HENGDIAN, China, Aug. 24, 2026 (GLOBE NEWSWIRE) — Hengdian Group completed the acquisition of a controlling stake in Jiali Industry, a leading vehicle lighting manufacturer, at an implied equity valuation of approximately RMB 2.2 billion (USD 327 million). The transaction, led by Hengdian Group Capital (HgC) together with Tospo Lighting, involved the acquisition of approximately 67% of Jiali for RMB 1.45 billion (USD 215 million), making it the largest M&A transaction by deal value in Hengdian Group’s history.
Hengdian Group Tospo Lighting Co., Ltd (Tospo), a leader in China’s lighting industry, has built a dual-growth strategy around general lighting and automotive lighting. Zhejiang Jiali (Lishui) Industry Co., Ltd (Jiali) specializes in the research, development, and manufacturing of passenger vehicle lighting products. Its strengths lie in product development, manufacturing, and OEM support, and has established relationships with major automakers like GAC, Chery, BYD, and XPeng.
Tospo’s acquisition of Jiali aims to bolster Tospo’s automotive lighting portfolio and establish an end-to-end value chain spanning automotive lighting controllers, lighting modules and complete automotive lamp assemblies. This strengthens Tospo’s competitiveness in the automotive industry as one of China’s leading automotive lighting companies, expanding its automotive lighting division as a second growth engine.
At the Acquisition Launch Ceremony in Zhaoqing, Guangdong on August 18, Hengdian Group Director and Senior Vice President Xu Wencai announced, “the completion of this restructuring is a key move by Hengdian Group,“ he said, “to address gaps, expand into new areas and build new momentum in its electrical and electronics business.” He called for “mutual empowerment and shared value,” he explained, “by combining Tospo Lighting’s strengths in platforms, technology, and channels, with Jiali’s strengths in automotive lighting applications, processes and customers.”
The M&A of Jiali involved complex multi-party coordination, differentiated pricing arrangements, and a major asset restructuring by a listed company. HgC and Tospo Lighting had spent multiple years conducting systematic research on the automotive lighting sector, identifying and screening dozens of potential acquisition targets before moving forward with extensive screening, discussions, and negotiations with Jiali.
This deal also marks a milestone in HgC’s role as Hengdian Group’s investment and corporate development platform, highlighting its capability in supporting the Group’s industrial transformation and sustainable growth. For the acquisition, HgC provided expertise in transaction structuring, project management, multi-party resource coordination, and deal execution.
Following the deal, Tospo Lighting plans to pursue deep integration for the two companies across research and development (R&D) in advanced automotive lighting technologies like intelligent headlamps and interactive lighting systems, to strengthen their product and technological competitiveness.
Meanwhile, the companies will cooperate in both domestic and overseas business development to build lasting relationships with leading automakers in China and overseas, drawing on their complementary customer bases and product portfolios. Tospo will benefit from Jiali’s relationships with vehicle manufacturers to grow its automotive controller business, while Jiali will draw on Tospo’s sales network, brand influence, and trade expertise in China and abroad to expand its complete automotive lamp assembly business.
Tim Huang, Tospo Lighting CEO, said that the companies must “leverage Hengdian Group’s global footprint, as well as Tospo’s experience in overseas manufacturing and serving overseas markets,” he explained, “to open up global markets through two paths, taking our products overseas and expanding manufacturing overseas.”
The successful acquisition of Jiali Industry marks a critical advancement in HgC’s role as the Group’s investment arm. Going forward, HgC will play an ongoing role in the integration and future growth of Tospo and Jiali, supporting in areas like capital and resource coordination.
HgC will continue to raise its capital operations and transaction execution capabilities as well as resource coordination strengths, to execute high-quality strategic opportunities and bring sustainable growth to the Group’s portfolio. It remains focused on Hengdian Group’s strategic priorities, supporting the Group’s industrial upgrading, and deepening integration of capital and industry.
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