Surged 3 Times in Half a Year, Shareholders Cashed Out 300 Million, Zhejiang Rongtai Robot Project Name Suddenly "Changed Face"

Does AI · Do shareholder reductions have an intrinsic connection to sharp stock price surges?

Changing from “robot components” to “industrial ball screws,” an investment project change announcement has put Zhejiang Rongtai (001239.SZ) in the spotlight.

According to the announcement, Zhejiang Rongtai’s original plan to invest $77 million in a “Mica Products and Robot Components Manufacturing Project” was quietly adjusted to a $33 million “Industrial Ball Screw Production Project,” with changes in investment approach and implementing entities.

Recently, Zhejiang Rongtai’s stock price has soared under the catalyst of the robot concept. Since the company first disclosed its robot business layout in April 2025, its stock price has risen from around 30 yuan per share to over 120 yuan per share by January 2026, nearly tripling. Each rally has been precisely aligned with acquisitions of robot targets and project progress disclosures.

Meanwhile, as the stock price climbed, institutional shareholders and executives were heavily cashing out at high points, with total sales exceeding 340 million yuan.

Controversy Over Continued Investment in Robots

Recently, Zhejiang Rongtai announced plans to adjust its Thailand investment project, changing the original “annual production of 7 million sets of robot components” to “annual production of 7 million sets of industrial ball screws.” This change involves project name, investment amount, investment approach, and implementing entities.

Specifically, the original project was “annual production of 14,000 tons of mica paper, 4,500 tons of mica products, and 7 million sets of robot components,” with a total investment of $77 million, invested through subsidiaries Hainan Rongtai New Materials Co., Ltd. (“Hainan Rongtai”) and Singapore Rongtai New Materials Co., Ltd. (“Singapore Rongtai”). After the change, the project was split into two independent projects, with the “annual production of 7 million sets of industrial ball screws” investment adjusted to $33 million, and the investment approach changed to direct investment via the Singapore Rongtai Electric Equipment Co., Ltd.

The company stated that this change was to meet business layout needs and regulatory filing requirements. Previously, the company responded that the industrial ball screws are still used in the robot field, and the main reason for the change was not business adjustment but policy guidance.

According to the company, the original plan was to invest abroad via Hainan Rongtai and Singapore Rongtai into Thailand Rongtai, but Hainan required the company to register ODI in Zhejiang, and Zhejiang proposed modifying the project name, reducing the investment amount, and adjusting the investment approach, leading to this change.

The shift from “robotic parts costing $77 million” to “industrial ball screw production project costing $33 million” shows significant differences before and after disclosure.

Some industry insiders question that industrial ball screws and planetary roller screws used in humanoid robots have significant technical barriers in precision, load capacity, response speed, and control complexity. Since the company has not disclosed the specific precision level of the screws (such as high-end P1-P3 or lower P5 level), it is difficult to determine whether they are truly used in robot manufacturing, raising transparency concerns.

Yicai notes that Zhejiang Rongtai previously had limited layout in the field of precise structural parts for robots, mainly sourced from newly acquired companies.

Zhejiang Rongtai’s main business involves R&D, production, and sales of various high-temperature resistant mica insulation products, including insulation parts for new energy vehicle thermal runaway protection, flame-retardant insulation parts for small appliances, and flame-retardant cable insulation tapes.

In 2025, the company acquired a 51% stake in Shanghai Diz Precision Machinery Co., Ltd. Public information shows Diz Precision’s scope includes industrial robot manufacturing, mechanical parts processing, micro-motor and component manufacturing, and machine tool functional parts. Industry insiders say that as a precision transmission manufacturer with its own brand, Diz Precision has the capacity to produce micro ball screws and planetary roller screws, the latter being key components for humanoid robot limb movement.

According to its H-share prospectus, in the first three quarters of 2025, the robot business (key precision structural parts) revenue was only 40.97 million yuan, accounting for 4.27% of total revenue. From June 2025 to September 30, Diz Precision contributed 40.48 million yuan, clearly supporting this business segment.

Institutional Shareholders and Executives Heavy Selling

Under the continued catalyst of the robot concept, Zhejiang Rongtai’s stock price has experienced a significant rally since April 2025, rising from around 30 yuan to over 120 yuan by January 2026, nearly tripling.

Each upward movement closely correlates with the company’s progress in the robot sector.

In April 2025, the company first disclosed its robot business layout, triggering a stock price rise to 50 yuan per share. Between April and July 2025, the company acquired a 51% stake in Shanghai Diz Precision Machinery and a 15% stake in Guangzhou Jinli Intelligent Transmission Technology, quickly entering fields like precision transmission, intelligent equipment, and humanoid robots. Driven by continuous M&A catalysts, the stock kept rising, hovering near 100 yuan by early December.

In December 2025, the company announced progress on the “annual production of 7 million sets of robot components” project, pushing the stock above 120 yuan in January 2026.

However, behind the rising stock price, institutional shareholders and executives have been frequently reducing their holdings.

Zhejiang Rongtai’s announcement shows that from June 6 to June 20, 2025, institutional shareholder Yibin Chendao New Energy Industry Equity Investment Partnership (Limited Partnership) sold 3.6371 million shares at prices between 41.14 and 44.51 yuan per share, reducing holdings from 5.4% to 3.4%, cashing out approximately 153 million yuan.

Director and executive Zheng Minmin sold 1 million shares between June 6 and September 5, 2025, at prices from 79.12 to 94.90 yuan per share, coinciding with a high point, netting 92.1 million yuan. Shareholder Dai Dongya also cashed out 97.43 million yuan during the same period.

According to the announcement, Zheng Minmin and Dai Dongya plan to reduce their holdings by no more than 1.42 million and 1.3 million shares respectively, between January 29 and April 28, 2026, via centralized bidding or block trades. As of January 29, these reductions have not yet been implemented.

Based solely on disclosed reduction notices, the total cash-out by Yibin Chendao, Zheng Minmin, and Dai Dongya exceeds 340 million yuan.

Besides these shareholders, some funds also exited at high stock prices in Q3 2025. Choice data shows that at the end of Q3 2025, individuals Chen Jiaxing and Chen Youxi reduced holdings by 650,000 and 1.86 million shares respectively compared to mid-2025. China Construction Bank’s Yongying Advanced Manufacturing Intelligent Selection Hybrid Fund and China Merchants Bank’s Penghua Carbon Neutrality Theme Hybrid Fund also reduced holdings by 10.32 million and 1.97 million shares respectively.

Since 2026, Zhejiang Rongtai’s stock has experienced a clear correction. Wind data shows that after reaching a high of 124 yuan on January 18, the stock has fluctuated downward, currently around 80 yuan, with a intraday low of 78.1 yuan on March 18, over 30% below the peak.