Toy factory owner, net worth surges by 2.7 billion in 4 days

Ask AI · What is the strategic intention behind Jiushi Intelligence’s cross-industry investment in Xinghui Huan Cai?

A listed company’s announcement, in just four days, increased the founding family’s “wealth” by nearly 2.7 billion yuan.

On the evening of March 30, 2026, Xinghui Huan Cai announced that the actual controller Chen Yansheng’s family transferred indirect equity to two companies under the unmanned driving unicorn Jiushi Intelligence, with a total transaction price of about 1.18B yuan.

The news immediately sparked a market rally. Xinghui Huan Cai’s stock price surged significantly over four consecutive trading days from March 31 to April 3, rising from about 25 yuan to a intraday high of 52.19 yuan, with a total increase of nearly 85.6% by the close on April 3.

This time, how long can the “myth” of a star unicorn crossing into a new industry keep rising?

Image / TuChong Creative

An announcement, wealth increased by 2.7 billion

The direct reason for Xinghui Huan Cai’s stock price soaring is the indirect investment by the star unicorn Jiushi Intelligence in unmanned driving.

Specifically, the actual controller Chen Yansheng’s family and their concerted actors signed an equity transfer agreement with two wholly owned subsidiaries of Jiushi Intelligence on March 28, 2026, with a total transaction price of about 1.18B yuan. After the transaction, Jiushi Intelligence indirectly holds 27.49% of Xinghui Huan Cai’s shares, while Chen Yansheng’s family still maintains control with a 45.19% stake.

The market’s strong expectations stem from Jiushi Intelligence’s investment not only providing backing from hundreds of billions of yuan in tech capital but also opening up imaginations for Xinghui Huan Cai’s transformation from traditional chemical materials to “new materials + unmanned driving scenarios.”

Jiushi Intelligence was founded in 2021 and is the world’s largest RoboVan (autonomous logistics van) company, mainly engaged in R&D of artificial intelligence and L4-level autonomous driving technology. In February this year, Jiushi Intelligence completed a new round of financing exceeding $300 million, with a valuation surpassing 20k yuan.

Its official news mentioned that in January this year, Jiushi Intelligence completed strategic integration with Cainiao’s unmanned vehicle business, operating under both “Jiushi” and “Cainiao Unmanned Vehicles” brands. The RoboVan fleet has exceeded 20k units, making it the largest L4 autonomous logistics vehicle fleet globally.

Xinghui Huan Cai mainly focuses on the R&D, production, and sales of polystyrene (PS). Its financial reports show that the company has an annual production capacity of 350k tons of polystyrene products, making it the largest polystyrene producer in South China.

From the publicly disclosed information of Jiushi Intelligence and Xinghui Huan Cai, there was no prior business relationship or related connection. According to Xinghui Huan Cai’s announcement, Jiushi Intelligence’s investment was mainly based on recognizing the company’s long-term intrinsic value and growth potential, optimistic about its future development space; Chen Yansheng’s family stated that this equity transfer aims to introduce strategic investors with industry resources and capital strength, optimize shareholder structure, and empower the company’s subsequent development.

Before this indirect investment in Xinghui Huan Cai, Jiushi Intelligence had little activity in the capital market. Some market voices believe that this 350k yuan investment is not just a financial move but also a strategic test leveraging the A-share capital market.

Recently, Xinghui Huan Cai’s capital flow showed a significant net inflow of main funds, strong speculative buying, and notable trading volume: on March 31 and April 1, main funds net inflowed 136 million and 134 million yuan respectively, with increased turnover rates, indicating a concentrated bullish enthusiasm and speculative sentiment.

It is worth noting that the direct beneficiary of this wealth feast is the founder Chen Yansheng.

Public information shows that Chen Yansheng was born in Chaozhou, Shantou, Guangdong, known in the industry as the “Chaozhou Toy King.” In 1995, Chen Yansheng and his wife Chen Dongqiong founded Xinghui Plastic Factory, earning their first fortune through toy footballs. Later, they obtained licenses for BMW and other international car models, developing the business into a well-known toy enterprise in China.

Currently, Chen Yansheng’s wealth map centers on Guangdong Xinghui Holdings, controlling Xinghui Entertainment and Xinghui Huan Cai through a dual-layer ownership structure involving his family (Chen Yansheng, Chen Dongqiong, Chen Chuanghuang) and concerted actors.

In 2022, Chen Yansheng’s family ranked among Hurun’s global billionaires with a wealth of 8.5 billion yuan, but subsequently, due to Xinghui Entertainment’s losses from the Spanish football club and sluggish game business, their performance remained weak. Additionally, Xinghui Huan Cai’s listing saw a debut below the offering price, with market value shrinking long-term, leading the family to fall out of Hurun’s billionaire list from 2023.

Now, a “turning point” has finally arrived. After introducing Jiushi Intelligence, Xinghui Huan Cai’s stock price surged about 85.6% over four days. Even before the shares are transferred, Chen Yansheng’s family’s overall wealth has increased by nearly 2.69 billion yuan.

Cross-industry investment, beware of risks

However, the short-term surge in stock price ultimately reflects “paper wealth,” and whether Xinghui Huan Cai’s high stock price can be sustained remains to be seen.

At the company level, Xinghui Huan Cai issued two abnormal fluctuation announcements on March 31 and April 2. The key point emphasized: “This equity change will not lead to a change in the company’s controlling shareholder or actual controller. Jiushi Intelligence commits that within 36 months after the completion of this equity transfer, it will not seek control or actual control of the listed company in any way, nor does it plan to inject assets into the listed company.”

Additionally, Xinghui Huan Cai pointed out that its P/E ratio is 86.66 times, far higher than the industry average of 32.88 times, and its performance remains sluggish. Whether this equity change can be finally completed is uncertain. The sharp short-term increase in stock price carries the risk of a correction.

More importantly, from a fundamental perspective, Xinghui Huan Cai’s performance is not optimistic. In the first three quarters of 2025, the company achieved revenue of about 1 billion yuan, a year-on-year decrease of 21.05%; net profit attributable to shareholders was 39.56 million yuan, down 44.29% year-on-year. The company explained that the decline was mainly due to industry growth not meeting expectations, narrowing product price spreads, and resulting in lower gross margins.

According to publicly available financial data and management statements, Jiushi Intelligence has not yet achieved full profitability. Its founder Kong Qi revealed in an interview at the beginning of the year that the company had turned positive in cash flow and gross margin in November and December 2025; its business scale in 2025 grew nearly tenfold compared to 2024.

Warning signals have already begun to appear. After three consecutive trading days of 20% limit-up, on the fourth day, Xinghui Huan Cai once again hit a 20% limit-up at open, but did not maintain strength during the session. As of the close on April 3, the stock closed at 46.72 yuan, up 7.43%, but investors who bought at the limit-up faced nearly 13% floating loss.

The current frenzy appears to be the market pricing in the potential linkage of “technology + manufacturing.” But after the sentiment cools, the subsequent pullback is also worth noting.

China News Weekly found that cross-industry investment hype is not without textbook negative cases. For example, Shangwei New Materials, which surged over 15 times in the second half of 2025 due to Zhiyuan Robotics’ proposed takeover, retreated over 60% after regulatory inquiries and sentiment cooling.

Another more “crazy” case is Fenglong Co., which saw an 18-limit streak and over 400% increase from December 2025 to January 2026 due to UBest, the “first humanoid robot stock,” but after regulatory suspension and clarifications that “no asset injection within 36 months,” the stock collapsed, retreating about 40% from its high.

Without strong fundamentals backing, and with Jiushi Intelligence repeatedly emphasizing that it does not seek control or asset injection in the short term, how long Xinghui Huan Cai’s high stock price can last remains questionable.

(This article does not provide any investment advice)

Reporter: Yu Shengmei

(yushengmei1231@126.com)

Editor: Yu Yuan