(Yicai Global) June 13 -- Chinese solar power equipment manufacturer Jiangsu Sunrain Solar Energy Co. has proposed to invest CNY16 million (USD2.3 million) to set up a joint venture with Canadian photovoltaic company Conserval Engineering Inc., said a company statement yesterday.

The new company will specialize in the development and production of solar air heating and cooling systems based on the SolarWall technology, it said. Conserval Engineering is the inventor of the SolarWall, which is coated with a patented paint to convert solar energy into heat. The technology has been widely applied in foreign countries as an effective building heating solution.

Per the partnership agreement, Sunrain will hold an 80 percent stake in the joint venture. The purpose of the deal is to introduce SolarWall to China, where it will offer substantial environmental and social benefits, the company claimed.

Affected by the downturn in the solar water heater market, Sunrain's operating income plunged 9.37 percent to CNY2.3 billion (USD346 million) last year, and its net profit also slipped 9.52 percent to CNY244 million (USD36 million), cs.com.cn reported. The joint venture will help the company create new profit growth drivers, the statement added.