Summary of Key Points
Chen Tao, the chairman of Shenghong Technology (a leading AI industry company with a market value of over 300 billion yuan), has become the center of a public controversy after a video of an intimate encounter in an elevator was exposed by Douyin blogger "Zhenzhen Janice." The incident caused the company's stock price to plummet by more than 7% in a single day, resulting in a loss of over 20 billion yuan in market value. Approximately 273,000 shareholders were affected by this news. The story also reveals how Shenghong Technology has achieved its impressive performance by partnering with NVIDIA, Chen Tao's own entrepreneurial journey, and the extensive business interests of his family across various sectors such as circuit boards, liquor production, and hotel management.
1. The Elevator Incident: The Boss's Personal Life, a Disaster for Shareholders
On June 6, Douyin blogger "Zhenzhen Janice" posted a surveillance video from April 2025 showing Chen Tao kissing her. She claimed that he deceived her into having a child with him shortly after they met, and their relationship began when she joined the company in 2022. This incident had previously been disclosed on a smaller scale in September 2025, but it coincided with a crucial moment for the company—its largest IPO on the Hong Kong stock market in April, raising nearly 20 billion yuan, pushing its stock price to record highs. However, on June 8, the A-share market tumbled by more than 9% at the opening, and by the close, the stock price had fallen by 7.11%, wiping out over 20 billion yuan in market value. Shareholders reacted with humor, one joking, "Let's just pretend you got married; I invested 200,000 yuan as a gift," which was even liked by the blogger. Some adapted the popular song "A Zhen Falls in Love with A Tao" to reflect the shareholders' frustration.
The company responded, stating that the incident was unrelated to its operations and would not affect production, but shareholders were skeptical, especially since they had lost real money. After all, who cares about the boss's personal life when it comes to financial losses?
2. Shenghong Technology's Success: Thanks to NVIDIA
Shenghong Technology started as a company specializing in circuit boards (PCBs) and went public in 2015. Its breakthrough came with its partnership with NVIDIA, which led to its inclusion in NVIDIA's H-series AI accelerator card supply chain in 2023, making it a "Tier 1" supplier by 2025. The company's performance soared: revenue increased by 80% to 19.3 billion yuan, net profit by 273% to 4.3 billion yuan, and the gross margin reached 35%. In the first quarter of 2026, NVIDIA accounted for 28% of Shenghong Technology's revenue, more than the combined sales from its other three largest customers. In January this year, NVIDIA CEO Jensen Huang hosted a supply chain meeting in Taipei (known as the "Zhaoyuan Banquet"), and Chen Tao was the only mainland company representative, highlighting his significant influence. The company's Hong Kong IPO in April raised nearly 20 billion yuan, the largest of the year. During the ceremony, Chen Tao and his wife struck the bell eight times, showing their excitement.
3. Chen Tao's Rise from Government Employee to Billionaire
Chen Tao was born in 1972 in Longnan, Gansu, and began his career as a civil servant at the Kashgar Second Light Industry Bureau at the age of 19. At 23, he resigned to work as a circuit board salesman in Huizhou. He founded Shenghua Electronics in 2003 and then established Shenghong Technology in 2006, rising from a salesperson to the boss of a company worth over 100 billion yuan within 24 years. He seized the opportunity presented by the AI revolution—NVIDIA's demand for high-end circuit boards aligned with Shenghong Technology's capabilities, propelling it to become a market leader. Today, he and his wife Liu Chunlan are among the world's richest individuals, with a combined wealth of 68 billion yuan, ranking 387th on the list.
4. The Family Business Empire
Chen Tao's family is involved in various businesses beyond Shenghong Technology. For example, Gansu Longtai Liquor Industry (with Chen Tao as the legal representative and his wife holding shares) is a liquor production company in his hometown of Longnan; Wexian Chenshi Manor Hotel (100% owned by the couple) is a typical family-owned hospitality business; and Gansu Xinglongshang Liquor Industry, which had transactions worth 3.49 million yuan with Shenghong Technology in 2025. They also own Huizhou Hongda Investment, with Chen Tao as the controlling shareholder and his wife serving as the general manager. His brother Chen Yong also holds shares in Shenghong Technology, indicating a strong family presence in company decision-making.
5. The Question of Public Image and Business Impact
While the company insists that personal affairs should not affect business operations, shareholders are concerned about how the scandal may impact its relationship with NVIDIA and whether there will be changes in management. Shenghong Technology is highly dependent on NVIDIA, and any negative news about the chairman could jeopardize its contracts and performance. Although production has not been affected so far, the stock price has dropped, eroding shareholders' confidence. In the end, it is the ordinary investors who bear the consequences of these personal issues.
(The translation maintains the original Markdown structure, using clear and easy-to-understand language that suits financial journalism. It explains the events, company background, family business interests, and market impacts in a way that is accessible to non-financial readers.)