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SCMP Reporter

Liao Changguang is almost the mainland equivalent of Hong Kong's rags-to-riches businessman Jimmy Lai Chee-ying.

  Both sport closely cropped hair and have built their business empires from scratch by knowing their markets and not being afraid to be unconventional.

  What makes them different is that Mr Liao, chairman of Chongqing Cygnet Diet Culture Group Co, is slimmer than Mr Lai and loves wearing 8,000 yuan-plus (about HK$7,463) Italian suits and a Rolex watch, while Mr Lai is known for his penchant for casual clothes and braces.

  Above all, Mr Liao, who serves as a member of Chongqing's Chinese People's Political Consultative Conference and holds positions in commercial associations, maintains amicable relations with the Chinese Government.

  When foreign journalists were invited to visit Chongqing last week, Mr Liao's catering and guest house group was chosen by the city's foreign affairs office as a showcase business venture.

  Cygnet was founded in 1983 by Mr Liao and his wife, He Yongzhi . Initially, they had only three hot pots and a few employees.

  Today, the 46-year-old's business empire consists of 30 hot pot restaurants in Beijing, Tianjin, Wuhan, Guangzhou, Xian, Suzhou and Chengdu, as well as three in the United States, plus two three-star hotels, one vacation village and a total of 4,000 employees.

  Last year, the group's net profits were about 20 million to 30 million yuan, Mr Liao said.

  'I always believe success is a result of opportunity and wisdom,' the elementary school drop-out said.

  Like most youths in the 1960s, Mr Liao was sent in 1969 to the countryside as zhi qing, or young literates, to experience the lifestyle of peasants.

  He moved back to the city in 1974 and worked with the urban construction bureau.

  But it was not until 1983 amid China's sweeping economic reforms that he decided to plunge into private business.

  'I did not feel I was the kind of person who could sit in a government department, but rather as someone who excelled at business. Also, I had the guts,' Mr Liao said.

  He raised 3,000 yuan to start his hot pot business by selling his house. He and his wife rented a room from his mother-in-law.

  As the third child in his family, his bold move was not supported by other family members.

  'At that time, everyone in my family was opposed to my move. But now they are all working with my company,' Mr Liao said.

  Hot pot restaurants are popular in Chongqing because people believe spicy food can counter the effects of humidity on health and well-being.

  Facing fierce competition when he started out, Cygnet was the first to introduce extractor fans in its restaurants and the concept of a Western buffet.

  For customers who were not accustomed to hot food, he launched 'twin birds' pots which included both spicy and clear soup. His company was also the first to introduce theatrical performances.

  Mr Liao's rush to success took a big stride forward after late patriarch Deng Xiaoping's imperial southern tour in 1992, when faster economic development was encouraged.

  'Our development coincided with China's economic development. After Deng's tour, we began to proceed aggressively.'   Although Mr Liao has built his fortune on China's open door policy, he is not worried about the door shutting.

  'I don't think the course of China's economic development will be altered. This was underscored by meetings of the National People's Congress when leaders said they would stick to Deng's policy to activate the economy,' he said.

  He is now banking on Chongqing's new status to catapult Cygnet to an even faster rate of growth.

  Cygnet plans to open restaurants in cities such as Harbin, Dalian, Shanghai and Kunming.

  Despite his success in taking advantage of free market forces, Mr Liao is reluctant to describe himself as a capitalist in a socialist economy.

  'I don't think we have capitalists in China, but red entrepreneurs.'   Quoting a famous saying from Deng, he said: 'The good cat is the one which catches mice.' 



'Red entrepreneur' builds hot pot empire in open door-era cauldron