The impact on Victory Giant Technology (Huizhou) Co., Ltd. (SHE: 300476 / HKEX: 02476) has been immediate and severe. In a single day, the company's market value plummeted by over 30 billion yuan. On June 5th, this PCB industry leader, valued at over 300 billion, led a sector-wide decline: its A-share price fell 7.59% and its Hong Kong-listed shares dropped 11.18%. On that day, net outflows of main capital from its A-share market exceeded 3.8 billion yuan.
Confused investors were left searching for the reason behind the sharp drop. The situation worsened on June 6th when a personal scandal involving the company's actual controller and Chairman, Chen Tao, came to light, leaving many investors dismayed. A Douyin streamer named "Zhenzhen Janice" publicly claimed to have an emotional dispute with Chen Tao, alleging he "tricked her into having a child" and released chat logs and a video as evidence. The video showed the pair being intimate and kissing in an elevator.
In response, VGT's President, Zhao Qixiang, stated in a media interview that Chen Tao had communicated the situation to the board, that the online rumors were not entirely accurate, and that the company had filed a police report on June 6th, with relevant authorities now involved. Zhao also mentioned that the company is aware of investor feedback online and that the Shenzhen Stock Exchange is monitoring the matter, though a decision on whether to issue a formal announcement is still pending.
Some investors have joked about the situation, while others are seriously debating whether the event constitutes negative or positive news for the company's stock price and future operations. Beyond the gossip, investors who have put real money into VGT are understandably anxious.
There is a clear concern that this scandal involving the company's actual controller and chairman could trigger a significant and sustained decline in VGT's share price, potentially affecting the PCB leader's long-term operational performance. Some investors draw parallels with past scandals involving other company chairs, suggesting the impact may be limited to short-term sentiment. However, many worry that the event could lead to a divorce between Chen Tao and his wife, Liu Chunlan, resulting in a division of their substantial equity stake, which would directly impact the stability of the listed company and, consequently, long-term investor returns.
It is noted that the video released by the streamer is from April 2025, indicating the parties involved were already aware of the situation last year. The scandal has now resurfaced nearly a year later. Despite the rumor circulating for two days, neither VGT nor Chen Tao has issued an official public statement. While a strategy of non-engagement to let the news cool down is understandable, the continued silence in the face of public inquiry itself poses risks, raising questions about corporate governance standards, transparency of information disclosure, and the compliance of the actual controller's behavior. If the matter involves issues like improper benefit transfer, insider trading, or violations of conduct rules for listed company executives, regulatory intervention or penalties could directly shatter investor confidence.
Potential Impact on Shareholding Stability
The 54-year-old Chen Tao is VGT's actual controller, founder, and chairman, responsible for the company's overall management, strategic planning, and key business decisions. The company's latest investor relations activity record describes him as a recognized technical expert and leader in the PCB industry. Public profiles often highlight his rags-to-riches story, building an image of a steady and trustworthy manufacturing entrepreneur. However, the escalating scandal has severely damaged that image. In capital markets, "investing is about investing in people." For those who invested in VGT based on faith in Chen Tao personally, this incident could directly influence their future investment decisions.
His wife, 48-year-old Liu Chunlan, is not merely a homemaker but holds a voting seat on VGT's board. She has been involved since the company's founding in 2003 and served as a director from 2016 until her transfer to a non-executive director role in July 2025. She also holds management positions in related investment firms. According to the Hurun Global Rich List, the couple's combined wealth is estimated at 68 billion yuan, making them the richest in Huizhou, Guangdong. This wealth is primarily tied to their VGT stock holdings.
As of late April 2026, following the Hong Kong listing, their combined controlling stake, held through Sheng Hua Xin Ye and Victory Giant Technology Group (Hong Kong) Co., Ltd., was diluted to approximately 27.71%. Specifically, Chen Tao and Liu Chunlan together control about 27.5% of VGT's shares. According to the streamer's claims, her relationship with Chen Tao has lasted for some time and even involves a child. She stated in a reply to a netizen that she accompanied him "from 30 billion to 300 billion" in market capitalization. VGT's market cap crossed the 300 billion yuan threshold around September 2024, suggesting the relationship began before that. The streamer also claims Liu Chunlan confronted her last year, meaning the situation has been known to the parties involved for at least a year.
The streamer has presented further evidence suggesting a substantive rift in the couple's marriage, which is a primary concern for investors: could this lead to divorce and a subsequent division of their controlling equity stake? On investor forums, some fear this would be a major negative, while others believe "if they were going to divorce, they would have done so already." Interestingly, in May 2025, the couple sold shares through Sheng Hua Xin Ye to over 20 institutions, cashing out nearly 1.7 billion yuan. In August 2025, Liu Chunlan sold additional shares worth 186 million yuan.
Potential Impact on Business Operations
Amid the booming AI industry chain, demand for high-layer count boards and HDI boards has surged, fueling the PCB market. As a key supplier often described as a beneficiary of the NVIDIA ecosystem, VGT has seen its performance and stock price soar since 2024. The company specializes in R&D, production, and sales of high-precision multi-layer, HDI, FPC, and rigid-flex boards. According to Frost & Sullivan, in the first half of 2025, VGT ranked first globally in revenue from AI and high-performance computing PCBs, with a market share of approximately 13.8%. Its Huizhou headquarters is the world's largest single-site PCB production base.
For 2024 and 2025, VGT's revenue grew 35.31% and 79.77% year-over-year to 10.731 billion yuan and 19.292 billion yuan, respectively. Net profit attributable to shareholders soared 71.96% and 273.52% to 1.154 billion yuan and 4.312 billion yuan, respectively. Growth continued into Q1 2026. The company stated on June 5th that it has a full order book and is pushing forward with capacity expansion to meet its 2030 revenue target.
NVIDIA is VGT's largest customer, reportedly accounting for over 70% of orders. Chen Tao's attendance at a high-profile dinner hosted by NVIDIA's Jensen Huang in Taipei in January 2026, as the sole mainland Chinese enterprise representative among major tech giants, further boosted the stock. During this period of soaring performance, VGT's A-share price rose from around 20 yuan per share in early 2024 to over 400 yuan by late May 2026, a cumulative increase of over 17 times, with its A-share market cap once exceeding 380 billion yuan. The company's secondary listing on the Hong Kong Stock Exchange in April 2026 raised over 20 billion HKD.
However, even solid fundamentals can be undermined. Chen Tao controls nearly 30% of voting rights through his investment vehicles, his wife is a board member, and his brother is a vice president—making VGT a typical family-controlled listed company. Analysis suggests that during growth periods, such control is seen as enabling efficient decision-making, but during crises, it can be re-evaluated as lacking checks and balances. If the scandal worsens and directly affects the stability of the Chen-Liu marriage, leading to equity disputes, internal family conflicts could disrupt the company's operations.
Some investors argue that stock trading is about orders and that such gossip might only affect opening sentiment. Others contend that strategic partners like NVIDIA prioritize stability. If this instability persists, it could raise concerns among major clients, potentially leading to customer loss—a fatal blow for VGT. Some investors have already begun to question VGT's overall operational capabilities, comparing it to a "not-so-bright student" who works hard but sees slow improvement in results. Forum analysis suggests the company's development has been lopsided, with strong expansion ambitions but lagging capacity release and performance that often falls short of expectations, alongside repetitive and uninformative investor communications.
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