NVC's minority shareholder commented on Wu Changjiang's defeat: "The rivers and lakes are outdated"

On August 29, NVC Lighting (02222.HK, hereinafter referred to as "NVC") held an extraordinary general meeting in Hong Kong. 95.84% of the shareholders voted for the removal of Wu Changjiang's executive director. The vote was only 4.16%. The storm of the day has finally come to an end.

Wu Changjiang founded NVC in one hand and used emotion as a link. Over the years, he has received the support of management, suppliers and distributors, and the storm broke out. Why did he eventually lose the support of NVC shareholders?

At the same time, the profits of NVC Lighting and Dehao Runda (002005.SZ) all showed different degrees of decline.

On the morning of August 29, the reporter met some NVC minority shareholders outside the NVC shareholder meeting. They chatted with them and felt that “disrespect for capital and shareholders' interests” eventually caused Wu Changjiang to lose the votes of shareholders.

Zhang Yucheng, a small shareholder from Shanghai, said that he bought NVC's 1 million shares at a price of 2.2 Hong Kong dollars per share through HSBC brokers two years ago. Now NVC's share price is only 1.77 Hong Kong dollars. He believes that Wu Changjiang transferred most of the shares of NVC in his hands to Wang Donglei. After the reduction, he became a minority shareholder and conveyed the benefits through related transactions. "This is the reason why NVC's share price is sluggish."

At the same time, Zhang Yucheng believes that "one person can really take power, and the company can operate smoothly. I am in favor of removing Wu Changjiang and supporting Wang Donglei." Because of the shareholding structure, Wang Donglei is a big shareholder and will be more careful to run NVC, and has obtained Most dealers support, "Although Wang Donglei's ability still needs to be observed."

Another small shareholder, Mr. Zhang, who owns millions of shares of NVC and lives in Hong Kong, believes that Wu Changjiang has related transactions with NVC in the supplier and dealer sectors, and there is interest transfer. "After the storm of disputes with the crickets, he not only changed his mistakes, but also reduced his holdings of NVC. He also wanted to set up another hill." Zhang Yucheng also believes that Wu Changjiang only holds a 2% stake in NVC, but The resolution of the board of directors is “I will perform if it is not implemented, and it will not be implemented”. This is contrary to the spirit of the law.

Mr. Zhang said bluntly, "I have heard Wu Changjiang's speech. When he started his business, he used the spirit of grasshoppers to create a world. But the rivers and lakes are outdated. The dealers have no way out and turned to support Wang Donglei."

“The NVC case is very meaningful.” Mr. Zhang believes that “Wu Changjiang has no contractual spirit at all. He does not respect capital. Everyone abides by the business rules, and the society can develop benign. Otherwise, the success of the moment is only built on the beach. ".

For Wang Donglei's comprehensive "government" NVC, the minority shareholders have two main expectations and suggestions: First, because Dehao Runda is doing upstream LED chips, it is not necessarily well understood by downstream channels and products, and hopes to form a professional team to maintain NVC. The benign development; the second is to hope that the two listed companies of NVC and Dehao Runda will develop independently, and the related transactions between the two parties should be standardized.

At the end of 2012, Dehao Runda acquired NVC and became the majority shareholder of the latter. The original intention was that the two sides formed the complementary advantages of the upstream and downstream of the LED lighting industry chain. Who ever thought that there was a dispute between Wu Changjiang and Wang Donglei this year. In the first half of this year, NVC Lighting and Dehao Runda's profits both fell.

The semi-annual report released by Dehao Runda on August 28 showed that in the first half of 2014, the operating income was 1.935 billion yuan, a year-on-year increase of 42.98%, mainly due to the sales growth of small household appliances and the release of production capacity of the LED industry, which led to a substantial increase in chip and package sales. However, the net profit attributable to shareholders of listed companies fell by 23.36% to 3.872 million yuan. The profitability of small household appliances business remained generally stable, but the competition in the LED industry intensified and prices fell, resulting in a 4.55% decline in gross profit margin.

If you can get through the "channels" of NVC, for Dehao Runda, of course, it is the most worth looking forward to. However, Wang Donglei, who is also the chairman of NVC and DHL Runda and the temporary CEO of NVC, admitted that the integration of the two sides was not smooth in the first half of this year. The reporter learned from an insider of Dehao Runda that the former NVC CEO Wu Changjiang once stated that if he wants to increase the sales of NVC in the NVC channel, he agrees that his brother Wu Changyong will add external LED chips. Purchasing, "We finally decided to go to Wu Changjiang."

On the same day, NVC also released a semi-annual report. The results show that in the first half of this year, the income reached 1.703 billion yuan, up 0.9% year-on-year; the net profit attributable to the parent company was 58.04 million yuan, down 28.5% year-on-year.

In the announcement, NVC said that in the first half of this year, the LED lighting market continued its growth trend, with an increase of 82.1% year-on-year and revenue of 512 million yuan, accounting for 30.1% of total revenue. However, the LED lighting market has low concentration, fierce competition in the industry, and the upgrading of products and technologies has accelerated, which has put pressure on the profitability of lighting companies. At the same time, traditional lighting products have been hit hard, and market demand has gradually decreased.

The storm has caused the NVC Wanzhou base to stop production for two weeks, while the Wanzhou base accounts for a quarter of NVC's production capacity. Wang Donglei said, "The impact on NVC should be short-term." The investigation of NVC's board of directors is still underway for Wu Changjiang's misconduct.

Tinned Copper Clad Aluminum TCCA

Copper Clad Aluminum Tinned Wire,Tinned Copper Clad Aluminum Audio Cable,Tinned Copper Clad Aluminum Alloy Wire ,Copper Clad Aluminum Tin Plating

changzhou yuzisenhan electronic co.,ltd , https://www.yzshelectronics.com

This entry was posted in on