[Special Attention] Trillion-yuan Steel Group Files for Bankruptcy Reorganization! The Buyer Has Been Confirmed!

(Source: China Ironmaking Network)

According to the information publicly released by the National Enterprise Bankruptcy and Reorganization Case Information Website on April 3, 2026, Tibet Kunpeng Industrial Co., Ltd. and Henan Wanyang Zinc Industry Co., Ltd. joint entity are the restructuring investors for the substantial merger and reorganization of 44 companies including Dongling Group Co., Ltd., with Xing Shengda Engineering Construction Co., Ltd. coordinating the review of the reorganization. The specific details are as follows:

On December 31, 2025, Dongling Group Co., Ltd. (hereinafter referred to as “Dongling Group”) and Baoji Xing Shengda Engineering Construction Co., Ltd. (hereinafter referred to as “Xing Shengda”) bankruptcy administrators (hereinafter referred to as “administrators”) issued a recruitment announcement for reorganization investors on the National Enterprise Bankruptcy and Reorganization Case Information Website. By the end of the registration period, three potential investors submitted registration materials, but only the Tibet Kunpeng Industrial Co., Ltd. and Henan Wanyang Zinc Industry Co., Ltd. joint entity paid a due diligence deposit of 20 million yuan and submitted a “Reorganization Investment Plan” to the administrators. After reviewing their submitted “Reorganization Investment Plan” and conducting reverse due diligence, the administrators deemed them qualified and eligible as reorganization investors. To date, the administrators have preliminarily reached an agreement with them on the “Reorganization Investment Agreement,” and they have paid a reorganization investment deposit of 100 million yuan. Accordingly, the administrators confirm and announce the following:

The Tibet Kunpeng Industrial Co., Ltd. and Henan Wanyang Zinc Industry Co., Ltd. joint entity are the reorganization investors for the substantial merger and reorganization of Dongling Group Co., Ltd. and 43 other companies, with Xing Shengda Engineering Construction Co., Ltd. coordinating the review of the reorganization.

As of now, the reorganization investors for the substantial merger and reorganization of Dongling Group Co., Ltd. and 43 other companies have been confirmed. This also marks that Dongling Group, once a benchmark of private enterprise in Shaanxi, has officially entered a critical stage of asset restructuring and business restart.

Below, I will combine official disclosed information to detail the full picture of the event, introduce the background of the reorganization investors, and analyze the core significance and subsequent impact of this reorganization.

Dongling Group

It is reported that Dongling Group was once a benchmark of private enterprises in Shaanxi. Headquartered in Dongling Village, Jintai District, Baoji City, this company has over 100 member companies, assets totaling nearly 40 billion yuan, about 18k employees, and in 2023, revenue reached 125.7 billion yuan, ranking 205th among China’s top 500 enterprises. The group’s main businesses include steel, zinc smelting, mineral energy, and industrial chain trade services. It has been listed on the “China Top 500” list for many consecutive years.

Notably, Dongling Group once ranked first in China’s steel building materials sales. Among Shaanxi’s top 50 private enterprises in 2023, BYD Auto Co., Ltd., Longi Green Energy Technology Co., Ltd., and Dongling Group Co., Ltd. are the top three.

Dongling Group’s founder, the group (village) Party Secretary, and Chairman Li Heiji also twice topped Shaanxi’s richest list in 2009 and 2011, with a wealth of 4.5 billion yuan on the Hurun Rich List in 2011.

In 2017, Dongling Group’s annual revenue reached 108.1 billion yuan, becoming Shaanxi’s first private enterprise with annual revenue exceeding 18k yuan. Dongling Village also transformed from a poverty-stricken village with “three acres per person” into “China’s Western First Village,” with per capita income exceeding 100k yuan and average household assets over 5 million yuan.

However, such a benchmark enterprise gradually fell into operational crisis and ultimately entered bankruptcy reorganization.

Overview of Dongling Group’s Bankruptcy and Reorganization

Bankruptcy Reorganization

On July 25, 2024, the National Enterprise Bankruptcy and Reorganization Case Information Website (Case No. Shaanxi 03 Bankruptcy Reorganization 22) showed that Dongling Group was filed for bankruptcy reorganization by Shaanxi Libang Software Co., Ltd., with the court handling the case being Baoji Intermediate People’s Court. Meanwhile, its subsidiary Shaanxi Dongling Material Co., Ltd. was also filed for bankruptcy by Jin Tai Commercial Bank, Baoji City.

On July 29, 2024, Baoji Intermediate Court accepted the bankruptcy reorganization application for Dongling Group.

Merger of 42 Companies

On December 12, 2024, Baoji Intermediate People’s Court, upon application by the bankruptcy administrators of Dongling Group Co., Ltd. and Shaanxi Dongling Material Co., Ltd., ordered the substantial merger and reorganization of Dongling Group and 41 other companies.

Recruitment of Reorganization Investors

On May 17, 2025, the bankruptcy administrator of Dongling Group Co., Ltd. issued a notice for the recruitment of reorganization investors for Dongling Group and 41 other companies on the National Enterprise Bankruptcy and Reorganization Case Information Website, requiring interested investors to submit registration materials by May 30, 2025. The evaluation results of the reorganization investors will be announced after June 16, 2025.

On June 20, 2025, the website published an announcement confirming that Bin County Coal Company (Binmei Company) obtained the reorganization rights for Dongling Group and 41 other companies.

On the same day, the website also published an announcement extending the deadline for submitting the draft reorganization plan by three months, citing the large number of related companies, substantial assets and liabilities, and complex structure as reasons.

Addition of 2 Companies for Merger Reorganization

On December 12, 2025, the bankruptcy administrator of Dongling Group applied to Baoji Intermediate Court to include Xi’an Dongteng Steel Material Co., Ltd. and Shaanxi Dongling Modern Logistics Co., Ltd. into the substantial merger reorganization.

Merger of 44 Companies

On December 22, 2025, Baoji Intermediate Court, upon application by the administrator, accepted the application to proceed with the substantial merger reorganization of Xi’an Dongteng Steel Material Co., Ltd., Shaanxi Dongling Modern Logistics Co., Ltd., Dongling Group, and 41 other companies.

Re-recruitment of Reorganization Investors

On December 31, 2025, Dongling Group Co., Ltd. and Baoji Xing Shengda Engineering Construction Co., Ltd. bankruptcy administrators issued a new notice for reorganization investor recruitment.

Confirmation of Reorganization Investor

On April 3, 2026, the website published an announcement confirming that Tibet Kunpeng Industrial Co., Ltd. and Henan Wanyang Zinc Industry Co., Ltd. joint entity are the reorganization investors for Dongling Group and 43 other companies, with Xing Shengda Engineering Construction Co., Ltd. coordinating the review.

Tibet Kunpeng Industrial Co., Ltd.

Founded on August 16, 2023, with legal representative Wang Lijun, registered capital of 200 million yuan, and registered address at Building 2, Unit 7, 2nd Floor, Shitong Sunshine New City, Shitun, Lhasa Economic and Technological Development Zone. The major shareholder is Tibet Maixin Technology Co., Ltd.

Henan Wanyang Zinc Industry Co., Ltd.

A subsidiary of Jiyuan Wanyang Smelting (Group) Co., Ltd., established on June 13, 2022, located in Jiyuan City, Henan Province.

Jiyuan Wanyang Smelting (Group) Co., Ltd.

Established in 1995, with over 7,000 employees, 2 business divisions, 20 wholly owned subsidiaries, and 8 joint ventures, involved in non-ferrous smelting, new energy, comprehensive recycling, gold and silver products, jewelry, health industry, chemicals, logistics, and transportation. In 2025, achieved sales revenue of 100k yuan and paid 996 million yuan in taxes.

Image source: internet, for illustration only

A sigh of relief! Rebirth from the ashes!

Rising from a village workshop to a trillion-yuan giant, then falling into bankruptcy reorganization after aggressive expansion, Dongling’s rise and fall is a real business mirror: expanding with the trend can lead to soaring heights, ignoring risks will ultimately be punished by the times. Now, although new investors have taken over, that once-glorious “Steel Empire” can no longer be recreated.

When the tide of reckless expansion recedes, enterprises still stuck in old ideas and outdated models are destined to be left behind by the times. Only by focusing on industry synergy, deepening technological innovation, managing risks, and concentrating on core businesses can one survive the cycle.

Today, Dongling stands at a crossroads of reorganization. We look forward to, under the empowerment of Tibet Kunpeng and Henan Wanyang joint entity, it can completely bid farewell to past recklessness and impulsiveness, and take this rebirth as a starting point to transform into a technologically advanced, green and low-carbon, well-governed, and sustainably steady new industrial group.

May the legend of “Western China’s First Village” continue, and may the spirit and strength of Shaanxi private enterprises reignite amid the wave of high-quality development.

— Because true strength is not about never falling, but about growing deeper roots each time you fall.