Despite repeated low-key, do not want to be famous, Du Shuanghua, chairman of Rizhao Iron and Steel Group, who just boarded the top spot of "2008 Hurun rich list" did not reduce the concern of the outside world.

Du Shuanghua's wealth story has always been the focus of discussion among many people on the day when the 100 riches list was exposed.

It is precisely because of Du Shuanghua's low profile that the media rarely see Du Shuanghua's entrepreneurial experience.

An accidental opportunity, the reporter obtained a Du Shuanghua's report material from the responsible person, which detailed accounts of the tortuous course of Du Shuanghua's 17 years of entrepreneurial development.

Du Shuanghua created a huge fortune after another by snowball.

In May 1991, Du Shuanghua, who was only 26 years old, resigned from the labor service company of Shougang Metallurgical Machinery Factory and started Xinghua welfare steel rolling mill in Beijing, Chaoyang District, Beijing. This is the predecessor of JINGWAH innovation group.

According to the data from Beijing, Xinghua welfare rolling mill is of a very small scale.

In the early days of entrepreneurship, there were only 20 employees.

But by snowball, Du Shuanghua relies on accumulating and promoting development so as to bring investment into effect and enterprises have a relatively thick economic foundation.

Du Shuanghua said: "in September 1992, due to the narrow workshops in Xinghua welfare rolling mill and the limited production scale, I decided to seize the opportunity to build the Development Zone in Sanhe County, Hebei, and build the welded pipe factory with the requisition of land.

After the next year's production, it caught up with the good situation of the price of welded pipe. The supply of products was in short supply, and the scale of production needed to expand.

After many investigations, I decided to build a welded pipe production line with an annual capacity of 100 thousand tons in my hometown, Hengshui, Hebei.

Construction started in May 1993 and the JINGWAH welded pipe plant was formally established in December 31st of the same year.

It is precisely because of Du Shuanghua's snowball approach that the scale of enterprises has expanded rapidly.

In 1998, the annual output of JINGWAH welded pipe factory reached 300 thousand tons, and sales income was 420 million yuan, ranking the first place in Hebei welded pipe industry.

In 1999, the sales revenue was 720 million yuan, and doubled to 1 billion 500 million yuan in 2000. It has become a leading private enterprise in Hengshui, Hebei province.

Since then, Du Shuanghua's expansion has continued.

From 2001 onwards, in order to grasp the advantages of resources and sales, Du Shuanghua decided to build factories near the raw material base and market frontiers. First, the Tangshan JINGWAH Manufacturing Co., Ltd. was set up in Kaiping District of Tangshan, and the first branch plant was set up, and the product structure realized the crossing from straight welded pipe to hot-dip galvanized pipe and spiral welded pipe. The sales revenue was 2 billion 70 million yuan in that year.

Since then, from 2002 to 2003, Du Shuanghua has successively formed four Laiwu JINGWAH, Guangzhou JINGWAH, Jilin JINGWAH and Chengdu JINGWAH management enterprises.

In 2003, JINGWAH innovation group was set up. In the same year, the group realized profits and taxes of 2 billion 380 million yuan, and the profit was 1 billion 35 million yuan.

In 2003, Du Shuanghua completed capital accumulation and began to expand to the upstream of the welded pipe industry to solve the problem of insufficient raw materials.

The Japanese steel was born in this situation.

It is a continuation of Du Shuanghua's snowball approach and a perfect deduction for its steel development opportunities.

In order to solve the bottleneck of insufficient welding pipe materials, Du Shuanghua began planning self built coil project in 2000, and spent three years visiting the site in various parts of the country.

Du Shuanghua said: "before the Rizhao, he visited Tangshan, Dalian, Qinhuangdao, Tianjin, Changli and other places, but none of them had the conditions of setting up factories.

From May 2002 to August, we talked with Shandong Qingdao Iron and steel company for more than 4 months without success.

In August 2002, when we participated in the biennial global iron and Steel Conference, we learned that Italy's H has a set of H steel equipment. Because the ordering factory is not in urgent need of changing hands, we think that the market prospect of H steel is good, so we ordered the equipment, then tightened the site rhythm and settled down in Rizhao.

The sunshine is the iron and steel construction base of the country's key layout. In addition, the city has its unique port and resources advantages. Du Shuanghua has valued this point.

With the support of the local government, Du Shuanghua successfully applied 5687 mu of land in Hushan town near Rizhao City port in Arashiyama.

At the same time, Du Shuanghua has worked with Laiwu Steel Group, which has experience in producing H steel, to provide equipment and funds, and to send technicians to the Laiwu Steel Group and provide financial guarantee. Both sides hold 50% of the shares.

In March 31, 2003, the Japanese iron and steel company officially launched its foundation, and it only took 181 days to start construction and formally put into production, creating an unprecedented "Japanese steel speed".

Du Shuanghua's "speed" made him seize the opportunity again.

From 2004 only 1 million 70 thousand tons of steel output, has now formed 13 million tons of iron, 12 million 500 thousand tons of steel, 10 million tons of annual production capacity.

While expanding production capacity, Du Shuanghua also harvested huge wealth that other steelmakers could not match.

Du Shuanghua described his capacity and sales revenue in detail.

Among them, in 2004, Japan steel production 1 million 70 thousand tons, sales revenue of 2 billion 500 million yuan; in 2005, the output of steel reached 2 million 270 thousand tons, sales revenue 6 billion 300 million yuan; in 2006, the steel output reached 3 million 550 thousand tons, sales revenue reached 11 billion yuan.

By 2007, the steel output of Rizhao steel reached 7 million 750 thousand tons, sales revenue was 28 billion 600 million yuan, and profits and taxes were as high as 7 billion 245 million yuan.

By the end of May 2008, the iron and steel enterprises were faced with the adverse factors of rising raw material prices. The Rizhao Iron and steel industry was still advancing vigorously, the output of steel reached 4 million 446 thousand tons, the output value was 18 billion 940 million yuan, the operating income was 18 billion 580 million yuan, and the profits and taxes were 5 billion 330 million yuan, up 158.3%, 268.1%, 267.6% and 162.9%, respectively.

When Du Shuanghua was making a fortune in snowball, he did not go smoothly. The twists and turns also troubled him.

In the early days of the construction of Japan steel, although the time was short, it was very difficult.

Du Shuanghua recalled, "here is a beach, shrimp pond, construction conditions are very difficult.

In March, when we first started work, we encountered 30 years of heavy snow in Rizhao City. In the 6-9 month, we encountered up to 47 rainy days. The roads were muddy, and large vehicles and construction machinery could not be used. Many of the equipment had to rely on people to shoulder.

During the 181 days of construction, the snow and bad weather took 76 days.

Since April, SARS epidemic has been rampant throughout the country, and road control has been implemented everywhere. The procurement staff can not get out, and the construction equipment can not get in, which has seriously affected the progress of the project.

In addition to the weather conditions and SARS, Du Shuanghua encountered more difficult problems as well as the tighten of Laigang's divestment and capital chain.

Du Shuanghua said that in his cooperation with Laigang, the two sides had not reached an agreement on the way of cooperation and capital operation.

They can only recruit technicians again, and study technology independently.

In terms of capital, there was a shortage of funds due to the withdrawal of shares and the tightening of monetary policy.

He had to get some loans from the bank with the JINGWAH innovation group as a guarantee, and helped the Rizhao City people's government and other financial units to tide over the difficulties.

With the change of steel market and the strength of Japanese steel, Du Shuanghua is also constantly adjusting the production system of the company.

But also encountered many problems.

Du Shuanghua said: "on the original plan of the H steel section of the project, the large H shaped steel equipment could not reach the shore because of the equipment import license. Finally, it could only be temporarily stranded.

Under such circumstances, we are also preparing for the 2150 hot rolled strip project encouraged by the national industrialization and the national industrial policy, which is also necessary for supporting the downstream welded pipe enterprises.

At present, the production line equipment has arrived and has the installation conditions, the main equipment payment has reached more than 90%, the whole project has invested about 2000000000 yuan, but in order to wait for the overall planning of Shandong iron and Steel Group, temporarily suspended construction.

All kinds of twists and turns did not stop Du Shuanghua from rolling snowballs, but he kept moving towards bigger goals.

Du Shuanghua's two ideas at present are: first, to build a large wheeled logistics distribution port with large wheels and to improve the raw material supply pattern of our steel enterprises; the two is to develop and popularize non blast furnace ironmaking technology. After completion of the project, it will become the largest steelworks solid waste recycling project and the comprehensive utilization project of vanadium titanium magnetite in China. After the completion of the project, the annual sales income will reach 10 billion yuan, and the profits and taxes will be 2 billion yuan.

According to Shandong's "opinions on further speeding up the structural adjustment of iron and steel industry", the construction of Rizhao large steel base is the focal point for the adjustment of the regional layout of iron and steel industry in Shandong province.

In this regard, Du Shuanghua also has his own ideas.

Huang Mengfu, vice chairman of the CPPCC National Committee and chairman of the Federation of industry and commerce, interviewed me, and put forward the idea of "a certain scale of private iron and steel enterprises can be combined".

I have been thinking about this idea that he has provided a scientific guidance for the development of iron and steel enterprises in China, especially the private steel enterprises, which helps to enhance the core competitiveness of enterprises, and will also speed up the concentration of China's steel industry so as to facilitate the development of private enterprises better, faster, more standardized, higher level and larger, and further strengthen my confidence in speeding up development.

Du Shuanghua said.