NVC Wu Changjiang: "LED industry has made detours"

Overcapacity, blind production, vicious price war...... More difficulties in the domestic LED industry, but the lighting industry leader NVC has released 6 days ago in the series of LED lighting products, announced a high-profile force to the civilian field of LED, the founder and President of the Wu Changjiang (pictured) said in an interview with the Yangcheng Evening News reporter, LED industry has come a long way, and LED lighting in 2014 the market will usher in the great development opportunities.

Civil lighting will usher in great development opportunities

Yangcheng Evening News: LED industry in recent years has not caught up with the plight of increasing profits, how do you see?

Wu Changjiang: in fact, the LED industry in the past detours. Prior to comply with the global trend of energy conservation and emission reduction, coupled with the government to promote the concept of LED was fired very fire, attracting a large number of funds and enterprises to enter, many small household electrical appliance enterprises have joined the competition in the field. On the one hand, but the technology is not mature, the cost is too high; on the other hand, the industry is mainly concentrated in the field of outdoor lighting, low proportion of civilian areas, leading to excessive investment, the industry into a vicious competition, I think this is not desirable concepts and ideas.

Yangcheng Evening News: why should NVC inroads into the LED field?

Wu Changjiang: we were considering whether to follow up, if you do not follow up will miss the market share will follow up the low gross margin. I think, LED replace traditional lighting is an inevitable trend, must be at the best time as soon as possible transformation. NVC from 2007 to intervene in LED lighting research, production and sales. Now the cost of our civilian LED lamp can be almost the same as ordinary energy-saving lamps.

2013, NVC LED lighting products sales break 1 billion yuan, the overall layout of the current results, product sales will usher in a blowout. LED lighting is rapidly shifting from government led to home users. With the policy of boosting, cost reduction and global moratorium plan incandescent batch into effect in 2014, LED lighting market ushered in the great development opportunities, our goal this year is the field sales accounted for more than 50% of the total company. We are confident that within two years to achieve economies of scale to reduce costs and improve gross margin.

At the present stage, the ownership structure is better

Yangcheng Evening News: 2012 NVC "Rashomon" has occurred for nearly two years, finally Elec-Tech became the largest shareholder stake in NVC, looking back, how do you evaluate this?

Wu Changjiang: investors generally focus on short-term interests, entrepreneurs pay attention to enterprise's long-term and long-term development. From the perspective of the development of enterprises, cooperation is to represent the general trend, is Elec-Tech local enterprises, chairman Wang Donglei itself is entrepreneurs, we have similar ideas, and the same for lighting enterprises, resources and complementary advantages to achieve the perfect. Different from the merger, NVC and Elec-Tech shares swap, is based on the advantages of complementary resources on a business alliance, there is no problem of cultural integration and distribution of interests conflict.

The ownership structure of NVC now than two years ago, more conducive to the healthy development of the company, if the NVC cooperation to achieve industrial upgrading, the healthy development of enterprises in the future, and lighting into the world top three, I as the fifth largest shareholder could be assigned to the "cake" is more than the original as the first major shareholders of the small.