Bloomberg Billionaires Index

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#261 Liu Yonghao $6.06B

Random fact: Used to teach electronics and mechanics in technical training school.

Overview

Liu is founder and chairman of New Hope Group, a conglomerate with 70,000 employees and about 75 billion yuan ($11 billion) in assets. The group controls New Hope Liuhe, the publicly traded animal feed producer that recorded revenue of more than 60 billion yuan in 2016. It also owns businesses in the food, dairy and property sectors.

As of July 23, 2017:
Last change -$51.5M (-0.8%)
YTD change +$962M (+18.9%)
Industry Diversified
Biggest asset 000876 CH Equity
Citizenship China
Age 65
Wealth Self-made
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

Liu Yonghao's net worth of $6.06B can buy ...

0
troy ounces of gold
0
barrels of crude oil

... and is equivalent to ...

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of the GDP of the United States
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of the total wealth of the 500 richest people in the world
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of the top 100 U.S. college endowments
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of the top 200 U.S. executives’ total awarded compensation
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of U.S. existing home sales
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times the median U.S. household income

Latest News

Net Worth Summary

Cash
Private asset
Public asset
Misc. liabilities
Confidence rating:

The majority of Liu's fortune is derived from his 53 percent stake in publicly traded New Hope Liuhe, a maker of animal feed and agricultural products. He controls the stake via New Hope Group, according to the company's 2017 first-quarter report. 

New Hope Group, a Beijing-based closely held conglomerate, has 70,000 employees and about 75 billion yuan ($11 billion) in assets, according to its website. Some of the billionaire's shares in New Hope Group are held in the names of his wife and daughter. These are attributed to Liu, New Hope Group's founder, due to his control of the business.

New Hope Group's dairy division, New Hope Dairy Holdings, had a revenue of 5 billion yuan in 2016, according to a May 2017 news report by Chinese financial media Yicai. The company is valued based on the price to earnings multiple of three publicly traded peer companies: Inner Mongolia Yili Industrial, China Mengniu Dairy, and Bright Dairy & Food.

The real estate segment reported revenue of 4.8 billion yuan in 2016, according to the 2016 annual report of New Hope Group. The company is valued using price-to-earnings multiple of three publicly traded peers: China Vanke, Gemdale Corp and Poly Real Estate Group. 

The valuation was updated on June 20, 2017 to reflect the dairy and property business 2016 financials and this led to an increase in net worth calculation.

The billionaire also controls 1.6 percent of China Minsheng Banking, the publicly traded bank co-founded by Liu in 1996, according to a July 2016 Hong Kong stock exchange filing.

The value of his cash and investable assets is based on an analysis of dividends, market performance and taxes.

Song Yang, spokeswoman of New Hope Group, declined to comment on the billionaire's net worth.

Biography

Birthdate: 1951
Family: Married, 2 children
Education: Associate's Degree

Liu was born in 1951, the youngest son in a poor family of four brothers and one sister in western China's Sichuan province. During the Cultural Revolution, 17-year-old Liu went to work in a village near Chengdu, the capital of Sichuan. He earned about 2 cents a day for the next four years. He later studied at a vocational school and became a physics teacher in Chengdu in 1978.

Two years later, Liu's older brother, Liu Yongxing, set up a street stand to make money by repairing radios, so he could afford to buy meat for his son for the Chinese New Year. Yongxing earned about $50 in the first week, almost a year's worth of pay from his factory job.

The Liu brothers -- Yongxing, Yongyan, Yongmei and Yonghao -- were encouraged by their entrepreneurship. Two years later, they all quit their jobs, pooled together $500 in startup capital by selling their watches and bicycles, and started raising and selling quail.

The brothers founded Hope Group in 1991 and turned it to one of the biggest animal feed makers as China embarked on economic reforms under the leadership of Deng Xiaoping in the 1980s. They split the business in 1995 and headed in different directions. Yonghao founded New Hope Group in 1996, mainly focusing on animal feed production. Two years later, New Hope Liuhe, the animal husbandry subsidiary of the group went public. New Hope Liuhe is the country's largest animal feed producer and had revenue of $9.8 billion in 2015.

In May 2013, Liu handed over the reins of Liuhe to his daughter Liu Chang. The billionaire remains as chairman of the group. Graduated with an EMBA degree from Peking University, the younger Liu is the chairman of New Hope Liuhe.

Milestones
  • 1951 Liu Yonghao is born in Xinjin, in China's Sichuan province.
  • 1982 Quits his teaching job to start business with three brothers.
  • 1988 They decide to produce animal feed.
  • 1992 Hope Group is founded by the brothers.
  • 1995 Siblings part amicably and split the Hope Group.
  • 1996 Co-founds China's first privately owned lender, China Minsheng Bank.
  • 1997 Establishes New Hope Group.
  • 1998 A subsidiary of New Hope sells shares in Shenzhen.
  • 2001 New Hope ventures into dairy industry.
  • 2013 Daughter Liu Chang succeeds him as chairman of publicly traded New Hope Liuhe.
  • 2016 Plans to invest over A$1 billion ($759 million) in Australia's agribusiness.