"NVC internal fighting" will be revealed, Wang Donglei holds the winning chip?

Wang Donglei has attracted over 80% of dealers to support him, and Wu Changjiang urgently restored the Wanzhou factory to gain leverage.

Tomorrow is the day when the shareholders’ meeting to decide the future of NVC Lighting will be held. Before that, the competition for chips between Wu Changjiang and Wang Donglei has entered a fierce stage. Just after Wu Changjiang publicly questioned Dehao Runda on his personal Weibo on August 22 for false accounting, Wang Donglei, who serves as chairman of the board of directors on behalf of NVC Lighting's major shareholder Dehao Runda, publicly stated at the temporary headquarters in Huizhou on August 23 that he had received the support of 33 of the 37 provincial distributors of NVC Lighting. Among them, 29 dealers also faced the media together on the Wang Donglei platform that day. Seeing that the winning chips in his repeated internal disputes were transferred to Wang Donglei, Wu Changjiang resumed production at NVC's Chongqing Wanzhou base on August 25 and resumed operations at NVC's Chongqing headquarters. As a result, Wu Changjiang and Wang Donglei built a "Leshi" in Wanzhou and Huizhou respectively, and the two sides entered a tug-of-war.

Does Wang Donglei hold the winning chip?

The value of NVC Lighting is mainly reflected in its channels and brands. Data from the "Top 500 Most Valuable Brands in China in 2014" show that the brand value of NVC Lighting ranks first in the lighting field, growing from 2.518 billion yuan four years ago to 10.743 billion yuan this year, with a growth rate of 326%. In terms of channel value, according to Wu Changjiang, the sales of the channel are more than 8 billion yuan, and the profit is at least 500 million yuan. The NVC Lighting listed company's revenue last year was only 3.774 billion yuan, with a net profit of 245 million yuan. It can be seen that channel sales are important to the future performance growth of NVC Lighting's listing.

Therefore, in this fight with Wang Donglei, both parties also focused on fighting for core dealers. Before Wang Donglei dismissed Wu Changjiang this time, he had already done a lot of related work in the dealer field. Judging from the current situation, Wang Donglei has achieved remarkable results in doing this work.

It is understood that there are 37 provincial dealers of NVC Lighting across the country. According to Wang Donglei, 33 of them support the board of directors, and 29 went to Huizhou to support Wang Donglei on August 23. They account for nearly 90% of NVC sales. Wang Donglei told the New Express reporter, "The heads of the four operation centers in Nanjing, Shenzhen, Tianjin, and Shanghai have joined the NVC Interim Operations Management Committee. These core dealers will make decisions together with the new NVC management team."

NVC Lighting will hold a general meeting of shareholders in Hong Kong on August 29 to consider removing founder and former CEO Wu Changjiang from his position as executive director on the grounds that he has privately licensed the NVC brand to affiliated companies for 20 years. As Wang Donglei gains support from dealers, Wang Donglei is also confident in the upcoming shareholders' meeting. "All important shareholders will vote to remove him as director (position) without any suspense."

Convergence of interests makes dealers "rebellious"

In the previous two battles for control, a large part of the reason why Wu Changjiang was able to successfully return to NVC came from the support of dealers from all over the country, but this time the situation is different. Since the NVC board of directors dismissed Wu Changjiang as CEO on August 8, NVC has fallen into a state of fragmentation. The Chongqing headquarters and Chongqing Wanzhou base have been suspended, and the production of the Huizhou base has also been affected by the shortage of material supply. These actions have touched the interests of dealers.

Wang Xiaobo, a dealer representative from Jiangsu, told reporters that there are currently tens of thousands of NVC dealers, and hundreds of thousands of people "depend on NVC for a living." They still need to pay wages and rent every day. Now if some customers' orders cannot be delivered due to delivery problems, it will have a big impact on their customer maintenance and their own operations. "I started working as NVC in 1998, and I joined NVC's interim management committee (this time) because I hope that through my feelings for NVC, I can help NVC get on the right track as soon as possible." Li Jianzhong, head of NVC's Tianjin Operations Center, called for the Chongqing Municipal Government to assist in resuming production at NVC's Chongqing Wanzhou base as soon as possible and maintain the normal development of the No. 1 brand in China's lighting industry.

Wang Donglei said that NVC has been experiencing delays in delivery. The Shanghai and Zhejiang bases have not been affected, Huizhou has returned to normal, and the only difficulty is the Chongqing Wanzhou base.

Wang Donglei said that the Wanzhou base is managed by relatives and acquaintances of Wu Changjiang, so the future management personnel of this base will be replaced and when it will become normal depends on the will of the local government. "We are also prepared to abandon the Wanzhou base if necessary."

In order to better handle the current situation of NVC Lighting, on August 16, Dehao Runda announced that Wang Donglei resigned as general manager of Dehao Runda, served as interim CEO of NVC Lighting, and joined NVC Lighting. Then on the evening of August 21, NVC Lighting announced the establishment of a temporary headquarters in Huizhou.

While gradually "de-Wu Yangjiang", Wang Donglei yesterday also expressed his development ideas for two listed companies, NVC Lighting and Dehao Runda. "In the future, the lighting business will be concentrated in NVC Lighting, and other businesses such as small household appliances and chips will be placed in Dehao Runda."

Wu Changjiang restores Wanzhou factory to win hearts

At present, the Wanzhou base accounts for about a quarter of NVC’s production capacity, and its main products are traditional light sources. According to Wu Changjiang's initial wishful thinking, he was to use the Chongqing Wanzhou factory under his control to suspend operations to increase his bargaining chips.

But seeing the loss of control, Wu Changjiang made a "counterattack." On August 25, after communication and coordination between the person in charge of Wu Changjiang's Wanzhou base and the Wanzhou District government, and with the consent of the local government, the Wanzhou base officially resumed work and resumed production. Staff at the Wanzhou base also sent letters to dealers across the country informing them of the resumption of production and order placement.

A person close to Wu Changjiang said in an interview with the media that Wu Changjiang convened a meeting with NVC Chongqing managers last Saturday and emphasized the need to ensure that orders and deliveries returned to normal. He notified staff to go to work last Sunday and promised that wages would be paid on time. "Wang Donglei is familiar with the production and manufacturing of chips. They have no experience in making lighting fixtures at all." The above-mentioned person said that many lighting products cannot be produced in the Huizhou base and dealers are out of stock. "Give Wang Donglei another two months, he will not be able to produce a product."

Some dealers said that the dispute between the two parties (Wu Changjiang and Wang Donglei) will be settled by law and they hope that NVC will resume normal operations as soon as possible.

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"NVC internal fighting" will be revealed, Wang Donglei holds the winning chip?

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