The glass King changed?
On March 17, after the 2021 annual report of Fuyao Glass Industry Group Co.Ltd(600660) held by Cao Dewang, the glass king, was released, many investors found that the performance of Fuyao Glass Industry Group Co.Ltd(600660) was far surpassed by Xinyi Glass held by Li Xianyi, Cao Dewang’s hometown. At the same time, this is the first time that the revenue of Xinyi Glass has exceeded Fuyao Glass Industry Group Co.Ltd(600660) P align = “center” Xinyi Glass’s revenue exceeded Fuyao Glass Industry Group Co.Ltd(600660) for the first time
On March 17, Fuyao Glass Industry Group Co.Ltd(600660) disclosed the annual report of 2021. The company realized an operating revenue of 23.603 billion yuan in 2021, with a year-on-year increase of 18.57%; The net profit attributable to shareholders of listed companies was 3.146 billion yuan, a year-on-year increase of 20.97%P align = “center” Image Source: Fuyao Glass Industry Group Co.Ltd(600660) announcement
Fuyao Glass Industry Group Co.Ltd(600660) performance triggered many netizens’ discussion on the topic of “replacement of Glass King”. In comparison, Xinyi Glass, which previously disclosed the financial report of 2021, fully caught up with Fuyao Glass Industry Group Co.Ltd(600660) .
Xinyi Glass achieved an operating revenue of HK $30.459 billion (equivalent to RMB 24.76 billion) in 2021; The net profit was HK $11.571 billion (equivalent to RMB 9.406 billion). Xinyi Glass not only has more revenue than Fuyao Glass Industry Group Co.Ltd(600660) , but its net profit is nearly three times that of Fuyao Glass Industry Group Co.Ltd(600660) P align = “center” Image Source: company announcement
How did Xinyi Glass, which is also making glass and whose revenue has always been behind Fuyao Glass Industry Group Co.Ltd(600660) , suddenly complete the anti super? This may be related to the different business structures of the two glass companies.
Fuyao Glass Industry Group Co.Ltd(600660) annual report shows that the company’s main business is to provide complete solutions for safety glass and automotive accessories for various means of transportation, including the design, production, sales and services related to automotive float glass, automotive glass, locomotive glass, luggage rack and window accessories.
Among them, automotive glass with slightly lower gross profit margin accounted for the majority of the revenue of Fuyao Glass Industry Group Co.Ltd(600660) . In 2021, the company’s automotive glass products achieved an operating revenue of 21.38 billion yuan, accounting for nearly 80% of the company’s total revenue (excluding offset within the group). The revenue of float glass with high gross profit margin in 2021 was only 4.029 billion yuan, accounting for less than 14.91% of the company’s total revenue (excluding intra group offset).
Lutheran glass is the opposite. Float glass with high gross profit margin accounts for the majority of the company’s revenue. The company’s financial report shows that in 2021, float glass achieved a revenue of HK $21.908 billion, accounting for 71.93% of the company’s total revenue; Automotive glass and architectural glass achieved revenue of HK $5.457 billion and HK $3.095 billion respectively, accounting for 17.92% and 10.16% of the company’s total revenueP align = “center” Image Source: company announcement p align = “center” Xinyi Glass leader’s wealth exceeds 50 billion yuan
In addition, Li Xianyi, the leader of Xinyi Glass, is also better off than Cao Dewang. According to the latest data of Hurun rich list, Cao Dewang is currently worth 24.5 billion yuan, ranking 900th in the world; With a net worth of 51 billion yuan, Li Xianyi far surpassed Cao Dewang and ranked 356th in the worldP align = “center” Image Source: Hurun rich list
What is the origin of Li Xianyi and his faithfulness glass?
Public information shows that Li Xianyi, like Cao Dewang, comes from Fujian. Li Xianyi dropped out of school at the age of 15 and started with dry transportation. In 1982, Li Xianyi began to travel to Hong Kong to engage in the auto parts business. It was this wandering experience that made Li Xianyi see the business opportunities in the glass production industry.
In 1988, Li Xianyi returned to the mainland and founded Xinyi Glass, mainly engaged in automobile glass production. With the continuous development and growth of the enterprise, the products of Xinyi Glass have also extended from a single automotive glass to various fields such as architecture, float, photovoltaic and so on. In 2005, Xinyi Glass was listed on the Hong Kong stock exchange. At present, the total assets of Xinyi Glass have reached HK $56.5 billion and the number of employees has reached 14000.
At the same time, under the background of the rapid development of the overall automobile industry, Li Xianyi is involved in more and more industries, including real estate, new energy and so on. At present, Li Xianyi’s Xinyi Glass Group not only has a listed company of Xinyi Glass, but also has Xinyi energy operating Cecep Solar Energy Co.Ltd(000591) power plant, Xinyi solar energy operating Cecep Solar Energy Co.Ltd(000591) glass and comprehensive new energy solution provider Xinyi power storage.
