(Yicai Global) June 4 -- Shares in Shenzhen Deren Electronic soared by the exchange-imposed limit today after a unit became exclusive supplier of on-board power supply management modules to BMW’s new energy vehicle joint venture in China in a deal that could be worth as much as CNY5 billion (USD781 million).

Deren’s stock price [SHE:002055] surged 10 percent to CNY11.85 (USD1.85) apiece.

The Chongqing plant of Italy’s Meta System will supply on-board power supply management modules to Spotlight Automotive, a JV between BMW and Chinese car manufacturer Great Wall Motor, Shenzhen-based Deren yesterday. The deal will help promote the product in China’s NEV market, it added.

Deren bought a 60 percent stake in Reggio Emilia-based Meta System, which supplies advanced electronic system to high-end automakers such as BMW, Daimler-Benz and Volkswagen, in 2015 for EUR56.82 million (USD68.78 million).

Spotlight Automotive was formed in 2019 with a CNY5.1 billion (USD800million) investment from Munich-based BMW and Beijing-based Great Wall Motors to develop and produce new generation electric cars.

Construction on its first factory in Zhangjiagang, eastern Jiangsu province started in June last year. It is scheduled to begin production next year with an annual output of 160,000 units.

Editor: Kim Taylor