China Jushi enters the trillion-yuan club, and the net worth of veteran investor Zhang Yuqiang’s family has surged by 100 billion.

Ask AI · How does AI computing power infrastructure trigger explosive demand for electronic fabric and drive stock prices soaring?

China Fiberglass’s market cap surpasses 18.35B yuan, rising 133.42% since the second half of last year. The core logic of this rally is the continuous “暴走” of electronic fabric prices, combined with the explosion of AI computing power infrastructure. China Fiberglass, leveraging its position as a global leader in fiberglass, has稳稳地享受 this industry dividend, which has also caused veteran capital “old hand” Zhang Yuqiang’s family wealth to soar by over 1.06B.

On April 7, China Fiberglass’s stock price surged intraday, successfully breaking through the 105 billion yuan market cap.

The main driver of this round of market rally is the sustained rise in electronic fabric prices. Since the second half of 2025, electronic fabric has entered a unilateral upward channel. Since 2026, it has achieved four consecutive increases, with mainstream models surpassing 6 yuan/meter.

The explosion of AI computing power infrastructure has become the main catalyst for the rise in electronic fabric prices. Compared to traditional servers, demand for electronic fabric in AI servers has increased several times, directly igniting industry demand. China Fiberglass, with its long-standing experience in electronic fabric markets, has also profited handsomely from this industry dividend thanks to its industry advantages.

Veteran capital player Zhang Yuqiang has also benefited from this positive trend, with his family wealth surpassing 30 billion yuan, ushering in a moment of wealth glory.

China Fiberglass** Market cap exceeds 100k yuan**

On April 7, China Fiberglass’s stock price surged intraday by 5.76%, reaching a high of 27.57 yuan, and closed at 26.33 yuan, with a total market cap of 105.4 billion yuan. As a global leader in fiberglass, the company’s stock price has risen over 133% since the second half of 2025, with excellent market performance.

The sharp increase in stock price mainly benefits from the upward trend in electronic fabric prices, with mainstream 7628 model products rising from 4.15 yuan/meter at the end of September 2025 to the range of 4.2-4.65 yuan/meter by year-end.

Entering 2026, the industry has entered a “monthly increase” cycle of prosperity. On April 1, electronic fabric announced its fourth price hike of the year, with companies including China Fiberglass and Henan Guangyuan New Materials raising product prices by about 9-10%. Currently, electronic fabric prices have stabilized above 6 yuan/meter.

The expansion of AI computing infrastructure is the main factor driving electronic fabric price increases. Relevant research institutions estimate that global AI server shipments in 2026 are expected to grow by 28.3% year-on-year, faster than 24.2% in 2025. Since AI servers use five times more electronic fabric than traditional servers, the rapid growth in shipments has directly caused a demand surge for electronic fabric.

As a core enterprise under China National Building Material Group, China Fiberglass has been deeply engaged in the glass fiber field for decades, building a diversified business matrix of raw sand + high-end electronic fabric. By the end of 2025, the company’s glass fiber products generated revenue of 18.88B yuan, accounting for 99.01% of its main business income, with raw sand and products sales reaching 3.2026 million tons and electronic fabric sales hitting 22.73B meters, both setting new records.

Worth noting is that China Fiberglass’s annual 100k-ton electronic glass fiber and 390 million electronic fabric production line in Huai’an officially started operation in March. As the world’s leading glass fiber capacity, after this line’s commissioning, the company’s global electronic fabric market share is expected to increase from 23% to 28%, further consolidating its industry leadership.

China Fiberglass’s latest disclosed 2025 performance also confirms the high industry prosperity. During this period, the company achieved operating revenue of 89.91M yuan, up 19.08% year-on-year; net profit attributable to parent was 51.6M yuan, up 34.39%. The core driver of performance growth is the simultaneous increase in volume and price of electronic fabric products. This trend is vividly reflected in gross profit margin, which rose from 25.03% in 2024 to 33.12%.

Supported by industry and performance double positive factors, brokerages remain optimistic about China Fiberglass’s 2026 performance forecasts. Wind data shows that institutional forecasts for the company’s 2026 revenue reach 51.27M yuan, an increase of over 20% year-on-year; and profit forecasts over the past month have been significantly upgraded, reflecting market optimism.

**Contrary “operations” by major shareholders and institutions

While China Fiberglass’s stock price continues to rise on industry dividends, the capital market shows a clear divergence.

In recent quarters, multiple institutions and retail investors have chosen to take profits during the stock price rally. For example, Abu Dhabi Investment Authority bought 20.04 million shares in Q1 2023, becoming the ninth-largest shareholder; during the sharp decline in Q3 2023, it briefly reduced holdings and exited the top ten shareholders, then re-entered at the end of 2024, gradually increasing holdings during the “924” rally, but quietly exited again in Q2 2025, with retail investor Wang Jingfeng also leaving in sync.

In Q3 2025, as China Fiberglass’s stock price rose, shareholders like Wenyuan Capital and Xingquan Trend Investment also exited the top ten. Northbound funds also reduced holdings, dropping to 319 million shares by the end of 2025, down over 40% from the peak in 2023.

In stark contrast, the two major shareholders of China Fiberglass have continued to increase their holdings. As shareholders, China National Building Material and Zhenshi Holdings began their first increase since the company’s listing at the end of 2024, adding 32B and 5.16 million shares respectively during late 2024 to Q1 2025. Moreover, Zhenshi Holdings further increased holdings by 5.1272 million shares at the end of 2025 and in March 2026.

The connection between the two major shareholders and China Fiberglass dates back to 1999, with decades of cooperation that have long transcended mere equity ties. As an important listed platform under Zhenshi Group, Zhenshi Shares is one of China Fiberglass’s largest related procurement partners. Its prospectus shows that the proportion of total procurement from China Fiberglass has increased year by year, from 52.98% in 2022 to 62.64% in the first half of 2025, indicating a high degree of business dependence.

China National Building Material also holds large cement and composite material businesses, forming industry synergy with China Fiberglass’s glass fiber operations. The announcement shows that in 2025, related-party sales between the two reached 155 million yuan, with an expected 2026 related-party sales of 261 million yuan, a 64.52% increase. Personnel-wise, former general manager of the company’s corporate management department Shao Xiaoyang and current deputy general manager Shang Deying both serve as directors of China Fiberglass.

As of March 3, China National Building Material owns 29.22% of China Fiberglass, ranking first; Zhenshi Holdings, through two consecutive quarters of increased holdings, holds 18.16%, with a market value exceeding 18 billion yuan.

The Zhang family’s capital empire

China Fiberglass’s ability to reach a market cap of over 100 billion yuan is inseparable from the long-term leadership and strategic layout of founder Zhang Yuqiang.

Born in 1955 in Tongxiang Shimen Town, Zhang Yuqiang started doing small businesses to support his family from his early teens. In 1971, at 16, he entered Dongfeng Textile Factory in Shimen Town as a water-dyeing worker. Due to slim profits and poor sales channels at the time, Zhang Yuqiang was always seeking new breakthroughs.

The next year, during a business trip to Nanjing, he偶然 learned that fiberglass woven fabric was highly profitable, and immediately brought the news back to the factory, planting the seed for his future entrepreneurship.

To get his first drawing machine, 17-year-old Zhang Yuqiang volunteered to go alone to Jiujiang Fiberglass Factory, carrying nearly 100 jin of weight, and exchanged it for an old drawing machine weighing over 100 kg, which he brought back to Tongxiang.

Early entrepreneurship was tough; Zhang Yuqiang personally drafted the company’s first economic responsibility contract, continuously improved production methods, iterated manufacturing processes, upgrading from clay crucible to platinum furnace methods, with annual output rising from 181 tons to thousands of tons. In 1989, Zhejiang piloted股份制改革, he relied on the original Tongxiang fiberglass factory to establish Zhenshi Shares, becoming one of Zhejiang’s first companies to undergo股份制改造.

In 1996, amid a downturn in the global fiberglass market, Zhang Yuqiang’s China Fiberglass also faced difficulties, with overseas giants proposing to buy 80% for $30 million and offering high salaries, all of which he firmly rejected. Instead, he chose to cooperate with China National Building Material, and in the following year, promoted China Fiberglass to list in A-shares under the name “China Construction.”

In 2015, Zhang Yuqiang again pushed for China Hengshi to list in Hong Kong. However, the IPO was cold, with only 32% subscription for the public offering, and the stock broke on debut. Over the next four years, the stock remained sluggish, and financing capacity was almost lost.

In April 2019, Zhang Yuqiang launched a privatization offer, acquiring the remaining 20% of China Hengshi at HKD 2.5 per share, totaling 514 million HKD. At that time, the company’s P/E ratio was only 8.5, with a total valuation of about 2.5 billion HKD. In July of the same year, China Hengshi was officially delisted from HKEX.

After delisting, Zhenshi Group did not rush to relist China Hengshi but instead merged it with Huamei New Materials, establishing Zhejiang Zhenshi New Materials Co., Ltd. (hereinafter “Zhenshi Shares”), and restarted its A-share listing process in 2025.

In January 2026, Zhenshi Shares was officially listed on the Shanghai Stock Exchange, with a market value of 43.2 billion yuan on the first day, a significant increase from the 2.5 billion HKD at delisting, with the P/E ratio rising from 8.5 to 45.

In 2022, Zhenshi Holdings also planned a “backdoor listing,” aiming to acquire control of Huitong Energy through a tender offer. However, due to unresolved valuation issues during the asset stripping of Huitong Energy’s real estate business, the deal was ultimately terminated.

As Zhang Yuqiang’s successor, Zhang Jiankan has been serving as director of Zhenshi Group since 2008. He joined China Fiberglass’s board in 2016 and has served as vice president and president of Zhenshi Group. Now, he holds positions as chairman of Zhenshi Shares and general manager of Zhenshi Group, and was awarded the 2024 Zhejiang Business Outstanding Youth.

In the 2026 Hurun Global Rich List published in January, the Zhang father-son duo ranked 992nd with a wealth of 3.2 billion yuan, rising over 1,300 places from the previous year.

Editor | Chen Bin