(Yicai Global) June 3 -- Xiaomi plans to invest CNY143.5 million (USD20.2 million) in Chinese display manufacturer Dalian Zhiyun Automation for 5.63 percent of its shares [SHE:300097], which soared 10 percent to stop trading at CNY13.15 (USD1.85) today on its announcement of the deal yesterday.

Liaoning province-based Zhiyun Automation is the country’s leading producer of display components and owns technologies to turn out liquid-crystal displays, and those of OLED and mini Led.

Tang Yongliang, the company’s controlling shareholder will transfer 15.5 million shares to Xiaomi for CNY9.26 per share, per the statement.

Tang’s stake will fall from 22.96 percent to 17.33 percent. Xiaomi will become the fourth major shareholder.

A light-emitting diode is a semiconductor light source that gives off light when current flows through it. An organic light-emitting diode, also known as an organic EL diode, is a light-emitting diode in which the emissive electroluminescent layer is a membrane of organic compound that shines when triggered by an electric current.

Mini LED consists of arrangements of microscopic LEDs that form individual pixel elements. Mini LED displays offer better contrast, response times, and energy efficiency than LCD ones.

Editor: Ben Armour