(Yicai Global) Sept. 7 -- Dali Technology’s stock price surged by the exchanged-imposed trading limit after the Chinese maker of infrared thermal imagers laid out a plan to set up a joint venture for infrared detectors.

Shares of Dali Technology [SHE:002214] ended 10 percent higher today at CNY24.74 (USD3.83) each, valuing the Hangzhou-based company at about CNY12.9 billion (USD2 billion).

Dali has signed an agreement with North Night Vision Science & Technology Research Institute Group to integrate their respective businesses, technologies, personnel and core assets in the sector, and establish a JV to promote the research and development, production and application of the uncooled infrared detectors with lower costs, it said in a statement late yesterday.

The JV aims to develop uncooled infrared detectors and corresponding core modules’ manufacturing technology for mass production to satisfy the market demands and become the leading company in the sector, the firm added, without disclosing the pair’s respective investment in the JV and their shareholding proportion.

North Night Vision owns Kunming Institute of Physics, the only institute in China that specializes in the research, development and production of infrared materials, detectors and infrared thermal imagers, per the Yunnan province-based company’s website.

Infrared thermal imagers convert the temperature distribution of objects into videos and images through emitted infrared radiation. Uncooled infrared detectors can lower the production costs of the devices so as to achieve mass production and make their civil application more accessible.

These devices are used extensively, such as in testing electrical equipment, buildings and construction, medical examinations and quarantine, fire fighting, search and rescue, as well as transport-related night-vision navigation.

Editor: Futura Costaglione