105 billion Changzhou's richest person, "got into trouble"?

AI Inquiry · Why Are Continuous Detentions of Changzhou Machinery Industry Executives Raising Concerns?

Radar Finance Production | Text by Peng Cheng | Editing by Meng Shuai

A “black swan” suddenly appeared, targeting the billion-dollar hydraulic leader—Hengli Hydraulic.

On the evening of March 20, Hengli Hydraulic announced that the company’s actual controller and chairman, Wang Liping, has been detained and placed under investigation by the Jiangsu Provincial Supervision Commission.

Notably, just half a month ago, Wang Liping’s family was named the richest in Changzhou, Jiangsu, with a fortune of 105 billion yuan, nearly doubling their wealth from the previous year.

By 2025, Hengli Hydraulic’s stock price had increased over 100%. However, at the peak of its stock price, Wang Liping’s family-controlled shareholding platform completed a major reduction of nearly 3 billion yuan in holdings last year.

Looking back at Wang Liping’s entrepreneurial journey, he spent over 30 years transforming a small workshop with only seven employees into a leading global hydraulic enterprise.

But from the peak of wealth to sudden detention, this billionaire business magnate may be facing the most severe test since starting his business.

From a corporate perspective, Hengli Hydraulic delivered a solid performance in the first three quarters of last year: revenue increased by 12.31% year-over-year to 7.79 billion yuan, and net profit attributable to shareholders rose by 16.49% to 2.087 billion yuan.

However, behind this seemingly impressive financial report, there are hidden concerns that cannot be ignored. In the first three quarters of last year, the company’s net cash flow from operating activities decreased by nearly 20%. Additionally, as of the end of Q3 last year, the company’s accounts receivable and inventories both increased by over 20% compared to the end of the previous year.

Wealth Doubled, Changzhou’s Richest Person Suddenly Detained

On the evening of March 20, Hengli Hydraulic, often called the “hydraulic king,” announced that it had received a notice from Wang Liping’s family that he had been detained and placed under investigation by the Jiangsu Provincial Supervision Commission.

Hengli Hydraulic stated that the company has made proper arrangements for related work. Daily operations are managed by the executive team, and other directors and senior managers are performing their duties normally. Production and business activities are proceeding as usual, and the company emphasized that “these matters will not have a significant impact on the company’s operations.”

Public reports indicate that Wang Liping’s last public appearance was on February 26 of this year.

At that time, Taiyuan Heavy Machinery Group Co., Ltd. announced that its Party Secretary and Chairman, Tao Jiajin, met with Wang Liping and his delegation, engaging in in-depth discussions on deepening industrial collaboration and achieving mutual benefits.

Wang Liping stated that Hengli Hydraulic would leverage its advantages in technological innovation, market resources, and overseas expansion to help Taiyuan Heavy improve its competitive edge and expand brand influence through higher quality and better service.

Just two weeks before the detention announcement, on March 5, Wang Liping’s family, with a fortune of 105 billion yuan, ranked 194th on the 2026 Hurun Global Rich List, nearly doubling their wealth from the previous year and reclaiming the title of Changzhou’s richest.

The sharp increase in Wang Liping’s family wealth is closely related to Hengli Hydraulic’s performance in the capital markets over the past year. In 2025, the company’s stock price surged more than 100% for the year.

However, while Hengli Hydraulic’s stock was at a high, Wang Liping’s family carried out a large-scale share reduction last year.

According to a November 28, 2024, announcement, the company’s second-largest shareholder, Shenno Technology (Hong Kong) Limited, reduced its holdings by 2.39% from September 1 to November 28, at prices ranging from 84 to 104.82 yuan per share, totaling approximately 2.926 billion yuan.

The company’s financial reports show that Shenno Technology (Hong Kong) Limited is controlled by Wang Liping, the actual controller of Hengli Hydraulic, along with his wife, Qian Peixin, and son, Wang Qi.

It’s noteworthy that Wang Liping’s detention is not the only recent case involving a major controller in Changzhou’s machinery sector.

In January, Tianyuan Intelligent Equipment Co., Ltd., also based in Changzhou and active in machinery equipment, announced that its actual controller and chairman, Wu Yizhong, was detained and under investigation by the Jiangsu Provincial Supervision Commission.

The specific reasons for Wang Liping’s detention have not been disclosed by Hengli Hydraulic. The detention of two major industry players in Changzhou has sparked market speculation about potential common issues within the industry or region.

From Village Technician to Billionaire

Wang Liping, now detained, currently serves as chairman of Hengli Hydraulic. In 2024, his pre-tax compensation from the company totaled 1.304 million yuan.

Public records show that Wang Liping was born in a rural area of Wuxi, Jiangsu. Early in his career, he worked as a technician at a township pneumatic factory. This grassroots experience laid the foundation for his later entrepreneurial success in hydraulics.

In the 1990s, driven by entrepreneurial dreams, Wang Liping used his savings of 50,000 yuan to establish a small company with just seven employees—Hengli Pneumatic.

This company was the predecessor of Hengli Hydraulic, initially mainly producing pneumatic cylinders and control valves.

Despite a tough start, Wang Liping’s keen market insight and dedication to technology led his team to continuous exploration and innovation.

Around 1996, as China’s excavator market rapidly developed, domestic hydraulic cylinders faced quality issues that failed to meet OEM requirements. Seeing this opportunity, Wang Liping decided to enter the excavator cylinder market.

In the late 1990s, after repeated testing and technical breakthroughs, his team successfully developed the first generation of excavator hydraulic cylinders, breaking foreign technical monopolies. The products were well received, and Hengli Hydraulic’s reputation grew within the industry.

Entering the 21st century, Hengli Hydraulic continued increasing R&D investment and tackling technical challenges.

According to Securities Times, in 2005, Hengli Hydraulic successfully developed high-pressure pumps and motors for excavators, once again breaking foreign dominance in this field.

These products reached international advanced levels while costing about half of comparable foreign products. This competitive advantage allowed Hengli Hydraulic to rapidly expand in the domestic market and begin international expansion.

Tianyancha shows that Hengli Hydraulic was listed on the Shanghai Stock Exchange in 2011. With the support of capital markets, the company’s scale continued to grow.

Radar Finance’s review indicates that from 2016 to 2024 (excluding 2022), Hengli Hydraulic’s performance steadily increased.

During this period, revenue grew from 1.37 billion yuan to 9.39 billion yuan, and net profit attributable to shareholders rose from 70 million yuan to 2.509 billion yuan, achieving rapid development.

After more than 30 years, Hengli Hydraulic has evolved from a single manufacturer of hydraulic cylinders into a comprehensive enterprise producing high-pressure cylinders, plunger pumps, hydraulic valves, industrial valves, hydraulic systems, testing equipment, and high-precision castings.

The company has invested in high-pressure precision casting bases, hydraulic valve and pump manufacturing facilities, and expanded overseas through acquisitions like Inlai in Germany and new offices in Chicago, USA, and Tokyo, Japan.

Revenue and Profit Growth Amid Challenges

Latest financial data show that in the first three quarters of 2025, Hengli Hydraulic achieved revenue of 7.79 billion yuan, up 12.31% year-over-year, and net profit of 2.087 billion yuan, up 16.49%.

However, behind these seemingly bright figures, the company faces significant challenges. In the first three quarters of last year, net cash flow from operating activities was 1.059 billion yuan, down 19.75%.

As of September 2025, accounts receivable reached 1.725 billion yuan, a 25.8% increase from the end of 2024; inventories rose from 1.765 billion yuan at the end of 2024 to 2.179 billion yuan by September 2025, an increase of over 23.4%.

Zheshang Securities’ research report notes that Hengli Hydraulic’s product line has expanded from single cylinders to a dual drive of cylinders and valves. When listed in 2011, cylinder revenue accounted for 99%; by 2024, the proportion of pump and valve revenue reached 38%, with cylinders at 51%.

Recently, Hengli Hydraulic has also increased its investment in new businesses like electrification and linear drives. In 2021, the company announced a private placement plan, raising up to 5 billion yuan to fund projects like the Mexico plant and linear actuator development.

The 2025 semi-annual report shows that the linear drive project, a core part of Hengli Hydraulic’s electrification strategy, achieved notable progress last year, developing over 50 new products, all of which have been mass-produced and launched to market, responding to industry needs with diversified, highly adaptable products.

Hengli Hydraulic states that its linear transmission products, leveraging technological advantages and quality assurance, quickly gained industry attention. In the first half of last year, the company expanded its customer base significantly, adding nearly 300 new clients through direct sales and distribution channels.

However, according to China News Weekly, Zheshang Securities’ recent research report indicates that Hengli Hydraulic’s current valuation (about 48 times P/E) already reflects optimistic expectations for new businesses like humanoid robots and pump/valve expansion. The report warns that if these new ventures do not reach mass production or expansion targets as expected, and combined with the market sentiment pressure from the family’s large-scale share reduction, the valuation could contract.

Goldman Sachs also recently noted that while Hengli Hydraulic’s fundamentals remain solid, its stock price has overly priced in growth expectations for new fields like humanoid robots. The firm set a target price of 83 yuan and warned that if performance or new business progress falls short, the stock could face a valuation correction, with about 20% downside potential from current levels.

Radar Finance will continue to monitor the developments regarding Wang Liping’s detention.