"Bread machine king" Wang Donglei LED's transition to the fight to win or die

3 years ago, small appliances started when LED Wang Donglei announced the transformation of the company, had no shortage of doubts, after all the time in the field of LED has no ready-made Elec-Tech company LED project experience, can quickly release the results is still difficult to judge.

These two days, de Ho Runda (002005.SZ) chairman of the board is very excited about Wang Donglei.

3 years ago, small appliances started when LED Wang Donglei announced the transformation of the company, had no shortage of doubts, after all the time in the field of LED has no ready-made Elec-Tech company LED project experience, can quickly release the results is still difficult to judge.

But now, in the domestic listed companies frequently lift transformation under the background of frenzy and no fruit, the successful transformation of Elec-Tech has undoubtedly become the industry benchmark.

The day before, Elec-Tech released the 2011 results, the year 2011, the company achieved operating income of 3 billion 67 million yuan, an increase of 18.12%, operating profit 146 million yuan, an increase of 2633.23%.

It is worth noting that, LED business with its operating margin of 38.4% operating rate of pulling a small appliance business of 15.96%, so that the overall operating rate in 2011 rose to $22.7%.

Prior to this, Wang Donglei as we all know, more of his bread machine king title; now, LED industry has become the most talked about topic at the moment.

In April 23rd, Wang Donglei accepted an interview with this reporter can not conceal his joy, "in 2012, the company will also accelerate the transformation, increase LED business layout, is expected in 2012 will continue to maintain a leading position, at least 50% growth this year, strive to double. "

The toaster King's fight to win or die

If you go down the road along the way, perhaps, now Wang Donglei is not bread machine king and LED industry leader, but one of the decision makers in Beijing, a large organ.

11 years ago, when he was deputy director of company China shipbuilding industry by Wang Donglei "Reference News" on a bread machine in the attraction, the next 5 years, Wang Donglei has been committed to the research and design of a toaster, a set of computer control automatic bread machine products.

The one and only with this product, in 1996, Wang Donglei resigned from office as decisive everyone in Guangdong south, Zhuhai founded Huarun Electrical Appliance Co. Ltd., renamed in 2001 for the Guangdong electric Limited by Share Ltd.

In just 8 years, the king of bread machine has created the myth again and again.

In 1999, the market share of the bread machine Elec-Tech has reached 40%, becoming the first in the world.

In 2002, Elec-Tech oven, oven series product sales accounted for 30% of the total global market, fryer sales accounted for 20% of the global total.

2004 Elec-Tech bought bread machine sales the first American ACA North America electrical (Zhuhai) Co. Ltd., has a permanent right to use the brand in asia.

Although the bread machine has already started BDO Runda is the world's second the size of household electrical appliance enterprises, but the profitability and development level of the company is not satisfied Wang Donglei.

"The world's small household electrical appliance market is only $40 billion, the scale is very small, and the industry competition incentives, manufacturers of gross margin is very low. Wang Donglei said.

Beginning in 2007, Wang Donglei has been looking for new growth point of the company's transformation.

The company is the world's second largest home appliance enterprises, continue to expand production capacity is clearly not a way out. To develop their own brands in the domestic market, but also overnight work, not effective in the short term. Wang Donglei said.

Under this background, Wang Donglei turned to the LED business, and in 2008 the financial crisis exacerbated Wang Donglei the idea of transformation, "the financial tsunami to de Ho Runda to hit, the company's operating profit, net profit was a loss of more than 60 million yuan. Wang Donglei recalls.

In this crisis, in 2009, the Wang Donglei show an irresistible force management means, the extensive way of mergers and acquisitions rapid transition to the LED business.

At the beginning of 2009 the introduction of strategic investors Guangdong jianlongda. Since then, Elec-Tech invested one hundred million yuan Holdings Taishan StrongBase and transferee Guangdong Jian Tatsu Liuzhou, Enping Jianlong company two of total fixed assets related to the LED business, successfully involved in the field of LED package.

In order to open the downstream application market, and in August of that year Elec-Tech acquisitions in the domestic field of outdoor LED display competitive Shenzhen retop Display Technology Co. ltd..

In October of the same year, China announced restructuring, raising 1 billion 500 million, invest in the construction of Wuhu LED project.

The investment quantity is big, the industry of raspberry. A LED insiders said, "after the 2008 financial crisis, big investment transformation to peer surprised Elec-Tech in 2009 that, at the time of the background, Elec-Tech is a fight to win or die. "

Today, Elec-Tech LED business has basically completed the midstream and downstream industries in the layout, including LED lights, interior lights, LED display, LED packaging and so on, to become the leading domestic large-scale enterprises and technology LED.

LED business growth 50%-100%?

Although Elec-Tech has since home appliance OEM enterprises successful transition, but Wang Donglei as the "bread machine king" role is still unable to shake.

The day before, the National Bureau of statistics of Chinese Industry Enterprise Information Publishing Center released 2011 consumer market information report, 2011, the bread machine industry annual sales of about 1 million 200 thousand units.

Among them, Elec-Tech flag