Author丨City Feng Chenchen

Editor丨Lang Ming

Will Foxconn’s “working girl” with a net worth of 80 billion win over “Master” Terry Gou? rice bowl?

Recently, some media reported that Foxconn, in response to the growing influence of Luxshare Precision and the threat to its own dominant position, established a special working group to strictly prevent it from entering the iPhone OEM business. However, Foxconn later responded, "The news is untrue. No meetings or other discussions were held, and no other special actions were taken."

In fact, with the rapid development of Luxshare Precision, its relationship with Foxconn has Competition is indeed becoming more prominent. In July 2020, Luxshare Precision and its controlling shareholders jointly acquired 100% equity of Wistron Investment (Jiangsu) Co., Ltd. and Wishin Information Technology (Kunshan) Co., Ltd. under Wistron. You know, Kunshan Wisex is Wistron's only iPhone OEM production base in mainland China. This means that Luxshare Precision seems to be expanding its product foundry to the iPhone to compete with Foxconn.

City circles found that from its listing in 2010 to 2019, Luxshare Precision’s revenue increased from 1.011 billion yuan to 62.52 billion yuan; its net profit also increased from 116 million yuan to 4.714 billion yuan. Two data have increased dozens of times. Behind this is a billionaire woman named Wang Laichun. However, due to her low-key whereabouts, there are very few introductions about her on the Internet.

Everyone does not believe how a working girl who has not graduated from junior high school can go from poverty to tens of billions of dollars in 30 years. Everyone didn't understand why Terry Gou was so kind to her at that time, and there was even talk of her being a "mistress". In the face of rumors, Wang Laichun has never clarified anything. Even who her husband is, it is difficult for the outside world to determine.

The counterattack of a working girl

She worked hard at Foxconn for 10 years, but left after being promoted to section chief

Wang Laichun was born in a poor rural village in Chaoshan family. This impoverished family could not even satisfy Wang Laichun's desire to go to school. Therefore, Wang Laichun dropped out of junior high school to work in farming, and lived a life with his face facing the loess and his back facing the sky.

Without the spring breeze of reform, what kind of life would Wang Laichun be living now?

In 1988, Wang Laichun decided to leave his hometown and embark on the reform revolution with a dream in mind. He came to Shenzhen, which was just starting to develop, and tried to make a difference. At that time, Foxconn was building a factory in Shenzhen, and Wang Laichun accidentally became the first batch of employees. Due to the difficult conditions, the closed Foxconn factory was like a big steamer in the summer, and being able to sleep was the greatest happiness.

Even so, there are still more than 100 female workers sleeping on the Datong bunk. The fans working dedicatedly can only give people some comfort. Even the water supply has become a common occurrence, and they have to carry a washbasin to wash. Go to a nearby village. Sometimes when the weather is too hot, many female workers want to take a shower, so they can only do so in a temporary cabin. They go in groups of two or three, leaving someone outside to watch.

In addition, due to the imperfect power equipment at the time, Foxconn had to rely on electricity for a long time. Everyone will stop work when the power goes out, but once the power supply is restored, no matter what time it is, they have to go back to the workshop to catch up on progress. Wang Laichun remembers that in order to get the goods out as soon as possible, Gou rushed directly to the production line to operate the machine and did not sleep for three days.

"He doesn't pay attention to food, clothing, or pursuit of enjoyment. His office is extremely shabby, and even the chairs are folding chairs retired from the canteen." Perhaps he was moved by Gou Taiming's spirit, even though countless employees could not bear to resign and return. At home, Wang Laichun still chose to persist. Not only that, because she was afraid of being laughed at by her colleagues for being "fakely positive", she often even got up in the middle of the night to work overtime, which was noticed by Terry Gou.

Eventually, Wang Laichun was promoted to Foxconn’s highest position in mainland China—section chief. This means that as long as he continues to work with Guo Taiming, although Wang Laichun cannot become rich, he can still live his life comfortably with a stable income. But the "unreasonable" Wang Laichun chose to leave the place where he spent ten years of his youth shortly after becoming the section chief.

Use all your savings to start a business

From grabbing business with Foxconn to cooperating, getting support from Terry Gou

In 1998, Wang Laichun and his brother Wang Laisheng spent all their savings and borrowed money , jointly purchased Hong Kong Luxshare Company, and started the foundry business with Foxconn, which is their old business, producing various electronic connecting wires and connectors. But in the eyes of many people at the time, competing for business with Foxconn was forgetting their roots, and there were even rumors that they were "white-eyed wolves".

In fact, Wang Chunlai’s growth is inseparable from Terry Gou. Since 2001, Wang Chunlai began to accept international orders and entrusted domestic processing and production through Hong Kong Luxshare. The produced connectors were processed and assembled by Foxconn and used in 3C electronic products of many internationally renowned brands. Foxconn has therefore become a king. The biggest customer in Laichun.

In 2004, Wang Laichun returned to Shenzhen to found Luxshare Precision, and Foxconn was still its core customer contributing more than 50% of its revenue. Even when Luxshare Precision developed in 2007 and was preparing to go public, its revenue from product sales to Foxconn still accounted for 47.73% of the current revenue. In the following two years, it was 56.46% and 45.38% respectively, stabilizing at around 50%. .

Not only that, Wang Laichun seems to have "decided" on Foxconn and closely planned the layout around it, setting up factories in Kunshan, Jiangsu and Yantai, Shandong to coordinate production. In 2009, Terry Gou's younger brother Terry Gou invested 40 million yuan in Luxshare and became the company's third largest shareholder, earning him the nickname "Little Foxconn."

In 2010, with the listing of Luxshare Precision on the Shenzhen Stock Exchange, Wang Laichun's net worth reached 2.3 billion yuan and he began to enter the public eye. "Chaoshang" magazine once commented, "There are one to two hundred listed companies in Shenzhen, creating countless rich people, but it is extremely rare for an authentic working girl to succeed in starting a business. Wang Laichun finally filled this gap."

< p> People are afraid of being famous, and pigs are afraid of being strong. Someone with good intentions began to dig up Wang Laichun's past, and rumors spread all over the place. Some say that Terry Gou and Wang Laichun have a "lover relationship", and that Luxshare Precision is Gou's vest, and its purpose is to lay out A-shares. Others say that Gou Taiming and Wang Laichun have a "mentor-disciple relationship", and that Gou wants to support Wang Laichun and establish relationships with him. Foxconn carries out in-depth development.

However, Wang Laichun paid no attention to these rumors and never refuted them. She just continued to use the management model she learned at Foxconn to continue running her own business. The outside world doesn't even know who the husband of this legendary "working girl" is. Looking at it now, with the listing of Fii Industrial in A-shares and the recent rumors that Luxshare Precision is trying to grab Foxconn’s business, the above speculation seems to be self-defeating.

The two brothers and sisters are "***rich"

Control a capital empire with a market value of 100 billion

The biggest advantage of going public is that it can obtain sufficient financial support.

Around 2010, a hundred schools of thought were contending in the smartphone industry. Wang Laichun believes that connectors are a very important accessory for mobile phones, so she strikes while the iron is hot and invests more funds in research and development, specializing in the direction of connecting cables and connectors.

With the help of Terry Gou, Luxshare Precision successfully obtained an order from Apple and became the only global supplier of wireless chargers for Apple Watch, earning nearly 1 billion in annual revenue. In addition to connecting cables and connectors, with the development and improvement of Luxshare's precision production technology, orders for other devices from Apple have also continued, and even Apple's signature Airpods have been received.

At the end of 2017, Apple CEO Cook came to Kunshan Luxshare Precision to visit Wang Laichun, and said bluntly, “Their first-class factory integrates unparalleled fine craftsmanship and meticulous thinking into the manufacturing of AirPods. Wang Laichun creates a people-oriented Excellent culture, we are very happy to cooperate with them!”

However, Wang Chunlai is still not satisfied with the status quo. She believes that only by making preparations can we seize the opportunity. She guides Luxshare Precision to carry out strategic acquisitions. It has acquired companies such as Liantao Electronics, Colcom, and Shuangying Circuit, and has set foot in tablet computers, smartphones, electronic circuits, automobiles, communications and other fields to create an all-round manufacturing empire.

In July 2020, Luxshare Precision and its controlling shareholders jointly acquired 100% equity of Wistron Investment (Jiangsu) Co., Ltd. and Wishin Information Technology (Kunshan) Co., Ltd. under Wistron.

You know, Kunshan Wisex, a subsidiary of Jiangsu Wistron, is Wistron’s only iPhone OEM production base in mainland China. This means that Luxshare Precision will expand its product foundry to the iPhone, which is equivalent to directly competing with Foxconn, so the scene at the beginning of the article came out.

Choice data shows that Luxshare Precision achieved revenue of 59.528 billion yuan in the first three quarters of 2020, a year-on-year increase of 57.33%; it achieved a net profit attributable to shareholders of listed companies of 4.680 billion yuan, a year-on-year increase of 62.06%. Wang Laichun and his brother control 41.02% of Luxshare Precision through Hong Kong Luxshare Co., Ltd. (both hold 50% of the shares each).

As of the close of trading on October 29, Luxshare Precision’s total market value reached 408 billion yuan, 130 billion yuan higher than Fii. According to this calculation, Wang Laichun's brother and sister each have a net worth of over 80 billion yuan, making them veritable billionaires. Terry Gou once proudly said, "Foxconn has created many billionaires in mainland China, and Wang Laichun is the most representative one."

But now, facing this man who once "stealed" at Foxconn, After studying the challenge of working girls for ten years, whether Gou Taiming can win this "master-disciple" battle is still a big question mark.