Fuyao Glass Chairman Resigns for Son Amid Strong Q3 Earnings

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Shares of Fuyao Glass Industry Group declined following the resignation of its chairman, the world’s leading automotive glass supplier, with his son stepping into his role. Despite the leadership change, the company reported strong financial results for the third quarter.

As of 10:45 a.m. in Shanghai today, Fuyao Glass [SHA: 600660] stock was down 3.2%, trading at CNY64.66 (approximately $9.08). Its Hong Kong-listed shares [HKG: 3606] fell 4.1%, reaching HKD68.70 (around $8.84).

Cao Dewang, widely recognized as the “King of Glass,” resigned from his positions as chairman and legal representative, as announced yesterday. The company stated that he will be honored with the title of lifetime honorary chairman. Cao will continue to serve as a director of Fuyao Glass and maintain his roles as director, chairman, and legal representative of several subsidiaries.

His son, Cao Hui, will assume all the positions Cao Dewang vacated at Fuyao Glass. Cao Hui has been with the company for many years and was appointed vice chairman in 2015. Cao Dewang has previously stated that his son would be his successor at the company.

Cao Dewang is a founding member of Fuyao Glass and became an entrepreneur during China’s era of economic reform and market liberalization. Under his leadership, the company grew to become the largest automotive glass supplier globally in terms of market share.

In 2014, Cao Dewang oversaw the development of a manufacturing plant in the United States by refurbishing an abandoned site. The journey of establishing and operating this plant was documented in the film “American Factory,” which received the Academy Award for Best Documentary Feature in 2020.

Additionally, Fuyao Glass released its third-quarter financial results yesterday. For the three months ending September 30, the company’s operating revenue increased by 19%, reaching CNY11.9 billion (about $1.6 billion), compared to the same period last year. Net profit grew by 14%, totaling CNY2.3 billion (approximately $312 million).

For the first three quarters of the year, the company’s operating revenue rose 18% to CNY33.3 billion (roughly $4.4 billion), while net profit surged 29% to CNY7.1 billion (around $1 billion).