Battery Charger,Ac/Dc Charger,Lithium Charger,Lithium Ion Charger ShenZhen Yinghuiyuan Electronics Co.,Ltd , https://www.yhypoweradapter.com
Acquisition of Yishan car lights, transfer of equity shares of the subsidiary company Hongli Zhihui net profit of more than 230 million in the first three quarters
On September 26, Hongli Zhihui (300219) announced its intention to acquire a 56% stake in Yishan Auto Lamp from Zebo Partners using self-raised funds amounting to RMB 21,963 million. Following the transaction, Hongli Zhihui will hold a significant 56% equity stake in Yishan Auto Lamp, strengthening its presence in the automotive lighting sector.
Since its establishment, Hongli Zhihui has focused on white LED packaging for lighting applications and has gradually expanded downstream in the industrial chain. In 2007, the company founded Guangzhou Foda Signal Equipment Co., Ltd., which specializes in the research and development of commercial vehicle LED automotive lighting products, as well as their production and sales—mainly targeting overseas markets.
In recent years, Hongli Zhihui has leveraged its strengths in the LED industry to further expand into the passenger car LED lighting field. The acquisition of a portion of Yishan Auto Lamp’s equity is a strategic move in this direction, reinforcing its market position in automotive lighting.
Yishan Auto Lamp, established in 2003, is engaged in the production of vehicle lighting equipment, lamps, and plastic parts, along with mold design and electronic fuel injection systems. Its main products include front and rear combination lights, fog lights, and high-position brake lights, primarily supplying major domestic automakers such as Geely, Changan, Great Wall Motors, Zotye, and Changfeng Cheetah.
Before the transaction, Zebo Partners held 72.59% of Yishan Auto Lamp, making it the controlling shareholder. Guo Zhiqiang, through Zebo Partners, indirectly held 43.55% of the shares, totaling 70.96% when combined, making him the actual controller.
After the equity transfer, Hongli Zhihui now holds 56% of Yishan Auto Lamp, significantly increasing its influence in the automotive lighting sector. This acquisition aligns with the company's strategy to enhance its competitiveness and expand into the growing domestic LED automotive lighting market.
On the same day, Hongli Zhihui also announced the sale of its equity in Hezhong Automobile. The company decided not to increase its investment in Hezhong Automobile, which currently holds a 4.82% stake. Through its subsidiary Hongyi Investment, the company owns an additional 7.23%, bringing the total ownership to 12.05%. However, it plans to sell its 4.82% stake to Fang Yunzhou for RMB 80 million, aiming to improve cash flow and focus on core business development.
Hezhong Automobile operates in new energy vehicle design, development, production, and related consulting services. The sale is expected to positively impact Hongli Zhihui's financial performance and support long-term growth.
Hongli Zhihui has been actively building a dual-business model of "LED + Vehicle Network" to maintain its competitive edge. Recent results show strong performance: for the first three quarters of 2017, net profit attributable to shareholders reached between RMB 231.9 million and 276.54 million, up by 20%-40% compared to the previous year. In Q3 alone, net profit ranged from RMB 77.73 million to 88.85 million, reflecting a 40%-60% year-over-year increase.
The company attributed this growth to improved demand in the LED market and the inclusion of Quick Easy Network in its consolidated financial statements. These developments highlight Hongli Zhihui's solid progress and promising future in the evolving LED and automotive industries.