Tospo Lighting recently disclosed a report on the purchase of major assets, proposing to acquire a 67.48% stake in Zhejiang Jiali (Lishui) Industrial Co., Ltd. (hereinafter referred to as "Jiali Shares") by purchasing some existing shares with cash and subscribing for some newly issued shares with cash, with a total transaction consideration of CNY 1.454 billion.

Upon completion of this transaction, Tospo Lighting will become the controlling shareholder of Jiali Shares, and this transaction constitutes a major asset restructuring of the company.

It is reported that Tospo Lighting announced inAugust 2025 its plan to obtain a stake in Zhejiang Jiali (Lishui) Industrial Co., Ltd. (hereinafter referred to as "Jiali Shares") of not less than 51%, thereby gaining control, until January 12, 2026, when Tospo Lighting announced the latest progress.

The announcement shows that Tospo Lighting intends to purchase a total of 60.9171 million shares of Jiali Shares held by Huang Yuqi, Huang Huang, Green Fund, Guangzhou Industrial Investment Holding Group, Hangzhou Jinhan, Guangqi Ruigao, Suzhou Zhuopu, Zheke Donggang, Xiaoshan Xinxing, Dongguan Jiatai, Xinyu Ruiyu, Lishui Lihu, Shenzhen Zhouyu, Nanping Gejibu, and Zhang Xiaoxue through cash payment. At the same time, Tospo Lighting intends to subscribe for 100 million newly issued shares of Jiali Shares with cash. Jiali Shares will become a controlling subsidiary of the company.

The target company, Jiali Shares, focuses on the field of automotive lighting luminaires. It is an important domestic supplier of automotive lighting solutions, a company listed on the New Third Board, with major customers including GAC Passenger Cars, GAC Toyota, Dongfeng Nissan, FAW Corporation, FAW-Volkswagen, FAW Toyota, SAIC Maxus, etc., as well as BYD, GAC Aion, XPeng Motors, Chery New Energy, etc. In addition, its customer base also includes commercial vehicle manufacturers such as Chery Commercial Vehicles, China National Heavy Duty Truck Group, Shaanxi Heavy Duty Automobile, etc., as well as motorcycle manufacturing enterprises such as Sundiro Honda, Wuyang-Honda, Jianshe Yamaha, and CFMOTO Yamaha.

In 2024 and the first half of 2025, Jiali Shares achieved revenue of RMB 2.68 billion and RMB 1.32 billion respectively, with net profits of RMB 87.9606 million and RMB 30.2518 million respectively.

Tospo Lighting focuses on the general lighting industry and continues to expand into the automotive sector. Its products cover three major categories: residential lighting products, commercial lighting products, and automotive component products.

Currently, the general lighting industry is in a mature stage, with slow and stable market development, mainly characterized by competition in the existing market, making it difficult for enterprises to achieve rapid development in the short term.To achieve high-quality sustainable development, Tospo Lighting is actively seeking and cultivating new business areas with higher added value and stronger growth potential.

Tospo Lighting Data

The automotive lighting industry is currently in a critical development period, transitioning from traditional vehicle lighting to intelligent lighting systems. The company has identified its automotive business as a future growth driver, focusing on the fields of "vehicle controllers" and "automotive lighting". After years of cultivation, the company's automotive business has begun to take shape. Through mergers and acquisitions, it can rapidly develop its automotive business, quickly address shortcomings in market presence, products, and production capacity, and achieve an efficient strategic layout in the industry.

This acquisition is a key measure for Tospo Lighting to implement its development strategy of "specializing in automotive business" and to enter the automotive lighting track. Jiali Shares and Tospo Lighting have broad synergies in procurement, customer development, international business, finance, and other aspects. In terms of technology R&D, both parties will integrate technologies in areas such as headlight controllers, structural components, and modules to accelerate their intelligent development and enhance competitiveness.

Tospo Lighting stated that this transaction aligns with the strategy of the listed company and is conducive to expanding and consolidating the company's strategic layout in the field of automotive lighting. The company will integrate the business resources of the target company and within the listed system, fully leverage the strategic synergies with the target company, achieve mutual benefits and win-win results, and enhance the company's market competitiveness.

M&A in the lighting industry exceeds 28.7 billion in 2025

According to incomplete industry statistics, the lighting industry initiated a total of 28 mergers and acquisitions in 2025, with a total transaction value exceeding 28.7 billion yuan. In addition to the acquisition by Tospo Lighting, there were landmark cases such as Dongshan Precision acquiring the French GMD Group for 814 million yuan, LEDVANCE investing 256 million yuan in Bridgelux, and Sanan Optoelectronics acquiring a majority stake in Lumileds for 1.727 billion yuan.

These acquisitions are not blind expansions but present clear strategic paths: First, vertical integration , such as Dongshan Precision entering automotive lighting systems and optical communication chips through acquisition; Second, technological positioning , such as BPS acquiring E-Chip Technology, mainly laying out "lighting + wireless charging"; Third, niche strengthening , such as Foshan Lighting acquiring Haolaite Optoelectronics, aiming to strengthen intelligent commercial lighting control capabilities.

China Light Network believes that this wave of M&A reflects that the lighting industry is shifting from scale competition to ecosystem competition. Companies are no longer satisfied with manufacturing advantages in a single link, but are rapidly building supply chain synergy and technological moats through investment and M&A. Against the backdrop of slowing industry growth and profit pressure, M&A has become an important way for companies to break through ceilings and layout new growth curves. However, acquisition is only the starting point; subsequent technology integration, management synergy, and cultural integration are the key tests of a company's strategic determination.

In short, from lighting to light technology, from hardware to solution, industry boundaries are constantly expanding. In the future, it may be difficult to define who is a pure "lighting company". Those who are likely to take the initiative in the next round of competition are often those enterprises that can gradually build a cross-domain light value ecosystem through M&A and integration.

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