(Yicai Global) Sept. 4 -- Shares of Fullhan Microelectronics climbed today after the Chinese semiconductor maker said that an affiliate of Legend Holdings, the parent of the world's largest personal computer maker Lenovo Group, has bought a minority stake in it for CNY989 million (USD144.4 million).

Fullhan's stock price [SHE:300613] rose as much as 4.2 percent this morning to CNY172.50 (USD25.20). The shares have increased by nearly 90 percent in value so far this year.

Xizang Oriental Qihui Investment, of which Beijing-based Legend indirectly has a 75 percent stake, purchased 7.9 million of the chipmaker's shares for CNY124.87 (USD18.20) each, the Shanghai-based target firm said in a statement yesterday.

Founded in 2014, Fullhan went public on the ChiNext board in 2017. It focuses on chip design and development in areas such as video monitoring, smart hardware, and automotive electronics.

"We are optimistic about the long-term development potential of semiconductors and CCTV security systems," Legend said, adding that the pair is looking forward to cooperating more deeply.

The two companies have earlier ties. The Lenovo parent's private equity arm Legend Investment Consultant is Fullhan's sole institutional investor. Besides this PE firm, Legend has a venture capital unit called Legend Star that has poured money into artificial intelligence and chip firms.

Despite the pandemic, Fullhan has had a profitable start of the year. The company's net profit increased by 19 percent to CNY43.9 million in the first half from a year earlier, according to its earnings report. Its revenue grew 29 percent to CNY282 million.

Editor: Emmi Laine