Wang Chuanfu

"Although Wang Chuanfu's 35 billion yuan is clearly behind last year's 43 billion yuan by Huang Guangyu, it is still 2 billion yuan more than this year's runner-up, the Zhang Yin family. This total does not even include the valuation of his unlisted shares. However, in 2007, Wang was ranked 78th on the rich list with a wealth of 8.5 billion; in 2008, he fell beyond the top 100, ranking 103rd with a wealth of 6 billion. His rise to the top has once again turned the public's heated attention towards this new richest man. The main reason for the significant increase in Wang Chuanfu’s fortune from last year’s 6 billion to this year's 35 billion can be attributed to BYD’s phenomenal stock market performance over the past year."

"On August 2007, during the BYD F6 launch ceremony, Wang Chuanfu made a surprising statement: "The future belongs to hybrid and electric vehicles, not gasoline cars. BYD plans to become China's number one car manufacturer by 2015 and aims to exceed 10 million sales by 2025, surpassing Toyota to become the world's number one.""

"⁠ In 2009, BYD planned to launch pure electric vehicles, realizing the dream pursued by the global automobile industry 20 years ahead of schedule. Without a doubt, BYD’s rapid success is like a financial fairytale, and the creator of this fairytale is the public’s view of a “technology fanatic,” BYD’s leader—Wang Chuanfu."

""I believe in my company; I cannot leave it. It has to be me managing... Our company has only one voice.""

"Third, having his own core technology. This rich man, who became wealthy through technology, did not neglect his pursuit of technological advancements for the sake of commercial profit. He spent most of his time in the research institute, mastering all technical details of BYD. An employee of BYD described Wang Chuanfu: “He does not need to show off to be seen as a role model by his employees. Everyone in the company can feel the strong ‘Wang style.’ He is not just a boss but also a spiritual leader.” It is said "technology reigns supreme"; in the automotive industry, if you do not focus on R&D and technological upgrades, even if you can capture part of the market with one or two models in the short term, it is difficult to remain at the forefront through automotive generational changes."

"Wang Chuanfu's ability to become the wealthiest is primarily based on three factors."

"Wang Chuanfu did not get too excited as his team, after evaluating the investment proposal, thought that the equity Buffett would hold was t"

"oo large and did not match the company’s own investment development plans, so he declined Buffett’s generous offer. Wang Chuanfu’s refusal surprised and disappointed Buffett. After further negotiations with Wang Chuanfu, Buffett agreed to reduce the investment to $230 million, and the two parties ultimately reached an investment and share subscription agreement. This broke Buffett’s record for the smallest investment amount, arguably making it the second time the "Stock God" made an exception for a Chinese company."

"In 2003, BYD entered the automobile industry by acquiring Xi'an Qin Chuan, beginning its journey in the development of national independent brand automobiles. Starting from manufacturing batteries and transitioning to automobile manufacturing, BYD was clearly playing the role of an outsider. However, BYD took advantage of the reputation of "independent intellectual property rights" and the acquisition of Qin Chuan Automobile to gain a first-mover advantage relative to other newcomers."

"When talking about why he was optimistic about BYD, Buffett pointed out that he was deeply impressed by Wang Chuanfu's past management achievements. After Buffett's investment, BYD's stock price began to rise rapidly, soaring all the way beyond 60 Hong Kong dollars, with Buffett's investment yield exceeding 500%. The stunning upward trajectory not only made Buffett hugely profitable but also turned Wang Chuanfu into an influential figure in the industry."

"BYD started by manufacturing nickel-cadmium batteries for mobile phones. It has moved from nickel-cadmium batteries to nickel-metal hydride batteries, and then to lithium batteries, following a development path from low-end to high-end."

"The BYD Miracle In February 1995, BYD Company was established with a registered capital of 2.5 million yuan and about 20 employees. In 1997, the company began to produce its own developed lithium-ion batteries and quickly went into mass production. In December 1998, it passed ISO9001 certification. In the same year, BYD Company began to develop overseas with an international perspective, and its European subsidiary was established. In 1999, it developed the industry-leading high-current discharge battery at the time, and the annual production of nickel-cadmium batteries reached 150 million. In 2002, it became Nokia's first Chinese lithium-ion battery supplier. In July 2002, it was listed on the Hong Kong main board, setting a record for the highest issue price of H shares at the time. On January 22, 2003, BYD Company acquired Xi'an Qin Chuan Automobile Co., Ltd., and established BYD Auto Co., Ltd. In 2006, BYD Auto completed a cumulative sales volume of 63,153 vehicles, a year-on-year increase of 472%, becoming the fastest-growing domestic brand automotive company in the world. In January 2007, the monthly sales volume of BYD F3 broke through 10,000 units. This was the first time that a local brand entered the "Ten Thousand Club" with a single model, ranking alongside Elantra, Excelle, and Forman as the "Big Four Kings" of the medium sedan market in China."

"On September 27, 2008, the famous American investor Warren Buffett announced his investment in BYD shares. Buffett's investment to some extent represents global recognition of BYD's brand value, which is of strategic significance for accelerating the promotion of BYD’s new energy vehicles and other environmental protection products in North America, Europe, and worldwide."

"In 2005, BYD released the new car F3, and in just over a year, the sales volume of F3 reached 100,000 vehicles. Subsequently, F3R, F6, F0 were launched in succession. In 2008, BYD’s car sales totaled 200,000 vehicles. In 2009, BYD's sales target for automobiles was 400,000 vehicles, a rarity in the industry for such a young Chinese car manufacturer to achieve continuous exponential growth. Currently, BYD F3 has successfully joined the “Monthly Sales over Twenty Thousand Club,” maintaining the number one position in sales for several consecutive months and creating a myth in the domestic automobile industry."

"BYD has managed to become the number one in the domestic battery business and number two in the world."

"In the Chinese business community, there are many mavericks who have “automotive dreams.” For example, the astonishing Geely Auto President Li Shufu, who is always the center of attention wherever he goes; and the humorous and witty Chairman Yin Mingshan of Chongqing Lifan, who always brings laughter before he even arrives. Only Wang Chuanfu has consistently been silent and stable like an "invisible person." He is not tall, and he walks very quickly. Like most of China's private entrepreneurs, Wang Chuanfu likes to work late into the night. He even has never been to the top of Huangshan, although it is very close to his hometown. Wang Chuanfu said: “I didn't go before because I didn't have the money, now it's because I don't have the time.” When chatting with others, Wang Chuanfu prefers to talk about cars. About himself, he often sums up this way: “I think I still have some adventurous genes in me.”"

"In fact, from a simple fact, we can glimpse the secret of its success—last year alone BYD applied for multiple patents. BYD people understand that technology is essential for development. Starting from manufacturing mobile phone batteries, BYD became the world’s number one “Lithium Battery King” in just a few years."

"After switching to automobile manufacturing, it initially focused on electric vehicles, which represent the international green trend and the direction of the industry. In January 2006, BYD established the Electric Vehicle Research Institute, dedicated to the research and trial production of whole electric vehicles and components."

"On October 6, 2008, BYD invested nearly 200 million yuan to acquire the semiconductor manufacturer Ningbo Zhongwei, integrating the upstream industry chain of electric vehicles, accelerating BYD's commercialization pace of electric vehicles. Via this acquisition, BYD enhanced its R&D and production capabilities for electric vehicle drive motors."

"Wang Chuanfu likes to wear jackets in the company, which he calls “work clothes,” making him look no different from an ordinary engineer. He says it's more convenient to crawl around in the workshop, so this loose jacket is the most popular outfit among the senior management of BYD. When Wang Chuanfu, wearing his jacket and holding molds, walks into his office, he looks more like an engineer. In his office, piles of technical books are stacked up."

"Wang Chuanfu often says that he is always proving himself, from the founding of BYD to now, aiming to rewrite the history of automobile industry development, continually proving to everyone amidst numerous doubts: “I can, BYD can.” He says he has never stopped learning and practicing, although it is not easy, but he knows that this research work "cannot be substituted by anyone." He describes himself as a "hard-working person," not feeling secure if he does not personally disassemble and fully understand the structure of batteries. Once he thoroughly understands an industry, he can “drive the car very fast.”"

"In 2009, when a senior executive from BYD attended the Paris Motor Show and saw Ford employees still staying in the luxurious George V Hotel, he was very "shocked." To save costs, BYD executives even rented a house in the suburbs when attending the Detroit Auto Show. And as early as 2008, all of BYD's businesses were already profitable."

"After becoming the well-known "Battery King," Wang Chuanfu once said: "Having no competitors is so boring.""

"Originally, when starting his business, Wang Chuanfu plunged into the mobile phone battery industry. From nickel batteries to lithium batteries, BYD calmly caught up, once making industry giants like Sony and Sanyo fearful. Just when people were amazed at Wang Chuanfu's aggressive stance in the battery industry, he swiftly shifted to the highly competitive automobile industry. However, the glory in the battery industry did not mean that Wang Chuanfu could also be successful in the automotive industry."

"In BYD's automotive engineering institute located in Songjiang, Shanghai, there are thousands of automotive engineers, 90% of whom came to BYD right after college. Every year, Wang Chuanfu has these young engineers learn to dismantle cars, and he also requires them to write detailed reports after disassembling. Initially, some young people were reluctant to casually dismantle new cars, especially expensive ones. Knowing this, Wang Chuanfu immediately scratched his own Mercedes with a key and then said: "Now, you can dismantle my car.""

"As a newcomer among local brands, Wang Chuanfu does not have the high profile of Li Shufu or the industry influence of Yin Tongyue, but this usually reserved leader once stunned the public by ambitiously declaring, “To be China's number one by 2015, and the world's number one by 2025.” In Wang Chuanfu’s eyes, who dares to think and act unconventionally, everything can be overturned and changed."

"In fact, Wang Chuanfu himself admitted: “I don’t understand cars at all.” But after deciding to switch to the automotive field, Wang Chuanfu decided to start with technology to become a real automotive technology expert. During that period, Wang Chuanfu's only luxury hobby was owning Mercedes and Lexus cars. But he liked to dismantle them frequently to see how their engines worked. Once, when Wang Chuanfu went to the United States, a friend picked him up in a Toyota car. To understand how the Toyota seats worked, Wang Chuanfu almost dismantled his friend’s Toyota."

"Fifth, BYD achieved the peak of "Shanzhai prowess." The "Shanzhai path" can be said to have been taken by every domestic car brand, but BYD traveled it most successfully. The popular BYD F3, upon its release, faced criticism for its "obvious Shanzhai traces." BYD F3's parts could even be used interchangeably with those of the Toyota Corolla, to the extent that someone could remove BYD’s logo and replace it with a Corolla’s logo. Regarding this, Wang Chuanfu did not shy away, but rather described such imitation as "standing on the shoulders of giants." He stated, "We indeed referred to some excellent foreign brands, using their non-patented technologies and excluded the patented ones. The F3 sells so well because it is well-designed." Wang Chuanfu applied his "human wave tactic" and "Shanzhai tactic" from battery production to car manufacturing, which, using China's plentiful and cheap labor resources, greatly reduced production costs and thus strengthened his market competitiveness. From batteries to mobile phones to automobiles, Wang Chuanfu has always faced pressure. Nevertheless, he "persistently went his own way," even the electric car project, which came under criticism from top global investment banks, was pushed forward by his confidence and passion. His personality and experience have made him a dominant figure within the company. He once said, "I believe in this company, and I can't leave; I must be the one to manage it... Our company has only one voice." But even as a dominant figure, Wang Chuanfu is known for recognizing and utilizing talents. Many individuals, like Wang Chuanfu, refused to settle for the status quo and were recruited under his command, becoming key pillars in BYD's development, and Wang Chuanfu has generously rewarded them."

"Fourth, cost-saving is the key to victory. At the onset of BYD's venture to cut costs, Wang Chuanfu broke down the battery production process and independently developed some key equipment, completing production through a combination of semi-automatic and manual labor. This approach reduced battery production costs by 40% compared to Japanese manufacturers. Through disassembling, learning, transforming, and innovating, Wang Chuanfu eventually became known as China's "Battery King." After entering the automotive industry in 2003, Wang Chuanfu, who had never been involved in this field, still relied on BYD's "semi-automated plus manual" production model. From battery production lines to subsequent car molds, Wang Chuanfu could be said to have utilized human resources to the utmost. Additionally, many of BYD's production facilities are self-sufficient. For example, the BYD F3 now sells over 20,000 units a month; it is said that Toyota once purchased it to study and was at one point surprised at how closely BYD could mimic their car, yet offer it at a much cheaper price than the Corolla."

"First, Warren Buffett invested in BYD. The might of the "Oracle of Omaha" in the stock market is formidable. With his support, BYD soared from a newcomer to a phoenix, and it was easy for Wang Chuanfu to become the richest man. Buffett's favor was not because he had much affection for BYD, but because he recognized the prospective significance of BYD’s position in the new energy sector. Thanks to Buffett, BYD's stock price skyrocketed more than eightfold from around 8 Hong Kong dollars the previous year. In a short period, the name "Buffett" increased Wang Chuanfu's wealth by about 29 billion yuan. No wonder everyone considers Buffett a benefactor to Wang Chuanfu."

"Therefore, people often talk about how Wang Chuanfu still lives in a two-bedroom, one-living room apartment in Kuiyong Town, Longgang District, Shenzhen, drives an old Lexus, and his only valuable possession is an Adidas sports watch, which accurately tells him whether BYD's global institutions are operating during the day or night. Wang Chuanfu is a low-profile person in the auto circle. For most people, the satisfaction derived from self-actualization far exceeds the modest personal enjoyment of "eating well and using good." This former farm boy from Wuwei County, Chaohu, Anhui, fears nothing more than mediocrity."

"At BYD's Shenzhen headquarters, there are staff apartments, football fields, kindergartens, supermarkets, and middle schools."

"In 2008, Wang Chuanfu's salary was 2.65 million US dollars. But he and his wife and young children have always lived in a BYD dormitory, a two-bedroom apartment in Kuiyong Town, Longgang District, Shenzhen, which is no different from other engineers in the company. Wang Chuanfu clearly stated: “I am not interested in wealth.” After BYD went public, he simply distributed his 15% shareholding to more than twenty managers and engineers in the company. However, the outwardly calm and serene Wang Chuanfu is inherently "combative." After becoming the well-known "Battery King," Wang Chuanfu once said: "Having no competitors is so boring.""

"or many years, including Wang Chuanfu himself, all senior managers and employees have been lining up in the big canteen to eat meals costing five yuan each. Wang Chuanfu never sits in first class; all company executives and staff travel in economy class on business trips just as usual."

"Wang Chuanfu discovered through his unique research method: "A car, after all, is just a pile of steel." The notion that automobiles require large investment and high research and development is actually an industry scare tactic continuously crafted by competitors against newcomers. He said, “Mobile phones are much more difficult than cars. The car industry, which has been around for over 100 years, is a low-tech industry. The high-tech components are in the mobile phones, like the LPC, cameras, LCD, and precision plastics.”"

"Second, the rapid growth of China’s automotive industry. Wang Chuanfu made a daring move from the battery sector to the automotive industry, specifically the then-doubtned new energy vehicle segment. This seems reckless, but was actually an effort to merge his expertise in battery technology with automotive technology, creating a kingdom of new energy vehicles. Choosing the right industry is crucial for realizing dreams. Because Wang Chuanfu aligned with global trends in "technology," "environmental protection," "innovation," and "new energy," his business thrived."