His net worth has shrunk by 33 billion yuan in five years, and the former richest man in Fujian plans to cash out 200 million yuan in one go.
On the afternoon of September 13, Leidili Microelectronics issued a pre-disclosure announcement on shareholder share reduction, stating that Chen Fashu, the second largest shareholder of the company, plans to reduce no more than 7.4164 million shares within 3 months.
Public information shows that this is Chen Fashu's first share reduction since he took equity in Leidili Microelectronics in 2015. Calculated based on the closing price of Leidili Microelectronics on September 11, Chen Fashu is expected to cash out about 212 million yuan from this maximum share reduction.
However, when Chen Fashu launched the share reduction plan, Leidili Microelectronics, a leading enterprise in the millimeter-wave microsystem sector, was in a performance trough.
In the first half of this year, the company's revenue dropped 85.22% year-on-year to 68 million yuan, and its net profit attributable to shareholders turned from profit to loss, recording a loss of 91 million yuan, which was the first loss since its listing.
In the capital market, as of the close of September 15, the share price of Leidili Microelectronics was 26.78 yuan per share, close to the lowest point in its historical share price, with a total market value of about 6.63 billion yuan.
At the same time, Chen Fashu, known as the "Buffett of China" by the public, has seen his wealth shrink significantly in recent years. In the *Hurun Global Rich List* announced in March, Chen Fashu's personal wealth was 380 billion yuan, 330 billion yuan less than the 710 billion yuan when he was on the list five years ago.
Planning to reduce holdings at the "performance trough" after holding shares for 11 years, the return on investment still exceeds 5 times
According to the announcement issued by Leidili Microelectronics on September 13, Chen Fashu currently holds 21.9228 million shares of the company, accounting for 8.8549% of the total share capital of the company, making him the second largest shareholder of the company.
Within 3 months after 15 trading days from the date of the announcement of the share reduction plan, that is, from October 13, 2026 to January 12, 2027, Chen Fashu plans to reduce no more than 7.4164 million shares of the company through centralized bidding and block trading, accounting for no more than 2.9956% of the total share capital of the company.
Among them, Chen Fashu plans to reduce no more than 2.4721 million shares (accounting for 0.9985% of the total share capital) through centralized bidding within any consecutive 90 natural days; reduce no more than 4.9442 million shares (accounting for 1.997% of the total share capital) through block trading within any consecutive 90 natural days.
The announcement shows that the reason for Chen Fashu's share reduction this time is "personal capital demand", and the source of his shares is the shares obtained before the company's initial public offering and the shares converted from capital reserve during equity distribution.
Calculated based on the closing price of 28.57 yuan per share on the trading day before the announcement of Leidili Microelectronics (September 11), if Chen Fashu reduces his holdings at the upper limit this time, the amount of cash he can get is about 212 million yuan.
By then, Chen Fashu's shareholding ratio will drop from the current 8.8549% to 5.8593%, and his identities as the second largest shareholder of the company and an important shareholder holding more than 5% of the shares will still be retained.
The announcement also emphasizes that Chen Fashu is not the controlling shareholder or actual controller of the company. This share reduction will not lead to a change in the company's control, and will not have a significant impact on the company's governance structure and continuous operation.
According to the *Description of the Equity Evolution of the Company Since Its Establishment* released by Leidili Microelectronics in 2021, the origin of Chen Fashu and Leidili Microelectronics can be traced back to 2015.
In June of that year, Chen Fashu invested 67.408 million yuan to increase capital to Leidili Co., Ltd. (the predecessor of Leidili Microelectronics), subscribed for 4.4 million yuan of the increased capital, and his shareholding ratio reached 8.64%.
A month later, Chen Fashu spent another 16.48 million yuan to transfer 1.6 million yuan of registered capital from Deng Jieru, the actual controller of Leidili Microelectronics, and his shareholding ratio rose to 11.79% accordingly.
In February 2016, Chen Fashu increased his capital by 13.4977 million yuan again, holding a total of 8.6995 million shares, with a shareholding ratio of 14.28%.
With three investments in two years, Chen Fashu obtained about 14% of Leidili Microelectronics' shares at a cost of about 97 million yuan, and his shareholding cost was about 11.19 yuan per share.
After Leidili Microelectronics was listed in 2021, Chen Fashu's shareholding ratio was diluted to 8.99%. Since then, Leidili Microelectronics has implemented capital reserve conversion for many times.
However, Chen Fashu had never reduced his holdings before this pre-disclosure, and held 21.9228 million shares. According to this calculation, his shareholding cost was further diluted to 4.44 yuan per share.
It is worth noting that in the early stage of Leidili Microelectronics' listing, its share price (pre-restoration) once rushed to more than 100 yuan, but soon the share price of Leidili Microelectronics continued to decline as a whole. After September 2024, although the company's share price rebounded briefly, it recently fell to the bottom again.
However, even calculated based on the closing price of 28.57 yuan per share on September 11, Chen Fashu can still obtain a profit of about 179 million yuan from this maximum share reduction, and the return on investment of the reduced shares exceeds 543%.
Performance plummeted in the first half of the year, Leidili Microelectronics recorded its first loss after listing
Tianyancha shows that Chengdu Leidili Microelectronics Co., Ltd. was registered and established in 2007, and landed on the ChiNext of Shenzhen Stock Exchange in 2021.
It is reported that the main business of Leidili Microelectronics is the research, development, manufacture and testing of advanced electronic sensors dominated by millimeter-wave microsystems. Its products and technologies are widely used in data links, satellite communications, radar, 5G communications, intelligent driving and space-based Internet and other fields.
The timing of Chen Fashu's share reduction coincides with the poor performance of Leidili Microelectronics. The semi-annual report shows that in the first half of this year, the company achieved revenue of 68 million yuan, a sharp drop of 85.22% year-on-year; the net profit attributable to shareholders turned from profit to loss, recording a loss of 91 million yuan, which was the first loss since the company's listing.
For the "cliff-like" decline in performance, Leidili Microelectronics gave three reasons in the semi-annual report.
First, there were few sales orders from 2024 to 2025, and new orders rebounded in 2026. However, limited by the long production and acceptance cycle of the company's products, the company completed few products for delivery and acceptance in the first half of this year, resulting in a significant year-on-year decline in operating revenue.
Second, in the first half of this year, the company's credit impairment loss was 77 million yuan, mainly because the payment for multiple scientific research projects was less than expected, the account age was longer, the expected credit loss rate increased, and the provision ratio of bad debt reserves for all accounts receivable was greatly increased.
For a batch of products accepted by the company last year, 159 million yuan was collected in this period, and the balance was 380 million yuan. Since the account age has exceeded one year, the credit impairment loss accrued in accordance with the accounting standards and the company's bad debt provision policy has finally increased significantly.
Third, the company's asset impairment loss in the first half of the year was 26 million yuan, mainly because in 2023, in order to cope with the risk of shortened customer delivery time and material shortage, the company increased the inventory of mass-produced products. However, affected by the industry cycle, the orders for mass-produced products from 2024 to 2025 were delayed, the turnover speed of raw materials in inventory decreased, and the inventory age became longer, leading to an increase in the inventory depreciation reserves accrued according to the inventory age combination.
It is reported that the core products of Leidili Microelectronics, TR components and array antennas, are the core supporting products of information systems such as radar and wireless communication.
In the first half of the year, the company's array antenna business achieved revenue of 66 million yuan, a year-on-year decrease of 85.77%, accounting for 96.23% of the company's total revenue.
In the same period, the gross profit margin of this business decreased by 5.92 percentage points year-on-year to 43.02%, and the overall gross profit margin of the company decreased by 7.87 percentage points to 41.09%.
At the performance briefing at the end of April, Leidili Microelectronics revealed that the company's new orders have improved, but the industry adjustment is still ongoing. The company has actively responded internally, and the payment collection work has achieved initial results since the second quarter, and the development of general market products is progressing as planned.
At the same time, Leidili Microelectronics also said that the overall risk of the company's accounts receivable is controllable, and there is no situation of large-scale unrecoverable funds. The company's main customers have excellent credit and stable cooperation.
Since the second quarter, the company has continued to intensify the collection of accounts receivable, and the payment collection work has achieved phased results. In the future, the company will take measures to speed up the return of funds, ensure the orderly recovery of funds, and strictly control the risk of bad debts.
According to the announcement issued by Leidili Microelectronics on May 25, the company recently signed a purchase contract for a certain array antenna product with the customer. The total amount of the contract (including tax) is 443 million yuan, accounting for 59.8% of the company's audited operating revenue in 2025.
Known as "Buffett of China", the former richest man in Fujian has seen his wealth shrink sharply
Focusing on the protagonist of this share reduction plan, Chen Fashu, as the founder of New Huadu, he is very active in the A-share capital market and is known as the "Buffett of China" by the public.
Public information shows that Chen Fashu was born in an ordinary family in a rural area of Anxi, Fujian Province in the 1960s. Because of his poor family, he dropped out of school to work after only four years of primary school.
Interestingly, Chen Fashu's entrepreneurial career, just like his name, started with wood. In his early 20s, Chen Fashu earned his first bucket of gold in life by transporting wood. By 1986, he had become a large wood trader in Quanzhou and bought his first property in Xiamen.
In 1987, Chen Fashu began to transform his career. He used his property as collateral, bought a three-wheeled motorcycle, and together with his two younger brothers, helped an 8-square-meter small store deliver goods, and later took over the store.
This small store was the starting point of Chen Fashu's future business territory. After years of dedicated operation and development, in 1995, Chen Fashu moved the store to Dongjiekou, Fuzhou, and successively opened branches in various places, named "New Huadu Department Store".
In 1997, Chen Fashu separated from his younger brothers and set up New Huadu Group. Its main business not only covered department stores, but also expanded to hotels, construction machinery, real estate and other industries.
Later, when doing a business, Chen Fashu was "trapped" and took over a batch of construction machinery worth 60 million yuan, but unexpectedly the buyer ran away.
Helplessly, Chen Fashu found a poor mine called Zijin Mining in Shanghang, Western Fujian. This mine had just obtained the mining right, but it was too poor to buy machinery for mining. Chen Fashu just had machinery, so he drove his construction machinery into Zijin's mine.
With this cooperative relationship, when Zijin Mining reformed its share system in 2000, despite the opposition from the internal management of New Huadu, Chen Fashu, through three related companies including New Huadu Group, invested 33.59 million yuan to obtain 20.19% of Zijin Mining's shares.
In December 2003, Zijin Mining was successfully listed on the Hong Kong Stock Exchange. In 2008, Zijin Mining and New Huadu were successively listed on the A-share market.
Along with the listing of the two companies in the capital market, Chen Fashu's personal wealth also rose. In the *Forbes China Rich List* announced in 2009, Chen Fashu became the richest man in Fujian with a wealth of 21.85 billion yuan.
Also in 2009, Chen Fashu cashed out more than 4 billion yuan in total by reducing his holdings of Zijin Mining.
Since then, Chen Fashu has become more active in the capital market. In May 2009, he spent 235 million US dollars to buy 91.64 million H shares of Tsingtao Brewery. Three years later, Chen Fashu reduced his holdings of Tsingtao Brewery for the first time through JPMorgan Chase, cashing out more than 1.5 billion Hong Kong dollars.
Later, with the investment in companies such as Longi Green Energy and China Tourism Group Duty Free, Chen Fashu became more famous in the capital market. According to a rough estimate by *Changjiang Business Daily*, Chen Fashu has earned nearly 100 billion yuan from these two companies.
Thanks to a series of precise capital operations, Chen Fashu ranked 212th on the *Hurun Global Rich List* in 2021 with a wealth of 71 billion yuan.
However, Chen Fashu, who had a smooth sailing in the stock market, also had moments of "miscalculation". New Fortune Magazine once mentioned in an article published in May 2024 that if Chen Fashu did not sell a single share of the Zijin Mining shares he held, the market value would be as high as 840 billion yuan, but he sold them on the eve of the stock price explosion. And Yunnan Baiyao, in which he invested a total of 29 billion yuan, has a floating loss of 500 million yuan after 15 years of holding.
In addition, as the former richest man in Fujian, Chen Fashu has also suffered a "Waterloo" in his wealth in recent years. In the latest *Hurun Global Rich List* announced in March this year, Chen Fashu's personal wealth is 380 billion yuan, which is 330 billion yuan less than when he was on the list in 2021.