New Stocks Update | Zhejiang Rongtai Electric Material (603119.SH) submitted its application to the Hong Kong Stock Exchange. By 2024, its revenue in the new energy sector mica product market will rank first globally.

According to the disclosure on January 29th by the Hong Kong Stock Exchange, Zhejiang Rongtai Electric Material Co., Ltd. (referred to as Zhejiang Rongtai Electric Material (603119.SH)) has submitted its listing application to the Main Board of the Hong Kong Stock Exchange, with CITIC SEC as the sole sponsor. Company Overview The prospectus shows that Zhejiang Rongtai Electric Material is a pioneer and leader in global new energy mica composite materials and related products. The company has become a major supplier of high-performance mica composite materials and related products in the new energy sector. Leveraging interdisciplinary expertise in precision processing technology and close relationships with customer needs, the company has successfully expanded its business from the mica product field to the key precision structural components field of Siasun Robot&Automation. Zhejiang Rongtai Electric Material strategically entered the key precision structural components field of Siasun Robot&Automation through acquisitions. The company will continue to strengthen product research and development and production process improvement in this field, achieving scaling, mass production, and stable supply as soon as possible, laying a solid foundation for the company's key precision structural component business. At the same time, the company actively explores new applications of key precision structural components, such as in the fields of Siasun Robot&Automation, commercial low-altitude economy, and other new industrial engineering fields, comprehensively enhancing the company's core competitiveness and driving sustainable growth. During the reporting period, the company's revenue mainly came from the sale of mica composite materials and related products, including safety parts for new energy vehicles, flame-retardant insulation parts for household appliances, and flame-retardant insulation tapes for cables. Following the acquisition of Diz Precision in June 2025, the company's product portfolio expanded to precision structural components, beginning to generate revenue through the sale of precision structural components, mainly used in Siasun Robot&Automation and advanced automation fields. Income breakdown by product line is as follows: According to Frost & Sullivan data, based on 2024 operating income, Zhejiang Rongtai Electric Material ranks first in the global mica product market in the new energy sector, with a market share of 22.6%; it ranks first in the Chinese market, with a market share of 14.1%. Looking ahead, as policies and safety standards continue to tighten and downstream industries increasingly emphasize safety, and as product performance and technology continue to improve, mica products are expected to meet a wider range of application needs in the new energy vehicle sector, thereby further expanding application scenarios and continuously releasing market space. Zhejiang Rongtai plans to implement the following strategies to consolidate and enhance its leading position in the industry: (i) expand lean manufacturing capacity and consolidate market leadership; (ii) accelerate research and development and product iteration, deepen collaborative research and development with customers; (iii) strengthen global marketing networks and expand customer base; (iv) enhance global operations and management efficiency through coordinated domestic and international businesses; and (v) increase investment in mica composite materials and key precision structural components to support long-term growth. Financial Information Revenue: For the fiscal years 2023, 2024, 2024 and the nine months ended September 30, 2025, Zhejiang Rongtai Electric Material's revenue was approximately RMB 800 million, RMB 1.135 billion, RMB 809 million, and RMB 960 million, respectively. Profit: For the fiscal years 2023, 2024, 2024 and the nine months ended September 30, 2025, Zhejiang Rongtai Electric Material's annual/period profit was approximately RMB 172 million, RMB 230 million, RMB 167 million, and RMB 205 million, respectively. Industry Overview The application of mica products in the new energy sector is increasingly widespread, especially in new energy vehicles, power batteries, and energy storage batteries. In new energy vehicles, mica products are used for high-voltage insulation, heat insulation, and fire protection around battery packs, busbars, and other key electrical components, helping to improve system safety and reliability under high temperature and high voltage conditions. In power batteries, mica sheets and mica tapes are usually arranged between battery cells, modules, and battery pack structures to provide insulation, flame resistance, and electrical insulation functions, reducing the risk of heat propagation. In energy storage systems, mica products provide electrical insulation, flame resistance, and heat resistance, supporting long-term and safe operation of batteries. As the scope of new energy applications continues to expand, the demand for mica products in the new energy sector is growing rapidly. According to Frost & Sullivan, the market size of mica products in the global and Chinese new energy sectors grew from RMB 300 million and RMB 200 million in 2020 to RMB 4 billion and RMB 3.1 billion in 2024, with annual compound growth rates of 84.9% and 90.2% from 2020 to 2024. Looking ahead, as the installation scale of new energy vehicles and energy storage systems continues to expand, and the requirements for battery system safety and reliability increase, the application scope of mica products in the new energy sector is expected to further expand, and the related market size is expected to maintain a fast growth trend. By 2025, the global and Chinese market sizes are expected to reach RMB 5.3 billion and RMB 4.1 billion, respectively, and are expected to further increase to RMB 13.8 billion and RMB 10.1 billion by 2029, with annual compound growth rates of 26.7% and 25.5% from 2025 to 2029. In the Chinese market of mica products in the new energy sector, a relatively fragmented competitive situation is observed, with the company occupying a leading position, ranking first in terms of revenue in 2024 with a market share of 14.1%. The table below shows the ranking of participants in the Chinese market of mica products in the new energy sector by revenue in 2024: With its excellent electrical insulation, flame resistance, heat resistance, and flexibility, mica products are increasingly widely used in the field of household appliances, and the penetration rate of mica products in household appliances is gradually increasing. According to Frost & Sullivan, in 2024, the market size of mica products in the global household appliances sector reached RMB 900 million, with the market size of mica products in the Chinese household appliances sector reaching RMB 500 million. The annual compound growth rates of the global and Chinese market sizes of mica products in the household appliances sector from 2020 to 2024 were 13.0% and 17.7%, respectively. With the emergence of more diverse forms of household appliances and the increasing use of higher power, the demand for mica products is also rising. According to Frost & Sullivan, by 2029, the global market size of mica products in the household appliances sector is expected to reach RMB 1.8 billion, with an annual compound growth rate from 2025 to 2029 of 14.6%. As China is a major consumer and exporter of household appliances, the demand for mica products is also expected to grow rapidly. According to Frost & Sullivan, by 2029, the market size of mica products in the Chinese household appliances sector is expected to reach RMB 1.1 billion, with an annual compound growth rate from 2025 to 2029 of 18.4%. As the global scale of electrification gradually expands, the application scale of mica products in the cable sector is also increasing. According to Frost & Sullivan, in 2024, the market size of mica products in the global cable sector reached RMB 1.9 billion, with the market size of mica products in the Chinese cable sector reaching RMB 700 million. The annual compound growth rates of the global and Chinese market sizes of mica products in the cable sector from 2020 to 2024 were 4.3% and 9.4%, respectively. As an essential safety component, with the further increase in operating voltage of cables and the trend towards lighter products, the application of mica products in cables will further grow. In the future, according to Frost & Sullivan, by 2029, the market size of mica products in the global cable sector is expected to reach RMB 2.9 billion, with an annual compound growth rate from 2025 to 2029 of 9.0%. By 2029, the market size of mica products in the Chinese cable sector is expected to reach RMB 1.27 billion, with an annual compound growth rate from 2025 to 2029 of 11.6%. Board Information The board will consist of nine directors, including two executive directors, three non-executive directors, and four independent non-executive directors. The term of office for directors is three years, and they may be re-elected at the end of their term. According to relevant Chinese laws and regulations, independent non-executive directors may serve for a maximum of six consecutive years. Ownership Structure Mr. Getairong and Mrs. Caomeisheng are married. Mr. Ga Tai-liang is the brother of Mr. Ge Tai-rong. As of the last practicable date, Shanghai Conghuang is owned by Mrs. Caomeisheng as a general partner with approximately 7.34% interest, Mr. Ge Tai-rong as a limited partner with 50.23% interest, Mr. Ga Tai-liang as a limited partner with 9.14% interest, Chen Youxi as a limited partner with 5.00% interest, Chen Jiaxing as a limited partner with 5.00% interest, Mr. Zheng Min-min as a limited partner with 4.00% interest, and four other limited partners (all independent third parties and holding less than 10% of the shareholding in Shanghai Conghuang) collectively holding 19.29% interest. As of the last practicable date, Mr. Ga Tai-liang directly owns 5.58% of the company and holds 9.14% interest as a limited partner in Shanghai Conghuang. Mr. Ga Tai-liang has not entered into any concerted action arrangements with Mr. Ge Tai-rong, Mrs. Caomeisheng, Shanghai Conghuang, or Shanghai Chaotai regarding their respective interests in the company. Mr. Ga Tai-liang is not involved in the management and operation of the company and does not hold any positions within the group. Therefore, Mr. Ga Tai-liang is not a controlling shareholder of the company. As of the last practicable date, Shanghai Chaotai is owned by Mrs. Caomeisheng as a general partner with 33.07% interest, Ms. Rao Lei as a limited partner with 1.25% interest, and 29 other limited partners (all independent third parties and holding less than 10% of the shareholding in Shanghai Chaotai) collectively holding 65.68% interest. As of the last practicable date, Diz Precision is owned by the company with 51.00% interest, Mr. Huang Mingtao with 12.14% interest, Shanghai Kedy Business Information Consulting Partnership Enterprise (Limited Partnership) (whose general partner is Huang Mingtao) with 9.52% interest, independent third party Chen Zengshou with [8.09]% interest, Director and General Manager of Diz Precision Mr. Wang Lihui with 7.01% interest, Director of Diz Precision Mr. Wang Liyou with 7.01% interest, and Shanghai Niuzu Technology Consulting Partnership Enterprise (Limited Partnership) (whose general partner is Huang Mingtao) with 5.21% interest. Thus, Huang Mingtao, Wang Lihui, Wang Liyou, Shanghai Kedy Business Information Consulting Partnership Enterprise (Limited Partnership), and Shanghai Niuzu Technology Consulting Partnership Enterprise (Limited Partnership) are persons connected at the subsidiary level. As of the last practicable date, the remaining 40% interest in Shanghai Ocean Automation Technology (Shenzhen) Co., Ltd. is held by independent third party Zhang Weiming. Intermediary Team Sole Sponsor: CITIC SEC (Hong Kong) Limited Legal Advisor to the Company: Regarding Hong Kong law and US law: Gallant Law Firm; Regarding Chinese law: Shanghai GF Law Firm Legal Advisor to the Sole Sponsor: Regarding Hong Kong law: King & Wood Mallesons; Regarding Chinese law: King & Wood Mallesons Auditors and Reporting Accountants: BDO China Limited Industry Consultant: Frost & Sullivan (Beijing) Consulting Co., Ltd. Shanghai Branch