(Yicai Global) Jan. 18 -- Shares in Guangdong Hongtu Technology surged by the exchange-imposed limit today before tumbling as investors cashed in after the Chinese manufacturer of aluminum alloy die-cast products said it has achieved a technological breakthrough that will allow it to make very large molded components for new energy vehicles.

Hongtu’s stock price [SHE:002101] was trading down 0.98 percent at CNY15.18 (USD2.40) as of 2 p.m. China time today. Earlier in the day it had hit CNY16.84, a six-year high. The stock has more than doubled since early November last year.

Hongtu has developed the capability to cast a rear floor component measuring 1.7 meters by 1.5 m by 0.7 m using high-strength and high-ductility aluminum alloy materials, the Zhaoqing, southern Guangdong province-based firm said today.

The company is the first in China to master the molding of super-large integrated aluminum alloy structural parts. The one-time die casting of car chassis components can replace the time-consuming assembly of parts by stamping and welding, greatly reducing labor costs, auto weight as well as manufacturing expenses.

The part, which weighs around 100 kilograms, will be sent to clients for checks, the company said. It will then make plans for mass production depending on their feedback and projected future orders.

Hongtu, which counts Xpeng Motors, Nio and GAC Aion New Energy Vehicle among its customers, has overcome difficulties in product design, new material development and equipment manufacturing to make this component, it said last month. It also invested in giant molding machinery with a force of 6,800 tons.

Editor: Kim Taylor