(Yicai Global) June 19 -- Shares of China's Huarong Holding surged after the supplier of construction molds said it will foray into the high-end optical device industry via an acquisition.

Huarong's equity price [SHA: 600421] jumped by 10 percent to close at CNY12.78 (USD1.80) as the stock started trading again after a two-week suspension due to the asset acquisition plan.

The maker of molds used to create precast concrete intends to buy 100 percent of Nanjing-based Kaituo Optoelectronics Technology's equity by issuing new shares and partly paying in cash, the Hubei province-based firm said in a statement after the last trading day before today. The value of the target company is still being assessed and the transfer should not change the controlling shareholder of Huarong.

Founded in 2016, Kaituo develops special fiber optic sensors and components. Its main products are used in fiber-optic gyroscopes, key devices that measure velocity and orientation in aircraft or spacecraft.

The deal could signal a change of direction for Huarong as the firm has recorded net losses for two consecutive years, including almost CNY6.5 million (USD957,224) last year, due to the sluggish property market. If the acquisition is successful, it should improve the operating income and net profit of Huarong while enhancing the company's ability to deal with risks, according to the buyer.

Editor: Emmi Laine