Chen Fashu: Down But Not Out
Even successful entrepreneurs have their bad years. This seems to be the case with Chen Fashu. He is the Chairman of New Huadu Group. In 2012 and early 2013 net profit at his Zijin Mining was down 17 percent to $583 million as lower mineral prices and rising costs took its biting effect.
Chen’s New Huadu Supercenter which is one of the largest shopping center operators in the southern Chinese province of Fujian saw its profit for the first three months of 2013 drop by 49 percent from a year earlier to 31 million yuan, or $5 million. This was due to weak economic conditions, losses at some individual stores and rising costs. Revenue rose by 16 percent to 2.1 billion yuan or $334 million.
Chen’s Tsingtao Brewery made a statement to allay insider trading rumors in June 2012 after he sold 2.4 percent stake in the company for $194 million. In January of this year what was supposed to be a top hire from China Microsoft left New Huadu Group after years of controversy regarding the accuracy of his professional background.
When it rain it pours. In the case of Chen with a net worth of over $2 billion he can weather the pouring rain.