China electronics maker Delton Technology (Guangzhou) made its debut on the Shenzhen Stock Exchange this week, catapulting its chairman Xiao Hongxing into the billionaire ranks. Xiao, 57, indirectly holds shares in Delton worth $1.2 billion, making him the latest billionaire in China. Founded in 2002, Delton specializes in printed circuit boards and counts U.S. computer brand Dell among its customers. The company’s stock closed at 50.44 yuan on Wednesday, up from its IPO price of 17.43 yuan.
Xiao’s rise to billionaire status comes at a time when China’s overall presence in the billionaire ranks has decreased, with the number of billionaires from mainland China on the Forbes Billionaires List dropping to 406 from 495 the previous year. Despite geopolitical strains and slower economic growth, Delton has seen success, with sales rising by 17% to 3.8 billion yuan last year and net profit increasing by 48% to 414 million yuan. The company employs over 2,600 staff and is headquartered in Guangzhou, with Xiao being a graduate of South China University of Technology.
China’s benchmark stock index, the CSI 300, has faced challenges in the past year, dropping nearly 13%. However, it has gained 5% so far in 2024. Delton’s successful IPO and Xiao’s newfound billionaire status are positive signs for the company and the Chinese electronics industry as a whole. The company’s focus on printed circuit boards and its partnership with major brands like Dell have contributed to its growth and success in the market.
As Asia Society highlights 10 likely trends in China for 2024, the rise of billionaires like Xiao and companies like Delton could play a significant role in shaping the country’s economic landscape. Despite challenges and uncertainties, the Chinese electronics industry continues to show resilience and growth potential. With Delton’s successful listing on the Shenzhen Stock Exchange, the company has positioned itself as a key player in the market and a symbol of China’s innovation and technological prowess.
Looking ahead, Delton Technology (Guangzhou) and its chairman Xiao Hongxing will continue to navigate the ever-changing landscape of the electronics industry in China. As geopolitical tensions and economic dynamics evolve, the company’s ability to innovate, adapt, and collaborate with industry partners will be crucial to its future success. As one of China’s newest billionaires, Xiao’s leadership and vision will be instrumental in guiding Delton towards continued growth and prominence in the market.
