Wai Chi Holdings (HKG:1305) unit Wai Chi Opto Technology (Shenzhen) entered into a non-legally binding letter of intent for investment by a limited partnership, a late Monday Hong Kong bourse filing said.

Shares of the lighting products manufacturer were up 4% in Tuesday afternoon trading.

Under the letter, CICC Zhanxin Venture Investment (Heshan) Partnership Enterprise (Limited Partnership) plans to invest between 30 million yuan and 50 million yuan in Wai Chi Opto Technology (Shenzhen).

The investment will allow the unit to boost its business development through the reinforcement of existing production capabilities, as well as new production technologies and lines among other things.

The parties will negotiate further before entering into a final investment agreement.