Chen Fashu & Family 陈发树家族
Chen Fashu & Family [ttpaihang.com]
Shares: 48.9 percent in Newhuadu
Stock code: 002264.SZ
Current wealth: 8.3 billion yuan (US$1.32 billion)
Losses: 5.5 billion yuan (US$873 million)
Percentage lost: 39.9 percent
Chen Fashu, founder and president of Fujian-based Newhuadu Industrial Group, was ranked 36th among the 3000 richest Chinese families in July 2011. The entrepreneur had 5.5 billion yuan (US$873 million) of his previous asset value of 13.8 billion yuan (US$2.2 billion) evaporated between July and December 2011. Chen has investments in Hong Kong- and Shanghai-listed Zijin Mining Group, Shenzhen-listed Fujian New Hua Du Supercenter, Tsingtao Brewery, among other assets.
The richest man of Fujian was in the spotlight again for the share disputes with Hongta Group, China's largest tobacco producer. Chen bought 2.2 billion yuan (US$ 349 million) in Yunnan Baiyao from Hongta Group in September 2009 with mediation by Tang Jun, who was crowned China's Emperor Employee, but has yet to complete the transfer due to a delay in getting the government to approve the acquisition. Chen was supposed to be the second largest shareholder of Yunnan Baiyao with 12.32 percent shares. The investment value has now risen to more than 3 billion yuan (US$476 million).
Chen employed Tang, former president of online gaming firm Shengda Entertainment, with a transfer fee of 1 billion yuan (US$159 million) in 2008. Tang once pledged to foster Chen as China's Warren Buffett, but his capital operation abilities has come into question as he could not bring more profits for Chen from his operations in listing ConnGame Network and buying stakes in Yunnan Baiyao.