(Yicai) Aug. 14 -- Weichai Power’s Tan Xuguang has retired after 26 years as chairman, having steered the Chinese diesel engine and parts producer away from near bankruptcy to a stock market listing and beyond.

Tan has stepped down from all of his positions at Weichai Power, including as chairman and legal representative, the Shandong province-based company announced late yesterday. Ma Changhai was named as the new chairman.

Tan formally took the helm of Weichai Power in 1998, when the company was about CNY300 million (USD42 million) in the red and on the verge of going bust. He brought in reforms that enabled the firm to repay all its debts and turn profitable in only three years.

He then led Weichai Power to a stock market listing in Hong Kong in 2004. Since then, the company’s valuation has skyrocketed 20-fold, while revenue and net profit have surged 3,300 percent and 1,600 percent, respectively. Weichai Power has also paid out more than CNY28 billion (USD3.9 billion) in dividends to shareholders over the period.

For the first half of this year, Weichai Power expects its net profit to have soared 40 percent to 60 percent from a year ago to between CNY5.5 billion and CNY6.2 billion (USD769.5 million and USD867.4 million).

The firm’s shares [HKG: 2338] closed 0.3 percent down at HKD11.96 (USD1.54) each in Hong Kong today. Its Shenzhen-listed stock [SHE: 000338] fell 1 percent to end at CNY12.82 (USD1.79).

Tan owns more than 58.8 million shares of Weichai Power, which are worth about CNY700 million (USD98 million).

Ma Changhai joined Weifang Diesel Engine Plant in 1997. He later served as deputy general manager, board secretary, and compliance director at Weichai Power’s holding company Weichai Holding Group.

Editor: Futura Costaglione