The stock price doubles in 6 trading days! The polystyrene company Xinghui Huan Cai receives nearly 1.2 billion yuan investment from Jiushi Intelligent.

After the announcement that its stake was acquired by an autonomous-driving unicorn, StarRay Environmental Materials (300834) saw its share price accumulate gains of more than 100% over 6 trading days.

On April 3, StarRay Environmental Materials, a polystyrene producer, announced that its share price, from March 27 to April 3, recorded a cumulative increase of more than 100% over six consecutive trading days. The company’s performance significantly deviated from the broad market index and the industry index, with relatively large short-term price volatility and an obvious deviation from market trends. During that period, the company’s share price rose from a high of 24.58 yuan per share to 52.19 yuan per share. As of the close on April 3, it was 46.72 yuan per share, with a total market value of 9.05 billion yuan.

On the news front, on March 30, StarRay Environmental Materials announced that its actual controllers, Chen Dongqiong, Chen Yansheng, Chen Chuanghuang, and their acting-in-concert party Chen Yueping, signed equity transfer agreements with two wholly owned subsidiaries under Zelos Group Inc. (Jiushi Intelligent). They plan to transfer a portion of the equity of the listed company that they indirectly hold to the latter, with a total consideration of approximately 1.18B yuan. If the transaction is completed, Zelos Group Inc. (Jiushi Intelligent) will obtain 27.49% equity in StarRay Environmental Materials.

Since the transaction was officially announced, StarRay Environmental Materials has issued three stock-trading abnormal-oscillation announcements. It has repeatedly warned that its share price differs significantly from fundamentals. The company’s trailing P/E ratio is 93.1x, far above the industry average P/E ratio of 32.5x. The company also made clear that this change in equity will not result in any change to the controlling shareholder or the actual controller.

As the transferee, Zelos Group Inc. (Jiushi Intelligent) has committed that within 36 months after the equity transfer is completed, it will not, in any manner, seek control over the listed company’s controlling rights or actual control rights, and that there is no plan to inject assets into the listed company.

But market sentiment has not cooled down as a result. Even though Zelos Group Inc. (Jiushi Intelligent) has clearly committed to “not inject assets,” its move to invest nearly 1.2 billion yuan into StarRay Environmental Materials has still been interpreted by the market as a prelude to capital operations three years later.

Zelos Group Inc. (Jiushi Intelligent) is a globally leading autonomous-driving technology company. It operates the world’s largest RoboVan (autonomous box truck) fleet, with operations covering multiple countries including China, Japan, South Korea, and Singapore. As of February 2026, the company has累计 raised more than $800 million, its valuation has already exceeded 350k yuan, and investors include Dinghui Baifu, BlueLake Capital, Baidu Venture, Ant Group, and others.

In October 2025, Zelos Group Inc. (Jiushi Intelligent) won the bid for China Post’s centralized procurement project for 7,000 autonomous freight trucks, securing the global largest L4-level autonomous freight truck order. This year in January, the company and Cainiao autonomous vehicles jointly announced that they have reached an in-depth strategic integration, and Cainiao became a shareholder of Zelos Group Inc. (Jiushi Intelligent). Zelos Group Inc. (Jiushi Intelligent) will obtain brand authorization for “Cainiao Autonomous Vehicles,” launching dual-brand operations.

Judging from financial data, StarRay Environmental Materials’ operating situation is in sharp contrast with the current market buzz. The company’s main business is the R&D, production, and sales of polystyrene (PS). It is the largest polystyrene producer in South China, with an annual capacity of 350k tons. Its products are used in fields such as electronic appliances, toys, plastic packaging, building materials, medical devices, and others. In the first three quarters of 2025, the company achieved revenue of 1 billion yuan, down 21.05% year over year; net profit was 39.5681 million yuan, down 44.29% year over year. In its financial report, the company explained that the decline in net profit was mainly due to the industry’s growth falling short of expectations, the narrowing of product price spreads, and the resulting decrease in gross margin.

Data from the bulk commodity quotation platform Business Society shows that on April 3, the benchmark polystyrene price was 11,466.67 yuan per ton, up by about 30% over the past month. However, the price increase is mainly driven by the cost side; the fundamental contradiction of weak downstream demand has not yet been resolved.

The polystyrene industry that StarRay Environmental Materials is in is undergoing a deep adjustment. In its announcements, the company warned that in recent years, polystyrene industry capacity has continued to expand, and the speed of capacity expansion has exceeded market demand, leading to the downstream market’s inability to absorb supply in a timely manner, which may cause fluctuations in the company’s performance. The company’s main raw material for its polystyrene products is styrene, which is a bulk chemical downstream of petroleum refining and petrochemicals. If petroleum prices or the supply-demand relationship of styrene changes substantially and causes severe volatility in raw material prices, the company may be unable to effectively alleviate cost pressure through conventional cost-transfer mechanisms, leading to a decline in the company’s gross margin.