China’s reclusive chairman, the 6th richest in the world, beat Buffett with ‘300 won bottled water’

Chairman Zhong Shan-Shan is rich with bottled water. It is also known as’Jong Shan Shan’ in English. [중앙포토]

Red-label bottled water that you often encounter when visiting China. It is the bottled water of Nongfushanquan, a bottled water company that held the 1.4 billion Chinese domestic market. It is a company founded in 1996 in Hangzhou, Zhejiang Province, by Zhongshan Shan, who dropped out of elementary school. As of the 6th this year, the 67-year-old Chairman Joong has beaten Asia’s richest man and “investment master” Warren Buffett to become the 6th richest in the world. It is in the Billionaire Index ranking compiled by Bloomberg News, an economic expert. Chairman Jung’s assets are $91.7 billion (about 99 trillion won) and Buffett’s $82.8 billion. It earned nearly 100 trillion won by selling bottled water worth 2 yuan (approximately 330 won) for one 500 mL bottle.

Chairman Jung’s leap was due to the IPO of Nong Fu San Quan on the Hong Kong Stock Exchange last September. On the day of listing, Nongfushanquan began trading at HK$21.5 per share (about 3017 won) and closed at HK$65.90 per share on the 7th. It is a surge of over 200%. In particular, the stock price jumped 18% until the 4th and the following day, the first trading day of this year, and Chairman Jung’s wealth surpassed Buffett. China’s Ma Yun, chairman of Alibaba, and other prominent figures, as well as India’s Mukesh Ambani Chairman of Reliance Industry, who has long maintained the highest position in Asia, have also overtaken.

His childhood was a struggling march. In the Cultural Revolution, parents were forced to come to the front line of life as the target of purging. It was around 12 years old when I dropped out of elementary school and started working as a bricklayer at a construction site. According to economic journal Forbes, the thirst for academics was solved by majoring in Chinese literature at the 21-year-old Zhejiang Radio & TV University. When it comes to Korea, it corresponds to Korea Communications University.

After obtaining his degree, he entered the local government newspaper in Zhejiang Province and worked as a reporter before jumping into the business front. Forbes said, “From mushrooms to beverages, and health-related products, Chairman Jung has gained business experience by selling a variety of products,” and said, “A typical self-made rich man.” Mark Tanner, an economic expert in China, told Forbes, “The experience gained by Chairman Zhong through sales played a key role in the establishment of over 4500 distribution networks in Nongfu Shanquan.”

Nongfusanquan has also used Korea’s G-Dragon (GD, Kwon Ji-yong) as an advertising model. Chongqing large shopping mall LED display [농푸산취안 웨이보]

Chairman Jung quit newspaper publishing in 1988. After that, he decided to focus on one item first while accumulating various experiences until the founding of Nongfushanquan in 1996. It is the most basic water among daily necessities. The idea was that the Chinese market had a large population, but there were no decent bottled water companies. At that time, the bottled water market in China was dominated by Taiwanese company Kang Sop (康師傅). Chairman Jung put the motto of “We are only messengers of nature” and put forward the brand name’Nongfu Sanquan, which means’spring water that farmers drink’. Since 2011, it surpassed Kangsp and now boasts a market share of over 57%.

He became a billionaire just by making bottled water for 1.4 billion people, but Chairman Jung was not satisfied. He will then diversify its products with carbonated water, juice and coffee. Reading the preferences of Chinese consumers, he went one step ahead and expanded his business by launching products. At the same time, the company has shown interest early in bio companies, and is also running a company called Wantai Biopharm (万泰生物).

The red label of Nongfushanquan is famous. [위키피디아 커먼스]

Wantai Biopharm was listed on the Shanghai Exchange in April of last year, and its stock price soared 2500%. It has the technology to make a new coronavirus infection (Corona 19) diagnostic kit, and the corporate value has skyrocketed. It is the result of his’chuck’ reading ahead of the trend of the times.

As a result of this, there is also a saying in China that “The era of Mr. Ma (represented by Ma Yun) has passed, and the era of Mr. Jung has come.” However, there is something to be careful about for Chinese businessmen. It is said that if it becomes an angular stone, it can be met. If it is outside the eyes of the Chinese authorities, it can lead to imprisonment and even death sentences. Alibaba’s founder Ma Yun is enjoying the spicy taste after criticizing the financial authorities in October of last year.

Jung is different. His nickname is’Lonely Wolf’. That is because they refrain from external activities. It is the philosophy of Chairman Jung, a self-made man who was a bricklayer, to build wealth one by one, quietly and without opposing the Chinese authorities.

Reporter Jeon Sujin chun.sujin@joongang.co.kr