(Yicai Global) May 25 -- Shares of Jinguan Electric soared after the Chinese provider of one-stop power supply solutions said it will help build facilities for solar energy storage and electric vehicle battery swaps on a 3,500-kilometer highway that connects Russia with Iran.

Jinguan Electric [SHE:300510], which is traded on the ChiNext board of the Shenzhen Stock Exchange, surged 20.1 percent to CNY6.94 (USD1) as of 2.10 p.m. 

The firm has penned a memorandum of cooperation with the Russian commerce chamber’s office in the Middle East to become the main entity in charge of designing and building the stations in the road project that is expected to cost nearly CNY70 billion (USD9.9 billion), the Jilin province-based company said in a statement yesterday.

The main road is predicted to boast 70 facilities for solar power storage and battery swaps, costing CNY1.4 billion (USD198 million). The big highway will branch out into several offshoots to cover a total of 170,000 km and the number of energy storage facilities will reach 3,400, requiring an investment of CNY68 billion.

The deal should help Jinguan Electric position and expand its overseas business to create new growth points for profit, it said, adding that the firm will join hands with its partners in the provinces of Jilin and Henan as well as in Russia and Iran to widen capacity to meet the needs of this project. 

Founded in 2006, Jinguan Electric provides power supply solutions for cities. In the first quarter, the firm boosted its revenue by 15 percent to CNY210 million (USD29.7 million) from a year ago while turning losses into gains of CNY12 million (USD1.7 million).

Editor: Emmi Laine, Xiao Yi