Rongta Technology (HKG:9881) entered into a non-binding letter of intent to acquire 100% of Shenzhen Yanke Digital, a China-based printing equipment maker, for up to 65 million yuan, according to a Dec. 19 Hong Kong bourse filing.

Shares of the provider of identification and data capture solutions fell nearly 7% in Monday's midday trade.

Rongta said the acquisition would allow it to expand into embedded systems and module-based printing products, complementing its existing portfolio of printing equipment, POS terminals, and AIDC solutions.