In Anshan Tangpu County, many people are familiar with Lu Ning. Humble in nature, he calls himself a "scavenger" and the so-called "rubbish king," yet he has turned his company into an industry benchmark in the field of recycled resources. In 2010 alone, the company's revenue reached over 60 billion yuan, with the tax paid ranking second only to Ma Steel Group in the area.
What allowed him to amass a fortune of billions from the trash heap? And what enables him to transform waste into treasure?
Venturing into entrepreneurship and starting from scratch
Luning was originally the head of a local state-owned materials company, holding what could be considered a "iron rice bowl." Yet, he decided to venture into entrepreneurship without hesitation, despite having "not a single penny" in his pocket at the time.
Owing to the assistance of many friends at the time, often having to patch up one problem with another and scrounging for money everywhere, years later, Lu Ning, who openly admits to being forgetful, still holds dear the memories of those who helped him. His entrepreneurial journey began with borrowing money to collect scrap steel from all corners.
Luning experienced the joy of institutional innovation during that era and also tasted the hardships and toil of entrepreneurial endeavors as a private entrepreneur. Luning recalls that in the early days of his startup, he did everything himself, serving as both the boss and the apprentice. In the cold winter of the north, he collected goods in Shanxi, heading to a remote warehouse early in the morning and spending the night there, simply laying straw and wearing extra clothes to endure the cold.
Eyes on Environmental Protection, Continuously Expanding
After more than a decade, Lu Ning has accumulated a fortune in the billions, yet he still calls himself a "scavenger." However, his "scavenger" has spotted immense business opportunities amidst the garbage heaps.
On August 20th, Lu Ning co-hosted a tennis invitational in Hefei. He seems to have found a common ground between this green and eco-friendly sport and his own enterprise.
"Old electronic appliances, scrap metal, and used machinery may seem unremarkable, but they are all recyclable resources, closely linked to the entire environmental protection industry. In Anhui Xingang's corporate culture, there's a memorable phrase: 'There is no waste in the world; only resources misplaced...' "
The recycling industry is both ancient and new. It was the initial focus on the environmental protection sector that led Luning not to merely stick to the simple level of waste collection, but to treat it as a resource for comprehensive development and utilization.
Innovation in the Waste Bin
Traditionally, in the recycling process of old refrigerators, the worldwide standard method was to incinerate the waste foam, which not only produces residues that are difficult to decompose for centuries but also causes secondary air pollution. In response, Luning and his team have conducted research and innovation, implementing resource utilization for this waste foam and producing a new type of environmentally-friendly material.
By leveraging innovative technology and excelling in waste management, this has been the secret to Luning's consistent growth and strength. His company not only has its own wastewater treatment plant and dust, noise, and pollution control equipment but also established a recycling resource distribution market and a network of recycling resource collection systems.
Not only technological innovation, but also business model innovation is the unique strength of Luning. He told the reporter that the industry must follow the market's trajectory, and his business is also distributed across the Yangtze River Delta, Pearl River Delta, and Bohai Gulf regions. Moreover, he adopts a "chain supermarket" model, which not only enhances his brand but also facilitates resource integration on a larger regional scale.
"Rag King Aims for Capital Market Debut"
Anhui Xinguang now boasts multiple subsidiaries and 20 recycling resource industrial bases, setting a benchmark in the domestic recycling resource industry. Its sales revenue last year exceeded 60 billion yuan.
And for Luning, it's a great opportunity as the country has listed this industry as a strategic emerging industry, further bolstering their confidence.
Next, Luning is planning to "make a name for itself" in the capital market, considering "capital," "environmental protection," and "innovation" as the three key words for the company's future development. Once it enters the capital market, it will become a domestic pure recycled resources listed company.