(Yicai) April 17 -- Shares of Quectel Wireless Solutions gained after the Chinese supplier of wireless modules said a well-known foreign producer of car parts will pay up to USD1.3 billion to use its products.

The Chinese provider of Internet of Things solutions [SHA: 603236] was trading 2.7 percent higher at CNY37.90 (USD5) in Shanghai as of 2.04 p.m. after jumping as much as 7 percent earlier.

A globally renowned supplier of auto parts sent a letter to the maker of GSM and GPRS modules to say that Quectel has been chosen to become a designated provider of communication modules for a certain in-car equipment project with delivery between 2026 and 2033, the Shanghai-based firm announced yesterday without disclosing more details about the client due to a signed non-disclosure agreement. Sales during the eight years are expected to tally from USD742 million to USD1.3 billion.

The move reflects the customer’s great trust and high recognition of Quectel's products, which should help the firm expand its influence in the automotive market, as well as enhance its profitability and global competitiveness, the company added.

Quectel provides wireless communication modules for its clients. In-car modules are one of the firm's seven major product categories, and they play vital functions in smart vehicles related to vehicle-to-everything communication and satellite navigation, per its website. 

Editor: Emmi Laine