Cao Hui Takes Over: Fuyao Glass Revenue and Net Profit Both Increase, Northern Capital Reduces Holdings in Advance

Source: Times Finance Author: Zhou Li

Image source: TuChong Creative

Nearly six months after taking over, the first performance report of the second-generation CEO Cao Hui has been released!

After market close on March 17, Fuyao Glass (600660.SH) announced its 2025 annual report. During the reporting period, revenue reached 45.787 billion yuan, a year-on-year increase of 16.65%; net profit attributable to shareholders was 9.312 billion yuan, up 24.20% year-on-year. Notably, this is the first time Fuyao Glass’s revenue has surpassed 40 billion yuan, and it marks the fifth consecutive year of both profit and revenue growth since 2021.

Public information shows that Fuyao Group was founded in 1987 in Fuzhou, Fujian. It is a large multinational industrial group dedicated to the design, development, manufacturing, supply, and integrated service solutions for global automotive glass and automotive trim parts. Its main products are automotive glass and float glass. In October last year, founder Cao Dewang stepped down as chairman, and his eldest son Cao Hui succeeded him as chairman of Fuyao Glass, officially entering the “second-generation” leadership era of this global automotive glass giant.

However, Cao Hui still faces multiple challenges in the glass industry.

By 2025, the global economy is expected to remain in a low-growth normal, with multiple uncertainties such as geopolitical conflicts and trade policy fluctuations, bringing challenges like weakened demand and rising costs to the global supply chain and automotive industry. Although China’s automotive industry is accelerating the iteration of new and old driving forces under policy support, it still faces pressures of insufficient demand and intensified competition.

Meanwhile, competition in float glass is also intensifying. Miao Yunping, a glass analyst at Longzhong Information, told Times Finance that in 2025, the float glass industry is generally in a stage of supply-demand game gradually seeking rebalancing. The real estate sector remains sluggish, with demand shrinking significantly, while supply, after a rapid decline in 2024, has narrowed its fluctuation range, with a slight rebound expected in the second half of 2025.

According to Longzhong Information, the national float glass production in 2025 was 57.66 million tons, down 6.5% year-on-year; domestic theoretical demand was about 56.46 million tons, down 6.4%. Prices continued to decline overall, with a weak trend of more falls than rises, and the fluctuation range also significantly narrowed. The average price of float glass nationwide in 2025 was 1,221 yuan per ton, down 23.3% year-on-year.

It is understood that Fuyao Glass produces and sells float glass mainly for automotive use, with products primarily supplied internally.

According to periodic reports, the revenue from automotive glass has remained stable at over 90% of total revenue since 2021, and in 2025, it further increased to 91.49%, becoming Fuyao Glass’s core profit driver. The second-largest revenue source is float glass. Despite fierce competition in the glass market, both automotive glass and float glass saw gross profit margins increase year-on-year in 2025.

Behind steady gross margins and performance growth is Fuyao Glass’s emphasis on R&D and technology.

Wind data shows that in recent years, Fuyao Glass’s R&D expenses have also increased annually, from 813 million yuan in 2019 to 1.913 billion yuan in 2025. Since 2020, the total R&D investment has accounted for over 4% of revenue.

Heavy investment in R&D has brought significant benefits to Fuyao Glass, from successfully developing ultra-thin tempered automotive glass to replacing deep gray film products with self-supplied ones, and continuously upgrading products with lightweight ultra-thin glass, coated heated glass, tempered laminated glass, and other high-value-added products. This not only significantly reduces procurement costs but also increases profit margins.

Meanwhile, after establishing production bases in North America, Europe, and Russia, overseas market revenue has been rising steadily—from less than 9 billion yuan in 2020 to over 20 billion yuan in 2025.

Regarding the future price trend of float glass, Miao Yunping said that since real estate remains the largest demand sector for float glass, and given the continued sluggishness in the property market, demand in the first half of the year is expected to remain weak.

“On the supply side, under long-term losses and high inventory pressure, it is expected that some production lines will be shut down for maintenance, but some will be restarted, so the overall supply may continue to decline with fluctuations. After upstream inventory replenishment at the beginning of the year, the market may enter a phase of inventory digestion. With weak demand in the first half, the pace of destocking may be slow, especially in regions with high midstream inventory levels, putting pressure on the market. However, rising raw material and fuel prices provide some cost support. Coupled with the ongoing losses, companies are strongly motivated to turn losses into profits. Therefore, the price of float glass in the first half of the year is expected to face upward pressure, with some support for downward movement, and prices may fluctuate within a narrow range,” Miao Yunping explained.

Regarding fierce competition in high-end automotive glass among peers in recent years, Fuyao Glass has its own plans. Its 2025 annual report mentions expanding the “boundary of a single piece of glass,” focusing on smart glass, extending the industrial chain, strengthening supporting products like precision aluminum parts and smart trim parts, consolidating float glass advantages, upgrading equipment and mold technology, and building formidable technological and scale barriers.

Meanwhile, in 2026, Fuyao Glass has set multiple operational plans—accelerating the construction of new projects in Shanghai aluminum parts, Chongqing aluminum parts, Anhui trim parts, and Anhui molds to significantly increase capacity and comprehensively upgrade supply capabilities; also, enhancing market and technological foresight, focusing on core innovation, tackling new automotive glass products and R&D, speeding up product iteration, and seizing market opportunities with first-mover advantages.

To achieve its 2026 operational goals, Fuyao Glass estimates a total capital requirement of 49.862 billion yuan for 2026, including 39 billion yuan in operating expenses and 7.73 billion yuan in capital expenditures, planning to accelerate receivables collection, inventory turnover, optimize working capital, and seek funding through bank loans or bond issuance.

However, despite overall positive performance, Fuyao Glass’s stock price has been volatile since hitting a record high of 73.62 yuan per share on September 18 last year, with a decline of 19.28% as of March 17. Since Cao Hui took over, the stock has fallen 11.18%, compared to a 4.96% decline in the industry during the same period.

The annual report shows that among Fuyao Glass’s top ten shareholders, the so-called “smart money,” Hong Kong Central Clearing Company Limited, reduced its holdings by 22.9075 million shares last year, and China Industrial Bank Co., Ltd. – Huatai-PineBridge CSI 300 ETF reduced its holdings by 1.2049 million shares.