(Yicai Global) March 22 -- Shares of Kinlita Chemical jumped after the Chinese firm's new materials unit penned a preliminary agreement with Microsoft to supply the latter with laptop parts.

Kinlita's share price [SHE:300225] jumped by as much as 14.9 percent to CNY18.05 (USD2.80) intraday today.

Unit Jindu New Material Technology signed a statement of work with the US tech giant, the Shanghai-based parent said in a statement yesterday, without disclosing the scale of collaboration. The computer model is still being developed so mass production is uncertain, it added.

Jindu New Material has passed the Washington-headquartered company's inspection after delivering samples of laptop parts, which lays a foundation for cooperation, the firm added.

The income generated by the sample delivery is expected to account for about 0.01 percent of the company's total revenue in 2020, it added.

Kinlita's net profit more than tripled to CNY91.4 million (USD14 million) in 2020 from a year earlier, according to its earnings report. Its revenue rose by 8.8 percent to CNY885 million (USD136 million).

Founded in 1993, Kinlita makes coatings and paints used in cars and construction machinery.

Editor: Emmi Laine, Xiao Yi