China leads the world in EV production, and industry upstarts such as NIO and Xpeng regularly grab headlines for growth in shipments, model launches and investment tie-ups. When it comes to actually making money, however, a lower profile auto glass maker beat many of the group last year by not only reporting profit – it also chalked up a double-digit percentage earnings gain from a year earlier.
Fuyao Glass Industry Group, led by billionaire Cho Tak Wong, said on Friday net profit rose by 18% in 2023 from a year earlier to 5.6 billion yuan, or $778 million. Sales rose by 18% to 33 billion yuan.
Founded in 1987, Fuyao has benefitted from continued growth and deep roots in China’s auto industry. China’s auto production and sales volume in 2023 totaled 30.2 million units (+12% year-on-year) and 30.1 million units (+12% year-on-year), both records that topped 30 million units for the first time, according to China Association of Automobile Manufacturers figures in Fuyao’s annual results announcement. China has ranked first in the world for 15 consecutive years in auto production volume and sales volume, the report said.
Fuyao’s sales increased at both home, where it generated nearly 55% of its revenue last year, as well as overseas. A global leader along with Nippon Sheet Glass, Saint-Gobain and AGC, Fuyao last year said it would invest $650 million in manufacturing. Customers include Audi, Honda and Nissan.
Cho – also known as Cao Dewang — and Fuyao embody the scrappy Chinese entrepreneurism that grew out of the heady post-Mao economic reforms in the 1980s. Today, Fuyao has more than 25,000 employees globally; its shares trade in Shanghai and Hong Kong.
A 24% rise in its Hong Kong-traded shares the past year helped to lift Cho’s estimated fortune to $3.6 billion on the Forbes Real-Time Billionaires List on Friday.
Fuyao isn’t alone among auto industry suppliers to do well of late. Shares in tire maker Sailun Group, led by billionaire Yuan Zhongxue, have gained 30% in the past year; Shandong Linglong Tyre, controlled by Chinese billionaire Wang Xicheng, have gained 13%.
@rflannerychina
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March 18, 2024 at 05:14AM
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China Auto Glass Billionaire’s Fuyao Beats Flashier EV Upstarts On Profit - Forbes
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