TCL Zhonghuan Renewable Energy Technology (SHE:002129), through its subsidiaries, agreed to establish a joint venture manufacturing electronic materials and new materials, according to a Shenzhen bourse filing on Friday.

The joint venture, Tianjin Huanyao New Materials Technology, will have a registered capital of 630 million yuan.

The Chinese photovoltaic supplies maker's subsidiaries, Zhonghuan Leading Semiconductor Technology and Tianjin Zhonghuan Leading Material Technology, will invest 974.1 million yuan and 375.9 million yuan, respectively, into the venture, owning 30.9% and 11.9%.

The company's shares dropped 4% during the afternoon trade.