(Yicai) Sept. 5 -- Keboda Technology’s shares jumped by their daily trading limit after the Chinese manufacturer of automotive electronics said the firm will acquire its controller’s stake in an affiliated intelligent driving company.

Keboda [SHA: 603786] closed up 10 percent at CNY61.27 (USD8.59) a share in Shanghai today.

Keboda will buy Shanghai Keshi Investment Management’s 60 percent stake in Shanghai Keboda Intelligent Technology for CNY345 million (USD48.4 million), increasing its ownership to 80 percent from 20 percent, the Shanghai-based company announced yesterday.

Keboda said the deal will give it access to Keboda Intelligent’s technology, market resources, and project experience in core smart-car products, helping the company broaden its portfolio, upgrade product quality, streamline its lineup, and cut related-party dealings.

As Keboda Intelligent is an entity controlled by Keboda Technology’s actual controller, the acquisition constitutes a related-party transaction, Keboda noted.

Keboda Intelligent’s products include smart auto central computing platforms and intelligent driving domain controllers, which have already secured designated supply orders from four major domestic and international carmakers potentially worth more than CNY20 billion (USD2.8 billion).

Since its first product went into mass production in the third quarter of last year, Keboda Intelligent’s revenue has grown fast, but it still had a net loss of nearly CNY35.2 billion (USD4.9 billion) in the first seven months of the year.

Despite that, Keshi Investment has promised that Keboda Intelligent will have a net profit of at least CNY630 million (USD88.3 million) between last month and the end of 2030 or compensate Keboda if that does not happen, according to Keboda.

Editor: Futura Costaglione