The legend of Chen Fashu, the boss of Zijin Mining and the "best businessman of 2008".

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On April 25th, 2008, although Zijin Mining landed in the A-share market in a weak market with a P/E ratio as high as 40 times, its face value of 0. 1 yuan was still higher than that of 22 yuan on that day. This is not the first time that China's largest gold mining producer has caused an uproar in the capital market.

Up to now, although the share price of Zijin Mining has fallen by nearly two thirds compared with the peak value, if calculated according to the closing price of 7.69 yuan on July 30th, the wealth values of Chen Jinghe and Chen Fashu, the two individual shareholders behind the company's shares, are still as high as 88141490,000 yuan respectively. According to the closing price of Zijin Mining (2899. HK) in August 1 day of HK$ 6, the wealth of Chen Jinghe and Chen Fashu is still as high as HK$ 688 million and HK$11billion respectively. Chen Fashu and Chen Jinghe, one of whom had great foresight before listing, invested in Zijin Mining, and the other changed from a professional manager to a major shareholder of the company. The financial management skills behind their road to wealth creation deserve attention.

Chen Jinghe: 800 million yuan for 7,352,800 yuan.

According to the report of the World Management Institute, Chen Jinghe, the founder of Zijin Mining, has held114,594,000 shares of Zijin Mining in the past ten years. Different from Chen Fashu's capital investment, Chen Jinghe's shares were acquired by changing hands at low prices. Chen Jinghe is three years older than Chen Fashu, 1957, from Longyan, Fujian. 1982 After graduating from university, he was assigned to the western Fujian Geological Team and began to become attached to Zijin Mining.

1998, the governments of Chen Jinghe and Shanghang county began to mobilize local residents, government personnel and Zijin employees to raise funds for shares. Zijin Mining was transformed from a wholly state-owned company to a state-owned holding company. In addition to Shanghang County Finance Bureau (which later transferred its shares to Minxi Xinghang Industrial Co., Ltd., a state-owned asset management company), Zijin Mining Trade Union Committee, Laoxian Township Government of Shanghang County, Caixi Town Government of Shanghang County and Tongkang Village Committee of Caixi Town of Shanghang County became four external shareholders. Among them, Zijin Mining Trade Union Committee owns 10. 17% of the shares, and the shareholders are employees of Zijin Mining, including Chen Jinghe. These original stock certificates sold for a maximum of 650,000 yuan before and after the listing of Zijin Mining A shares.

As a professional manager, Chen Jinghe started his stock search in Zijin Mining.

In 2000, Shanghang County Finance Bureau transferred all its 86.80% equity of Fujian Minxi Zijin Mining Group Co., Ltd. to Minxi Xinghang Industrial Co., Ltd.

On July 28th of the same year, a Jinshan trading company named Zijin Mining was incorporated.

A few days later (August 1 day, 2000), the Trade Union Committee of Zijin Group and the Tongkang Village Committee of Caixi Town, Shanghang County signed investment transfer agreements with Jinshan Trading respectively, holding 12. 19% and10/KLOC-0% of their shares.

At that time, Zijin's shareholders became Minxi Xinghang Industrial Co., Ltd. and Jinshan Trading.

In the same month, as the main sponsor, Minxi Xinghang Industrial Co., Ltd. initiated the establishment of Fujian Zijin Mining Co., Ltd. in conjunction with seven other sponsors, including Xinhuadu (002264 Quotes, Shares) Industrial Group Co., Ltd., and entered the sprint stage of listing.

According to the prospectus of Zijin Mining, Chen Jinghe and Jinshan Trading signed the Equity Incentive Agreement on February 1 2002.

According to the above agreement, on July 12, 2004, Jinshan Trading transferred its 6 million shares of Zijin Mining to Chen Jinghe, each of which was 0. 1 yuan.

"At that time, the idea of shareholders was to hope that Zijin Mining would realize the preservation and appreciation of the company's assets and shareholders' wealth through listing. "According to Zheng Yuqiang, the company's director-general, after the company's successful listing, it is not surprising that Chen Jinghe obtained the equity transfer at a price of 0. 10 yuan per share.