Being sincere is the way of heaven; being sincere is the way of man. ——Mencius

In the eyes of many people, collecting rags is a symbol of poverty. However, there was a man who made his fortune from collecting rags and became the richest man in Henan. For more than 10 years, he juggled between banks and the government. Using fraudulent loans, he has a net worth of 1.4 billion, and he was on the Forbes 100 list. In the end, the corporate empire he established began to collapse, ending in a situation where the gold and silver were gone and Lang Dang was imprisoned.

Becoming the "King of Rags" for a living

Sun Shuhua was born in a poor family in Huainan County, Henan Province. When Sun Shuhua was 12 years old, his parents moved his family from the county town to make a living. Moved to the countryside. Sun Shuhua has six brothers and sisters, and he ranks third. As the elder brother in the family, he has to shoulder the burden of life.

In order to reduce the burden on my parents, I raised my younger brother and sister, who fried fried dough sticks and sold sesame cakes. After saving some money, I started a small business with my friends.

Since both of them had no experience, they did not make any money from small business, but instead lost a lot of money. In desperation, 19-year-old Sun Shuhua decided to collect rags.

At that time, everyone in the village believed that Sun Shuhua would make a living collecting rags for the rest of his life. Sun Shuhua didn't care what people in the village pointed at him. He still rode his bicycle every day and collected rags from house to house. Sun Shuhua's collection of rags was not limited to his own village. He also went to nearby villages and towns. It didn't take long for him to become the famous "King of Rags".

Officially going to villages and towns to collect rags, he saw a business opportunity to make a fortune. The county where Sun Shuhua is located mainly grows cotton, and growing cotton requires a large amount of plastic mulch. Plastic mulch films can be recycled. When he went door to door to collect trash, the most common thing he received was agricultural mulch films.

At the beginning, the agricultural mulch films he received were purchased by non-local manufacturers. At that time, Sun Shuhua wondered if he could transport the collected waste mulch to the big cities where it was needed, and then buy other things from there for sale. Sun Shuhua did what he said. He cooperated with the local supply and marketing cooperative to transport the mulch film he received to Jinan, Shanghai, for sale. He used the money to go to Yunnan to buy cheap phosphate fertilizer.

A fork in the road of life

In just a few years, Sun Shuhua relied on these two businesses to operate and accumulated 500,000 to 600,000 yuan. Because he brought great benefits to the supply and marketing cooperative, the organization appointed him as the vice president of the supply and marketing cooperative.

At that time, the local township chief made a suggestion to Sun Shuhua. He believed that Sun Shuhua could build a factory to produce plastic films. After all, the local demand for plastic films is very large, and there will be great development prospects.

Sun Shuhua naturally understands the benefits of this. He has also thought about this idea before. However, setting up a factory is not that easy and requires a lot of funds.

Although he has made a lot of money in recent years, it is far from enough to build a factory. Sun Shuhua told the township head that it was not that he did not want to build the factory, but that he did not have enough funds. In the end, after the township head discussed with the leaders of the township, he helped Sun Shuhua borrow a loan of 1 million yuan from the credit union in the township in the name of the township government.

Soon Sun Shuhua cooperated with the local township government to set up a plastic film processing factory. Due to the large market demand, the mulch films it produces are of high quality and its operating mechanism is flexible. The plastic mulch he produces occupies a quarter of the local market share. Sun Shuhua, who was less than 20 years old, made a net profit of 2 million that year.

Established Hualin Group

After continuous development, his plastic factory has grown from a small factory to several medium-sized factories now, with sales of tens of millions every year. Forehead. He has always felt that the growth space of the plastics industry is limited, and he wants to turn his attention to other industries and look for a big opportunity to make a fortune.

He organized several companies he had established before into Henan Hualin Group. When Sun Shuhua established Henan Hualin Group, he announced that the group had assets of more than 200 million and had thousands of employees. However, in fact, the group has less than a few hundred employees and its assets do not exceed 100 million.

In order to show his identity, he also bought a Mercedes-Benz. He was the first person to buy a Mercedes-Benz in Zhoukou City. Sun Shuhua also obtained a car through connections that he might not be able to get even with money. A license plate "京AG0116".

As more and more companies engage in agricultural mulch film production, Hualin Group has not made any development breakthroughs under fierce competition.

In order to make a breakthrough for the group, Sun Shuhua set his sights on lithium battery production. He invested heavily in establishing a production base in a very short period of time. The speed was so fast that even the employees within the group were surprised. These projects are just small projects. What really made Sun Shuhua famous was when he won a national key project.

This project is a polyethylene pipe production project required by the national South-to-North Water Diversion Project. After Sun Shuhua got the project, he did not have the financial strength to put it into production. In order to start this project, he borrowed another 450 million yuan from the bank.

The ending of Zhengdang being imprisoned

Later, Sun Shuhua wanted to expand factory production, so he approached the government, hoping that the government could help him. Finally, with the help of the county party committee leaders, 3,000 acres of land were obtained at a price of 22,000 yuan per mu. In order to obtain a loan, Sun Shuhua loaned it to the bank at a price of 100,000 yuan per mu. In 2014, Sun Shuhua became the richest man in Henan with a personal asset of 1.4 billion yuan.

At that time, some experts made a corresponding assessment of Hualin Group. If all the projects of Hualin Group were carried out at the same time, a start-up capital of nearly 20 billion would be needed. It was obvious that the Hualin Group did not have the strength at all, and soon there was news that Sun Shuhua was being investigated for loan fraud.

At that time, corresponding media conducted an investigation into Hualin Group. They found that the total number of loans of Hualin Group in recent years was as high as 4.8 billion.

Some companies under the Hualin Group began to be bankrupted and liquidated, and many banks also approached Sun Shuhua, the head of the Hualin Group, to press for debts.

At that time, the government was very fond of and trusted this local star company. In order to help Hualin Group overcome the difficulties, they made a lot of efforts, but to no avail.

It was not until the local judicial department intervened that everyone learned that Sun Shuhua had fraudulently obtained loans from banks by purchasing 3,000 acres of land. According to the investigation data, a lot of the money Sun Shuhua borrowed was not invested in the project. In 2017, the court accepted Hualin Group's bankruptcy application, and not long after, the public security organs criminally detained Sun Shuhua.

Sun Shuhua, the richest man in Henan who never finished elementary school, has a personal asset of 1.7 billion by giving gifts and fraudulent loans. As the saying goes, "A gentleman loves money and gets it in a wise way." What is yours is yours after all, and what is not yours will not become yours in the end. In addition, Sun Shuhua's failure also let people know that the most important thing for a company to develop is integrity, which is also the basic principle of being a human being.