Zhu Ming's money-making techniques are very simple.
1. Cultivate your image as an "honest Hong Kong businessman" who always repays loans with interest.
The loan, with a 5% interest rate, is secured by "Sihai Biology," a piece of wasteland.
3. Generous interest rates attracted large and small oil traders to make payments to "Sihai Oils".
4
Zhu Ming absorbed funds, illegally raised capital, and embezzled funds, treating the company as an "ATM."
Zhu Ming's empire is actually located in Jiangsu. Just a year ago, Zhu Ming was still the boss of three companies in Yixing and Nantong, living a luxurious life under the admiration of many.
Behind the facade of focusing on real business investment, Zhu Ming was actually engaging in risky capital operations, using real businesses to mask his rampant money-grabbing. After absconding with 280 million yuan, Zhu Ming disappeared, leaving Chen Farong with another failed relationship, three dying companies in Jiangsu, and a whole host of headaches.
Zeng Lingfan, a company with an output value of over 700 million yuan, was "ruined".
Sihai Oils, formerly the state-owned Yixing Oil Factory, was once a well-known and long-established state-owned enterprise in the area. A few years ago, this state-owned enterprise underwent restructuring, first transferring 80% of its shares, and later becoming a Hong Kong-funded enterprise.
According to Sihai Oils' website, Sihai Oils was established in June 2001. It was formed by Hong Kong Zhongxie Group Limited (hereinafter referred to as Hong Kong Zhongxie Group) by acquiring the assets of the state-owned Yixing Oil Factory. It is an edible oil company specializing in rapeseed processing, production of grade 4 rapeseed oil and refined grade 1 oil. The total investment is US$10 million, and the registered capital is US$8.2 million. Hong Kong Zhongxie Group Limited holds 100% of the shares and has actually paid in a total of US$8.2 million.
The representative of the China Association was a rather low-profile Hong Kong businessman named Zhu Ming, who later became the boyfriend of Hong Kong actress Monica Chan, and few people knew the name Zhu Ming before.
Sihai Oils & Fats Company has an annual processing capacity of nearly 100,000 tons, and the company passed ISO9001 quality system certification in 2003.
The company's performance was also exceptionally good: its turnover reached RMB 170 million in the first half of 2003, RMB 450 million in 2004, and RMB 750 million in 2005... The website stopped updating in 2006. Guo Dongfang said, "Sihai Oils' rapeseed processing scale was among the top in the country at that time."
However, the prosperity of Sihai Oils had little to do with investment attraction or Zhu Ming. "Sihai Oils relied on its production line and its long-standing reputation, not Zhu Ming." On the contrary, many believe that Sihai Oils' collapse was a direct consequence of Zhu Ming's actions. "Many people say it was because of the financial crisis, but the financial crisis had little impact on Sihai Oils. A perfectly good company was ruined by Zhu Ming."
He first set a trap.
The loan has a 5% interest rate; the "honest boss" keeps lending money.
At the beginning of the century, Guo Dongfang, a native of Zhejiang, was still doing business in his hometown, where he acted as a "middleman" in the rapeseed meal trade.
When rapeseed leaves the farmer's hands and enters the factory, it is pressed into rapeseed oil, and the residue is called rapeseed meal.
Rapeseed meal is one of the raw materials for poultry feed, and reselling it to feed mills is profitable. Oil pressing companies don't have time to resell rapeseed meal, so they delegate this task to middlemen, and Guo Dongfang is one such "middleman".
In 2000, he began cooperating with Sihai Oils. He imported rapeseed meal from Sihai Oils and resold it to feed companies in Guangdong, earning a considerable profit from the difference. That year, he met Zhu Ming, the owner of Sihai Oils.
"Honest and kind" was Guo Dongfang's first impression of Zhu Ming. "He's about 1.75 meters tall and rather plump." In Guo Dongfang's view, Zhu Ming spoke softly, behaved very politely, and often used economic and academic terms in his conversation, displaying the demeanor of a Confucian businessman. "He said he was very rich, and often seemed indifferent to how much he earned or lost. His favorite saying was 'I won't let you suffer a loss.'"
At the end of 2001, Guo Dongfang received a verbal invitation from Zhu Ming: "Come to Sihai Oils and become the sales manager. You will still be selling rapeseed meal. Your previous commissions will be guaranteed, and I will also make money here." Guo Dongfang was tempted.
In January 2001, Guo Dongfang became the sales manager of Sihai Oils. Although titled sales manager, Guo Dongfang's business operations were essentially the same as before: directly shipping rapeseed meal from Sihai Oils to Guangdong. Due to Sihai Oils' strong reputation, farmers in southern and central Jiangsu province continuously delivered rapeseed to his door, keeping Guo Dongfang very busy. At this point, Guo Dongfang made a mistake: he lent money to Sihai Oils.
In 2002, Guo Dongfang transferred 1 million yuan to Sihai Oils for a shipment of rapeseed meal, but the meal never arrived. Sihai Oils quickly explained, "Sorry, we have too many customers, and this batch of rapeseed meal has all been sold. We can't provide it to you right now." However, Zhu Ming, being a "kind person," transferred 1.05 million yuan to Guo Dongfang a month later, telling him, "The price of rapeseed oil is rising, and this 5% interest is compensation for you."
Guo Dongfang hadn't expected interest compensation, nor had he expected Zhu Ming to be so "generous." Afterward, his business with Sihai Oils continued, and sometimes payments would be made to them, but the rapeseed meal wouldn't arrive. Zhu Ming would always fulfill the verbal agreement and compensate him with principal and interest the following month.
Therefore, Zhu Ming continued to borrow money from Guo Dongfang legitimately, and Guo Dongfang confidently entrusted him with tens of millions of dollars. The IOUs Zhu Ming wrote often used Nantong Xinda, a company under his name, as collateral. In July 2002, Zhu Ming registered Sihai Biotechnology (Jiangsu) Co., Ltd. (hereinafter referred to as Sihai Biotechnology) in Yixing Development Zone, with a registered capital of US$30 million. After this, the IOUs he wrote to Guo Dongfang, besides bearing the official seal of Sihai Oils, also included text indicating that Sihai Biotechnology was providing a guarantee; naturally, the legal representative signatures of both companies were Zhu Ming.
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