Xinghui Ring Material's stock price has increased by over 100% in 6 trading days. Autonomous driving company Jiushi Intelligent plans to invest nearly 1.2 billion yuan to acquire a stake.

On April 3, Star Glory Environmental Materials (300834.SZ) released an announcement regarding abnormal stock price fluctuations for the third consecutive day.

Earlier, Star Glory Environmental Materials’ bid to take an equity stake in the autonomous driving startup “Ji Shi Intelligent” had ignited market enthusiasm, despite the company stating that the move was not a backdoor listing.

Over the past six trading days, the company’s share price has risen by more than 104% in total, and its market capitalization has also climbed from RMB 4.4 billion to RMB 9.05 billion. This caused the wealth value of the family that controls Star Glory Environmental Materials to increase dramatically in a short period of time.

Screenshot from the Ji Shi Intelligent official website

The controlling-family fortune surges by RMB 2.7 billion

According to Star Glory Environmental Materials’ announcement, the company’s stock price from March 27 to April 3 rose for six consecutive trading days, with the cumulative closing-price deviation value exceeding 100%, which significantly deviated from both the benchmark index and the industry index. The short-term volatility has been relatively large, and it has clearly deviated from market trends.

As of the close on April 3, the share price was RMB 46.72 per share, with a trailing P/E ratio of 93.10x. At present, the industry average trailing P/E ratio for the company’s China Securities Association (CSRC) industry classification is 32.50x.

With the stock price rising, the company’s market capitalization has also increased from RMB 4.4 billion to RMB 9.05 billion. Currently, the family of Chen Yansheng, the company’s actual controller, holds a total of 125 million shares directly and indirectly, accounting for 64.44% of the company’s total share capital. Based on this, Chen Yansheng’s family wealth has increased by more than RMB 2.7 billion.

It is understood that Chen Yansheng was born in Chaozhou, Guangdong. In his early years, Chen Yansheng and his wife, Chen Dongqiong, built their fortune through toy soccer balls. In 2000, Xinghui Plastics Industrial Co., Ltd. was established in Shantou, Guangdong Province. In the years that followed, Chen Yansheng’s family-controlled company successively obtained model-car toy authorization for well-known automotive brands such as BMW, and began professional model-car production.

In 2010, Xinghui Entertainment (formerly “Xinghui Model Cars”; 300043.SZ) went public; in 2022, Star Glory Environmental Materials went public.

In 2022, the Chen Yansheng family entered the Hurun Global Rich List with wealth of RMB 8.5 billion, ranking 2,677th.

Autonomous driving “unicorn” company makes a cross-industry equity investment

On the news front, on March 30, Star Glory Environmental Materials announced that on March 28, the family of Chen Yansheng, the company’s actual controller, and two wholly owned subsidiaries under autonomous driving company “Ji Shi Intelligent” (Zelos Group Inc.) signed share transfer agreements, with a total consideration of approximately RMB 1.18B. If the transaction is completed, Ji Shi Intelligent will obtain 27.49% equity in Star Glory Environmental Materials.

This change in equity will not lead to any change in the company’s controlling shareholder or actual controller. After the completion of the equity change, the Chen Yansheng family will hold 45.19% of the voting rights in aggregate.

In addition, Ji Shi Intelligent has committed that after the completion of this share transfer, for 36 months it will not seek the controlling rights or actual control rights of any listed company in any manner, and there is no plan to inject assets into the listed company.

Ji Shi Intelligent was established in 2021, focusing on the research and development of artificial intelligence and L4-level autonomous driving technology.

In January this year, Ji Shi Intelligent completed a strategic integration with CaiNiao’s unmanned vehicle business. After the integration, Ji Shi Intelligent simultaneously operated two brands—“Ji Shi” and “CaiNiao Unmanned Vehicle.” The RoboVan fleet’s total scale exceeded 20k units, making it the world’s largest L4-level autonomous driving logistics vehicle fleet. In February of this year, Ji Shi Intelligent completed a new round of financing of over USD 300 million and announced that its valuation exceeded RMB 20k.

Star Glory Environmental Materials, meanwhile, mainly engages in the research, production, and sales of polystyrene (PS). Its products are used in electronic and electrical equipment, toys, plastic packaging, and more. In the first three quarters of 2025, the company achieved revenue of RMB 1.0 billion, down 21.05% year over year; net profit was RMB 39.5681 million, down 44.29% year over year.

At present, the industry in which Star Glory Environmental Materials operates is going through adjustment. In its announcement, the company warned that in recent years the polystyrene industry’s capacity has continued to expand, with the pace of capacity expansion exceeding market demand. This has caused downstream markets to be unable to absorb demand in a timely manner, which may lead to volatility in the company’s performance.

The market’s enthusiastic response reflects a form of early pricing by capital for the potential linkage of “technology + manufacturing.” However, after sentiment cools, the resulting pullbacks are also worth paying attention to.

In fact, there is no shortage of negative cases of “cross-industry equity investment” speculation. For example, Weiyang New Materials (688585.SH) once saw its share price surge by more than 15 times in the second half of 2025 due to the plan for Ziyuan Robotics to take control; but after regulatory inquiries and the cooling of sentiment, the share price retreated by more than 60% from its peak.

Fenglong Co., Ltd. (002931.SZ) also experienced a surge: due to the “first listed company in the humanoid robot segment,” UBTECH’s planned takeover, the stock hit an 18 consecutive daily limit from December 2025 to January 2026, with a price increase of over 400% across the period; but after regulatory suspension for investigation and the clear statement of “no asset injection within 36 months,” the stock retreated by about 40% from its peak.

Editor Tao Yueyang Xiao Ziqi Compiled from The Paper, China News Weekly, company announcements, and others

Reviewed by Guan Li