The performance of NVC LED lighting into sharp reversal of landslide

[LED] NVC China network announced in May 15th, ended in December of last year the annual losses of 354 million yuan. 2014, NVC group (NVC and Affiliated Companies) sales revenue reached 3 billion 470 million yuan, down 8%; pre tax loss of 315 million yuan, down 188.8%; 354 million yuan loss attributable to owners of the parent company, down 244.6%.

Into the end of the performance of the main drag

The NVC infighting storm, interpretation of the results for "Mr. Wu Changjiang", NVC concluded the incident "to the group loss to a certain extent".

In 2014, the majority of the members of the board of directors are Mr. Wu Changjiang informed, it is not approved by the board of directors or knowingly, claiming to have the representative of Huizhou NVC signed a series of license agreement. Subsequently, on August 8, 2014, the board dismissed the duties of CEO Wu Changjiang. The unreasonable refusal to implement the resolutions of the board of directors to China and Chongqing NVC NVC business to suspend operations for more than 2 months, had a negative impact on the group's annual report for the normal operation and operating performance.

Mr. Wu Changjiang will not know in the case of the board, said on behalf of Chinese NVC signed a number of pledge and guarantee agreement that other companies bank loan guarantees. The company has reason to believe that at least some of these companies may be Mr Wu Changjiang's contacts. The claim pledge and guarantee agreement the bank Chinese were extracted from the Chinese funds NVC amounted to 551 million yuan and 54 million yuan frozen.

In addition, for reasons of declining revenue NVC said that as part of the Affiliated Companies to suspend production and sales, resulting in the second half of the product line were recorded in lower sales.

LED lighting and non LED lighting two days

LED lighting products to replace traditional lighting products to speed up the process, NVC LED lighting products in 2014 achieved sales of 1 billion 228 million yuan, an increase of 65.8%, the proportion of the total revenue increased from 19.6% in 2013 to 35.4%, become the major growth point of NVC group.

2014 year and 2013 year NVC LED lighting and non lighting revenue status contrast LED

Corresponds with the LED lighting products, non LED lighting products sales fell 26.1% over the same period, the proportion of total sales revenue fell to $80.4% from the same period last year to 64.6%. NVC said, affected by market demand leads to a number of orders decreased significantly; on the other hand as part of the Affiliated Companies to suspend production and sales, resulting in each product line were recorded in lower sales.

It is worth mentioning that the NVC LED lighting products in 2014 gross margin rose from 8.8% to 25.2%.

In this regard, NVC's explanation is that on the one hand by the adjustment of strategy pricing LED lighting products, early to open the market and seize market share, the price is low, with the market foundation and technology, improve the pricing; on the other hand is the effect and integration of upstream and downstream Elec-Tech gradually, LED chip procurement costs decline; non LED lighting product gross margin over the same period decreased by 3% to 19.3%, mainly due to the impact of LED lighting products, fluorescent light source and effect of bracket product gross margin decline.

In addition, as can be seen from the figure, the 2014 NVC lighting products sales decreased slightly in 0.7%, LED lighting products have high growth, but as part of the production and supply of lighting products Affiliated Companies to suspend operations, impact on the sales of large lighting; lighting products sales fell 16.7%, mainly due to the impact of LED lighting products, energy-saving lamps and energy saving lamps etc. the fluorescent light source products accounted for a large proportion of the orders due to shortage caused by affecting the capacity of unsaturated and sales price decline, mainly from the customer sales orders also decreased; lighting electrical products sales fell 21.5%, mainly affected by the traditional lighting products supporting the decline in market demand, the current LED lighting appliances accounted for a very small, will be the transformation the main direction of the future.

Revenue comparison of several major products of NVC in 2014 and 2013 (annual earnings data from the NVC)

Dealers increased 406 layout O2O to seize the opportunities the Internet

The dealer is always one of the NVC chips richly endowed by nature.

2014, NVC Group maintains 36 exclusive regional distributors, exclusive regional distributors to a total of 3705 stores (the capital city coverage rate is 100%; city coverage rate is 96.5%; the county-level city or county-level city coverage rate is 67.5%; the Township city coverage rate of 2.7%), compared to 2013 increased 406, mainly at the county level and increase city township. In addition, the exclusive regional distributors have also developed a number of exhibition wall showcase and hardware outlets.

In internal management, adjust the NVC management structure, the establishment of retail and small project sales center, sales center, professional engineering major clients (KA) sales center and sales center for industrial lighting, different development and promotion of different customers, to provide targeted services, promote the company's products to the broader field.

In order to expand the business scope, the NVC declared key layout of Internet O2O development strategy, in order to seize the market opportunities of the Internet era and improve competition ability. Break the original hierarchical agency model O2O model, reduce transaction costs, is a new direction to change the traditional marketing mode of the lighting industry, it also brings new opportunities for NVC. (text / China LED network Skavy)

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