Negative-ridden Hebei Fucheng is under investigation and its founder is the “richest man in Yanjiao”

Shangshangcheng project developed by Fucheng.

With a square face and short hair, droopy eyes, and a firework pinned to his chest, this is the most widely circulated photo on the Internet of Li Fucheng, chairman of Fucheng Investment Group (hereinafter referred to as Fucheng Group). He also has many titles, including "the richest man in Yanjiao" and "the number one cattle breeder in the country", and now, his companies are under investigation.

On September 9, there were rumors about Fucheng Group, the controlling shareholder of Hebei Fucheng Wufeng Food Co., Ltd. (600965.SH, hereinafter referred to as Fucheng Shares (9.220, 0.09, 0.99%)) and its affiliates Regarding the tax-related issues of the company Hebei Lianfu Real Estate Development Co., Ltd. (hereinafter referred to as "Lianfu Real Estate"), the Office of the Hebei Provincial Taxation Bureau stated in a reply to the Financial Associated Press that the case is currently being investigated by the Hebei Provincial Commission for Discipline Inspection.

In recent years, negative information about Fucheng Group has been circulating on the Internet, including financial director Yu Hong, real estate general manager Chen Jingjing and many other senior executives who were taken away, involved in gangs, tax evasion, Bribery and other issues.

In July 2014, when Li Gang, who once served as mayor of Sanhe City, Hebei Province, was "lost", "China Business News" reported that after being shuanggui, Li Gang confessed to the fact that multiple real estate developers in Yanjiao had bribed him. , the amount is more than 10 million yuan. However, the above news has not yet been confirmed by official sources.

But what is certain is that this local entrepreneur in Yanjiao, who has many titles, is currently at the forefront.

From "Chinese Cattle King" to "The No. 1 Funeral Stock"

Fucheng Group was established in June 2006. According to reports, at the beginning, Fucheng Group was just a cattle farm. It is the predecessor of Fucheng Group, Sanhe Xinglongzhuang Fucheng Cattle Farm. It is a private enterprise founded by Li Fucheng in 1987 with a loan of 5,000 yuan.

Li Fucheng, 73, once talked about his entrepreneurial experience. He said that he was born as a cattle herder and started his own business at the age of 14. His first business was a small grinding of sesame oil. The resulting sesame paste residue can be fed to cattle.

Subsequently, he received an interest-free loan to start his own cattle-raising company. In 1994, Li Fucheng was awarded the title of "National Cattle-Raising Number One" by the Ministry of Agriculture. By the end of 1996, its fixed assets reached 50 million yuan, 32,000 beef cattle were slaughtered, and 8,000 cattle were on hand. It was known as the "Chinese Cattle King" by the outside world.

After that, Fucheng Group continued to expand its business sectors, and has now formed a comprehensive development of agriculture and animal husbandry, food processing, catering services, real estate development, rural construction and transformation, finance, commerce, property management and other A large comprehensive enterprise group integrating project capital investment.

Its subsidiaries include Hebei Fucheng Wufeng Food Co., Ltd., Hebei Fucheng Real Estate Development Co., Ltd., Fucheng International Hotel Co., Ltd., Sanhe Fucheng Brewing Co., Ltd., Xinglong County Fucheng Cement Co., Ltd., Sanhe City Runcheng Small Loan Co., Ltd., Sanhe Jinding Pawn Co., Ltd., Sanhe Fucheng Trading Co., Ltd., Fucheng Australia Investment Holdings Co., Ltd. and other dozens of branch companies.

In 2004, Fucheng Co., Ltd. was listed on the Shanghai Stock Exchange, with its main business of raising cattle, slaughtering cattle, and selling beef. In 2013, Fucheng Co., Ltd. completed the merger and acquisition of Fucheng Catering and added catering services to its main business. , which is also an extension of its livestock breeding industry.

After that, in 2015, Fucheng entered an industry that was completely unrelated to its main business - the funeral industry. It acquired the Sanhe Pagoda Cemetery and the Pagoda Cemetery around Beijing, which was also listed on the market. The company injected new vitality and became the first A-share listed company in the funeral industry.

In both fiscal years 2017 and 2018, the funeral business provided a gross profit margin of more than 86%.

The high returns allow Fucheng Shares to continue to increase its investment in the funeral business, and even set up a special merger and acquisition fund to invest in the funeral industry. It has currently acquired 60% of the equity of Longshu Cemetery in Yixing, Jiangsu, and Tiande Fudi Cemetery Co., Ltd. in Shaoshan, Hunan 60% equity of the responsible company, etc.

In addition, Li Fucheng, who retired in 2014, came back last year and took over the business of Fucheng Group. According to industrial and commercial information, Li Fucheng, who is over 70 years old, holds 20% of the shares of Fucheng Group, and his two sons, Li Gaosheng and Li Gaoqi, both hold 40% of the shares.

On July 13, 2018, Fucheng Shares issued an announcement that the company’s controlling shareholder Fucheng Investment Group Co., Ltd. and its persons acting in concert planned to transfer the company’s shares to Overseas Chinese Holding Group Co., Ltd., the transaction price and specific plans Not sure yet.

If the above-mentioned shareholder share transfer is completed, the company’s controlling shareholder and actual controller will change. Fucheng Investment Group Co., Ltd. and its parties acting in concert currently hold 62.33% of the shares.

The "richest man" in Yanjiao real estate

In the Yanjiao Shangshangcheng project, there is a golden statue of Li Fucheng driving cattle with a whip.

In 2016, the Li Fucheng family ranked 9th on the Hebei Hurun Rich List with a wealth of 6.7 billion yuan, and was also known as the "richest man in Yanjiao."

Li Fucheng's real estate business started quite early. In 2002, he established Sanhe Fucheng Real Estate Development Company as chairman and acquired a large amount of land reserves in Yanjiao, which was called "Li Bancheng" by the outside world.

At that time, he put forward the slogan "As long as there is Beidiao, I will keep building houses", and successively developed projects such as Shangpin Fucheng, Shangshangcheng, and Shangshangcheng Youth Community.

Shangshangcheng’s large-cap projects focusing on low prices have gained market recognition. In 2014, Shangshangcheng’s 7,000 units were almost sold out in a short period of time due to its outstanding advantages of being close to Beijing and cheaper than Beijing’s Daxing, Fangshan, Changping and other areas at the same distance.

But the other side of the Yanjiao property market is also turbulent. In 2017, the land acquisition in Yanjiao triggered a large-scale rights protection by property owners. The non-residential nature of a large number of projects came to light. Yanjiao developers did not go through formal procedures. The phenomenon of privately converting industrial, greening, and cultural tourism land into residential land has also attracted widespread attention.

Among them, houses No. 1, 2, and 3 of Fucheng Phase 5 are industrial land, and Building 4 is illegal construction land. Later, these lands were quickly changed to residential land, and the owners quickly Time will be enough to complete the process.

Behind the change in the nature of land is the intricate political and business relationship. Li Fucheng has a prominent position in the Yanjiao property market, and there are many rumors about his company. For example, it is rumored that Fucheng Real Estate is wholly owned by Fucheng Real Estate. The Zaolin land parcel acquired by subsidiary Lianfu Real Estate within 20 days had irregularities. Although it has not been confirmed, the equity of Lianfu Real Estate held by Fucheng Real Estate has been frozen by the Hengshui Public Security Bureau.

With the investigation led by the Hebei Provincial Commission for Discipline Inspection, the authenticity of the above rumors will be determined.