(Yicai) July 24 -- Shares of Golden Dragon Development surged by their daily trading limit after the Chinese investment firm unveiled a plan to acquire almost 30 percent of a domestic company running smart data centers to facilitate its business transformation.

Golden Dragon [SHE: 000712] closed 10 percent higher at CNY14.85 (USD2.08) a share today. The broader Shenzhen market climbed 1.2 percent.

The target firm Bornsales Science & Technology focuses on planning, constructing, investing, and operating smart data centers, Dongguan-based Golden Dragon announced late yesterday. Its net profit was CNY53.6 million (USD7.5 million) last year on revenue of about CNY869.5 million (USD121.6 million).

Bornsales has or is building data centers in Shenzhen, where it is based, Guangzhou, Guilin, Chongqing, and other cities. It counts internet titans Tencent Holdings, Alibaba Group Holding, and Baidu among its clients.

Golden Dragon will buy the stake from two private equity investment funds, it noted, without disclosing further details such as the value of the transaction, because the deal is still being prepared.

Golden Dragon is the controlling shareholder of Zhongshan Securities and has a stake in Dongguan Securities. It began to invest in the data center sector in April last year, announcing that it would set up a joint venture, in which it would own 53 percent, to invest up to CNY1 billion (USD139.8 million) to build data centers in Guangdong province.

Editor: Martin Kadiev