Sensation! A major player emerges in the lighting industry: After three attempts, this "Little Giant" finally passes its IPO review

On November 13, an announcement from the Beijing Stock Exchange sent shockwaves through the lighting industry—Changzhou Tongbao Optoelectronics Co., Ltd. (hereinafter referred to as "Tongbao Optoelectronics") has passed the initial review for its IPO on the Beijing Stock Exchange! This means that this "veteran," which has been deeply engaged in automotive lighting for 34 years, has finally knocked on the door of the capital market after its third attempt. The Beijing Stock Exchange may also welcome another national-level specialized and sophisticated "Little Giant" lighting enterprise.

Eight years, three attempts: The IPO counterattack of a lighting veteran

On November 13, the results of the 31st deliberation meeting of the Listing Committee of the Beijing Stock Exchange in 2025 showed that the initial application of Changzhou Tongbao Optoelectronics Co., Ltd. (hereinafter referred to as "Tongbao Optoelectronics") was approved by the Listing Committee, and the companyplans to list on the Beijing Stock Exchange.

Tongbao Optoelectronics, established in 1991, is positioned as an automotive electronic component manufacturer. Its main business involves the R&D, production, and sales of automotive lighting systems, electronic control systems, energy management systems, and other automotive electronic components, with a consistent focus on the vehicle lamp assembly market. Tongbao Optoelectronics was listed on the New Third Board (NEEQ) via IPO in July 2015, entered the Innovation Layer in May 2020, and is a national-level "Specialized, Refined, Differential, and Innovative" Little Giant enterprise.

It is worth mentioning that this is already its third attempt.

Tongbao Optoelectronics' path to IPO has been quite tortuous. In 2017, Tongbao Optoelectronics initially planned its IPO target as the ChiNext board; however, on the eve of the review meeting in October 2018, Tongbao Optoelectronics voluntarily withdrew the application. After the establishment of the Beijing Stock Exchange, Tongbao Optoelectronics restarted its IPO process, signing a tutoring agreement with Industrial Securities in December 2022, but due to strategic adjustments, both parties terminated the cooperation in November of the following year.

On June 27, 2024, Tongbao Optoelectronics submitted its application again and passed the tutoring acceptance by the Jiangsu Securities Regulatory Bureau. However, just one week later, on July 4, 2024, Tongbao Optoelectronics chose to withdraw the application materials. It was not until April 21, 2025, that Tongbao Optoelectronics filed the application once again, and it was accepted by the Beijing Stock Exchange on April 27. After 201 days, it successfully passed the review meeting.

It is reported that automotive lighting systems are Tongbao Optoelectronics' cornerstone business, and its automotive lighting products have been applied in many popular models of car brands such as SAIC-GM-Wuling, GAC Aion, GAC Trumpchi, Dongfeng Nissan, and SAIC Volkswagen. In addition, Tongbao Optoelectronics continues to explore new business segments in automotive electronics, expanding into electronic control systems, energy management, and other fields.

The prospectus shows that for this IPO fundraising, Tongbao Optoelectronics plans to raise 330 million yuan , to be used for the intelligent LED modules for new energy vehicles, charging and power distribution systems, and control module project. During the reporting period, the company prepared the construction of fundraising investment projects at its Changzhou headquarters and established a new Guangxi Tongbao production base in 2024. After production begins, it will achieve a dual-main-business drive of "automotive lighting + energy management" —which precisely aligns with the transformation direction of lighting companies after going public.

This means that Tongbao Optoelectronics is comprehensively upgrading from a traditional automotive lighting manufacturer to the "nervous system" and "energy steward" of intelligent electric vehicles.

Automotive lighting systems (mainly LED automotive lighting modules) are the company's largest source of revenue, accounting for 96% of Revenue in 2024. Currently, the domestic automotive lighting system market presents a competitive landscape of "two superpowers and many strong players": Huayu Vision and Xingyu Shares hold market shares of 22% and 14%, respectively. The company disclosed in its prospectus that, based on supported vehicle models, the market coverage rate of its LED automotive lighting modules was approximately 4% in 2024, and 4.12% from January to June 2025.

Hardcore Strength: The "Iron Triangle" of Technology, Standards, and Laboratories

It is worth mentioning that Tongbao Optoelectronics has established a long-term and stable cooperative relationship with SAIC-GM-Wuling, serving as its strategic core supplier. Relying on long-accumulated technical trust and supply guarantee capabilities, Tongbao Optoelectronics not only holds over 90% of the procurement share for similar products in the field of LED automotive lighting modules and drive controllers at SAIC-GM-Wuling, but is also the exclusive supplier of LED automotive lighting modules for multiple best-selling models.

Obviously, the risk of high customer concentration is inevitably a focus of attention during the IPO review meeting. The Listing Committee requires the company to explain the stability of cooperation with major customers and specific measures to address the risk of customer concentration.

Meanwhile, Tongbao Optoelectronics is also actively expanding its customer base among other OEMs, having engaged with Dongfeng Liuzhou Motor, Changan Automobile, and others, advancing factory audits and project nominations. With the increase in production capacity for assembly products such as headlight assemblies and charging/distribution assemblies, Tongbao Optoelectronics is expected to rapidly upgrade from a Tier 2 supplier to a Tier 1 supplier at other OEM customers , further expanding its market share.

Earning such trust from major manufacturers is inseparable from Tongbao Optoelectronics' hardcore technical strength.

Data shows that Tongbao Optoelectronics has consistently maintained its investment in R&D during the reporting period. From 2022 to 2024, the company's R&D expenditure gradually increased from 13.3833 million yuan to 23.8602 million yuan, and then reached 12.0149 million yuan in January–June 2025.

As of now, Tongbao Optoelectronics holds 18 invention patents, 59 utility model patents, and 2 design patents, establishing a core technology system covering key areas such as optical lens technology, heat dissipation design technology, electronic control technology, and lean manufacturing technology.

At the same time, the company's revenue also showed a steady growth trend. From 2022 to 2024, Tongbao Optoelectronics achieved revenue of approximately RMB 390 million, RMB 529 million, and RMB 588 million respectively, with net profits of approximately RMB 36.6929 million, RMB 62.2485 million, and RMB 83.0935 million respectively. From January to September 2025, Tongbao Optoelectronics achieved revenue of approximately RMB 488 million, an increase of 30.51% year-on-year; the net profit attributable to shareholders of the listed company was approximately RMB 56.5579 million, an increase of 15.11% year-on-year.

As a member unit of the Automotive Lighting Branch of the China Association of Automobile Manufacturers, the company took the lead in drafting the industry standard "Light-emitting diode (LED) and modules for automobiles" issued by the Ministry of Industry and Information Technology. In addition, the automotive electronics EMC laboratory specially built by Tongbao Optoelectronics has obtained CNAS (China National Accreditation Service for Conformity Assessment) accreditation and is equipped with advanced testing equipment, providing strong support for the development and innovation of assembly products.

In addition, the high concentration of equity in Tongbao Optoelectronics is another focus of controversy. It is reported that the actual controllers, the couple Liu Guoxue and Tao Jianfang, and their son Liu Wei, collectively hold 78.75% of the company's shares, and serve as Chairman, Director, General Manager and other core positions respectively.

Tongbao Optoelectronics' successful approval is a microcosm of the revaluation of value in the lighting field, especially in the automotive lighting sector.

In the tide of "electrification and intelligence" in the automotive industry, car lights have long evolved from basic functional components into core electronic components that reflect the technological sense of the whole vehicle and realize intelligent interaction. New technologies such as LED, Adaptive Driving Beam (ADB), and intelligent digital headlights are driving a significant increase in the value of car lights per vehicle.

Meanwhile, capital is discovering new "hidden champions" in this traditional sector. Leveraging their deep expertise in niche segments, close relationships with OEMs, and ability to expand into new energy and intelligent driving fields, they have become favored targets in the capital market. The IPO of Tongbao Optoelectronics has illuminated a path to the capital market for more specialized, refined, distinctive, and innovative enterprises deeply embedded in the automotive supply chain. Who will be the next lighting dark horse to knock on the door of capital? Let us wait and see.