(Yicai) April 2 -- Shares of Shenglong Automotive Powertrain System surged by the exchange-imposed daily trading limit after the Chinese firm said it became the smart execute components supplier of a leading Chinese flying carmaker.

Shenglong [SHA: 603178] was trading up 10 percent at CNY19.34 (USD2.66) as of 1.35 p.m. in Shanghai today.

The five-year deal is expected to generate sales revenue of CNY120 million (USD16.5 million), the Ningbo-based supplier announced yesterday, without revealing the product specifications and the client name because of a confidentiality agreement.

The final supply volume and value of the deal will be agreed upon by the two firms after negotiations, said Shenglong, which mainly produces powertrain, lubrication, and cooling systems for traditional and new energy vehicles.

This smart execute part deal marks Shenglong’s foray into the flying car components market, but it is not expected to significantly alter the company’s main business, Shenglong noted.

Flying cars and related components have emerged as a major focus of China’s capital markets, with listed companies in this sector frequently attracting investor enthusiasm.

Editor: Futura Costaglione