(Yicai Global) Feb. 20 -- Damon Technology Group’s shares surged to a six-month high after the Chinese maker of intelligent logistics equipment said it intends to buy a supplier of smart warehouse logistics gear and parts.

Damon [SHA: 688360] ended up 4.9 percent at CNY29.10 (USD4.24) a share today, the highest closing price since Aug. 19 last year. The stock has gained over 18 percent so far this year.

Shanghai-based Damon announced on Feb. 17 that it would issue new shares and use the proceeds to buy all of Jiangsu Moandi Technology from its six shareholders and two investment partners. The firm released no further details as due diligence was not yet complete yet, it said.

The acquisition will increase Damon’s competitive advantages in core components, key logistics equipment, and system integration solutions and help the firm increase its sales, it noted.

Based in Suzhou, Moandi produces core parts for warehousing, logistics, and transportation and sorting devices, including electric rollers and drives, linear motors for producers of logistics equipment, and logistics system integrators, Damon said.

Damon is one of China’s first companies to develop solutions for warehousing, logistics, transportation, and sorting systems integrators. It has many renowned overseas clients, such as Amazon, eBay, and Lazada, Damon pointed out, adding that JD.Com, Huawei, SF Express, Alibaba-backed Cainiao Network, and Hema Fresh are among its main domestic customers.

Editor: Futura Costaglione