The wealth path of chaoshan siblings

The people of Chaoshan seem to be born with a knack for business, such as the siblings Wang Laichun and Wang Laisheng.

On September 25th, after a 21-year IPO journey, Chery Automobile (HK.09973) finally successfully listed on the Hong Kong Stock Exchange. Its market value at one point exceeded HKD 200 billion on the day, making it the largest car company IPO in the Hong Kong stock market this year. Meanwhile, Chaoshan's richest woman, Wang Laichun, once again demonstrated a wealth miracle.

Wang Laichun is the head of Luxshare Precision, famously known as the "Fruit Chain Leader." According to data from Tonghuashun, as of September 25, Luxshare Investment holds a 15.96% stake in Chery Automobile. Based on the latest market value as of October 13, this portion of Luxshare Investment's stake is valued at approximately 28.3 billion Hong Kong dollars, equivalent to about 25.7 billion RMB.

Since 2022, when Wang Laichun and her brother began acquiring partial equity in three Chery-related companies, including Chery Automobile, through Luxshare Limited's investment of 10.054 billion yuan, the floating profit has now exceeded 15 billion yuan.

Undoubtedly, the Wang siblings have become the biggest winners in Chery's transformation and even in its listing process. However, the focus of this grand capital game is the industrial synergy effect behind the equity cooperation, as well as Wang Laichun's ambition to propel the company's automotive parts Tier 1 business into the global top ten.

Some say they successfully "bet" on Chery Automobile, but this understanding is too superficial. Listing is not the end goal. It is the result of a strategic layout made from a higher level of understanding. Otherwise, it would be Qingdao Wudao Kou who is laughing now.

01Dare to invest then, reap the rewards now.

Luxshare Precision's entry into Chery Automobile's transformation and reform can be traced back to 2022.

In February of that year, Luxshare Precision, whose actual controllers are Wang Laichun and Wang Laisheng, issued an announcement disclosing that its controlling shareholder, Luxshare Limited, acquired a 19.88% stake in Chery Holdings, a 7.87% stake in Chery Automobile, and a 6.24% stake in Chery New Energy from Qingdao Wudao at a cost of 10.054 billion yuan.

Later, the investment entity of the Wang Laichun family in Chery Automobile changed from Luxshare Limited (in which Wang Laichun and her brother Wang Laisheng each hold 50% equity) to Luxshare Investment.

It is worth mentioning that when Wang Laichun and her siblings initially invested in Chery, the company was undergoing a critical "mixed-ownership reform" period in its equity structure adjustment. At that time, Chery's valuation was relatively low. According to the prospectus, the purchase price for the Wang Laichun family was only 8.41 yuan per share.

One can only say that experts truly stand out; the concerns of the capital market did not hinder the investment steps of the Wang siblings. After investing billions to acquire shares, they subsequently increased their holdings again, at one point raising their stake to 21.16%.

In 2022, the year the Wang siblings became shareholders, was also the moment Chery truly began to "take off in Wuhu." That year, Chery Automobile's annual revenue was 92.618 billion yuan, with a net profit attributable to shareholders of 6.266 billion yuan. In just two years since becoming shareholders, Chery has experienced explosive growth in its performance through overseas markets and its new energy vehicle business.

In 2024, Chery Automobile's revenue soared to 269.897 billion yuan, with a net profit attributable to the parent company reaching 14.135 billion yuan. Moreover, Chery Group's annual revenue surged to 480 billion yuan, making it the top-ranked company in Anhui Province.

In January this year, Chery Holding completed the "shareholder decentralization" reform. Wuhu Investment Holding, the management and employee shareholding platform, and Luxshare remain the company's three major shareholders, holding 21.17%, 18.25%, and 16.83% of the company's shares respectively. After the reform, the company's ownership structure has become clearer and more transparent, promoting the company's operation in the capital market.

On the first day of its successful listing on the Hong Kong Stock Exchange, Chery Automobile's opening price was HKD 34.2 per share, reaching a high of HKD 34.98 per share, and closing at HKD 31.92 per share. Its market value briefly exceeded HKD 200 billion, slightly surpassing Geely Automobile, which is also listed on the Hong Kong Stock Exchange.

As of October 13, with 920 million shares of Chery Automobile, representing a 15.96% stake, Luxshare Investments, excluding the initial investment of 10.054 billion yuan and several billion in additional purchase costs, has seen an unrealized profit exceeding 15 billion yuan from this investment by Wang Laichun and her brother, even without considering dividend income and the appreciation of related assets such as Chery New Energy.

From a giant in the consumer electronics contract manufacturing sector to an important player in the automotive industry, the Wang Laichun family has achieved a cross-sector strategic layout through its investment in Chery Automobile. The more than 15 billion yuan in floating profits is not only a reward for their precise judgment but also an acknowledgment by the capital market of the value in the transformation of China's automotive industry.

02A Brilliant Strategic Move

If the following Go analogy is used, then the Wang Laichun siblings' investment in Chery can be described as a brilliant move, carrying a clear industrial layout intention from the very beginning.

Luxshare Precision (SZ.002475) was listed on the Shenzhen Stock Exchange in September 2010 and is a well-known leader in the "Apple supply chain." Currently, Luxshare Precision's main businesses include consumer electronic products (such as smartphones and smart wearables), automotive products (such as automotive wiring harnesses, smart cockpits, and smart driving), and enterprise communication products (such as high-speed interconnects, optical modules, and power supplies).

Luxshare Precision provides integrated intelligent manufacturing solutions ranging from core components and modules to system assembly in these three major business sectors. As early as 2021, Luxshare Precision had established its three main business lines: consumer electronics, automotive, and communications, and set the goal of entering the global top ten in the automotive parts Tier 1 business.

Behind this is Luxshare Precision's declining gross profit margin in the "Apple supply chain," which fell from 21.05% in 2018 to 10.41% in 2024. Therefore, Luxshare Precision also needs a strategic breakthrough. Luxshare Precision has been searching for a platform that can enhance its Tier 1 core component capabilities.

At this time, not only does Chery need Luxshare Precision, but Luxshare Precision also needs Chery.

In fact, as early as 2012, Luxshare Precision entered the automotive wiring harness field by acquiring a 55% stake in Fujian Yuanguang Optoelectronics. In 2013, Luxshare Precision made another move by announcing its intention to acquire German company SUK (which focuses on automotive plastic parts). In 2018, Luxshare Precision acquired ZF TRW's body control systems division, venturing into smart cars.

In 2024, Luxshare Precision invested 4.1 billion yuan to acquire 50.1% of the shares of Leoni, a century-old German company, as well as 100% equity in its subsidiary Leoni K, continuing to bolster its automotive component production capacity. In early 2025, Luxshare Precision plans to acquire the consumer electronics ODM business of Wingtech Technology in phases (for 4.389 billion yuan) to enhance its integration capabilities in automotive electronics.

On February 13, 2022, during an investor relations event, the management of Luxshare Precision clearly stated that the company's cooperation with Chery aims to develop the whole vehicle ODM model (Original Design Manufacturer). Through this cooperation, Luxshare Precision will be provided with advanced R&D design, mass production platforms, and export channels for its core automotive component business. The company is committed to achieving its long-term goal of becoming a Tier 1 leader in automotive components.

In the view of its leader Wang Laichun, Luxshare Precision's years of experience and market reputation in consumer electronics can collaborate with Chery to explore a broader market space under the new situation. This aligns with the needs of market development and precisely addresses the challenges in Luxshare's growth as a Tier 1 supplier.

Subsequently, the strategic cooperation between Luxshare Precision and Chery quickly translated into business growth. The prospectus shows that in 2022, the transaction amount between the two parties was only 32 million yuan. By 2024, it had reached 2.134 billion yuan. In the first quarter of 2025, the transaction amount rose to 513 million yuan, approximately 16 times the total for 2022.

In the agreement between the two companies, it is anticipated that by 2027, the maximum annual transaction amount between Chery Automobile and Luxshare Precision could reach 8 billion yuan, which may account for one-third of Luxshare Precision's automotive business. This is the power of "1+1>2."

03"New Journey After Breaking the Ice"

Chery Automobile's successful IPO this time marks its "ice-breaking journey" in the capital market.

The IPO results show that Chery Automobile's public offering was oversubscribed by 238 times, setting a record for new stock subscriptions in Hong Kong in 2025, and attracting several cornerstone investors. The final pricing was set at the upper limit of the offering price, 30.75 HKD, with a fundraising scale reaching 9.145 billion HKD.

In terms of fund utilization, Chery Automobile plans to allocate 35% for passenger car research and development, 25% towards next-generation vehicles and advanced technology, 20% for overseas market expansion, 10% for production facility upgrades, and the remaining 10% to supplement operating capital. With the additional funds, Chery will advance rapidly.

"Flying with the phoenix, one must be an outstanding bird." This was Wang Laichun's response to external doubts about relying on "Apple". Now, Chery Automobile, heavily backed by the Wang Laichun family, is also becoming an "outstanding bird" flying with the phoenix through the baptism of the capital market.

At the same time, through the cross-appointment of senior positions, the synergy between the two companies is further strengthened.

Chery Automobile's prospectus shows that in March 2024, Wang Laichun joined the group and has since served as a non-executive director, responsible for high-level supervision of the group's management and operations; Li Jing, the general manager of Luxshare Precision's automotive business, also took on the role of non-executive director at Chery, directly participating in strategic decision-making.

It is worth mentioning that in January of this year, due to the need for "family business distribution," the holder of Chery's equity changed from Luxshare Limited to Luxshare Investment. Luxshare Investment is owned 50% each by Wang Laichun's siblings, Wang Laijiao and Wang Laixi. These two low-profile family members both have industries closely related to Luxshare Precision.

According to reports, TaiRui Manufacturing, where Wang Laijiao is employed, supplies flexible materials to Luxshare. Lijing Innovation, where Wang Laixi serves as director and general manager, mainly focuses on mobile phone lens modules, tablet lens modules, and other products. Additionally, Dongguan Gaowei, where Wang Laixi is the legal representative, mainly manufactures optoelectronic devices and electronic components. Undoubtedly, these companies all have business dealings with Luxshare Precision.

From this series of operations, it can be seen that Chery Automobile, after Luxshare Precision's investment, has released a strong synergistic effect through the joint efforts of both parties. A win-win situation has already been formed for both sides, and as Chery's globalization strategy advances and Luxshare's automotive parts business continues to expand, the next step is how to go further.