(Yicai Global) Aug 1 -- Shanghai-based Wingtech Communications Co., a subsidiary of Wingtech Technology Co. [SH:600745], will provide original design manufacturing (ODM) services for South Korea's major mobile phone brand LG Electronics Inc. [LSE:LGLD] from 2018, enhancing the Chinese firm's presence in overseas markets.
The new smartphone model is expected to debut in 2018, and both sides will complete the transaction in accordance with the actual delivery volume.
It is the first time that the company has cooperated with LG, though it is already an established ODM service provider for major domestic smart phone brands including Huawei, Lenovo, Xiaomi and Meizu, the company said.
The ODM services will include research, development, design and production of products.
Revenue related to Wingtech Communications' ODM services made up 95% of the listed company's operating income in 2016.
LG is the world's sixth largest smartphone brand. It sold 75 million smartphones in 2016 and increased its market share in South Korea, North America and Europe.