A so-called "hot stock" is making waves again with its second round of "6 limit-up gains in 9 trading days." Zhejiang Shibao Company Limited announced on the evening of the 28th that the closing price of its A-shares had deviated by a cumulative value exceeding 20% over three consecutive trading days (December 24th to 26th). Following a verification, the company stated that previously disclosed information required no correction or supplement, no undisclosed major information was found, operations were normal, its controlling shareholder and actual controller did not trade shares during the period, and there were no undisclosed matters that should have been reported.
This year has seen a dense release of positive developments for L3 autonomous driving, accelerating its commercialization. On the policy front, the "Automotive Industry Steady Growth Work Plan (2025-2026)" jointly issued in September by the Ministry of Industry and Information Technology and seven other departments explicitly required advancing the production and market access of L3-level vehicles, with cities like Beijing and Wuhan taking the lead in pilot programs. Technologically, L3 autonomous driving achieves the transfer of control from the driver to the system, marking the true starting point for autonomous driving. Institutional funds have already turned their attention to related concept stocks, with Zhejiang Shibao recently exhibiting a strong trend of "6 limit-ups in 9 days."
On December 11th, in response to an investor inquiry, Zhejiang Shibao stated that the development of its steer-by-wire system is progressing orderly and is expected to meet mass production conditions by the second half of 2026. It is understood that steer-by-wire builds upon traditional steering systems by eliminating the mechanical intermediate shaft and using electrical signals to transmit the driver's steering intent and provide road feedback; it is also a key component for L3 autonomous driving. Following the introduction of relevant policies, Zhejiang Shibao further indicated that its products, including intelligent steering, steer-by-wire, and electric adjustable columns, are all applicable to L3-level and higher autonomous driving. The announcement of the L3 autonomous driving access catalog is expected to facilitate the deployment and popularization of high-level autonomous driving, which will promote the推广 and mass production of the company's intelligent steering products.
Starting from December 16th, Zhejiang Shibao's stock price consecutively hit the daily upside limit. By the close on December 26th, its share price reached 23.34 yuan per share, having hit the limit-up 6 times in the preceding 9 trading sessions. A similar situation occurred on July 11th, 2023, when Zhejiang Shibao secured its 6th limit-up in roughly 9 trading days, drawing significant market attention. At that time, autonomous driving was also frequently receiving policy support, and several brokerages had published research reports highlighting steer-by-wire as a critical actuator for advanced intelligent driving, casting a veil of anticipation over related concept stocks.
On June 21st of that year, Xin Guobin, Vice Minister of the Ministry of Industry and Information Technology, stated that the next steps would focus on several key tasks, including initiating pilot programs for market access and on-road operation of intelligent connected vehicles, organizing city-level demonstrations of "vehicle-road-cloud integration," and supporting conditional autonomous driving. He clarified that the referenced autonomous driving pertained to the commercial application of L3-level and higher functions, noting that this work had already been launched and was receiving positive responses from local governments. Autonomous driving undoubtedly presents development opportunities for related automotive component enterprises, with steer-by-wire technology attracting particular attention from the capital markets.
On July 10th, Zhejiang Shibao announced its plan to raise no more than 1.18 billion yuan through a private placement to no more than 35 specific investors. The funds are intended for a technical transformation project to add an annual production capacity of 600,000 sets of automotive intelligent steering systems, a construction project for automotive intelligent steering systems and key components, an R&D center for intelligent connected vehicle steer-by-wire technology, and to supplement working capital. This project has already received approval for registration from the China Securities Regulatory Commission.
Founded in 1993, Zhejiang Shibao specializes in the R&D, design, manufacturing, and sales of automotive steering gears and other key steering system components. The company was listed on the Hong Kong Stock Exchange in May 2006 and subsequently on the Shenzhen Stock Exchange in November 2012. Steering systems and components constitute 95.55% of its main business revenue, securing its position within the automotive parts industry. It is noteworthy that the industry sectors associated with Zhejiang Shibao include concepts like new energy vehicles, Li Auto, and Xiaomi Auto, which are pivotal areas in the current transformation of the automotive industry.
According to its 2024 annual report, Zhejiang Shibao achieved operating revenue of 2.693 billion yuan, a year-on-year increase of 48.04%; net profit attributable to shareholders of the listed company was 149 million yuan, surging 93.15% year-on-year. Its revenue primarily stems from steering systems and components, which accounted for 94.18% of total revenue in 2024. Based on the latest financial report, for the first three quarters of 2025, Zhejiang Shibao reported operating revenue of 2.462 billion yuan, up 35.44% year-on-year, and a net profit attributable to the parent company of 150 million yuan, an increase of 33.66% year-on-year.
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