Capital Renewal Takes Effect Wu Changjiang Responsible NVC CEO

"The cooperation between the two is a capital-level action. The details and specific implementation of the cooperation have not yet been announced to the outside world. In addition, the business and personnel issues have not been resolved. Therefore, the market is more worried about whether the BDO Runda shares can be implemented by the company. 1+1>2'."

The founder of NVC Lighting Holdings Co., Ltd. Wu Changjiang returned to NVC or has become a reality. On the afternoon of January 11, NVC Lighting, which was still in the trade, suddenly stopped trading. A temporary announcement issued by the company stated that the company's shares had been suspended from 1 pm on the 11th, pending the company to issue an announcement regarding internal company data.

As of the press release, its shares have not resumed trading and the contents of the announcement have not been disclosed. However, according to informed sources, on January 11, Wu Changjiang, chairman of Guangdong Dehao Runda Electric Co., Ltd. (BDO Runda) Wang Donglei, partner of Saifune Asia Fund and others, gathered in Shenzhen to open mine. Lighting Board and Operator Meeting. At the meeting, NVC Lighting formally appointed Wu Changjiang as its CEO and appointed Wang Donglei as a non-executive director.

Yesterday, the author called NVC lighting related personnel to verify, the staff told reporters that all the announcement shall prevail.

Capital revitalization works

According to statistics, on May 25, 2012, Wu Changjiang, the then president and chairman of NVC Lighting, suddenly announced his resignation from office. The founding partner of institutional investor Saifu Asia Investment Fund subsequently took over as chairman of NVC Lighting. Bit, and Zhang Kaipeng from Schneider Electric took over as CEO.

After that, the contradiction between Wu Changjiang and the employer was open. As NVC internal and external support for Wu Changjiang's power is very strong, factory workers strike, workers, distributors and suppliers join forces to strongly urge Wu Changjiang to return.

On September 4, 2012, NVC Lighting announced the establishment of a temporary operations management committee. Wu Changjiang was the person in charge. This became the overture for Wu Changjiang's return. In November 2012, Zhang Kaipeng, CEO and member of the Provisional Management Committee, announced his resignation.

However, the key trick still lies in Wu Changjiang’s “curve salvation.” On December 5, 2012, the Hong Kong Stock Exchange reported that Wu Changjiang spent HK$168 million to increase its stake in the company, raising its stake to 22.07%. The second and third largest shareholders, SAIF Asia and Germany Schneider Electric, respectively held shares. It was 18.48% and 9.21%. This move was once considered as Wu Changjiang's intention to further consolidate its status as a major shareholder in order to return to the position of chairman. But two weeks later, Wu Changjiang tossed most of the shares in his hands and handed over about 20% of the shares of Lexus to BDO Runda, which was among the main shareholders of NVC. At the same time, he chose to take a strategic stake in BDO Runda and become the No. The second largest shareholder.

Although Wu Changjiang and BDO Runda both stated that the equity transaction was a strategic layout. However, Mr. Xu, an adviser to a lighting company in Zhejiang, said in an interview that although apparently Schneider and the capital side have made concessions and promised Wu Changjiang to return to NVC, but Wu Changjiang is controlled by Ren Shi at NVC, so Wu Teshi This plan hopes to restructure the board of directors through capital evasion and dismantling the management of Saifu Yan Yan and Schneider.

Facts have proved that this capital decentralization works well. In half a month’s time, Wu Changjiang has assumed the CEO position.

"Wu Changjiang returned to NVC lighting, the chairman of the position is no suspense." Home appliance market research expert Lu Jiebo said in an interview, as the capital side, their ultimate goal is not to obtain business, nor is it the right to operate, It is profitable. This storm has been a double-lost outcome. The capital side is very clear.

Since Wu Changjiang suddenly resigned on “personal grounds”, NVC Lighting's stock price plunged by nearly 70%, and rebounded after dropping 0.71 Hong Kong dollar. On January 11, NVC Lighting suspended in the afternoon and reported to HK$2.11 before the suspension, which fell 1.40%. .

Enter the "Three Strong Times"

Some people think that if Wu Changjiang turns on NVC Lighting again, the long-term internal fighting will come to an end, which is good news for the company's stock price that was hit by heavy losses. So, does this indicate that NVC's equity dispute will come to an end?

It is worth noting that the cooperation between Wu Changjiang and BDO Runda did not allow the market to raise confidence in NVC lighting, and its share price still showed a downward trend.

"The cooperation between the two is a capital-level action. The details and specific implementation of the cooperation have not yet been announced to the outside world. In addition, the business and personnel issues have not been resolved. Therefore, the market is more worried about whether the BDO Runda shares can be implemented by the company. 1+1>2'.” Ding Jianhua, deputy general manager of China Light Network, said in an interview.

According to news, Wang Donglei will compete for the post of Chairman of NVC Lighting. The current NVC has changed from the battle between Zhang Yi and Wu Erqiang to the temporary balance between Yi, Wu, and Wang. However, it may face immediate challenges.

Some media quoted an analysis of an LED executive as saying: “Wu Changjiang takes NVC Lighting as his heart. Apart from him, others can't control NVC lighting. The channel has nothing to do with capital. Besides Wu Changjiang, no matter who wants The control of NVC's channels is difficult to be tossed again; however, Wang Donglei has made a big investment in NVC lighting, and it is inevitable that it will use LED lighting channels to sell more LED products from BDO Runda, but this may not be in line with NVC's supply. Business interests. It is inevitable that there will be conflict in the future."

It is worth noting that in the stock exchange transactions between BDO Runda and NVC Lighting, there is a clause that BDO Runda can buy at any time from Wu Changjiang’s hands at a price of HK$2.95 per share. 7% stake in NVC Lighting. In accordance with this provision, BDO Runda will be able to sit in the position of NVC Lighting as long as it buys back equity in Wu Changjiang.