Watts co.: The Rise of PEEK Materials in the New Era

A new materials company originating from Shenzhen has managed to break foreign monopolies with its own efforts, becoming an undeniable "Chinese force" in the global special polymer materials field.

In May 2025, the Chongqing production base of Water Co., Ltd. officially obtained the safety production license, marking the entry into formal production phase for the company's Phase I and Phase II projects of 20,000 tons per year LCP resin material, as well as Phase I of the 1,000 tons per year PEEK resin material project.

This news has caused a stir in the special materials industry—once fully constructed, WOTE Corporation will have the capacity to produce 25,000 tons of LCP resin, potentially becoming the largest LCP manufacturer globally. Meanwhile, it has also made further breakthroughs in its independent and controllable capabilities within the PEEK industrial chain.

01 Strategic Transformation: Transition from Engineering Plastics to Specialty Polymers

The rise of Watstock was not achieved overnight. The company was founded in 2001 and was initially just a regular materials company.

The acquisition of Samsung's LCP production line in South Korea in 2014 became a key turning point in the company's strategic transformation, propelling Walter Co., Ltd. onto the fast track of specialty polymer materials.

After ten years of strategic planning, Water Co., Ltd. has evolved from an initial single-product company into a specialized materials platform with a product matrix including LCP, PPA, PEEK, and polyarylether sulfone.

The company was transformed from Wote Co., Ltd. and has completed the business change registration procedures with the Shenzhen Market Supervision Administration in accordance with the law. Today, Wote Co., Ltd. has grown into a leading enterprise with a significant position in the field of special polymer materials in China.

02 Technological Breakthrough: Building Core Competitiveness in the Entire PEEK Industry Chain

Among the many special polymer materials of Water Co., Ltd., PEEK (Polyether Ether Ketone) stands out particularly.

PEEK is a special engineering plastic with excellent properties such as high-temperature resistance, self-extinguishing, high strength, and corrosion resistance. It is widely used in high-tech fields such as aerospace, medical devices, and robotics.

Watts Co., Ltd.'s breakthrough in PEEK materials lies in the fact that the company has become the only materials manufacturer in the current market with a complete PEEK industrial chain capability.

The company has mastered the full industry chain production capability from "upstream synthesis - downstream modification - profile processing" and achieved independent control.

In February 2025, Water Corporation stated on the interactive platform that the company plans to build a production capacity of 1,000 tons for polyaryletherketone (PAEK) synthetic resin, and the first phase of the PEEK synthetic resin project has passed the expert review meeting for the overall acceptance of safety facilities.

The subsidiary Zhejiang KESAI possesses the capability to produce and process PEEK profiles, achieving industrial chain extension and enhancing product added value.

03 Application Landing: Diversified Layout from Humanoid Robots to AI Servers

The value of technology ultimately lies in its application, and the PEEK material from Water Corporation is facing unprecedented market opportunities.

In the field of robotics, the "WOTE DuraKraft PEEK" material developed by WOTE Corporation has a density that is only half that of aluminum alloy, yet its strength can be comparable to metal. It has been applied to the Tesla Optimus robot prototype, reducing the overall weight by 15% and extending the endurance time by 31%.

This breakthrough application provides a new material solution for lightweight design in robotics.

The company is confident in its PEEK/PAEK material products, as stated on its interactive platform: "The company is actively promoting the diversification of application testing of polymer material products across different client platforms."

In addition to the robotics field, Water Corporation's PEEK materials also show broad application prospects in the medical and industrial component fields, including antibacterial modified PEEK for surgical robot endoscope catheters and acid and alkali-resistant coated robotic arms for electronic production lines.

In the context of the explosive growth of AI computing power, Water Corporation's LCP materials have entered the supply chain of Nvidia's GB200 servers. Meanwhile, the company has developed the most comprehensive air-cooling solution for AI server cooling materials in the industry, which can be reused in multiple scenarios such as mobile phones, laptops, robotic joints, and low-altitude flying devices.

Performance Growth: Specialty Materials as the Absolute Growth Engine

With technological breakthroughs and market expansion, Water Corporation's performance has also experienced explosive growth.

In 2024, the company achieved a significant financial milestone with a revenue of 1.897 billion yuan, representing a year-on-year growth of 23.45%. The net profit attributable to shareholders reached 36.5965 million yuan, marking a year-on-year increase of 520.69%, and the net profit attributable to shareholders after deducting non-recurring gains and losses saw a year-on-year increase of 2085.60%.

The remarkable growth momentum continued into 2025. According to the semi-annual report, the company achieved a revenue of 906 million yuan in the first half of the year, representing a year-on-year increase of 12.29%. The net profit attributable to shareholders of the listed company, excluding non-recurring gains and losses, grew by 39.54% year-on-year.

More notably, the specialty polymer materials business has contributed nearly half of the revenue, becoming the company's absolute growth engine. In the first half of 2025, the company's revenue from specialty polymer materials reached 443 million yuan, accounting for nearly 50% of the total revenue.

05 R&D Driven: Continuous Investment to Build a Technological Moat

The transition of Watt Co., Ltd. from catching up to leading is closely linked to its continuous investment in research and development.

In 2024, the company's R&D expenses surpassed the 100 million yuan mark for the first time, reaching 116 million yuan, which accounted for 6.10% of the revenue.

In the first half of 2025, the company continued to increase its investment in research and development, with R&D expenses amounting to 55.9804 million yuan, a year-on-year increase of 17.29%, accounting for 6.18% of revenue.

Sustained investment in research and development has yielded fruitful results. In 2024, the company overcame 14 core technologies, achieving breakthroughs in processes such as LCP film molding and continuous polymerization of PEEK.

As of now, the company has five national high-tech enterprises and three national specialized and new "little giant" enterprises under its umbrella, which solidifies its leading position in the industry with strong technical capabilities.

06 Future Prospects: Golden Opportunities Amidst the Wave of Domestic Substitution

Facing the future, Water Corporation is ushering in unprecedented development opportunities.

According to the "14th Five-Year Development Guide for the Petroleum and Chemical Industry," efforts will be made to increase the self-sufficiency rate of engineering plastics and special engineering plastics to 85% by 2025.

With the third phase of the National Big Fund clearly identifying "bottleneck" materials as a key investment direction, Walter Stock, as a leading enterprise in the domestic special polymer materials industry, is expected to receive more policy support.

The market space is extremely vast. In the humanoid robot field alone, the global annual demand for PEEK will reach the ten-thousand-ton level.

The domestic LCP application gap in 5.5G base stations and 800G optical modules also exceeds 5,000 tons per year.

Wote Co., Ltd. stated on the interactive platform: "Regardless of changes in the international situation, the company will seize opportunities from the upgrading of downstream industries and the increasing demand for material performance to provide competitive polymer material solutions for domestic and foreign customers."

From a small materials company in Shenzhen to a specialty materials platform with an annual revenue of nearly 1.9 billion, Wote Co., Ltd. has undergone a ten-year transformation from technological catch-up to technological leadership.

The commissioning of the Chongqing base is not the end, but a new beginning—as the application of PEEK and other special materials accelerates in emerging fields such as downstream robotics, AI servers, and low-altitude economy, the rise of Water Shares has just begun.

In the global competition for new materials, the presence of this Chinese company is becoming increasingly prominent.