(Yicai) Sept. 26 -- Shares of Qianli Technology rose after the Chinese developer of autonomous-driving systems said German auto giant Mercedes-Benz Group will invest CNY1.3 billion (USD182.2 million) to acquire a 3 percent stake in the Geely Automobile Holdings-backed company.

Qianli Tech [SHA: 601777] jumped 3 percent to CNY13.38 (USD1.88) a share as of lunch break in Shanghai today, after earlier rising by as much as 5.1 percent.

Lifan Holdings will transfer 135.6 million Qianli Tech shares at CNY9.87 (USD1.38) apiece to Mercedes-Benz Shanghai Digital Technology, the carmaker's local research and development subsidiary, to repay debts, the target company announced yesterday, citing a notice it received from its shareholder the same day.

Following the transaction, which is subject to regulatory approval, Mercedes-Benz will become Qianli Tech's fifth-largest shareholder, committing not to reduce its holdings for 12 months from the share transfer registration. Lifan's stake will drop to around 10.7 percent.

Qianli Tech's predecessor was Lifan Group, China's first private passenger car company to go public. After multiple restructurings and name changes, it shifted its focus to automotive artificial intelligence solutions, including autonomous driving and intelligent cockpit systems.

Qianli Tech has been rapidly advancing its autonomous driving tech from Level 2+ to L4 by leveraging software firm Megvii's AI algorithm expertise, its predecessor's vehicle manufacturing foundation, and Geely's capital support.

In June, Qianli Tech, Geely, Megvii, and others jointly set up Chongqing Qianli Smart Driving Technology.

Qianli Tech's net profit rose 19 percent to CNY31.2 million (USD4.4 million) in the six months ended June 30 from a year ago, while its revenue surged 40 percent to CNY4.2 billion, the Chongqing-based company said in an earnings report released on Aug. 22.

Editor: Martin Kadiev