【Introduction】
A circuit board company in Huizhou has seen its market value soar by 130 billion in just four months!
Boss Chen Tao has transformed from a poor boy in Gansu into a billionaire,
thanks to acting as a bridge for tech giants like NVIDIA and AMD.
However, as the company frantically raises funds and executives cash out, investors are starting to panic:
Is this truly a tech newcomer with substance, or just another bubble inflated by capital?
1. The Magical Comeback from “Electronic Component Factory” to “AI Money Printer”
Shenghong Technology’s main business is quite simple
— manufacturing circuit boards (PCBs), which are the green boards filled with circuits found in phones and computers.
Yet, this unassuming business has allowed Chen Tao to ride the AI wave:
– NVIDIA’s latest AI chip B200 uses Shenghong’s 24-layer high-end circuit board
– Tesla electric vehicles use over 20 million PCBs from them each year
– AMD and Intel are long-term clients
Data speaks:
– 2024 revenue of 10.7 billion, a 35% increase
– AI business contributes 40% of revenue
– Daily net profit of 10 million by 2025
Comparative cases:
– Luxshare Precision (Apple supply chain):
30-fold increase in 10 years, but last year its stock price halved due to Apple cutting orders
– CATL: After binding with Tesla, its market value exceeded 1 trillion, but profits shrank due to increased competition
Key point: Binding with giants can lead to rapid growth, but over-reliance on a single major client is a hidden bomb.
2. Frenzied Financing + Executives Cashing Out: Is it Future Planning or Harvesting Investors?
Chen Tao’s “capital maneuvering” is dazzling:
1. A-share private placement of 3.2 billion (November 2024)
2. Hong Kong IPO raising 7.2 billion (July 2025)
3. Investing 5 billion in building factories in Vietnam and Thailand
But strangely, while the company claims it lacks funds (debt ratio of 52%), executives are cashing out like crazy:
– Chen Tao and his wife cashed out 1.7 billion
– 5 executives cashed out 450 million
Investors’ soul-searching questions:
– “Are they cashing out at a high point to run away?”
– “Can the new factory in Vietnam really make money?”
Similar controversial cases:
– LeEco’s Jia Yueting: While shouting “ecological transformation”, he cashed out 10 billion
– Storm Group’s Feng Xin: Overseas acquisitions were halted, stock price collapsed before executives collectively cashed out
Management quote:
> Peter Drucker said:
“Profit is not the purpose of a business, but a measure of its survival capability.”
> When executives are more eager to cash out than to invest in R&D, this measure should raise a red flag.
3. The Self-Made Gansu Man: Can He Avoid the “Rich Trap”?
Chen Tao’s story is inspiring:
– In the 1990s, he quit his stable job to start selling PCBs
– He secured TCL and Skyworth with his “48-hour prototyping” skill
– After going public in 2015, he bet on the AI track
But history tells us that many self-made heroes fall at their peak:
– Hanergy’s Li Hejun: Once the richest man in China, he collapsed due to aggressive expansion and a broken capital chain
– Evergrande’s Xu Jiayin: Leveraged his way to the top, now with debts of 2 trillion
Chen Tao’s three major challenges:
1. Is the technological moat deep enough? (TSMC and Samsung are also developing PCBs in-house)
2. Risks of overseas expansion (strikes in Vietnam, changing policies in Thailand)
3. What to do when the AI boom fades? (Solar energy and VR were once this hot too)
【Conclusion】 The “Deification” and “Assassination” of Capital Markets
To conclude with management scholar Jim Collins:
> “Great companies are not built on one leap, but by continuously pushing the giant wheel forward.”
Is Shenghong’s trillion market value due to the AI boom, or does it truly have solid capabilities?
Time will tell.
But one thing is certain:
When the boss and executives are busy counting money, investors should hold onto their wallets tightly.
(Do you believe in this “binding with giants” wealth model? See you in the comments!)