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#312 Liu Yonghao $5.58B

Random fact: Brothers Liu Yongxing and Chen Yuxin are also self-made billionaires.

Overview

Liu is founder and chairman of New Hope Group, a conglomerate with 70,000 employees and 110 billion yuan ($17 billion) in assets. The group controls New Hope Liuhe, a publicly traded animal feed producer that had revenue of more than 60 billion yuan in 2016. It also owns businesses in the food, dairy and property sectors.

As of June 19, 2018:
Last change -$969k (-0.0%)
YTD change -$1.02B (-15.5%)
Industry Diversified
Biggest asset 000876 CH Equity
Citizenship China
Age 66
Wealth Self-made
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

Liu Yonghao's net worth of $5.58B can buy ...

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troy ounces of gold
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barrels of crude oil

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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 New Hope Group, a Beijing-based closely held conglomerate with 70,000 employees and about 110 billion yuan ($17 billion) in assets, according to its website. 

He owns the group outright, according to filings with the State Administration For Industry & Commerce. Shares in the names of his wife and daughter are attributed to Liu, reflecting his status as founder and patriarch.

Through New Hope Group he owns 53 percent of its publicly traded animal feed business, according the unit's 2017 third-quarter report.

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

Closely held New Hope Dairy is held separate from the group and had revenue of 4.1 billion yuan in 2016, according to the company's September 2017 IPO prospectus. It's 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 valuation was updated on Jan. 4, 2018 to reflect financials from the prospectus, which led to a decrease of about $500 million to the net worth calculation.

Based on filings with the Hong Kong stock exchange he also has stakes in publicly traded China Minsheng Banking, a commercial bank co-founded by Liu in 1996, Hua Xia Healthcare Holdings, a hospital operator in China and Wanjia Group Holding, a healthcare products distributor.

He collected $814 million in dividends and proceeds of $593 million from share sales and purchases through December 2017, according to company filings and an analysis of Bloomberg data. The value of his cash investments is based on these cash flows, taxes, market performance and charitable giving.

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

Biography

Birthdate: 9/1951
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.