Automotive lighting is becoming a hot commodity in the LED industry, with companies constantly making moves to expand their presence. Earlier this month, Sanan Optoelectronics planned to acquire 100% of Lumileds in conjunction with overseas investors to further expand its automotive lighting market presence. Yesterday (August 28), Debang Lighting also announced the acquisition of an automotive lighting company to accelerate its expansion in the automotive lighting sector.
Debang Lighting plans to acquire Jiali Shares; a preliminary agreement has been signed . Debang Lighting announced that it 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 transfer and capital increase, thereby gaining control of the company. The specific transaction plan is still under further discussion and negotiation. Preliminary calculations indicate that this transaction is expected to constitute a major asset restructuring.
The announcement shows that Jiali Group specializes in the research, design, manufacturing and sales of automotive (passenger car and commercial vehicle) lighting fixtures, as well as a small amount of motorcycle lighting business and mold matching business. It is a well-known domestic automotive lighting fixture manufacturer in my country.
Image source: Jiali Group official website
In terms of shareholding structure, Huang Yuqi, the largest shareholder of Jiali Co., Ltd., holds 46.67% of the shares and is one of the actual controllers of the company. The second largest shareholder is Lishui Green Industry Development Fund. In addition, there are several institutional shareholders such as Guangzhou Gongkong Guofa and Hangzhou Jinhan Investment.
On the customer side, Jiali Group primarily serves passenger vehicle manufacturers, including GAC Motor, GAC Toyota, Dongfeng Nissan, FAW Group, FAW-Volkswagen, FAW Toyota, SAIC Maxus, FAW Bestune, BAIC Off-Road Vehicle, Dongfeng Honda, Dongfeng Motor, and GAC Honda, as well as new energy vehicle manufacturers such as BYD, GAC Aion, XPeng Motors, and Chery New Energy. In addition, the company's major commercial vehicle customers include Chery Commercial Vehicles, China National Heavy Duty Truck Group, and Shaanxi Heavy Duty Truck Group; its major motorcycle customers include Sundiro Honda, Wuyang-Honda, Jianshe Yamaha, and CFMOTO Yamaha.
In terms of performance, Jiali Group achieved revenues of RMB 2.68 billion and RMB 1.32 billion in 2024 and the first half of 2025, respectively, with net profits of RMB 87.9606 million and RMB 30.2518 million.
Debang Lighting focuses on the general lighting and automotive parts industries. Its products cover three main categories: residential lighting products, commercial lighting products, and automotive products, widely used in both residential and commercial sectors. In the first half of 2025, Debang Lighting achieved operating revenue of approximately RMB 2.152 billion, a year-on-year increase of 0.4%; and net profit attributable to shareholders of the listed company of approximately RMB 143 million.
In the first half of this year, Debang Lighting accelerated the mass production and delivery of its automotive projects and actively expanded its customer base and business, securing nearly 700 million yuan in new project contracts. To date, its clients include well-known auto parts manufacturers and automakers such as Panasonic, Huayu Vision, Wanxiang, Marelli, Hella, Yanfeng Vision, Valeo, Leapmotor, and Chery, and the company continues to explore other potential clients.
Debang Lighting stated that if the transaction is successfully completed, the company will gain control of the target company, which will help improve 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.
Rapid Expansion in the Automotive Lighting Market Through Acquisitions <br /> Currently, competition in the LED industry is intensifying, and overall profit margins are shrinking. The automotive lighting sector has become a breakthrough point for LED companies' development.
According to the "2025 Global Automotive LED Market - Lighting and Display Product Trends," the outlook for 2025 is challenging due to the continued impact of overall economic uncertainty, which is expected to put significant downward pressure on prices. However, analysis of automotive LED manufacturers' order backlogs suggests that automotive production is poised for a recovery in the second half of 2025. Furthermore, with plans to incorporate advanced technologies into 2026 vehicle models, the market value of automotive LEDs and automotive lighting is projected to grow to US$3.451 billion and US$35.729 billion respectively by 2025.
Against this backdrop, companies are using acquisitions and resource integration to expand into the automotive lighting market as an effective means to enhance their competitiveness.
On August 1st of this year, Sanan Optoelectronics announced that it plans to jointly acquire 100% equity of Dutch LED company Lumileds Holding BV with overseas investor Inari Amertron Berhad, with an enterprise value of US$239 million. Sanan stated that this acquisition will help expand into high-end international markets and enhance its competitiveness in the automotive and special lighting sectors.
According to the 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.
Another company that has expanded its business through acquisitions is Chipone Technology. Back in October 2024, Chipone Technology announced its plan to acquire Sichuan Yichong Technology and raise supporting funds. On April 23 this year, the company announced the latest progress, stating its plan to acquire 100% equity of Yichong Technology through a combination of share issuance and cash, with a transaction price of approximately 3.283 billion yuan.
E-Chong Technology focuses on high-performance analog and mixed-signal chips, especially in the mass production of LED driver chips for automotive headlights and taillights. Its customers include BYD, Geely, and Chery. This acquisition will help Chipone Technology synergize with its existing LED lighting driver chips and accelerate its expansion in the automotive lighting market.
Summary <br /> Many companies have accelerated their expansion through acquisitions. Debang Lighting's acquisition of Jiali Shares will help it quickly acquire mature customer resources and technical capabilities, strengthening the company's second growth curve; Sanan Optoelectronics' acquisition of Lumileds focuses on the high-end international market and automotive special lighting field; and Chipone Technology's acquisition of E-Chong Technology focuses on the synergistic effect between driver chips and lighting products.
However, the final outcome of the acquisition remains to be seen, depending on subsequent integration and market performance. It's worth noting that Debang Lighting also pointed out that the transaction is still in the initial planning stage, and there are significant uncertainties regarding related matters. Specific transaction methods, counterparties, and acquisition ratios still require further negotiation and verification by all parties involved. (Text: Mia)
