(Yicai) March 10 -- Shares in Lionhead Technology surged by the exchange-imposed limit today after the Chinese e-commerce marketing services provider said it intends to acquire machine vision technology developer Hangzhou Leaper Technology with the aim of transforming itself into a high-tech business.

Lionhead’s share price [SHA:600539] closed up 10 percent at CNY11.90 (USD1.60).

Lionhead will buy 100 percent of Leaper’s assets through the issuance of new shares and cash payments, the Taiyuan-based company said on March 7. The exact transaction amount and other details, such as the stakes that all parties involved will hold in Leaper, have not yet been determined as due diligence on Leaper’s assets is still ongoing, it added.

Leaper, which was founded in 2012, specializes in the research, production and sales of machine vision technology, which is a key application of artificial intelligence in manufacturing. The Hangzhou-based company supplies clients that work in a wide array of industries from new energy and semiconductors to display equipment, the report said.

Leaper raked in net profit of CNY41 million (USD5.6 million) last year on revenue of CNY416 million (USD57.3 million), according to its unaudited financial report.

By comparison, Lionhead recorded a loss in the first nine months of 2024 at CNY7.1 million (USD979,700) on revenue of CNY319 million (USD43.7 million).

Machine vision assets have become a hot investment in the capital markets, fueled by the growing wave of AI technology. Recently, the industry has seen a surge in mergers and acquisitions.

Editor: Kim Taylor