Hongli Zhihui has made significant progress in its strategic cooperation following the signing of a partnership agreement with Harmony Haoji Investment, Zhangjiagang Management Committee, and Yuefeng Jinchuang. This collaboration aims to integrate resources and capital around the LED lighting industry, driving innovation and enhancing competitiveness.
On March 19, Hongli Zhihui announced that one of its major shareholders, Ma Chengzhang, plans to transfer 5.07% of his shares to Ruijie Investment Enterprise (Limited Partnership), located within the Zhangjiagang Economic and Technological Development Zone, at a price of 12.5 yuan per share. Following this transaction, Ma Chengzhang's stake will decrease to 13.64%, while Ruijie Investment’s ownership will rise to 10.02%. The move is expected to bring in a major investor and improve the company’s shareholder structure.
This agreement marks a key step in Hongli Zhihui’s strategy to attract long-term investors and strengthen its market position. Earlier, on February 12, the company had signed a strategic cooperation agreement with Harmony Haoji Investment, Zhangjiagang Management Committee, and Yuefeng Jinchuang, focusing on collaborative efforts in the LED lamp industry. The goal is to leverage each party’s strengths to enhance product development and achieve mutual growth.
According to the announcement, Harmony Haoji Investment or its designated partners, along with Yuefeng Jinchuang, will establish or utilize existing industrial investment funds to acquire additional shares of Hongli Zhihui over the next six months, with an increase of no less than 10%. This move is seen as a strong endorsement of the company’s future potential.
The partnership is also expected to boost Hongli Zhihui’s automotive LED lighting business, including the development of LED car light modules and automotive lighting systems. By leveraging the expertise of Harmony Haoji and its affiliated entities, the company aims to accelerate M&A activities and expand its presence in the vehicle-level LED packaging sector.
Currently, the penetration rate of LED exterior lights remains below 15%, but with anticipated cost reductions, the adoption of LED headlights and fog lamps is expected to grow rapidly. Hongli Zhihui has already made strides in this area through its "Fuda Signal" and "Yishan Car Light" brands.
Notably, Yishan Car Light has successfully secured bids for advanced projects such as ADB development and laser-assisted high-beam headlight systems from leading domestic automakers, showcasing its technical capabilities in high-end intelligent automotive lighting.
Meanwhile, Fuda Signal has been actively expanding its presence in the domestic LED lamp market, achieving a compound annual growth rate of over 50% in the past three years. Hongli Zhihui has built an integrated layout covering chips, packaging, components, and lighting, reinforcing its competitive edge.
With Ruijie Investment now holding a 10.02% stake and other industrial investors increasing their holdings, it signals growing confidence in Hongli Zhihui’s long-term prospects. This strategic move is likely to further solidify the company’s position in the evolving LED and automotive lighting markets.
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