(Yicai) July 29 -- Shares of Ecovacs Robotics rose after the Chinese robot vacuums maker said it will invest CNY200 million (USD27.9 million) in a new project to produce robot bodies and corresponding core components.

Ecovacs [SHA: 603486] closed 6.4 percent higher at CNY76.69 (USD10.68) a share today. The broader Shanghai Composite Index climbed 0.3 percent.

Ecovacs inked a deal with the government of Nanxun District of Huzhou in China’s Zhejiang province to build a factory with an expected annual production capacity of 20 million robot components, the company announced yesterday. The parts will be worth over CNY1 billion (USD139.3 million), it added.

Suzhou-based Ecovacs will endeavor to increase the plant's output value to CNY10 billion (USD1.4 billion), said chairman Qian Dongqi.

Ecovacs is to invest in and build household androids while still exploring application scenarios, Vice Chairman and Chief Executive Officer Qian Cheng told Yicai in March.

Thanks to the innovation in products and growth in domestic and overseas markets, Ecovacs expects its first-half net profit to have jumped 58 percent to 63 percent to between CNY960 million and CNY990 million (USD133.7 million and USD137.9 million) from a year ago, with its revenue likely rising 25 percent, according to its latest financial report.

Ecovacs ranked second by smart vacuum shipments worldwide in the first quarter of this year, with a market share of 13.6 percent, according to data from market research firm International Data Corporation.

Haier Group, Midea Group, and many other Chinese home appliances giants are also planning to launch humanoid robots, while Dreame, another cleaning appliances maker, has invested in domestic android maker Magiclab. According to industry analysts, Ecovacs has to speed up its business positioning or risk falling behind.

Editor: Martin Kadiev