Former university professor Liu Jianfang has become the latest Chinese entrepreneur to build a billion-dollar fortune as Beijing pushes to strengthen the country’s domestic technology supply chain. Shares of Jiangsu Gao Kai Precision Fluid Technology (GK Precision), the semiconductor component maker Liu founded in 2013, surged nearly 400% from their initial public offering price within days of its Shanghai listing on Tuesday. The rise has lifted the 51-year-old founder’s estimated net worth to about $1. 4 billion, based on his stake in the company, according to Forbes estimates. Liu, who holds a PhD in mechanics from Jilin University, serves as GK Precision’s chairman and CEO. He spent nearly two decades teaching at the university before leaving in 2019 to focus full-time on the company. Based in Changzhou, GK Precision raised 1. 5 billion yuan ($224 million) in its IPO by selling 25 million shares at 61. 4 yuan each. The company plans to use the proceeds for research and development, including a new research centre in China. GK Precision produces flow-control equipment used in advanced semiconductor manufacturing. Its systems measure and dispense gases and liquids needed during the chipmaking process. The company says the market has historically been dominated by US and Japanese manufacturers, but China’s push for greater technological self-reliance has created opportunities for domestic suppliers. GK Precision’s customers include Chinese electric vehicle maker BYD, battery giant CATL and Foxconn, according to its prospectus. The company competes with US-based Nordson and Japan’s Horiba. The company’s revenue rose more than 20% last year to 510. 6 million yuan, while net profit increased by about one-third to 132. 7 million yuan. Liu founded the company after initially focusing on supplying equipment to industries including automobiles and electronics. He also studied mechanical engineering at Japan’s Yamagata University before returning to China and continuing his academic career at Jilin University.
Former Chinese professor becomes billionaire as chip supplier’s shares soar
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