Breaking News! Tospo Lighting Acquires Jiali Auto Lamps, Shifting the Automotive Lighting Landscape

On the evening of August 27, 2025, Tospo Lighting (Stock Code: 603303) issued a major announcement, stating its intention to acquire no less than 51% of the shares of Zhejiang Jiali (Lishui) Industrial Co., Ltd. (hereinafter referred to as "Jiali Shares") through a combination of cash share transfer and capital increase, thereby gaining control. Preliminary calculations indicate that this transaction is expected to constitute a major asset restructuring, quickly drawing significant attention from the automotive lighting industry and capital markets.

Analysis of Core Transaction Elements

1. Target Company: Specialist in the field of automotive lamps

As a company listed on the NEEQ, Jiali Shares was established in December 2006 with a registered capital of RMB 136 million. It has long focused on the R&D, design, manufacturing, and sales of automotive (passenger car and commercial vehicle) luminaires. Leveraging its deep technical expertise and market presence, it has grown into a well-known domestic privately-owned automotive luminaire manufacturer.

Moreover, it boasts an extensive and high-quality customer base, covering many整车 manufacturing enterprises such as GAC Toyota, Dongfeng Nissan, and BYD, thereby establishing a strong market reputation within the industry. In terms of performance, it achieved revenue of RMB 2.68 billion in 2024, and revenue reached RMB 1.32 billion in the first half of 2025; regarding net profit, it was RMB 87.9606 million in 2024, and RMB 30.2518 million was realized in the first half of 2025, demonstrating robust operational strength and market competitiveness.

2. Acquisition Path: Step-by-Step Layout Driven by Cash

Tospo Lighting's acquisition this time adopts a combined strategy of "transferring existing shares + capital increase". Step one involves directly transferring issued shares from some shareholders of Jiali Shares; step two involves injecting cash directionally to increase the capital of Jiali Shares, simultaneously raising the registered capital and increasing Tospo Lighting's shareholding ratio. Its core objective is clear: to deeply dominate Jiali Shares' operational decisions, strategic planning, and financial management by holding no less than 51% of the equity. However, the transaction is currently still in the planning stage, and key details such as the specific transaction method, counterparties, and acquisition proportion require further demonstration and negotiation. At present, both parties have signed an "Acquisition Intent Agreement," and will subsequently carry out due diligence, audit and valuation work, laying the foundation for the signing of the formal agreement.

Industrial Logic and Strategic Value of the Acquisition

1. Tospo Lighting: Breaking through performance bottlenecks, expanding automotive business footprint

As a comprehensive high-tech enterprise integrating R&D, production, sales, and services, Tospo Lighting focuses on general lighting and automotive components. In the first half of 2025, the company achieved revenue of 2.152 billion yuan, a year-on-year (YoY) increase of 0.4%. However, the net profit attributable to shareholders of the listed company was approximately 143 million yuan, a year-on-year (YoY) decrease of 19.66%, indicating certain pressure on performance growth.This acquisition of Jiali Shares serves two main purposes: firstly, leveraging Jiali's advanced technology and mature customer resources in the field of automotive luminaires to rapidly broaden the automotive business layout and effectively compensate for the阶段性 shortfalls in general lighting growth; secondly, through synergistic integration with existing automotive operations, comprehensively optimizing product R&D, market expansion, and production capacity allocation, aiming to build a "second growth curve" and further strengthen the company's core competitiveness in the automotive components sector.

2. Jiali Shares: Leveraging the listing platform to break through development bottlenecks

Although Jiali Shares has been deeply engaged in the manufacturing of automotive luminaires for many years, possessing solid technical reserves and market foundation, it faces certain bottlenecks in widening financing channels and improving resource integration efficiency due to limitations of the New Third Board market tier.If it successfully becomes a holding subsidiary of Tospo Lighting and is included in the listed system, it can leverage the advantages of the capital market platform to obtain stronger support in key areas such as technological R&D and production capacity expansion.This will help Jiali Shares accelerate its market expansion pace, deepen the depth of technological innovation, break through long-standing development shackles, and achieve higher-quality growth.

Profound impact on the automotive lighting industry

As a key component of the automotive supply chain, automotive lighting is accelerating its transformation from traditional "functional components" to "intelligent interaction carriers and core aesthetic elements" amidst the wave of vehicle intelligence and electrification.

Tospo Lighting's acquisition sends a clear signal of industry consolidation: On one hand, leading companies are using M&A to rapidly complete their automotive business ecosystem, strengthening their voice in R&D and market competition; on the other hand, it foreshadows a new wave of consolidation in the automotive lighting sector, where companies with technological and market advantages will accelerate the absorption of high-quality small and medium-sized players, driving the industry towards "technology intensification and efficient scaling."

Editor's Note

Tospo Lighting's acquisition of Jiali Shares has caused significant ripples in the automotive lighting industry. From the official announcement to subsequent progress, every step has touched the nerves of the industry. This is not only a capital and business integration between two companies, but also reflects the major trend of integration and upgrading in the automotive lighting industry. Technological iteration and intensified market competition are driving companies to fill gaps and expand their reach through M&A. We look forward to seeing how this acquisition will be implemented, whether Tospo and Jiali can release greater energy through synergy, and we will continue to pay attention to how the automotive lighting industry reshapes the competitive landscape under the wave of consolidation, steering towards a smarter and more innovative future.