For nearly a quarter of a century, Lu Chuping and Peng Hui were the quintessential power couple of China’s industrial sector, transforming a small factory into Broad-Ocean Motor, a titan of electric motor manufacturing. That partnership officially fractured on July 7, when the company announced that Peng had filed for divorce and a division of assets in a Zhongshan court. The news sent shockwaves through the Shenzhen Stock Exchange, triggering a 10% limit-down plunge in the company’s share price as investors scrambled to price in the risk of a looming leadership vacuum.
At stake is a combined 26.82% stake in the company, valued at approximately 5.5 billion RMB ($760 million). While the company was quick to issue a statement claiming the litigation would not impact daily operations, the market remains skeptical. Lu and Peng’s combined holdings are the bedrock of the company’s control structure; any significant reshuffling of these shares could destabilize the board and invite unwanted volatility during an already precarious economic cycle.
This high-profile split comes at a sensitive time for the Chinese regulatory environment. The China Securities Regulatory Commission (CSRC) has recently tightened its grip on "divorce-style" divestments, where founders use marital dissolution to bypass stringent lock-up periods and offload shares. Although Broad-Ocean Motor explicitly stated this filing is not an attempt to circumvent selling restrictions, the proximity of the divorce to the company's planned Hong Kong IPO adds a layer of complexity that could deter international institutional investors.
The timing is further complicated by Broad-Ocean’s cooling financials. After reaching record highs in 2025, the company reported a nearly 4% dip in first-quarter revenue for 2026, largely due to sluggish demand in the domestic air conditioning market. With cash flow from operations halving year-on-year, the internal distraction of a billionaire divorce is a luxury the firm’s balance sheet can ill afford. To project a front of stability, several senior executives announced they would terminate their own share-selling plans, yet the market’s focus remains fixed on the two founders at the top.