(Yicai Global) Aug. 12 -- Roshow Technology will supply 10 sets of cannabidiol extraction equipment to Heilongjiang Fengyou Hemp Cultivation at a total contract price of CNY120 million (USD17 million), Roshow Technology announced on Aug. 10.

Fengyou Hemp Cultivation is a unit of Roshow Technology's controlling shareholder Rowshow Group that plies the hemp active ingredient processing business.

Roshow Technology's shares [SHE:002617] rose 3.7 percent to CNY5.90 (USD0.83 ) in afternoon trading on the news.

The Xiaoxing, Zhejiang province-based company, which mainly produces and sells copper core and aluminum core magnet wire, will design and manufacture the extraction equipment based on its affiliate's processing needs. It will furnish the apparatuses together with their automatic control system. The main equipment production cycle is expected to be 180 days and its installation and commissioning will take 90 days.

Roshow Technology has also signed an agreement with an agricultural product processing institute of the Chinese Academy of Agricultural Sciences and will pay the latter CNY5 million to research and develop functional foods based on the active ingredients of hemp and commercialize their production.

Functional foods are those which have added ingredients or more of their existing ingredients, or crop plants which have had traits bred into them, such as carrots with a higher carotene content.

Hemp was an investment darling in China's stock market in the first half. Many shares of listed companies purporting to enter this emerging sector have undergone stupefying growth, but the prices of these stocks have come down lately from their earlier highs.

Chinese regulatory authorities have thus far never approved hemp as a medical or food additive, the Office of the National Anti-Drug Committee of China stressed at the end of March when trying to chill the industrial reefer madness in domestic capital markets.

Editor: Ben Armour