The stock market is witnessing a significant shake-up for a 300-billion-yuan giant, triggered by the personal life of its chairman.
On the morning of June 8th, shareholders of AI computing power PCB leader Victory Giant Technology(Huizhou) Co.,Ltd. (SHE: 300476) were taken aback as the stock price opened sharply lower, plunging over 9% at one point. By the close, the A-share price had fallen 7.11% to 314.8 yuan per share. The company's total market capitalization dropped to approximately 309.4 billion yuan, evaporating over 20 billion yuan compared to the previous trading session.
This sharp decline stemmed from rapidly spreading online reports concerning intimate behavior between the chairman and a woman in an elevator. With the stock exchange's attention and police involvement in the public controversy, this AI computing power behemoth is now confronting market turbulence ignited by private affairs.
Video Leak and Allegations
The incident ignited on June 6th. A user on a short-video platform released multiple posts alleging personal misconduct by Chen Tao, the actual controller and chairman of Victory Giant Tech. One video showed a middle-aged man interacting intimately with a woman in white inside an elevator. The user also claimed an emotional dispute with Chen Tao, accusing him of deception, and shared supporting materials like chat screenshots.
Some investors commented that the chairman's energy might signal strong prospects for the company. Others questioned whether it could lead to a divorce and subsequent division of equity.
In response to the online rumors, the company's president stated that Chen Tao had communicated with the board, clarifying that some information was inaccurate. The company filed a police report on June 6th, and authorities are investigating. The president noted the company is aware of shareholder feedback and that the stock exchange is monitoring the situation, with a decision on issuing a formal announcement still under evaluation.
The company has stated that the online video and related information are unrelated to its production, operations, or any information requiring disclosure. It emphasized that these matters do not affect daily operations, and business continues normally with strong order books.
Public information shows Chen Tao, 54, is the founder, controller, and chairman. Starting as a PCB salesman, he built his business over two decades to become a significant figure in the global PCB industry.
Victory Giant Tech listed on the Hong Kong Stock Exchange main board just this past April, raising approximately HK$19.89 billion net, making it the largest IPO in Hong Kong this year.
An interesting detail reported is that Chen Tao was accompanied by his wife, Liu Chunlan, during the listing ceremony. According to the Hurun Rich List, the couple's wealth is estimated at 65 billion yuan, ranking them 81st and making them the wealthiest in Huizhou, Guangdong.
Assessing the Fallout
Victory Giant Tech is a top global PCB manufacturer and a key player in AI computing infrastructure. Its products are used in AI servers, high-performance computing, cloud computing, and consumer electronics. The company is a crucial partner and supplier to NVIDIA, with Chairman Chen Tao having attended high-profile industry events.
Riding the AI wave, the company's stock surged over 600% last year. The immediate impact of the "elevator incident" was felt on its share price. On June 8th, both its A-shares and H-shares fell significantly. The A-share price closed down 7.11%, while the H-share price dropped 8.19%. The total market cap fell from around 333 billion yuan to about 309.4 billion yuan. The company has over 270,000 A-share shareholders.
Concerns also extend to potential impacts on the stability of the company's control. According to data, the top two shareholders are entities controlled by Chen Tao. His spouse, Liu Chunlan, holds a minority stake and is a concerted action person with Chen Tao.
An industry analyst commented that if the allegations are true and lead to divorce proceedings, the company could face control risk. Splitting shares could end the current absolute control. Even without a physical split, issues around voting rights and management could create internal friction and potentially attract opportunistic acquisitions.
The analyst further noted that beyond control risk, the incident damages the company's reputation and governance credibility. As an AI PCB leader, its core competitiveness relies on long-term trust with global clients like NVIDIA. Such personal integrity issues could trigger client reviews based on ESG criteria and threaten its supplier status. The stock volatility reflects the market's panic over "key person risk."
It's important to note that police are investigating, and the stock exchange is monitoring. Whether further clarifications are required depends on how the situation develops.
Financially, the company reported strong growth for 2025, with revenue and net profit increasing significantly. For Q1 2026, revenue and profit also showed healthy growth.
Commentary suggests the company is at a critical juncture. Its deep ties to NVIDIA bring immense benefits but also create vulnerability to any shifts in orders or margins. The company is reportedly focusing on R&D, capacity expansion, and overseas growth to mitigate risks. The recent HK$20 billion Hong Kong listing is seen as an attempt to secure additional investment before industry margins potentially normalize.
The loss of 20 billion yuan in market value in a single day raises the question: Is this an overreaction by the market, or a rational pricing of "key person marital risk"?
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