NVC small shareholders on Wu Changjiang day: "jianghuqi, obsolete"

In August 29th, NVC (hereinafter referred to as "NVC") held a provisional shareholders meeting in Hongkong, 95.84% of the shareholders to vote to recall Wu Changjiang, executive director of the office, only 4.16% votes against the storm continued for several days, finally ends.

Wu Changjiang founded the NVC, and with emotional ties, over the years by management, suppliers and dealers to support the effort, until the outbreak of the storm. Why he finally lost NVC shareholder support?

At the same time, NVC, Elec-Tech profit are different degrees of decline.

The reporter in the morning of August 29th NVC shareholders outside, NVC encountered some small shareholders, chatted with them, feel the "do not respect the capital and shareholder interests" and finally let Wu Changjiang lost shareholder vote.

From Shanghai NVC small shareholders Zhang Yucheng said he was two years ago by HSBC Securities shares way to HK $2.2 / share price to buy 1 million shares now NVC NVC, share price at HK $1.77. He believes that Wu Changjiang will transfer his majority stake to NVC Wang Donglei, after the reduction into small shareholders, transfer benefits through related transactions, "which is why NVC shares slump".

At the same time, Zhang Yucheng believes that there is a real power on the line, the company can operate smoothly. I agree with Wu Changjiang, Wang Donglei. "Because from the ownership structure, Wang Donglei's stake will be more careful management of the NVC, and has been the majority of dealers support," although Wang Donglei's ability also need to observe".

Another million shares, held NVC home Hongkong small shareholders that Mr. Zhang, Wu Changjiang at the supplier and dealer link, have related party transactions with the NVC, there is a transfer of benefits. "The last time and Yan disputes after the storm, he not only Zhicuojiugai, reduction of NVC shares, also want to form a hill. "Zhang Yucheng also believes that Wu Changjiang only holds 2% stake in NVC, but the resolution of the board of directors of the implementation, wrong not to perform," the spirit of the law.

The Zhang bluntly, "I heard Wu Changjiang's speech, he started with the spirit of the wilderness, hit a piece of heaven and earth. But the rivers and lakes, is outdated. Dealers also no way to turn to support Wang Donglei. "

NVC case is significant, the Zhang believes that "Wu Changjiang has no spirit of contract, he has no respect for capital. We all abide by the rules of business, social development can be benign, or a temporary success is only built on the beach".

For Wang Donglei completely ruled the NVC, small shareholders, there are two main expectations and suggestions: one is to do since the upstream LED chip on the downstream channel and not understand very well, hope to set up a professional team to maintain the healthy development of the two is to the NVC NVC; and BDO Runda two independent development of listed companies, related party transactions between the two sides between the specification.

At the end of 2012, the acquisition of BDO NVC, which became the largest shareholder, the original intention is the formation of LED lighting industry chain complementary advantages. Who would have thought that this year, Wu Changjiang and the outbreak of disputes between the Wang Donglei. The first half of this year, NVC and Elec-Tech profits both fell.

The semi annual report released in August 28th showed that the first half of 2014, operating income of 1 billion 935 million yuan, an increase of 42.98%, mainly sales of small household electrical appliances industry growth and LED capacity to release the chip package, substantial growth in sales. But attributable to shareholders of listed companies net profit, but fell 23.36% to $38 million 702 thousand and 500, small household appliances business profitability remained stable, but the LED industry competition, prices fell, resulting in gross profit margin fell by 4.55%.

If you can get through the NVC "channels", on Elec-Tech, of course is the most anticipated. However, who is also chairman and NVC NVC and Elec-Tech interim CEO Wang Donglei admitted that the first half of this year, the integration of the two sides have not gone smoothly. A reporter from Elec-Tech informed insiders, the original NVC CEO Wu Changjiang has said, if you want the joint brand light source increased in the BDO NVC NVC sales channels, to his brother Wu Changyong agreed to increase the external LED chip procurement, we finally decided to Wu Jiang long ''. "

On the same day, NVC also released a semi annual report, results showed that the first half of this year, revenue 1 billion 703 million yuan, an increase of 0.9%; net profit attributable to the parent company of 58 million 40 thousand yuan, down 28.5%.

NVC said in the announcement, the first half of this year, LED lighting market continues growth, an increase of 82.1%, revenue reached 512 million yuan, accounting for 30.1% of total revenue. However, LED lighting market concentration is low, the industry is highly competitive, product and technology upgrades to accelerate, so that the level of profitability of lighting enterprises under certain pressure. At the same time, the traditional lighting products have been greatly affected, the market demand gradually reduced.

The storm has caused Wanzhou NVC base discontinued two weeks, while Wanzhou accounted for 1/4 of the NVC production base. Wang Donglei said, "the NVC effect should be short-term, improper behavior of Wu Changjiang, NVC board investigation is still ongoing.

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