Dongyue Group (HKG:0189) said a company it holds an equity interest in applied to go public on the Shanghai Stock Exchange, according to a bourse filing Friday.

Shares gained over 3% in afternoon trade Monday.

Shandong Dongyue Future Hydrogen Energy Materials, in which Dongyue Group holds an 8.33% and 5.14% equity interest through two separate units, applied to list its shares on the Shanghai Stock Exchange's Science and Technology Innovation Board, colloquially known as the STAR market.

Shandong Dongyue Future specializes in producing fluorinated materials used in hydrogen energy technology and its application has been accepted for review by Chinese regulators, Dongyue said.