On September 13 afternoon, Leida Wei (雷电微力) disclosed a shareholder reduction notice, with the company's second-largest shareholder Chen Fashu planning to sell no more than 7.4164 million shares within three months. This marks Chen's first reduction since he invested in the millimeter-wave microsystems firm back in 2015. Based on the closing price of 28.57 yuan on September 11, Chen's maximum reduction could generate roughly 212 million yuan (about $30 million) in cash proceeds.

However, the timing of Chen's reduction plan coincides with a trough in the performance of this millimeter-wave microsystems leader. In the first half of this year, the company's revenue plummeted 85.22% year-on-year to 68 million yuan, while its net profit attributable to shareholders swung to a loss of 91 million yuan, marking the first loss since its listing. On the capital markets front, Leida Wei shares closed at 26.78 yuan per share on September 15, hovering near historical lows, with a total market capitalization of approximately 6.63 billion yuan.

Meanwhile, Chen Fashu, widely dubbed "China's Warren Buffett," has seen his personal wealth shrink significantly in recent years. On the Hurun Global Rich List released in March, Chen's personal fortune stood at 38 billion yuan, down 33 billion yuan from the 71 billion yuan when he made the list five years ago.

Holding For 11 Years, Selling At A Low Point, Yet Returns Still Top 500%

According to the announcement released by Leida Wei on September 13, Chen currently holds 21.9228 million shares, representing 8.8549% of the company's total share capital, making him the second-largest shareholder. Within three months following 15 trading days after the announcement date — specifically from October 13, 2026 to January 12, 2027 — Chen plans to reduce his holdings by no more than 7.4164 million shares, or no more than 2.9956% of total share capital, through centralized bidding and block trades.

Specifically, Chen intends to sell no more than 2.4721 million shares (0.9985% of total capital) via centralized bidding within any consecutive 90 natural days, and no more than 4.9442 million shares (1.997% of total capital) through block trades within the same period. The announcement cites "personal capital needs" as the reason for the reduction, with the shares originating from pre-IPO holdings and capital reserve conversions during profit distributions.

Based on the closing price of 28.57 yuan per share on September 11 — the trading day before the announcement — Chen's maximum reduction could yield approximately 212 million yuan. After the sale, his stake would drop from 8.8549% to 5.8593%, still retaining his status as the second-largest shareholder and a major shareholder holding above 5%. The announcement also emphasized that Chen is not the controlling shareholder or actual controller, and the reduction will not affect corporate control or governance.

According to the company's 2021 explanation of its shareholding evolution, Chen's connection with Leida Wei dates back to 2015. In June of that year, Chen injected 67.408 million yuan into the company's predecessor, subscribing for 4.4 million yuan in increased capital and securing an 8.64% stake. A month later, he spent 16.48 million yuan acquiring 1.6 million yuan in registered capital from actual controller Deng Jieru, raising his stake to 11.79%.

In February 2016, Chen invested another 13.4977 million yuan, bringing his total holdings to 8.6995 million shares, or 14.28%. Over three investments in two years, Chen accumulated approximately 14% of the company at a total cost of about 97 million yuan, with an average cost of roughly 11.19 yuan per share. After Leida Wei went public in 2021, his stake was diluted to 8.99%. Subsequently, the company implemented multiple capital reserve conversions, and Chen — who had never reduced before this notice — now holds 21.9228 million shares, with his average cost further diluted to 4.44 yuan per share.

Notably, during the early period after listing, Leida Wei shares (adjusted) once traded above 100 yuan, but the stock has been on a general downtrend since. After a brief recovery in September 2024, the price has recently fallen back to bottom levels. Still, even at the September 11 closing price of 28.57 yuan, Chen's maximum reduction would yield approximately 179 million yuan in gains, representing an investment return of over 543% on the reduced portion.

Half-Year Performance Plunges, Leida Wei Posts First Loss Since Listing

Tianyancha data shows that Chengdu Leida Wei Technology Co., Ltd. was registered in 2007 and listed on the Shenzhen Stock Exchange's ChiNext board in 2021. The company's main business focuses on research, development, manufacturing, and testing of advanced electronic sensors centered on millimeter-wave microsystems, with products and technologies widely applied in data links, satellite communications, radar, 5G communications, intelligent driving, and space-based internet.

Chen's reduction comes at a time when Leida Wei's performance is particularly weak. In the first half of this year, revenue fell sharply by 85.22% to 68 million yuan, and net profit turned to a loss of 91 million yuan — the first loss since the company's listing. The company cited three reasons for the "cliff-like" decline in its interim report.

First, sales orders were limited from 2024 to 2025, and while new orders picked up in 2026, the company's lengthy production and acceptance cycles meant fewer products were delivered and accepted in the first half, causing a significant drop in revenue. Second, credit impairment losses reached 77 million yuan in the period, mainly due to slower-than-expected collection on multiple research project funds, longer aging periods, and higher expected credit loss rates that increased provisions for accounts receivable. A batch of products accepted last year brought in 159 million yuan in repayments this period, with a remaining balance of 380 million yuan — and because the aging exceeded one year, credit impairment losses increased substantially under accounting standards.

Third, asset impairment losses totaled 26 million yuan, mainly due to increased inventory provisions. In 2023, the company raised raw material stockpiles to address shortened delivery times and material shortage risks, but industry cycle impacts delayed batch production orders from 2024 to 2025, slowing inventory turnover and extending shelf age, which triggered higher inventory write-down provisions.

The company's core products — TR modules and array antennas — are essential components for radar and wireless communication systems. In the first half, array antenna revenue reached 66 million yuan, down 85.77% year-on-year, accounting for 96.23% of total revenue. The segment's gross margin fell 5.92 percentage points to 43.02%, while the company's overall gross margin declined 7.87 percentage points to 41.09%.

At the earnings call in late April, Leida Wei indicated that new orders had improved, though the industry adjustment continues. The company has been actively responding, with collection efforts showing initial results since the second quarter, and general market product development progressing as planned. The company also stated that accounts receivable risks are overall controllable with no large-scale unrecoverable amounts, noting that key customers have good credit and stable cooperation. Since the second quarter, intensified collection efforts have achieved phased results, and the company plans to accelerate capital recovery to control bad debt risks. On May 25, the company announced a new array antenna product order contract totaling 443 million yuan (including tax), representing 59.8% of its 2025 audited revenue.

Dubbed 'China's Buffett,' Former Fujian Tycoon Sees Fortune Shrink

Turning to Chen Fashu, the protagonist of this reduction plan — the founder of New Huadu is highly active in China's A-share market and has earned the moniker "China's Warren Buffett." Born in a rural family in Anxi, Fujian Province in the 1960s, Chen came from poverty-homested background and left school after just four years of primary education to work.

Interestingly, Chen's entrepreneurial journey mirrored his name — "Fashu" literally means "becoming wealthy from trees." In his early twenties, he earned his first pot of gold transporting timber, and by 1986, he was one of Quanzhou's largest timber traders, having also purchased his first property in Xiamen. In 1987, Chen pivoted his career, using his property as collateral to acquire a three-wheeled motorcycle and, together with two younger brothers, began hauling goods for a small 8-square-meter shop. He eventually took over the shop, which became the starting point of his business empire.

Through years of careful operation and expansion, in 1995 Chen relocated his store to Fuzhou's East Street and opened multiple branches, branding them "New Huadu Department Store." By 1997, after splitting from his brothers, Chen established the New Huadu Group, expanding beyond retail into hotels, construction machinery, and real estate. During a subsequent business deal, Chen was "tricked" into accepting 60 million yuan worth of construction machinery, but the buyer fled. Left with no choice, Chen tracked down a poor mine called Zijin Mining in Shanghang, western Fujian — a mine that had just obtained mining rights but was too cash-strapped to purchase machinery for extraction. Chen happened to have the equipment, so he drove his machinery into the Zijin mine.

Thanks to this cooperative relationship, when Zijin Mining underwent share reform in 2000, Chen — against internal opposition at New Huadu — had three affiliated companies invest 33.59 million yuan to acquire 20.19% of Zijin Mining. In December 2003, Zijin Mining listed on the Hong Kong Stock Exchange, and in 2008, both Zijin Mining and New Huadu listed on the A-share market. As these companies went public, Chen's personal wealth surged. In the 2009 Forbes China Rich List, Chen was crowned Fujian's richest person with 21.85 billion yuan in wealth. That same year, Chen cashed out over 4 billion yuan by reducing his Zijin Mining holdings.

Thereafter, Chen became increasingly active in capital markets. In May 2009, he invested $235 million to purchase 91.64 million H-shares of Tsingtao Brewery. Three years later, he began reducing those holdings through JPMorgan, cashing out over HK$1.5 billion. Subsequently, with successful positions in LONGi Green Energy and China Tourism Group Duty Free, Chen's reputation in capital markets grew further. Rough estimates suggest he earned nearly 10 billion yuan from these two investments alone.

Thanks to a series of precise capital moves, Chen ranked 212th on the 2021 Hurun Global Rich List with 71 billion yuan in wealth. However, even the smoothest investor has missteps. New Fortune magazine noted in a May 2024 article that if Chen had never sold his Zijin Mining shares, their market value would have reached 84 billion yuan — but he sold precisely before the stock's explosive rise. Meanwhile, his 29 billion yuan investment in Yunnan Baiyao has been held for 15 years yet still shows a 500 million yuan loss.

Moreover, as a former Fujian tycoon, Chen has recently experienced a wealth "Waterloo." On the latest Hurun Global Rich List unveiled in March of this year, Chen's personal fortune stood at 38 billion yuan — down 33 billion yuan from his 2021 ranking.