(Yicai) Aug. 1 -- Tarry Electronics, a Chinese supplier of consumer electronics functional materials, said it will invest CNY164 million (USD22.8 million) to acquire a controlling stake in a domestic manufacturer of structural support components for foldable screens.

Tarry will hold an 80 percent stake in Weiside New Material Technology after completing the deal, it announced late yesterday. The move aims to integrate the pair's businesses to provide high-quality components for premium customers in emerging industries, it added.

Weiside is a supplier of carbon fiber products, Tarry said, adding that its parts have been used in the foldable phones of Huawei Technologies, Samsung Group, and other well-known brands.

The deal will help Tarry integrate its existing fiberglass structural components business with Welside's carbon fiber materials operations. This will provide leading downstream customers with a more comprehensive and cost-effective fiber-reinforced composite material solution, meeting the performance requirements of premium consumer electronics and emerging artificial intelligence hardware clients.

Welside logged a net profit of CNY30.3 million (USD4.2 million) in the first half of this year on revenue of CNY142 million, Tarry said, citing unaudited data. Its profit was CNY16.6 million last year, with its income topping CNY183 million.

Shares of Tarry [SHE: 300976] closed 2 percent higher at CNY55.45 (USD7.69) each in Shenzhen today.

Editor: Martin Kadiev