Speaking of Foxconn Group, everyone’s first impression of it is the world’s largest 3C electronic product OEM factory. In fact, the entire Foxconn Group's business is far more than just OEM. According to public data, there are more than 20 companies under Foxconn Group listed in the mainland, Hong Kong, Taiwan and overseas securities markets, including Hon Hai Precision, Qunchuang Optoelectronics listed in Taiwan, Sharp in Japan, and Industrial Foxconn and Pengding Holdings listed in the mainland A-share market. Among them, the current total market value of the two listed companies, FU Lian (market value of 296.9 billion yuan) and Pengding Holdings (market value of 100.3 billion yuan), which are listed on the domestic A-share market, has approached 400 billion yuan. In addition, among the companies listed in the domestic A-share market, there is also a giant with a market value of 150 billion yuan, which is also closely linked to Foxconn Group, which is Luxshare Precision .
According to the latest stock market data in October 2019: Luxshare Precision, listed on the Shenzhen Stock Exchange, has a high of 28.78 yuan per share, and Luxshare Precision's total market value exceeded 150 billion yuan, reaching 151 billion yuan. The reason why Luxshare Precision can create such a high market value is due to its rapid growth in performance for 10 years.
Luxshare Precision was listed on the Shenzhen Stock Exchange in 2010. At the beginning of its listing, its annual revenue was only 1.011 billion yuan, its profit was 116 million yuan, and its overall market value was less than 7 billion yuan. Since its listing, from 2011 to 2018, Luxshare Precision's average annual growth rate reached 59%. As of 2018, Luxshare Precision's revenue increased from 1.011 billion yuan to 35.8 billion yuan, and its profit increased from 116 million yuan to 2.72 billion yuan.
In the first half of 2019, Luxshare Precision achieved revenue of 21.4 billion yuan, an increase of 78.29% year-on-year, and profit of 1.5 billion yuan, an increase of 81.82% year-on-year. With 10 years of performance growth, Luxshare Precision has become a blue-chip stock in the technology manufacturing sector, with its market value increasing from less than 7 billion yuan to 151 billion yuan today, with a cumulative increase of more than 20 times.
Of course, behind Luxshare Precision's continuous high performance, it also has an inseparable relationship with Foxconn Group.
Luxshare Precision's founders are Wang Laichun and Wang Laisheng. Among them, Wang Laichun joined Foxconn Group in 1988 and became the first batch of working girls in Foxconn's factory in mainland China. Wang Laichun worked at Foxconn for 11 years and achieved the highest position "section chief" that mainland employees could do at that time. In 1999, Wang Laichun suddenly resigned from Foxconn Group and founded Luxshare Precision with his brother Wang Laisheng. His main business is almost exactly the same as Foxconn Group, and he does OEM for 3C electronic products.
Wang Laichun and Wang Laisheng co-founded Luxshare Precision. Guo Taiming has invested in it, and it is not known to the outside world to provide financial assistance. However, Foxconn Group has provided great help to the company's development. Luxshare Precision’s early business actually came from the subcontracting of Foxconn Group. Until its successful listing in 2010, Luxshare Precision still had 50% of its business from Foxconn Group.
In addition, on the eve of Luxshare Precision's listing, Fugang Electronics, a subsidiary of Guo Taiqiang, invested 40 million yuan in Luxshare Precision, becoming the third largest shareholder of Luxshare Precision. Therefore, whether from the perspective of business or the equity structure, Luxshare Precision is considered a Foxconn Group.
On the other hand, Wang Laichun, who was born as a working girl in Foxconn, also completely draws on Guo Taiming's trick in the management of the factory. Wang Laichun once said: "The more than 100 workers at the factory were built at the beginning, and now there are tens of thousands of workers. I have always insisted on using a management model learned by Foxconn to operate, and it has proved that it is correct." Moreover, Wang Laichun also hangs classic quotes such as Terry Gou once said, "Walking into the laboratory, there is no high technology, only the discipline of execution", "Errors are not scary, what is scary is to make the same mistake again" on the company's wall, allowing employees to feel Foxconn culture.
Now, with Luxshare Precision's total market value exceeding 150 billion yuan, Wang Laichun has also counterattacked from working girls to become a billionaire.In the latest issue of "2019 Hurun Rich List ", Wang Laichun's personal value reached 26.5 billion yuan, while his brother Wang Laisheng was also 26.5 billion yuan, and the total wealth of the brother and sister reached 53 billion yuan.
