? Perhaps this Gong Jialong is not only to reflect on, and it is more With the dream of entrepreneurs need to think about Built to Last a problem.