NVC Lighting Wang Donglei: LED lighting will continue to grow rapidly in the next five years

On June 12, NVC Lighting released new e-commerce products in Zhuhai Chimelong Ocean Park. This is the move of NVC's home lighting, “commercial and home” dual-line strategy. Wang Donglei, chairman of NVC Lighting (2222.HK), told reporters that the LED lighting industry is still in the high-speed growth zone in the next five years.

Last year, the growth rate of the LED lighting industry slowed down noticeably, and the performance of domestic LED listed companies was different. Some people think that the LED lighting industry has passed the peak period, and has even turned into a "traditional industry." In this regard, Wang Donglei, who has opened up the LED upstream and downstream and at the same time as the chairman of Dehao Runda (002005.SZ), does not fully agree.

Wang Donglei believes that the LED lighting market is still in a high-speed growth zone. The current growth rate of the Chinese market is still around 20%, and the growth rate of the global market is also about double digits. In the global market, the penetration rate is growing from 20% to 25%.

At the press conference on the 12th, NVC Lighting E-commerce Company launched the Promise Dimming Ceiling Light, Bluetooth Smart Music Light, Technology Fan Mirror Front Light, "Giant Core" LED Light Bulb, Dream Light, etc. on the Tmall platform. The new range of products covers LED light sources, LED ceiling lights and many other fields.

NVC is one of the leading companies in the domestic commercial lighting field. Since last year, NVC has also increased the layout of the home lighting business. "The NVC home business has huge room for growth, and the home business and commercial business should be driven by two-wheel drive," said Wang Donglei.

In this regard, NVC Lighting proposed a strategy of strengthening the home lighting business while consolidating the commercial lighting business, and achieving a dual-engine growth model of “business photo + home”. This e-commerce new product launch conference is the embodiment of NVC's efforts in home lighting.

In addition to expanding home lighting, NVC is also actively transforming into the Internet, especially in the sales and marketing segment, which has established an e-commerce company, and the growth rate of e-commerce business exceeds the industry average. NVC Lighting will continue to increase its investment in Internet marketing and cross-border marketing.

At the press conference on the 12th, NVC and the Chimelong Ocean Kingdom, the Chinese diving team and Tmall held a cross-border marketing campaign, which aimed to target the new generation of Internet people and promote the rejuvenation of the NVC brand. NVC has sponsored the FINA "FINA World Diving Series" for three consecutive years and will also win the Chinese diving team in the 2016 Brazilian Olympics.

Internationalization is another main line of NVC's future development. With the launch of the national “One Road, One Belt” strategy, NVC’s global brand localization strategy is rapidly advancing, not only in Brazil, the Middle East, Australia, and Southeast Asia, but also in more than 40 countries and regions around the world. Established an operating agency.

As a brother company of NVC, Dehao Runda, which is mainly engaged in LED chips, plans to acquire a lighting asset of a foreign enterprise with a national industrial fund this year. A non-binding quotation letter was submitted in January 2016. Still in progress. It is understood that Dehao Runda may be participating in the bidding of multinational lighting giant Osram.

In 2015, NVC Lighting's revenue was 3.85 billion yuan, up 10.8% year-on-year; LED lighting products revenue was 2.22 billion yuan, up 81% year-on-year; net profit for the year was 55.76 million yuan, turning losses into profits. Since the internal disputes in 2014, NVC Lighting has gradually recovered in 2015. Last year, the distributors owned 3,529 specialty stores and completed the construction of 24 O2O (online and offline integration) experience stores. In the future, this model will be introduced into the monopoly. shop.

This year, NVC Lighting and DHL Runda will further expand the synergy; after the holding of NVC Lighting, whether Dehao Runda will take another overseas acquisition, these issues Wang Donglei did not during the 12th press conference Make a positive response.

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