TOSPO(SH:603303) IPO日报·2025-08-31 08:50Core Viewpoint - The acquisition of at least 51% of Zhejiang Jiali (Lishui) Industrial Co., Ltd. by Debang Lighting is aimed at strengthening the company's second growth curve, particularly in the automotive lighting sector, amidst declining financial performance [1][11]. Group 1: Acquisition Details - Debang Lighting plans to acquire Jiali Industrial through a combination of purchasing existing shares and capital increase, with a two-step process [4]. - The exclusivity period for the transaction is set until March 31, 2026, with a sincerity deposit of 6 million yuan that can be converted into the transaction price [4]. - Debang Lighting is a subsidiary of the Hengdian Group, holding a significant position in the general lighting sector, with major shareholders owning 74.92% of the company [4]. Group 2: Financial Performance - In 2024, Debang Lighting experienced its first simultaneous decline in both revenue and net profit in eight years, with revenue dropping from 4.697 billion yuan in 2023 to 4.431 billion yuan, and net profit decreasing from 376 million yuan to 347 million yuan [4]. - For the first half of 2025, the company reported a slight revenue increase of 0.40% to 2.152 billion yuan, while net profit fell by 19.66% to 143 million yuan [5]. - The net operating cash flow for the first half of 2025 plummeted by 99.15%, from 277 million yuan to 2.3642 million yuan [6]. Group 3: Target Company Overview - Jiali Industrial, a New Third Board listed company, specializes in the R&D and manufacturing of automotive lighting for passenger and commercial vehicles, with total assets of 3.576 billion yuan as of mid-2025 [8]. - In 2024, Jiali Industrial achieved revenue of 2.68 billion yuan and a net profit of 88 million yuan [9]. - The company has previously attempted to go public on the A-share market but shifted its focus to listing on the Beijing Stock Exchange after several setbacks [10]. Group 4: Market Context and Challenges - The demand for high-value automotive lighting products is increasing due to the rise of electric vehicles, with the value of lighting per vehicle increasing by 2-3 times compared to traditional fuel vehicles [12]. - Debang Lighting's expertise in LED optical technology combined with Jiali Industrial's experience in automotive-grade lighting could lead to competitive smart lighting products [12]. - However, differences in corporate culture and operational processes between the two companies may pose integration challenges post-acquisition [13]. - Jiali Industrial's revenue grew by 13.85% in the first half of 2025, reaching 1.32 billion yuan, but net profit declined by 14.63% to approximately 30.25 million yuan, indicating potential profit margin pressures due to industry competition [13].