(Yicai Global) June 7 -- Shares of Deren Electronic surged by the exchange-imposed daily limit after the Chinese maker of electronic connectors used in home appliances said its Italian unit will supply parts for several electric vehicle models made by a world-renowned carmaker, expecting to gain CNY13 billion (USD1.8 billion) in revenue.

Deren’s stock price [SHE: 002055] closed up 10 percent at CNY9.99 (USD1.40).

Meta System, a subsidiary of Deren, will develop and mass-produce an onboard charging management system for the auto brand's global new energy vehicle development platform, the Shenzhen-based firm said in a statement yesterday, without disclosing more details about the deal.

The cooperation will help strengthen the company’s position as a global core supplier in power management modules and continue to increase its market share, it added.

Deren acquired a 60 percent stake in Meta System in 2015 and remains its largest shareholder despite some later dilution.

Onboard chargers are one of Meta System’s main products, and some of its clients are BMW, Groupe PSA, Porsche, Volkswagen, and Mercedes-Benz.

Editor: Emmi Laine