(Yicai) Aug. 28 -- Shares of Xinje Electric rose after the leading Chinese industrial integrated solution provider said it will invest CNY800 million (USD110 million) to build a robot control systems factory.

Xinje Electric [SHA: 603416] closed up 2.9 percent at CNY59.54 (USD8.32) a share today. The broader Shanghai stock market climbed 1.1 percent.

The plant will be located in Wuxi, where Xinje Electric is based, and produce smart robot control systems, the company announced late yesterday. Building the first phase will take two years, it added.

The investment would help address technical challenges with core robot components and provide Xinje Electric with a new growth source, the firm noted, without disclosing further details.

Xinjie Electric released its first-half earnings report on the same day, with its net profit climbing 0.4 percent to CNY127 million (USD17.8 million) and revenue jumping 10 percent to CNY877 million (USD120 million) from a year earlier.

Income from the programmable logic controller business accounted for 36 percent of the total, from servo drive systems for 49 percent, from human-machine interface products for 11 percent, and from the intelligent robotics business for 3 percent, Xinjie Electric noted.

Xinjie Electric previously allied with Huawei Technologies' artificial intelligence innovation center in Wuxi to develop embodied intelligence solutions. It has also provided customized control solutions for leading Chinese industrial robot makers, including EFORT Intelligent Robot and Guangdong Topstar Technology.

Editor: Martin Kadiev