Bloomberg Billionaires Index

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#307 Lu Guanqiu $5.42B

Random fact: Posed for the cover of Newsweek in 1991.

Overview

Lu is the founder and chairman of Wanxiang Group, an automotive parts and accessories manufacturer. The closely held business has stakes in several publicly traded companies, including Wanxiang Qianchao and Wanxiang Doneed. Lu also chairs Wanxiang Sannong Group, a closely held agricultural conglomerate.

As of July 23, 2017:
Last change -$40.1M (-0.7%)
YTD change -$707M (-11.5%)
Industry Diversified
Biggest asset Wanxiang Group
Citizenship China
Age 72
Wealth Self-made
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

Lu Guanqiu's net worth of $5.42B can buy ...

0
troy ounces of gold
0
barrels of crude oil

... and is equivalent to ...

0%
of the GDP of the United States
0%
of the total wealth of the 500 richest people in the world
0%
of the top 100 U.S. college endowments
0%
of the top 200 U.S. executives’ total awarded compensation
0%
of U.S. existing home sales
0
times the median U.S. household income

Latest News

Net Worth Summary

Cash
Private asset
Public asset
Misc. liabilities
Confidence rating:

The majority of Lu's fortune is derived from his two Hangzhou, China-based diversified conglomerates, Wanxiang Group, an automotive parts and accessories manufacturer, and Wanxiang Sannong Group, an agricultural conglomerate.

The two conglomerates also have closely held businesses. Wanxiang Group, which holds most of Lu's auto-related assets, is valued using the average price-to-earnings multiple of five publicly traded peers: Huayu Automotive Systems, Fuyao Glass Industry Group, Weichai Power, Wanxiang Qianchao and Shunfa Hengye Corporation. A 5 percent of liquidity discount is applied.

Wanxiang Sannong has interests in food processing, shipping, fish-farming and breeding, and most of its profit comes from its fish-related activities. It's valued using the average enterprise price-to-earnings of five publicly traded peers: Shanghai Kaichuang Marine, CNFC Overseas Fishery, Zhangzidao Groupo, Zhanjiang Guolian Aquatic and Hebei Chengde Lolo. A 5 percent of liquidity discount is applied.

Lu also owns 44 percent stake of Mingsheng Life Insurance, through his son and wife. Mingsheng Life Insurance reported a revenue of 16 billion yuan ($2.4 billion) in 2016, according to the company's 2016 annual report. It's valued using the average price-to-book multiples of three publicly traded peers: Ping An Insurance, China Pacific Insurance, and New China Life Insurance. A 25 percent of liquidity discount is applied because Mingsheng is smaller than its peers.

The billionaire's cash holdings are based on an analysis of calculated dividends, stock transactions, market performance and taxes.

Mo Xiaoping, a spokesman for Wanxiang, declined to comment on the billionaire's wealth.

Biography

Birthdate: 1/1945
Family: Married, No children
Education:

Lu Guanqiu was born in a rural family near Hangzhou, the capital of Zhejiang province in eastern China. He dropped out of school and started working for a blacksmith shop at age 15.

After running a bicycle repair shop, Lu started an agricultural machinery factory in 1969 with $500, according to a company presentation. He switched the factory's focus to making universal joints in the 1970s after he saw a demand for the auto as China aimed to develop its transportation sector.

Lu expanded across China in the 1980s before extending his reach in the global market in the 1990s, boosting profit 10-fold during that time, according to the company presentation. Wanxiang added other businesses, including renewable energy, financial services, minerals and petroleum and real estate, the company said.

When Wanxiang expanded to the U.S. in 1994, it broadened its role from a parts supplier into a "discerning acquirer" of distressed assets, according to a Harvard Business School case study on the company. It bought Fisker Automotive at a bankruptcy auction in 2014, and has plans for a new slate of electric cars in the U.S. and China. Lu said he'll put "every cent" of Wanxiang earnings into the electric vehicles.

A Communist Party member, Lu attended the party's national assembly and the annual meetings of China's top legislative body. Lu's son, Lu Weiding, serves as Wanxiang's chief executive officer.

Milestones
  • 1945 Lu Guanqiu is born near Hangzhou, Zhejiang.
  • 1961 Drops out of school to work for a blacksmith.
  • 1969 Starts an agricultural machinery factory with $500.
  • 1980 Begins expansion across China.
  • 1980 Starts expanding globally and increases profit 10-fold.
  • 1987 Selected as a delegate to the communist party's national congress.
  • 1993 Becomes a member of China's top legislative body.
  • 1994 Wanxiang sets up a subsidiary in the U.S.
  • 1994 Sells shares on the Shenzhen stock exchange.
  • 2014 Buys Fisker Automotive. Plans to introduce electric cars in the U.S.