(Yicai) Aug. 21 -- Shares of J.Pond Precision Technology surged by their daily trading limit after the Chinese precision structural parts maker said it plans to invest CNY408 million (USD57 million) to buy a controlling stake in a precision metal parts processor.

J.Pond [SHE: 301326] soared 20 percent to CNY34.20 (USD4.79) a share as of lunch break in Shenzhen today.

J.Pond has signed a letter of intent with the controlling shareholder of Sinno Etch Technology for the acquisition, the Dongguan-based firm announced late yesterday. After completing due diligence, a formal asset acquisition agreement will be penned, it added.

Sinno Etch is a metal processing company focusing on the high-precision chemical etching industry, with customers from the consumer electronics, automotive manufacturing, and semiconductor industries, J.Pond noted. Its products are used by consumer electronics giants, including Apple, Huawei Technologies, and Samsung Electronics, as well as carmakers such as BYD and Huawei partner Seres Group, it added.  

The deal will help enhance J.Pond's comprehensive precision manufacturing service capabilities for major clients, accelerate its business layout in manufacturing consumer product components such as phones, and achieve a business layout in the auto supply chain, according to the company.

J.Pond focuses on research, development, production, and sale of precision functional and structural components for consumer electronics, with its products mainly used in computers, smart home appliances, and lithium batteries. Its overseas sales revenue accounted for 82 percent of its total last year, according to its 2023 financial report.

Since 2020, J.Pond has been listed as a major supplier of Apple. It also provides its newly developed lithium battery components to industry giant Contemporary Amperex Technology in small quantities, the financial report showed.  

Editor: Martin Kadiev