Intended Valuation of 400 Million RMB! Another Listed Company Enters the Humanoid Robot Sector

Recently, Zhejiang Rongtai, a leading enterprise in the mica fireproof insulation industry, announced that it has officially signed a framework agreement with Dizi Precision Machinery Co., Ltd. (Dizi Precision) and its shareholders—Shanghai Digang Technology Consulting Partnership, Huang Mingtao, Chen Zengshou, Shanghai Kedi Business Information Consulting Partnership (Limited Partnership), and others. This marks a key step in Rongtai’s strategic expansion into the precision transmission sector.

 

Transaction Background and Agreement Details

According to the agreement, Rongtai plans to acquire a portion of Dizi Precision's shares through equity transfer and inject capital into the company, ultimately acquiring 51% of the equity in Dizi Precision. The intended valuation for this transaction is 400 million RMB. If successful, Rongtai will become the controlling shareholder of Dizi Precision and include it within its consolidated financial statements, officially making it a subsidiary.

 

In announcing this transaction, Rongtai stated that acquiring Dizi Precision would lay a solid foundation for its entry into emerging technology fields such as precision transmission, smart equipment, and humanoid robots. This acquisition will not only strengthen Rongtai's market position in materials but also expand its reach into cutting-edge fields like automation control and smart manufacturing.

 

Rongtai’s Market Position and Growth Momentum

As a global leader in the mica product market, Rongtai boasts a comprehensive product portfolio in mica hard materials, flexible materials, heating components, thermal management mica safety components, and other mica-derived products. Due to its excellent electrical insulation, high-temperature resistance, and strong mechanical properties, mica materials are widely used in new energy vehicles, rail transport, aerospace, special cables, smart home appliances, and other industrial sectors. Rongtai's products are used by numerous globally recognized companies, including Tesla, Volvo, Mercedes-Benz, and CATL.

In August 2023, Rongtai successfully listed on the Shanghai Stock Exchange, with less than two years since its IPO. Since going public, Rongtai has demonstrated strong financial performance. The company's revenue from 2020 to 2022 reached 1.5 billion RMB, and from January to September 2024, revenue totaled 809 million RMB, a 38.85% increase year-on-year. Its net profit for the same period was 167 million RMB, a 41.53% increase year-on-year. These achievements reflect the company’s stable operating model and robust market expansion capabilities, particularly driven by the strong demand in the global new energy vehicle and battery industries.

 

Rongtai’s successful IPO was not accidental but the result of years of continuous investment in technological innovation and market expansion. By optimizing the technology and production processes of mica materials, Rongtai has been able to meet the growing demands of the high-end manufacturing market, particularly in industries such as new energy and rail transport. This has enabled Rongtai to secure a foothold in the domestic market and gradually gain recognition in international markets.

 

Dizi Precision’s Technological Advantages and Industry Position

Founded in 2008, Dizi Precision specializes in mechanical transmission and automation technologies, including the development, production, and sales of ball screws, planetary roller screws, automotive screws, electric cylinders, linear modules, and precision alignment platforms. The company has built deep technological expertise in the precision transmission field, with its products widely recognized for their high quality. Dizi Precision’s products are applied in industries such as precision manufacturing, automation control, and smart equipment, especially in robot joints, automated production lines, and smart manufacturing devices.

 

Public data reveals that Dizi Precision was among the first in China to adopt Japanese quality standards for shaft-end processing and has substantial production capacity. Its factory covers nearly 20,000 square meters, with a monthly output of 10,000 sets of screws and 6,000 sets of modules, demonstrating strong scale production capabilities. Dizi Precision's core competitive advantage lies in its precision manufacturing technology and rigorous quality control system, which allows it to maintain a technological leadership position in both domestic and international markets.

 

Notably, Dizi Precision had previously attracted acquisition interest from multiple companies. In October of last year, Redik, an automotive parts company, announced its plan to acquire 51% of Dizi Precision through equity transfer and capital increase. However, just a month later, Redik announced the termination of the acquisition due to the failure to reach a final consensus, highlighting Dizi Precision’s significant influence in the precision transmission field, making it a highly sought-after target.

 

Strategic Significance of the Acquisition

The acquisition of Dizi Precision aligns closely with Rongtai's future development strategy. First, Dizi Precision's technological advantage in precision screws will provide Rongtai with valuable technological reserves. As precision screws are core components of humanoid robot joints and drive systems, their performance directly impacts the flexibility and precision of robot joints. With the rapid development of robotics technology, especially in the humanoid robot sector, the demand for precision screws is expected to surge. Industry forecasts predict that by 2030, the global market for humanoid robot screws will reach the billion-dollar level, representing substantial market potential.

 

Through integrating Dizi Precision's technology and production capacity, Rongtai can quickly enter the smart equipment and robotics markets, gaining an early advantage. Furthermore, Rongtai's technological accumulation and market experience in the mica industry will strongly support its efforts to expand its market share in precision transmission and smart manufacturing.

 

Moreover, Dizi Precision's industry chain layout in the precision transmission sector will enable Rongtai to build an integrated business system covering material supply and core component manufacturing. This integrated approach will not only improve production efficiency but also enhance Rongtai's competitiveness in the global market, enabling the company to better handle industry fluctuations and ensure its long-term, stable development.

 

Industry Trends and Future

As global smart manufacturing and robotics technologies continue to evolve rapidly, precision transmission products, especially precision screws, linear modules, and other components, have become central to the smart equipment and humanoid robot industries. In the future, as AI, IoT, and big data technologies advance, precision transmission products will play a crucial role in more industries. Rongtai’s acquisition of Dizi Precision positions the company advantageously in future technological competition.

 

Additionally, with the growing global focus on green and low-carbon technologies, Rongtai's long-term investments in sectors such as new energy vehicles, rail transport, and aerospace will give it a competitive edge in the future market. By integrating Dizi Precision's technological strengths, Rongtai will not only strengthen its market share in traditional sectors but also expand into emerging fields, further enhancing its overall competitiveness and market influence.

 

In conclusion, Rongtai's acquisition of Dizi Precision lays a solid foundation for the company’s entry into precision transmission, smart equipment, and humanoid robots, and provides strong support for its future growth and industry competitiveness. Following the acquisition, Rongtai is expected to leverage its mica materials and precision transmission technology advantages to quickly capture emerging markets and establish a significant presence in the global smart manufacturing and robotics industries.