Hu Yonggen: How Does The Waste King Sit On 1 Billion Assets?

When peers began to enjoy family happiness at home, Hu Yonggen, 56, borrowed 500 yuan to ride his bicycle and collect scrap products and start his own business.

With extraordinary courage and extraordinary vision, in the past 17 years, it has created hundreds of millions of wealth and has become a giant in the Western metal recycling industry.

As the founder of Chengdu Xinjin Huasheng metal materials trading Co., Ltd., Hu Yonggen's annual turnover has reached 1 billion yuan.

Looking back on the way of starting a business, Hu Yonggen said, "in the most difficult time, only two kilos of pigskin can be bought in the new year."

Hu Yonggen, who is sitting on the top of 1 billion, is from poverty. The Huasheng metal trading company of Xinjin is located in the golden section of the county town, and many high-grade flats are being built around it.

Last year, a real estate developer took a look at the site of Hu Yonggen company and his 40 acres of land purchased in Huaqiao Town, Xinjin County, where the total price was twenty million yuan.

Many people saw this figure inevitable, but Hu Yonggen did not hesitate to turn down the other.

In fact, as long as he walked into Hu Yonggen's company, he could find the reason for his refusal: a factory less than 100 square meters, and the value of the metal scrap in it was as high as 8 million yuan.

"When the business is best, my net profit is 200 thousand yuan per day," Hu Yonggen said. Last year, Hua Sheng's turnover reached 1 billion yuan. At present, he is preparing to join the real estate industry.

When he was 56 years old, he went to the county town to pick up shabby Hu Yonggen. Before he was 56 years old, he was poor.

In 1936, Hu Yonggen was born in a poor family in Xinjin county. After graduating from the Chengdu Air Force Technical School in 1958, he was assigned to the factory as a worker.

"The idea of doing business is deeply rooted in my head."

Hu Yonggen said that at that time, although he was working in a factory, he was "very restless" and wanted to find some business to supplement his family.

Because of historical reasons, Hu Yonggen's business dream has not been realized. Instead, he has returned to farming in Xinjin.

"The family's income is less than 100 yuan a year. In the most difficult time, only two pounds of pig skin can be bought in the new year."

Hu Yonggen said that in 1989, his daughter was more than 10 years old. He was so poor that he could not afford a pair of shoes.

"We can no longer rely on farming."

Hu Yonggen, who is 56 years old, is determined to pick up rags in the county seat.

In 1990, Hu Yonggen, who had been in the county town for nearly a year, saw the business opportunity of waste recycling from the scraps and scraps. He spent 5 cents on the market.

"If you can buy junk from residents at a very low price, you can make money by selling it hand in hand."

So Hu Yonggen borrowed 500 yuan from his friend as a capital, bought a bicycle, and then he took two big bamboo baskets after the car, and began to buy goods from the street.

"Old books, old newspapers, bottles and cans..."

Hu Yonggen said, "waste products must be called while walking. If anyone has a sale, he will be called home when he hears the cry."

A bicycle can't ride too fast, otherwise it will be too late for the residents to call him after crying out.

He can only sleep more than 3 hours a day.

Hu Yonggen said that he had to go out early to collect waste products every day, and he would go home to pile up the goods at night. He usually had to sleep until the early hours of the morning, and he got up at 3 in the morning to sort and load the waste products.

"What we did at that time was changing hands. The profits were very thin and very hard."

What impressed Hu Yonggen most was the day in 1991. When he went to Chengdu to talk business with others, he searched all his pockets to find 5 cents, and the appointment place was a teahouse.

There was no way. Hu Yonggen had to drive on his bicycle with only 5 cents.

"When I mixed tea, I went out on the excuse of going to the toilet."

Hu Yonggen said he could not bear to spend only 5 cents on his body.

At that time, only three or four people in Xinjin bought the waste products. After six months, Hu Yonggen's business began to expand.

In early 1991, Hu Yonggen rented three simple Cottages at the price of 5000 yuan a year near the three bridge of Wuyang West Road in Xinjin County, named "Huasheng commercial bank", and began to purchase waste products at fixed points.

When Hu Yonggen got back to the starting point, he got rid of thousands of dollars and was confiscated. After that, he did not have to spend more time thinking about the waste products business: a catty of scrap metal was priced at 4.5 yuan, he could sell more than 6 yuan, and the profit of old books was very thin.

In this comparison, Hu Yonggen saw huge profits in the acquisition of scrap metals, and he focused on the acquisition of scrap metals.

"Copper, aluminum and scrap iron are all collected."

Hu Yonggen said that at that time his main job was to classify the metal scrap purchased.

Because many of the scrap metals sold are old wires and electric meters, to remove copper and other metals, the rubber wrapped outside must be removed.

In this way, Hu Yonggen's hands simply can't see the color of the original skin, and the clothes are also covered with dirt. "Happy is that you can earn more money every month."

Hu Yonggen's scrap metal business is not a breeze, but several strikes in 1992 almost gave him up.

"The most afraid to buy thieves."

Hu Yonggen said that due to the waste metal recycling was a special industry at that time, the profits were considerable but there was a certain risk.

On one occasion, Hu Yonggen bought the waste electrical wires handled by the county power company, because the wires were cut off one by one. They looked very artificial cut off. The result was that they were confiscated by the public security organs, and Hu Yonggen lost thousands of dollars.

After a long time, Hu Yonggen was confiscated several times, and he lost nearly 10000 yuan before and after.

And this is all his assets since he started his business.

"Do it early and do nothing."

Hu Yonggen thought of giving up, and his wife saw his confusion. "There is always something to earn if there is something to do."

His wife's comfort led him to see the reality: once he gave up, the family would get into trouble.

Hu Yonggen had to work hard in the waste market.

In the beginning of one million, Hu Yonggen's business took the first big turn. The state-owned heavy metal recycling company in Xinjin took a look at Hu's distribution ability and asked him to affiliate with the company. At that time, the profits of scrap metal rose to 3000 yuan to 4000 yuan per ton.

At the end of 1993, Hu Yonggen took inventory of accounts and found that his assets had reached hundreds of thousands of yuan.

What pleased him most was that the company he was affiliated with decided to contract to the private sector, and the state also released the private acquisition of scrap metal.

"The most important capital and opportunities for business are captured by me."

Hu Yonggen was out of control. By 1996, Huasheng's business volume had reached 15 million yuan, and Hu Yonggen had accumulated millions of yuan to become a truly millionaire.

Why do we not expand the provincial market?

In 1999, the sales volume of Huasheng Company reached about 50000000 yuan.

The competition for metal scrap recycling in the southwest region is also fierce. "Everyone has seen the profits of metal recycling and poured into the industry."

Profits from metal recycling began to slide.

Hu Yonggen said that at that time there were several large metal recycling companies in Xinjin, and there were more than 10 small recycling stations in Xinjin.

"It is no doubt that we should sit back and recover," he said. "Why not expand the provincial market?"

Hu Yonggen made a bold decision to take the initiative to attack the market outside the province.

"The risk is great. After all, no one has done this before."

Hu Yonggen sent his daughter to the coastal areas and other places to conduct on-the-spot investigations to explore new needs and new markets for the metal scrap recycling industry, and to establish long-term and stable cooperative relations with the distributors of waste products in all parts of the country.

Hu Yonggen said that Hua Sheng's achievements today depend not only on the opportunity to seize the opportunity, but also on the "integrity".

Chongqing is the first foreign market of Huasheng Company.

In 1999, Huasheng Company and Chongqing merchants talked about a business, but the last day of the loan has not been collected.

The first time we cooperate, what do we think of each other?

It's not easy to tell the other person about their difficulties. When the money is raised, the bank has already closed.

"What should I do?"

Hu Yonggen's daughter decided to personally drive the money to Chongqing. When the other party received the money, it was already 11 o'clock in the evening.

"Businessmen in Chongqing are very impressed and say to their daughter," this year, there are not many people who speak like you.

Since then, Chongqing businessmen have strengthened their cooperation with Hua Sheng.

He has spent $6 million on charitable work. He knows Hu Yonggen. He doesn't like extravagance and waste.

Last year, Hu Yonggen bought a Mercedes Benz as a birthday gift for Hu Yonggen's birthday, but she didn't use it for about 1500000 yuan.

"What am I going to do for a Mercedes? It's great to go out and ride on a tricycle."

Hu family also has an unwritten rule. Except for the banquet, the family is not allowed to eat outside.

At ordinary times, the leftovers that are not eaten at home never fall out. Hu Yonggen said, "there is a lot of flavour under the leftovers."

In 2003, a number of relocated households in Xinjin county need to be resettled. Hu Yonggen took out a piece of land to build 30 houses and sold them to 400 residents at a price of more than RMB yuan per square meter.

At that time, world commercial report [biz.icxo.com] Xinjin County commercial housing average price of 1100 yuan / square meter.

At present, Hu Yonggen spent 6 million yuan on charity. Among the people he subsidized, the number of poor students reached more than 1200.

Compared with Hu Yonggen's photo a year ago, reporters found that Hu Yonggen had lost a lot of weight.

"Last May, I was diagnosed with esophageal cancer, and I had an operation in June.

I had 5 operations at the same time, only I survived. "

Speaking of this, Hu Yonggen's eyes were watching the "struggle" on the wall.