(Yicai Global) July 29 -- Anhui Zhongding Sealing Parts’ shares jumped after a unit of the Chinese seals and special rubber products maker became the exclusive supplier of vehicle thermal management systems for Li Auto’s new electric vehicle, the X03.

After gaining as much as 7.5 percent earlier in the day, Zhongding Sealing [SHE:000887] closed 5.8 percent higher at CNY14.29 (USD2.21). The overall Shenzhen market also ended in positive territory, up 3 percent.

The partnership will last for four years, with the transaction amount expected to be CNY1.1 billion (USD174 million). The subsidiary, Anhui Tristone Flowtech, will implement the project, the company said in a statement late yesterday.

Anhui Tristone Flowtech is a wholly-owned subsidiary of Frankfurt-based parts supplier Tristone Flowtech Holding. Zhongding bought 100 percent of Tristone Flowtech Holding for EUR170 million (USD201.5 million) in 2017, making the latter its wholly-owned unit.

Tristone Flowtech Holding has been focusing on the development and production of engine and battery thermal management system assembly products, and Zhongding is advancing its thermal management piping system assembly business for new energy vehicles based on the holding company’s technologies, the statement said.

This is not the first partnership between Zhongding and Li Auto Anhui Tristone Flowtech became the supplier of vehicle thermal management system assembly and intercooler pipe assembly products for Li Auto’s X01, and the total transaction amount in the product life cycle is expected to be CNY664 million (USD102.3 million), Zhongding said in September last year.

Zhongding is also a supplier for Chinese electric vehicle startup Nio and Tesla.

Editor: Peter Thomas