Debang Lighting plans to acquire Jiali Auto Lighting

Automotive lighting is becoming a hot topic in the LED field, and corporate layouts are constantly taking place. At the beginning of this month, Sanan Optoelectronics planned to join forces with foreign investors to acquire 100% of the equity of Lumileds to further expand into the automotive lighting market. Yesterday (8/28), Debon Lighting also announced the acquisition of an automotive lighting company to accelerate its deployment in the automotive lighting field.

Debang Lighting plans to acquire Jiali shares, and a preliminary agreement of intent has been signed

Debang Lighting announced that the company plans to acquire no less than 51% of the shares of Zhejiang Jiali (Lishui) Industrial Co., Ltd. (hereinafter referred to as "Jiali Shares") through share transfers and capital increases, and then gain control of it. The specific transaction plan is still under further demonstration and negotiation. According to preliminary calculations, this transaction is expected to constitute a major asset reorganization.

According to the announcement, Jiali Co., Ltd. specializes in the research and development, design, manufacturing and sales of automobile (passenger cars, commercial vehicles) lamps, as well as a small amount of motorcycle lamp business and mold supporting business. It is a well-known domestic automobile lamp manufacturing enterprise in my country.

Image source: Jiali Shares official website

In terms of ownership structure, Huang Yuqi, the largest shareholder of Jiali Shares, holds 46.67% of the shares and is one of the actual controllers of the company. The second largest shareholder is the Lishui Green Industry Development Fund, and there are also several institutional shareholders such as Guangzhou Industrial Holding State Development and Hangzhou Jinhu Investment.

In terms of customers, Jiali Automobile mainly focuses on passenger vehicle manufacturing companies, including GAC Passenger Cars, GAC Toyota, Dongfeng Nissan, FAW Co., Ltd., FAW-Volkswagen, FAW Toyota, SAIC Maxus, FAW Pentium, BAIC Off-Road Vehicles, Dongfeng Honda, Dongfeng Motors, GAC Honda, etc., as well as new energy vehicle manufacturing companies such as BYD, GAC Aion, Xpeng Motors, and Chery New Energy. In addition, the company's main commercial vehicle customers include Chery Commercial Vehicles, China National Heavy Duty Truck, Shaanxi Heavy Duty Truck, etc.; the company's main motorcycle customers include motorcycle manufacturing companies such as New Continent Honda, Wuyang-Honda, Jianshe Yamaha, and Dongfeng Yamaha.

In terms of performance, in 2024 and the first half of 2025, Jiali Shares achieved revenue of 2.68 billion yuan and 1.32 billion yuan respectively, with net profits of 87.9606 million yuan and 30.2518 million yuan. < br />
Andebang Lighting focuses on the general lighting and automotive parts industries. The products cover three categories: civil lighting products, commercial lighting products and vehicle-mounted products, and are widely used in civil and commercial fields. In the first half of 2025, Debon Lighting achieved operating income of approximately 2.152 billion yuan, a year-on-year increase of 0.4%; it achieved a net profit attributable to shareholders of the listed company of approximately 143 million yuan.

In the first half of this year, Debon Lighting accelerated the mass production and delivery of vehicle-mounted projects, and actively expanded new customers and new businesses. The company's new project target is nearly 700 million yuan. Up to now, the customers include Panasonic, Huayu Vision, Wanxiang, Magneti Marelli, Hella, Yanfeng Plastic Omnium, Valeo, Leapmotor, Chery and other well-known parts and components companies and car companies, and it is constantly exploring other potential customers.

Debang Lighting stated that if this transaction can be successfully completed, the company will obtain control of the target company, which will help enhance the company's operating scale and performance, strengthen the company's second growth curve, and enhance the company's core competitiveness and sustainable development capabilities.

Realize cars through acquisitions The lighting market is expanding rapidly

At present, competition in the LED industry is intensifying and overall profit margins are compressed. The automotive lighting track has become a breakthrough for the development of LED companies.

According to "TrendForce 2025 Global Automotive LED Market - Lighting and Display Product Trends", looking forward to 2025, due to the continued impact of overall economic uncertainty, it is expected that there will be greater price downward pressure in 2025. However, according to TrendForce's analysis of the backlog performance of automotive LED manufacturers, car market production is expected to recover again in 2H25. Coupled with the continued plan to introduce advanced technologies into 2026 car models, the output value of the automotive LED and car lighting markets is expected to grow to US$3.451 billion and US$35.729 billion respectively in 2025.

In this context, companies have deployed the automotive lighting market through acquisition and integration of resources, which has become an effective means to enhance competitiveness.

On August 1 this year, Sanan Optoelectronics announced that it planned to join forces with overseas investor Inari Amertron Berhad acquired 100% equity of Lumileds Holding B.V., a Dutch LED company, with an enterprise value of US$239 million. Sanan said the acquisition will help expand the high-end international market and enhance its competitiveness in the automotive and special lighting fields.

According to TrendForce’s LED industry demand and supply database, Lumileds is one of the top seven LED packaging manufacturers in the world. This acquisition will help Sanan gain the market position that Lumileds has cultivated for more than 20 years.

Also making plans through acquisitions is Jingfeng Mingyuan. Jingfeng Mingyuan announced as early as October 2024 that it planned to acquire Sichuan Yichong Technology and raise supporting funds. On April 23 this year, the company announced the latest progress, planning to acquire 100% equity of Yichong Technology through the issuance of shares and cash, with a transaction price of approximately 3.283 billion yuan.

Yichong Technology specializes in high-performance analog and digital-analog mixed-signal chips, especially in automotive headlight and taillight LED driver chips. It has mass production capabilities, and its customers include BYD, Geely, Chery, etc. This acquisition will help Jingfeng Mingyuan form synergy with existing LED lighting driver chips and accelerate its layout in the automotive lighting market.

Summary

Many companies are accelerating their layout through acquisitions. Debang Lighting's acquisition of Jiali Shares will help quickly acquire mature customer resources and technical capabilities and strengthen the company's second growth curve; San'an Optoelectronics' acquisition of Lumileds focuses on the high-end international market and automotive special lighting fields; Jingfeng Mingyuan's acquisition of Yichong Technology focuses on the synergy between driver chips and lighting products.

However, the final effect of the acquisition still needs to be observed in subsequent integration and market performance. It is worth noting that Debon Lighting also pointed out that this transaction is still in the preliminary planning stage, and there are still major uncertainties in related matters. The specific transaction method, transaction counterparty, and acquisition ratio still require further negotiation and demonstration by the parties to the transaction.