A small ravine interprets a great legend
Lenggang Village, Miaojie Township, Wugang City, under the jurisdiction of Pingdingshan City, is about ten kilometers away from Wugang City and is a typical shallow hilly area. , the China-Canada Mining Office is at the foot of this mountain. Li Gang, who has been on two rich lists, has his main assets "hidden" here.
Next to the Sino-Canadian Mining office is the Sino-Canadian Mining beneficiation plant, which was just built in 2007. The factory building is spacious and elegant, and camphor trees and other valuable tree species are planted in the factory area. "A camphor tree costs several thousand yuan." Zhang Junjie, deputy general manager of the company, said that since the factory was built in 2007, more than 2 million yuan has been invested in the greening of the factory area alone. When the greening is completed, the total investment will reach 4 million yuan. The "wealth" of China-Canada mining industry is revealed silently.
According to Zhang Junjie, Zhongjia Mining is a company that only produces and does not sell. All the molten iron it produces is supplied to Wugang, a steel company in the same city, namely Hebei Iron and Steel Group Wuyang Iron and Steel Co., Ltd. "We are equivalent to two workshops in Wugang, providing them with semi-finished products," Zhang Junjie said.
According to Zhang Junjie, China-Canada Mining paid taxes of 117 million yuan in 2007. In the first three quarters of 2008, taxes paid have reached 180 million yuan, and may exceed 200 million yuan for the whole year, entering Pingdingshan. The top six taxpayers in the city. Because Sino-Canadian Mining’s products do not enter the terminal retail market and are relatively low-key, Sino-Canadian Mining and Li Gang have been little known.
From worker to trade tycoon
Li Gang was born in Qiqihar City, Heilongjiang Province. His parents were employees of Qiqihar Steel Plant. When Li Gang was 10 years old, under the national policy of "supporting Wugang", Li Gang's parents joined the Wugang Company and moved his family to Henan. In 1980, Li Gang started working at Wugang Company. A colleague of Wugang Company who was familiar with Li Gang said: "He is very smart and very motivated."
In 1990, Li Gang resigned from Wugang and started doing steel trading. "In those few years, the triangular debt business was popular in business. The so-called steel trade was to buy scrap iron and sell it to Wugang Company. Wugang Company would not give money, but would give steel wire, and then sell the steel wire for money." Zeng Zaiwu Gao Minsheng, a businessman who deals in steel products in the steel city, said.
Li Gang's cleverness has been fully reflected in this triangular debt business. Li Gang earned his first pot of gold from this kind of business.
In 1997, Li Gang founded Henan Wugang Huayu Materials Co., Ltd. In September 2002, the company established a joint venture with Eddy Consulting Company in Toronto, Canada, to establish Wugang China-Canada Steel Co., Ltd., with a total investment of 165 million yuan in the first phase, and then invested 1.2 billion yuan in the second phase of expansion. With annual output reaching 1 million tons, Li Gang's career began to take off.
11.6 billion yuan wealth revealed
As for how the Li Gang family’s wealth value of 1.6 billion yuan was calculated, both rich lists were vague. Starting from Sino-Canada Steel Company, Li Gang successively registered and established many steel companies such as Sino-Canada Mining, Jingsan Iron Powder, Shuanghong Steel, etc., and served as the chairman of all of them. On this basis, he founded Wugang Sino-Canada Group. Li Gang's wealth is mainly concentrated in two core companies: China-Canada Mining and China-Canada Steel.
Sino-Canada Mining is the core asset of Sino-Canada Group. Sino-Canada Mining was originally Li Gang’s own business. It was not until the backdoor listing plan was launched in 2008 that Li Gang’s Sino-Canada Mining carried out equity split: Li Gang held He owns 45% of the shares, and his wife Li Baoyu and his brother Li Kai hold 35% and 20% of the shares respectively.
From an ordinary worker to a billionaire, what is the secret of Li Gang’s success? People familiar with Li Gang describe his success as a "triple jump". The steel trade gave Li Gang his first pot of gold, completing the primitive accumulation of capital. The second key point in Li Gang's career was the founding of China-Canada Steel Co., Ltd. After accumulating his first pot of gold, Li Gang keenly felt that the steel industry contained huge development opportunities. Sino-Canadian Steel, established in 2002, brought Li Gang generous returns. From 2002 to 2007, China's economy experienced rapid growth for five years. GDP growth has remained at double digits. Steel prices have been rising, making it difficult not to make money. Li Gang's steel business began to extend upstream.
Better luck is yet to come. As steel prices rise, the price of raw material iron ore also begins to rise. In 2004, Li Gang saw the huge business opportunities in the iron ore mining industry and decided to move further upstream of the steel industry and enter the iron ore field. As a result, China-Canada Mining came into being. In 2007, China-Canada Mining entered large-scale production, and the price of iron ore also rose to an astonishing height. In the international market, the three major giants in the world's iron ore industry, Brazil's Vale and Australia's "Two Extensions", saw continuous price increases in 2006 and 2007, making iron ore mining a hot and profitable industry.
After Sino-Canadian Mining launched large-scale production in 2007, Li Gang completed a perfect "triple jump" and his wealth began to "expand in scale."