South China Financial (HKG:0619) said its unit Luxfield Investment has signed a memorandum of understanding with Zhu Mapao, a director and substantial shareholder of Beijing Sino-security Hangxin Technology, to form a joint venture in Hong Kong, according to a Thursday filing.

Shares of the firm were up over 3% in Friday late-morning trade.

Under the proposed plan, Luxfield will be the major shareholder in the venture, which will promote, sell, and develop security and anti-riot equipment for overseas markets.

Zhu will contribute management expertise and technical resources, and help procure product supply from SH Technology, the filing said.