Coolpad Group announced that the company plans to establish a joint venture with China Baoli Technologies Holdings Limited to develop dual-screen phones with both e-ink and color screens.

Coolpad will own a 49% stake in the joint venture, while China Baoli will own the remaining 51%. The joint venture will have registered capital of CNY200 million, including CNY98 million invested by Coolpad and CNY102 million invested by China Baoli. The joint venture will not be considered an affiliate of Coolpad, but rather a wholly separate venture.

China Baoli already has a seven-year exclusive promotion and sales rights of Russia's dual-screen phone YotaPhone in mainland China, so this new new joint venture aims to undercut the Russian deal and propel China Baoli towards its goal of manufacturing and selling its own product.

By cooperating with China Baoli, Coolpad will be able to realize diversified product expansion and enter the dual-screen phone market.

Last week Coolpad published its semi-annual performance for the first half of 2016, stating that the company's operating revenue was HKD5.277 billion, a year-on-year decrease of 39.9% from HKD8.783 billion. Meanwhile, the company reported net losses of HKD2.053 billion, a year-on-year decrease of 173%.

According to Coolpad, its revenue decrease was mainly attributed to its group business unit restructuring and the severe competition of the Chinese mainland smartphone market during the first half of 2016. Its losses were mainly attributed to the sales of several rights and interests of the joint venture within the group.