NVC Wu Changjiang: LED transition not profit oriented

After 15 years of rapid development, the domestic lighting industry leading enterprises NVC (02222) ushered in the first industrial development challenges of industrial transformation.

"We have to change, otherwise it will be eliminated. In March 15th, NVC founder Wu Changjiang, President of the "China Times" in an interview with reporters, LED lighting to replace traditional lighting is a traditional change, while the change in 2014 is "watershed".

Due to the introduction of Guangdong electric Limited by Share Ltd (hereinafter referred to as Elec-Tech 002005) is the largest shareholder, Wu Changjiang to regain the initiative in the NVC board of directors, but how to deal with the interests of BDO NVC, but also a test of the wisdom of Wu Changjiang.

"Small fall, big left"

The return of Wu Changjiang NVC after the transformation of public talk about the most is the NVC industry.

March 15th, Wu Changjiang in an interview with the China Times reporter, said, we must also be in transition, to develop compliance. Can only choose the mainstream, otherwise it will be eliminated.

Wu Changjiang said: this year we are still dominated by market share, not profit based. Although there are shareholders to consider profits, but this year and next year, no loss, but also a profit of 200 million -3 billion yuan has been good, especially LED business, this year must grab market size and share. Because this year is a watershed in the LED lighting industry, like real estate companies, like a small fall, big left".

According to Wu Changjiang, after the LED lighting market take a lot of detours, because before conforms to the trend of global energy conservation, coupled with the government to promote the concept of LED was much hyped, attracted a lot of money and business into many small household electrical appliance enterprises have joined the competition in the field.

Overcapacity, blind production, vicious price war ensued, in the past two years, the plight of the LED industry intensified.

"We also before considering whether to follow up, if you do not follow up will miss the market share will follow up the low gross margin. Wu Changjiang told reporters, LED replace traditional lighting is an inevitable trend, must be at the best time as soon as possible transformation.

Wu Changjiang told reporters that in 2014 will be a crucial year for the development of LED, LED lighting market will be fully launched in 2014.

In the "crucial year" at the beginning of this year, the domestic lighting industry leading enterprises - NVC in March 15th in the Beijing National Aquatics Center (Water Cube) released the 2014 annual LED grand new show, NVC LED industry into confidence and determination.

For this year's sales target, Wu Changjiang told reporters bluntly, in 2013, NVC LED lighting the proportion of income from less than 5% in 2012 to about 20%. Our goal this year is to account for more than 50% of the company's total sales in the field.

Wu Changjiang said that the real white hot competition in the LED industry will erupt 3 years later. NVC will promote LED lighting product sales this year as the focus of the work, the income is expected within 5 years of LED lighting products will account for half of the country's total revenue nvc.

The beginning of the left and right?

"Although NVC in the LED market share is gradually increasing, but de Ho Runda's products via NVC sales system, and the products formed the competition, enterprises must form the internal sales system of similar products about each stroke of the facts. A person who declined to be named, said the reporter said.

According to the reporter, at the end of 2012, "becoming the largest shareholder of the NVC turn from a guest into a host" Runda is a LED production enterprise.

Statistics show that by the end of 2012, through the acquisition of BDO Runda chairman Wang Donglei Wu Changjiang's stake to become the largest shareholder of nvc. In return, Wu Changjiang also directed the issuance of elec-tech. Wu Changjiang said, "this month to finish, he will become the second largest shareholder of china.

Talking about the sharing of resources, Wu Changjiang said, Elec-Tech focused on upstream chip and package of R & D, production, NVC will focus on the application and promotion of downstream lighting products. He believes that after the last trial this year, "as long as the LED chip to BDO NVC, will try to use" the same quality, BDO more affordable, "we are one family".

In the first month, the largest shareholder of NVC Elec-Tech announced a high-profile, leveraging NVC marketing channels, expand the BDO indoor LED market from the beginning of April, and will be in full swing. Elec-Tech for NVC channels "leveraging the plan" has been steadily advancing.

"If the Elec-Tech LED products have been breaking through the NVC channel, for the future of NVC LED product development will impact. "LED Engineering Research Institute director Zhang Hongbiao think, LED may appear and BDO NVC NVC about each stroke of the situation.

However, for both products of each stroke of the statement, NVC relevant responsible person said, the main products are the main source to BDO NVC, to LED lighting products, "do their own products, the two did not conflict".

The anonymous person told reporters analysis, although NVC says "do their own products, they did not conflict", but similar product competition is an indisputable fact, but this kind of competition has become the largest shareholder of the NVC in Elec-Tech has been highlighted, and this pattern may be just the beginning.

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In the consolidation of the domestic industry leadership at the same time, NVC added