Wang Donglei's desperate LED gambling: lose more wins

In 2009, Dehao Runda, a small achievement in the small household appliance industry, insisted on cutting into the unfamiliar LED industry. Today, Dehao Runda's LED business is still “eat subsidy to earn performance”. After becoming a major shareholder of NVC Lighting in 2012, Wang Donglei planned a battle for NVC lighting control and wanted to monopolize the lighting kingdom. Whether it was the failure of 5 years ago or the arrogance of today, all of this stems from Wang Donglei’s desperate LED gambling, and in the face of the facts, this gamble Wang Donglei is destined to lose more wins.

During the off subsidies, burn bridges <br> <br> occur in NVC storm, as a Fangde Hao Runda struggle of first-half 2014 report, the report shows, the company's main business income of 19.35 billion yuan, although an increase of 42.98%, but the net profit attributable to shareholders of listed companies was 32.81 million yuan, down 35.03% year-on-year. The net profit loss attributable to shareholders of listed companies after deducting non-recurring gains and losses in the first half of the year was 179.645 million yuan, a sharp drop of 546.91% year-on-year. Both of the big net profits have not only suffered from Dehao Runda itself, but also suffered thousands of investors.

In the semi-annual report of Dehao Runda, the government subsidy is still the magic weapon for the enterprise to “turn losses into profit”. In the first half of the year, the government subsidy income included in the current profit and loss was 64.43 million yuan. In other words, if it is not a government subsidy, Dehao Runda's net profit for the first half of the year will be a loss of 25.7283 million yuan. According to the financial report of Dehao Runda over the years, since 2009, the total amount of government subsidies received by the company has reached nearly 1.109 billion yuan, which is 262 million yuan more than the total net profit realized in the same period.

It is worth noting that Sanan Optoelectronics, one of the competitors of Dehao Runda, also has government subsidies, but has handed over a satisfactory transcript to investors. The semi-annual report showed that Sanan Optoelectronics achieved sales revenue of 2.177 billion yuan in the first half of the year, and net profit of shareholders of listed companies was 666 million yuan, a year-on-year increase of 43.87%. Even after deducting government subsidies, there is still a net profit of about 470 million yuan. In contrast, Dehao Runda, which is second only to Sanan Optoelectronics in domestic LED epitaxial chip production capacity, has surrendered a failed transcript. It can not help but let investors send out the business ability of enterprises, especially Wang Donglei. The voice of doubt.

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