Project Rebranding, Will the 4x Bull Stock Robot's Halo Cool Down?

A seemingly ordinary project change announcement has put an end to Zhejiang Rongtai’s nearly year-long “Robot Feast” — leaving a thought-provoking pause.

Change of Robot Component Production Project

On the evening of March 11, Zhejiang Rongtai disclosed that the original project “Annual production of 14,000 tons of mica paper, 4,500 tons of mica products, and 7 million sets of robot components” will be changed to “Annual production of 14,000 tons of insulating fireproof materials and 4,500 tons of deep-processing products” and “Annual production of 7 million sets of industrial screw rods.” At the same time, the investment amount, investment approach, and implementing entity will also change, while other aspects remain unchanged.

Specifically, the company plans to invest approximately $33 million through a wholly owned subsidiary in Thailand to build an annual production line for 14,000 tons of insulating fireproof materials and 4,500 tons of deep-processing products. The project will purchase about 250 production machines for these lines and plan to buy raw materials, auxiliary materials, and parts as needed, with full production expected to start by the end of 2026.

Meanwhile, the company intends to invest about $38.9 million through a wholly owned subsidiary in Thailand to build an annual production line for 7 million sets of industrial screw rods. The project will purchase about 500 production machines and plan to buy raw materials, auxiliary materials, and parts as needed, with full production expected by the end of 2026.

The core reason for Zhejiang Rongtai’s project change is to optimize business layout and ensure regulatory compliance, while splitting projects to improve operational efficiency and better match market demand.

Regarding these changes, Zhejiang Rongtai stated that the projects align with the company’s development plan and strategy, are conducive to further enhancing the company’s market competitiveness and sustainable development capabilities, and have promising market prospects and economic benefits. The company will comprehensively improve its overall competitiveness and promote long-term growth.

From Mica to Robot Structural Parts

Public information shows that Zhejiang Rongtai’s main business involves the research, production, and sales of various high-temperature resistant insulating mica products. Its main products include insulation components for thermal runaway protection in new energy vehicles, flame-retardant insulation parts for small appliances, and flame-retardant cable insulation tapes.

According to Frost & Sullivan data, the global mica product market in the new energy sector grew from about 300 million yuan in 2020 to 4 billion yuan in 2024, with a compound annual growth rate close to 85%. Based on 2024 revenue, Zhejiang Rongtai holds a 22.6% market share in the global new energy mica market, ranking first in China.

Although the mica market remains a leading position, Zhejiang Rongtai finds it difficult to sustain valuation premiums solely based on material properties, and its mica business growth has notably slowed compared to previous years. Against this backdrop, Zhejiang Rongtai has chosen to enter the robotics field through acquisitions of key precision structural components.

In April 2025, it spent 165 million yuan to acquire a 51% stake in Shanghai Diz Precision; in July, it spent 101 million yuan, with a premium of over 362%, to acquire a 15% stake in Guangdong Jinli Transmission.

In December 2025, Zhejiang Rongtai announced that through its subsidiary Hainan Rongtai, it would build a project in Thailand with an annual capacity of 14,000 tons of mica paper, 4,500 tons of mica products, and 7 million sets of robot components. The total investment for this project is expected to be around $77 million (approximately 545 million yuan).

Share Price Surge and Shareholder Cash-Out

In 2025, Zhejiang Rongtai’s stock price soared from around 20 yuan at the start of the year to a peak of 115 yuan at year’s end — an increase of over 416.61%, making it one of the market’s star stocks. After the surge, some shareholders cashed out at the high point.

From June 6 to June 20, 2025, institutional shareholder Yibin Chendao sold 3.6371 million shares at prices between 41.14 and 44.51 yuan per share, cashing out 150 million yuan, reducing its stake from 5.4% to 3.4%, and exiting the group of shareholders holding over 5%.

From June 6 to September 5, 2025, Dongya Dai and Minmin Zheng (Zhejiang Rongtai’s directors and general managers) sold a total of 2.6685 million shares at prices ranging from 43.03 to 94.90 yuan per share, with total proceeds of about 190 million yuan.

On January 29, Zhejiang Rongtai announced that shareholders, directors, and senior management Zheng Minmin and shareholder Dongya Dai decided to terminate their previously disclosed share reduction plans. As of January 29, 2026, neither had sold any shares. Zheng Minmin initially planned to sell no more than 1.4166 million shares, and Dongya Dai no more than 1.3 million shares.