In the way of introducing Dehao Runda, the slogan of NVC Lighting's founder Wu Changjiang and Safran Asia Partners came to an end.
On March 29, Wu Changjiang revealed that he will return to the board of directors in the near future. Two executive directors with industry backgrounds will also join the same period. However, he will withdraw from the board of directors and only one representative will stay. The reporter asked for evidence, and as of the time of publication, no reply was received.
However, Wu Changjiang faced a decline in net profit of more than 90% after his return, and his intention is to extend the company's industrial chain. The goal this year is to increase the proportion of LEDs in the company from less than 10% to 20%-30%.
However, in the face of the current situation of capital accumulation, overcapacity and lack of standards, today's LED market is very different from the traditional lighting market.
Wu Changjiang chess game
On December 26, 2012, Dehao Runda and Wu Changjiang held a "Share Transfer Agreement" with NVC Inc., and planned to spend 950 million Hong Kong dollars to transfer 397 million shares of NVC Lighting held by Wu Changjiang. share. Upon completion of the transaction, DeHao Runda's shareholding in NVC Lighting will increase from the previous 8.24% to 20%, surpassing the shareholding of Safran Capital and Schneider, and will become the largest shareholder. Dehao Runda also issued 130 million shares to Wu Changjiang at a price of 5.86 yuan. After the completion of the additional issuance transaction, Wu Changjiang held 9.31% of Dehao Runda shares and became its second largest shareholder.
Wu Changjiang replaced the shares of NVC Lighting through a share swap to reduce the shareholding ratio of NVC Lighting. "This is my integration idea," Wu Changjiang said, Dehao Runda will complement the company's strength in the upstream of the LED industry.
The outside world understands the previous guilt, mainly because Wu Changjiang and Yan have differences in the judgment of industry risks. Wu Changjiang believes that this is not the case. "In any case, the current differences have basically eliminated the introduction of more executive directors who understand the industry. After that, the company has more control over the risks of the industry."
Wu Changjiang said that the cost of the LED industry has also dropped sharply in the past two years, and product quality has improved. Last year, Wu Changjiang began to contact Dehao Runda.
The annual growth rate of more than 50% of the industry makes the LED industry become the Nuggets hot mine. In addition to the LED industry's transformation into LED, there are also other industries including electrical appliances, small and medium-sized enterprises, etc. have also entered.
"But most of the current enterprises are concentrated on the application of low value-added products. In the higher gross profit distribution and chip, domestic enterprises are involved in very few, especially chip development technology, monocrystalline silicon purification and other core technologies, most of them. Concentrated in the hands of Japan, South Korea, the United States and other countries," an industry source pointed out that this led to China's LED industry presents a small, mixed, chaotic situation, the industry concentration is not high.
NVC Lighting specializes in brands and channels in the field of traditional lighting, and does not have core competitiveness in LED production.
However, Wu Changjiang said that from the hardware point of view, Dehao Runda has invested 5 billion to 6 billion yuan. In addition, Dehao has also dug back a group of technicians from abroad, while NVC Lighting has a channel advantage. By the end of last year, NVC Lighting had 36 exclusive regional dealers. At the end of the period, there were 3,231 specialty stores covering 2,249 cities nationwide, including 100% of provincial capital cities and 97.18% of prefecture-level cities.
Net profit decline
The performance of NVC Lighting in front of Wu Changjiang is not good.
According to the 2012 annual report, the net profit of the parent company during the period was nearly 8.416 million yuan, down 98.46% year-on-year, while the gross profit was only 761 million yuan, down 21.87% year-on-year. In 2012, the company's revenue reached 3.546 billion yuan, down 6.64 year-on-year. %. “At present, the company’s gross profit margin is about 21%. But in this period of time, we will focus on the scale effect and increase the volume first.â€
Wu Changjiang admits that due to the guilty time, the company's expenses did soar to out of control. “In 2012, the net profit still reached more than 300 million yuan,†Wu Changjiang explained. The company’s bad debts for the guilty period were tens of millions of yuan. The company’s previous investment in the Zhejiang General Project had previously planned a profit of about 100 million yuan per year, but the actual There are only more than 20 million yuan, two penalties, which consume most of the company's profits.
Wu Changjiang intends to promote the LED business, although it has been involved in the past, but its contribution to the company's performance is still not obvious enough. “This year, its proportion in the company's scale has increased to 20%-30%.†In Wu Changjiang's view, compared with energy-saving lamps, LEDs and other energy-saving energy consumption is less than 50%, compared with incandescent lamps, Energy saving of more than 90% is a very big market cake.
“The important prerequisite for the implementation of these conditions is that the cooperation between Wu Changjiang and Dehao Runda must be harmonious.†The above-mentioned industry pointed out that the management concepts and business models of the two companies are somewhat different, and the internal coordination and integration of the new management also There are also uncertainties.
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