Fan Hongwei, Founder of Hengli Group: From Textile Worker to Head of a 780 Billion Yuan Business Empire

Fan Hongwei, Founder of Hengli Group: From Textile Worker to Head of a 780 Billion Yuan Business EmpireThe 2024 Fortune Global 500 list has been released, revealing Walmart as the company with the highest global revenue, but not the highest profit. The company with the highest profits worldwide is the Saudi Arabian oil company, while the highest-profit US companies are tech giants Apple, Google, and Microsoft

Fan Hongwei, Founder of Hengli Group: From Textile Worker to Head of a 780 Billion Yuan Business Empire

The 2024 Fortune Global 500 list has been released, revealing Walmart as the company with the highest global revenue, but not the highest profit. The company with the highest profits worldwide is the Saudi Arabian oil company, while the highest-profit US companies are tech giants Apple, Google, and Microsoft. In China, the situation is quite different from the US. The companies with the highest revenue are State Grid, PetroChina, and Sinopec, while the highest-profit companies are the three major state-owned banks. The highest-ranking Chinese private company is JD.com, at number 47. Close behind are Alibaba at number 70, Hengli Group at number 81, and Huawei at number 103.

It's worth noting that Chinese companies occupy nearly 30 spots in the top 100, accounting for a third of the global total. However, most of them are state-owned enterprises, with private companies being few and far between. JD.com, Alibaba, and Huawei are well-known national enterprises, but what is this Hengli that surpassed Huawei? Its founder is a beautiful businesswoman Fan Hongwei.

Fan Hongwei, a legendary woman who rose from a textile worker to the head of a 780 billion yuan business empire, has a story more exciting than a TV drama. No one could have predicted that Fan Hongwei and Chen Jianhua would turn a near-bankrupt textile factory into China's top private enterprise Hengli Group.

Fan Hongwei and her husband Chen Jianhua shared the same aspirations. In an era when everyone was proud to be a worker and content with collective living, they already had the ambition to start their own business and make big money. With the implementation of the open-door policy in Suzhou, local markets for free private trade were established. At the young age of 20, Fan Hongwei made a bold decision: she gave up her secure job and started a business with her husband Chen Jianhua.

During those years, they rode the first wave of social development, and it's no exaggeration to say they were raking in money. In that era, as long as you had courage and foresight, Chinese society was like an unharvested field, yielding heavy grain with every harvest.

In 1994, when Chen Jianhua mentioned his desire to take over the debt-ridden textile factory, Fan Hongwei not only didn't oppose it but also used all her savings. At the time, Fan Hongwei was 27, and her young and handsome husband Chen Jianhua was only 23. The saying goes, "A woman three years older is worth her weight in gold," and Fan Hongwei's contribution was truly worth its weight in gold.

In the 90s, putting up over 3 million yuan was unimaginable for ordinary people. At only 23 years old, Chen became the "Boss Chen" of the textile factory overnight, skipping 30 years of hardship.

They started from scratch, from a small workshop, and with an indomitable spirit, gradually expanded their business. In the early days of their entrepreneurship, they faced financial shortages and intense market competition. The couple often ran around for a few yuan profit and even scrimped on meals. When they heard about an imported machine in Zhejiang that could weave fabric with high efficiency, they immediately sent Chen Jianhua to learn from it.

Chen Jianhua was responsible for market development, traveling far and wide to secure orders for the factory. Thanks to his network and persuasive skills, sales soon took off. Fan Hongwei, meanwhile, used her financial expertise to tighten internal management, increase revenue and reduce costs, and improve efficiency. She reformed the management system, improved employee benefits, and introduced advanced production equipment. Within a year, the once-loss-making factory became profitable.

In the first five years of running the textile factory, Fan Hongwei made significant profits. However, she remained low-key, keeping her money close and avoiding reckless expansion or investment. Sure enough, the Asian financial crisis hit in 1999. Numerous customers returned goods, leaving mountains of unsold products, and the company seemingly faced ruin. But Fan Hongwei's large cash reserves gave her ample confidence. With food in hand, she had no worries.

Fan Hongwei demonstrated extraordinary courage and wisdom. Instead of sitting idly by, she decisively decided to engage in "counter-cyclical operations." She bought raw materials and equipment at low prices and even absorbed several small factories on the verge of bankruptcy. At the time, many people mocked Fan Hongwei, calling her "foolish with money" for making the wrong decision at the wrong time. But Fan Hongwei knew that opportunities would arise after the crisis, and only by preparing in advance could she seize the initiative when the market recovered.

When the financial crisis passed and everyone resumed production, they realized that all the industry's advanced machinery was in Fan Hongwei's possession, making her company an instant leader, with no rivals.

Entering the new century, Fan Hongwei keenly realized that relying solely on textiles would lead to a narrow path and they needed to find new opportunities. She wasn't satisfied with weaving fabric; she even wanted to make the raw materials for weaving herself. In 2003, the Hengli chemical fiber project officially went into production. Thanks to its high-quality products and excellent market reputation, it quickly captured the market and generated impressive profits.

Tasting the sweetness of reform, Fan Hongwei and Chen Jianhua did not stop there; they sought greater development. After China opened up to foreign investment, they became among the first to take the plunge. That same year, Hengli, the future Fortune 500 company, was established and started taking on orders for fabric from numerous foreign brands. Once again, Fan Hongwei accurately rode the second wave of opportunity in China foreign trade.

As their wealth grew, she did not become complacent but instead calmly analyzed the market situation and made an even bolder decision: to transform into the chemical fiber industry. At the time, many people didn't understand, arguing that the textile industry hadn't been fully established yet and that a sudden transformation was too risky. But Fan Hongwei stuck to her judgment. She believed that the chemical fiber sector had enormous potential and could complement their existing textile business. More importantly, she understood that relying on imported raw materials would eventually lead to being held hostage by foreign countries.

Business was booming, but Fan Hongwei always had a nagging concern PTA, the chemical raw material for polyester. As the chemical fiber factory grew, the supply of PTA became a major issue, with either soaring prices or insufficient supply. In 2010, Hengli Group officially entered the petrochemical processing industry, moving from polyester raw material production to chemical fiber yarn production and then to garment processing. Hengli gradually moved towards the upstream, obtaining the entire industrial chain.

This step was groundbreaking and transformed Hengli Group from a traditional textile company into a modern corporate group with a complete industrial chain.

In 2016, Hengli Chemical Fiber successfully went public, and Fan Hongwei and Chen Jianhua's fortunes soared, instantly becoming one of China's wealthiest couples. In the following years, Hengli Group continued its rapid growth, expanding its business scope from textiles and chemicals to new materials and real estate, covering virtually every profitable sector.

The rise of Hengli Group, from a near-bankrupt small factory to a business empire with annual revenue exceeding 700 billion yuan, is inseparable from the "dual-engine" strategy of Fan Hongwei and Chen Jianhua, their "golden duo." From chemical fibers to petrochemicals, Hengli Group has achieved a complete industrial chain layout, from downstream to upstream, forming a complete industrial ecosystem and significantly enhancing the company's core competitiveness.

Fan Hongwei's success is attributable to both the opportunities presented by the times and her mutual support and shared struggle with her husband Chen Jianhua. One is intelligent and capable, the other calm and meticulous. In their entrepreneurial journey, they have clear responsibilities and collaborate seamlessly, becoming a recognized model of "husband and wife partnership" in the business world. One focuses on internal matters, the other on external affairs, one manages strategy, and the other handles execution. They complement each other perfectly, working together to create the legend of Hengli Group.

In their entrepreneurial journey, Fan Hongwei and Chen Jianhua have supported each other, trusted each other, and overcome countless challenges, ultimately realizing their entrepreneurial dreams. It is believed that more outstanding entrepreneurs like Fan Hongwei will emerge, contributing to the prosperity and development of the Chinese economy.

Source: Observer.com, August 5, 2024, 2024 Fortune 500 Released: Three Chinese Companies Among Top 10 Profit Earners, All Banks.

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