Core Insights - The rise and fall of Jiang Quanlong, a self-made tycoon in the rare earth industry, illustrates the dramatic shift from success to failure within a decade, highlighting the impact of personal choices and management styles on business outcomes [1][11]. Group 1: Rise of Jiang Quanlong - Jiang Quanlong, with only a primary school education, transformed from a migrant worker to a leading figure in the rare earth industry, establishing China Rare Earth Holdings and amassing a personal fortune of 1.14 billion RMB [1][5]. - In the early 1990s, Jiang recognized the potential of the rare earth sector, which was relatively obscure and had high technical barriers, leading him to invest all his savings into research and development [3][5]. - A breakthrough in 1995 allowed his company to achieve international standards in purity and cost control, propelling China Rare Earth Holdings to prominence and leading to its successful IPO in 2007 [5][6]. Group 2: Downfall of Jiang Family - Jiang's son, Jiang Xin, was appointed as the general manager at the age of 30, but his extravagant lifestyle and management style led to financial mismanagement [6][10]. - Jiang Xin's lavish spending included a 910,000 RMB private dinner and extravagant office renovations, reflecting a disconnect from the company's financial realities [6][10]. - The decline in rare earth prices post-2007 resulted in significant losses for the company, with cumulative losses exceeding 5 billion RMB from 2007 to 2015 [7][8]. Group 3: Consequences of Mismanagement - In 2014, Jiang Quanlong's gambling addiction peaked, leading to a loss of 120 million HKD in a single gambling session, which was double the company's net profit for that year [7][8]. - By 2016, the company faced multiple lawsuits due to massive debts, and Jiang Quanlong was listed as a dishonest debtor [8][10]. - In 2020, China Rare Earth Holdings declared bankruptcy, marking the end of a once-prominent industry leader, leaving behind a legacy of cautionary tales about excess and mismanagement [10][11].