China’s Fuyao Glass Drops as Founder Steps Down as Chairman(Yicai) Oct. 17 -- Shares of Fuyao Glass Industry Group fell after the world's largest supplier of automotive glass said founder Cao Dewang had resigned as chairman of the company he set up almost four decades ago, passing the reins to his son.
Fuyao Glass [SHA: 600660] closed 5.1 percent lower at CNY63.48 (USD8.91) per share in Shanghai today, while its Hong Kong-listed stock [HKG: 3606] dropped 5.6 percent to end at HKD67.60 (USD8.70). Both equity markets gave up ground amid investor concerns over trade uncertainties.
Cao, 79, who also quit the role of legal representative of Fuyao Glass, will go on serving as a director and remain the director, chairman, and legal representative of some subsidiaries, the company announced yesterday. He will also take the title of lifetime honorary chairman.
His son, Cao Hui, will take over all the positions his father vacated at Fuyao Glass. He has been working at the Fuqing-based firm for a very long time and was appointed vice chairman in 2015.
Cao Dewang had said on multiple occasions that his son would succeed him at Fuyao Glass.
Dubbed the ‘King of Glass,’ Cao was one of the founders of Fuyao Glass in 1987. As a first-generation entrepreneur who grew up during China's economic reforms and opening-up period, he led the company to become the world's largest auto glass supplier by market share.
In 2014, he opened a factory in the United States by renovating an abandoned site. The stories that unfolded during the initial operation of the plant were made into the documentary American Factory, which won the Academy Award for Best Documentary Feature Film in 2020.
Fuyao Glass also released its third-quarter financial statement yesterday. In the three months ended Sept. 30, net profit rose 14 percent from a year earlier to CNY2.3 billion (USD311.7 million) on a 19 percent jump in operating revenue to CNY11.9 billion (USD1.6 billion).
In the January to September period, net profit surged 29 percent to CNY7.1 billion, while revenue rose 18 percent to CNY33.3 billion.
Editor: Futura Costaglione
