JAC Motors Plummets Post-Placement; Zhang Jianping, Spouse, and Ge Weidong Face Heavy Paper Losses

On February 12, 2025, JAC Motors completed a RMB 3.5 billion private placement at an issue price of RMB 49.88 per share. Investors Fang Wenyan and Ge Weidong each invested RMB 1 billion, receiving approximately 20.0481 million shares each. Since then, JAC Motors’ share price has declined steadily, closing at RMB 26.87 on June 26—nearly 46% below the private placement price. Between June 10 and June 23—a span of nine trading days—Fang Wenyan sold 9.235 million tradable shares. During this period, the stock traded between RMB 28.82 and RMB 33.51, with a weighted average transaction price of approximately RMB 31.386, generating estimated proceeds of about RMB 290 million. Her initial investment cost for these shares was roughly RMB 460 million, resulting in a significant book loss from this sale. Ge Weidong’s RMB 1 billion worth of shares, subscribed in his personal capacity, remain under lock-up. Based on the June 26 closing price, his position is currently sitting on an unrealized loss of nearly 40%, translating to a paper loss of approximately RMB 400 million. The decline in JAC Motors’ share price reflects underlying pressure on its fundamentals. In 2025, the company reported revenue of RMB 46.476 billion but posted a net loss of RMB 1.7 billion for the year. Although its premium brand “Zunjie,” developed in partnership with Huawei, launched its first model—the S800—in late 2025 and has since led sales in China’s ultra-premium luxury segment, the brand has yet to meaningfully contribute to overall earnings. Consequently, market sentiment remains divided regarding the company’s high-end transformation strategy.