"Ningbo's richest man" brother-in-law launches IPO of Yongli Precision! Sharing the capital feast with three daughters and two sons-in-law

Ask AI · How does Yongli Precision, which is controlled by a family holding 95%, respond to the listing review?

Three daughters carried an IPO.

Author | Liu Junqun

Editor | Liu Qinwen

According to the 2025 Hurun Global Rich List, Top Group (601689.SH) chairman Wu Jianshu, with a net worth of RMB 59 billion, ranks 382nd, becoming the “#1 richest person in Ningbo.” Now, the brother-in-law of this gatekeeper of a listed company with a market value of over one trillion—Wang Xinghai—also is leading his company to knock on the capital markets’ door.

On May 29, 2025, Yongli Precision’s IPO was accepted by the Beijing Stock Exchange. On March 30, 2026, the Beijing Stock Exchange’s listing committee will review its first issuance, with the company planning to raise RMB 380 million. The door to the capital markets is only one final step away.

But more eye-catching than the IPO itself is this company’s power handover. After the 77-year-old founder Wang Xinghai stepped back to a secondary role, three daughters moved to the front stage—his youngest daughter Wang Xiaoyuan took the chairmanship, while the two elder sisters each served as heads of the business department and deputy heads, working as vice-and-chief counterparts. Both sons-in-law also hold key positions: one is general manager and the other is deputy general manager. In the core operating roles, it’s almost as if Yongli’s business is “fully covered” by Wang family daughters and sons-in-law.

The equity is firmly held by the family as well. Wang Xinghai and his three daughters and two sons-in-law together control 95% of the company’s shares. Now, can this family business supported by “three daughters” smoothly pass the review?

01

Earning over RMB 500 million a year by selling steel pipe fittings

BYD as the second-largest customer

Open up the chassis of a vehicle, and you’ll find shock absorbers, steering columns, and engine pipe lines—those unassuming steel pipe parts support all of Yongli Precision’s business.

The prospectus shows that chassis system tubing fittings are an absolute core of the company’s business. From 2022 to 2024, revenue from this business rose from RMB 312 million to RMB 466 million, and its share increased from 79.75% to 86.31%; in the first half of 2025, it further rose to 88.32%.

Among them, tubing fittings for the shock absorber base are even more important. It is precisely thanks to this large single product that Yongli Precision ranks first nationwide in the shock absorber tubing fitting segment—out of every three shock absorber tubing fittings, one comes from this company.

Image source: Canister Picture Library

Correspondingly, revenue from steering system tubing fittings fell from RMB 68 million to RMB 65 million, and its share shrank from 17.52% to 12%; in the first half of 2025 it was only 10.49%. The product mix is accelerating toward a “one-sided” chassis tubing fittings profile.

The prospectus shows that from 2022 to 2024, the company’s revenue grew from RMB 416 million to RMB 568 million, with an average annual growth rate of nearly 17%; net profit also rose steadily from RMB 60.3856 million to RMB 94.81M.

However, in 2025, revenue fell back to RMB 540 million, down about 4.9% year over year. Net profit, though, increased against the trend to RMB 109 million, up 14.98% year over year.

The situation of lower revenue but higher profit is mainly due to an improvement in the company’s gross margin. In the first half of 2025, the company’s gross margin reached 33.82%, up clearly from 29.32% in 2024.

Behind this is changes in raw material prices. Yongli Precision’s raw materials are mainly steel coil. During the reporting period, the proportion of direct materials costs in main business costs decreased year by year from 74.76% to 63.68%. As the prospectus indicates, in 2023, steel prices were relatively stable, so the company’s product costs decreased compared with the previous year, and upstream costs “substituted” by helping the company save money.

Image source: Canister Picture Library

But the other side of the coin is that lower raw material prices also give customers leverage to push down prices. The company states that the decline in revenue is precisely due to the combined effects of major customers adjusting product pricing and the downward move in raw material prices.

The company’s customer roster includes industry heavyweights, such as Tenneco (TENNECO), BYD, Mando (MANDO), ThyssenKrupp, and other well-known auto parts suppliers and OEMs at home and abroad; the products ultimately apply to traditional brands such as Mercedes-Benz, BMW, Volkswagen, Honda, and Toyota, as well as new energy models such as BYD, Li Auto, and Geely.

Bai Wenxi, vice director-general of the China Enterprise Capital Alliance, believes that for manufacturing companies that rely heavily on a single raw material, raw material price fluctuations are a double-edged sword. In the short term, falling prices can raise gross margin, but if customers use this to push down prices, the company’s pricing power will face challenges.

The other side of the “big customer halo” is concentration risk. The prospectus shows that from 2022 to 2024, revenue contributed by the top five customers grew from RMB 262 million to RMB 440 million, and their share of sales revenue increased year by year from 63.07% to 77.47%. In the first half of 2025 it further rose to 78.73%, reaching RMB 200 million.

Among them, Tenneco remains the largest customer. In 2024, sales were RMB 179 million, accounting for 31.57%; BYD follows closely. In 2024, BYD contributed revenue of RMB 130 million, doubling directly from RMB 63 million in the prior year. Just these two companies together contributed nearly half of revenue in 2024.

Image source: Canister Picture Library

But for a supplier to BYD, the accounts receivable cycle pressure of a “BYD supply-chain” enterprise is not small. As of the end of 2024, the company’s accounts receivable balance from BYD was as high as RMB 119 million, accounting for 146.93% of BYD’s sales revenue in that year. This means that Yongli Precision also needs to advance funds to supply BYD.

In addition, as of the end of July 2025, BYD’s post-period collection rate for accounts receivable at the end of 2024 was only 83.02%, while in the same period the collection rates of other major customers such as Tenneco were all 100%.

Rising customer concentration means that if Tenneco or BYD adjusts its procurement strategy, the company’s revenue will face significant fluctuations. The company cautions that in the future, if existing customers are lost due to factors such as slower product technology updates or intensifying market competition, or if new market expansion is hindered, it may adversely affect the company’s operating performance.

For this IPO, Yongli Precision plans to raise RMB 380 million. Of this, RMB 250 million will be used to expand the chassis tubing fittings capacity to 15 million sets per year, and RMB 130 million will build a new steering tube column system production line.

02

The “richest man in Ningbo”’s younger brother-in-law holds a listed company

The sister-in-law’s whole family is out again—one more IPO

Behind Yongli Precision is a typical “family setup.”

Born in 1949, Wang Xinghai founded the predecessor of this company in 1989—the Ninghai County Precision Seamless Pipe Factory—and has been deeply involved in the precision pipe fittings industry for over 37 years. Today, this 77-year-old man has stepped back to a secondary role, keeping only the position of director. What took over his “scepter” is his youngest daughter—Wang Xiaoyuan.

Wang Xinghai has three daughters. Wang Yuanyuan and Wang Fangfang were both born on November 4, 1978, and Wang Xiaoyuan was born in 1982. In terms of education, Wang Xiaoyuan has a graduate degree; Wang Yuanyuan has an undergraduate degree; Wang Fangfang has a junior college degree. Judging from their career paths, the three sisters are different from one another; Wang Xiaoyuan, the youngest, finally entered the company, but obtained control first.

The eldest daughter Wang Fangfang joined the Ninghai County Precision Seamless Pipe Factory founded by her father as early as 1997 as a staff member. After that, she successively served as an administrative specialist and deputy head of the business department, and she still remains deputy head of the business department to this day; Wang Yuanyuan worked at the Ninghai branch of China Construction Bank for two years first, then entered the company in 2004, rising from business department staff all the way to head of the business department.

Wang Xiaoyuan did not enter Jiaxing Yongli (a controlled subsidiary of Yongli Precision) until 2009. She served as deputy head of the business department, head of the business department, and deputy general manager. In September 2021, she officially became chairman of Yongli Precision.

Image source: Canister Picture Library

That way, the younger sister took the chairmanship, while the two elder sisters became head and deputy head of the business department, working as chief and deputy. The husbands of the second and third sisters also each hold key roles—Sun Shijun, Wang Yuanyuan’s spouse, serves as the company’s director and general manager, and Shi Ge, Wang Xiaoyuan’s spouse, serves as director and deputy general manager. From chairmanship to general manager and deputy general manager, the core operating posts at Yongli Precision are almost entirely “owned outright” by Wang family daughters and their husbands.

In terms of equity, although Wang Xinghai has stepped back to a secondary role, he has not truly “let go.” The six members of the Wang family directly hold 90% of the company’s shares, and they also indirectly control about 5% of shares through the two employee shareholding platforms in Jiaxing Tubu and Jiaxing Yongsi, for a total controlling ratio as high as 95%.

Specifically, Wang Xinghai holds 32.67%, Wang Xiaoyuan holds 15.33%, Wang Yuanyuan and Wang Fangfang each hold 13.5%, Sun Shijun (Wang Yuanyuan’s spouse) holds 9%, and Shi Ge (Wang Xiaoyuan’s spouse) holds 6%. The father, three daughters, and two sons-in-law control the shares firmly within the family. At present, the company’s actual controlling persons are the six individuals mentioned above.

It is worth noting that the six have signed a《Acting in Concert Agreement》, stipulating that if their views differ, Wang Xiaoyuan’s views will prevail. In other words, Wang Xiaoyuan is not only the nominal chair, but also the true “decision maker” inside the family.

Image source: Canister Picture Library

Bai Wenxi points out that “Family shareholding is not uncommon among companies planning to go public. Although family businesses have the advantage of higher decision-making efficiency, an overly concentrated equity structure may cause corporate governance independence to become a focus of regulator scrutiny.”

What the Beijing Stock Exchange is paying closer attention to is the “related business” behind Wang Xinghai.

According to the prospectus disclosures, Wang Xinghai’s siblings and their spouses, as well as the siblings of Wang Xinghai’s spouse Lu Baofen and their spouses, control multiple related entities. Among them, some entities’ principal businesses are related to or similar to Yongli Precision, while some have overlapping customers and suppliers with the company—these were all questioned by the Beijing Stock Exchange.

For example, Ningbo Yongxin Steel Pipe Co., Ltd. is controlled by Wang Xinghai’s brother Wang Xingli and his spouse Chen Huajiao (Chen Huajiao holds 95% and Wang Xingli holds 5%); it mainly sells bearing steel pipes (seamless pipes). Ningbo Yongxin Automotive Parts Manufacturing Co., Ltd. is controlled by Wang Xinghai’s other brother Wang Xingde, who holds 10.21%; it mainly sells plastic rubber parts for automotive chassis and shift levers, as well as ball joints, control arms, and other products.

In addition, listed company Top Group Co., Ltd. (601689.SH, hereinafter “Top Group”) and Ningbo Juxaobao Group Co., Ltd. have customer and supplier overlaps with Yongli Precision.

Even more notable is that Top Group’s founder Wu Jianshu and one of Yongli Precision’s actual controllers, Wang Xinghai, are both from Ninghai County, Zhejiang, and they are also relatives by marriage—Wu Jianshu is Wang Xinghai’s brother-in-law. Top Group’s business focuses on automotive parts manufacturing, but in the《Inquiry Letter》 there is no indication that their businesses are similar.

Image source: Canister Picture Library

In 2025, Top Group achieved revenue of RMB 29.58B, up 11.21%, and net profit of RMB 2.78B, down 7.38%. The company listed on the A-share market in 2015. On March 6, 2026, it announced its plans to go public in Hong Kong, aiming to pursue an “A+H” dual listing layout. As of March 27, 2026, the company’s share price closed at RMB 57.79 per share, with a market cap of RMB 100.43 billion.

It is worth noting that, despite the close relationship between the two parties, Yongli Precision and Top Group have not disclosed any direct related-party transactions. According to the 2025 Hurun Global Rich List, Wu Jianshu, with a net worth of RMB 59 billion, ranks 382nd, making him the “richest person in Ningbo.” This time, when his brother-in-law Wang Xinghai takes Yongli Precision through the IPO gate, the capital chessboard involving family and locality is drawing even more attention.

In response to the Beijing Stock Exchange’s questions on competition among peers, the company said that there are significant differences between the issuer and related parties in their products and technologies. The issuer’s main business is precision steel pipes for automobiles, while the products of related parties are mostly aluminum materials, rubber parts, or bearing steel pipes; the raw materials and processes are different. Downstream customers are also not the same, so there is no peer competition.

Regarding the issue of overlapping customers and suppliers, the company did not list specific product prices. However, the company responded that during the reporting period, the sales prices and purchase prices of the company to overlapping customers and suppliers do not differ significantly from those to non-overlapping customers and suppliers.

This family business, founded single-handedly by 77-year-old “Zhejiang businessman” Wang Xinghai and handed down in leadership succession by his three daughters, has annual revenue of more than RMB 500 million, and its customer roster includes industry giants such as BYD and Tenneco. But what is placed on the review table is also the 95% family control, the “familialization” of all personnel in core positions, and a complicated network of related enterprises…

What do you think about Yongli Precision’s IPO? Welcome to discuss in the comments below.

Author statement: Personal views only, for reference