(Yicai Global) Sept. 21 -- Shares of Boamax Technologies Group jumped by the daily limit after the Chinese photovoltaic equipment provider said it will participate in a joint venture to explore a cheaper alternative to silicon in solar cells.

Boamax [SHE: 002514] moved up 10 percent to close at CNY12.16 (USD1.89). The shares have more than doubled in value this year.

The machine manufacturer said it will establish a JV together with two scholars from Xidian University in Xi'an and another investor to develop and sell perovskite solar cells, the Suzhou-based company said in a statement yesterday. The venture will also make production equipment and raw materials.

Perovskite cells are more affordable to produce and more efficient than the mainstream option of crystalline silicon cells in solar panels but the low product stability and the short life cycle are still hindering wider use.

Boamax will have a 37 stake in the JV. A partnership formed by the two scholars will contribute its patent technologies to hold 45.5 percent of the equity. The third investor party will have an 18.2 percent stake. 

After the JV reaches certain milestones, Boamax and the third-party investor will gradually increase their stakes in the venture by adding capital. Boamax’s holdings will eventually rise to 40 percent, while the combined stake held by the two scholars and their assistants will dilute to 40 percent. The third entity will have 20 percent of the equity.

These milestones include making qualified products in two years, successfully reaching pilot production in three years, as well as realizing commercially stable mass production in four and a half years. The requirements include product size and efficiency targets.

Editor: Emmi Laine, Xiao Yi