Chinese auto parts producer and supplier Ningbo Tuopu Group has seen its shares skyrocket 44 percent to their superior limit in their first day of trading – and the jump also made chairman Wu Jianshu the latest China auto billionaire.
China, currently the world’s largest auto market and the second largest economy might still need a few years to best the rivaling United States when it comes to the overall value of the cars sold or when it comes to the luxury segment, but as far as billionaires are concerned it again snatches the top position. That’s even as the Chinese communist government has tried to reign on luxury spending and numerous cities have started to curb new car registrations because of pollution. But when it comes to rising stars and companies, China seems unstoppable.
Let’s take Tuopu for example. The company was founded back in 1983 and currently delivers vibration, acoustic and suspension parts to major clients, including Audi and BMW. Total revenue last year was 2.7 billion yuan, or $437 million, rising 18.5% from 2013. Also, net profit was 399 million yuan, or $64 million, jumping 17.5 percent from the year ago period. Chairman Wu’s 73.7 percent share holding delivered for him a net worth of no less than 7.8 billion yuan, or around $1.3 billion, thanks to the massive surge on the Shanghai Stock Exchange. China has produced numerous new entrants in the industry’s billionaire top in recent years, this month alone other new billionaires being Chin Jong Hwa of Taiwan and Wang Jianfeng.