The infighting between NVC's creator Wu Changjiang and the board of directors of the company has not only had a strong impact on the company, but the LED industry chain also felt a shock. Recently, the first meeting of the second G20-LED summit initiated by Gaogong LED was held in Guangzhou, and 20 leading LED companies participated. The reporter learned from the summit that some LED leading enterprises have been affected by the NVC infighting event. The impact, although no actual losses, but the contract execution has been significantly delayed. The LED lighting channel model proposed by 20 leading LED companies will also divert NVC's current dealer system.
NVC joint venture project stranded
In January of this year, NVC Lighting signed a contract with Ruifeng Optoelectronics. According to the agreement, the two will jointly invest 50 million yuan to set up a packaging enterprise in Huizhou, engaged in research and development of LED packaging technology for high-power lighting, LED packaging products manufacturing and sales. However, after Wu Changjiang left, the project cooperation has been suspended. At the G20-LED summit, Gong Weibin, chairman of Ruifeng Optoelectronics, responded that the current cooperation with NVC "has not continued to go down." Gong Weibin revealed that the money of Ruifeng Optoelectronics has not been invested in the new company.
Zhang Xiaofei, director of the High-tech LED Industry Research Institute, which is responsible for cooperating with 20 companies, believes that traditional lighting companies still control the channels of the lighting industry. In the emerging LED industry, individual companies are unable to build their own channels.
When traditional lighting companies such as NVC Lighting and Foshan Lighting are in trouble, LED industry leaders are hoping to achieve breakthroughs through the group. The above 20 companies will carry out specific cooperation in upstream and downstream of procurement, production and channels.
In the procurement cooperation, 20 companies tried to build a LED supply chain procurement trading platform. It is understood that the proportion of raw material costs in the LED industry to production costs is generally 20% to 30%, and the high is about 50%. “In the future, through centralized procurement transactions, suppliers can reduce upstream procurement costs, help suppliers stabilize production, reduce production costs, and improve product quality. At the same time, through centralized demand feedback, suppliers can also help develop new products quickly.†Zhang Xiaofei Say.
A more important change will appear on the channel. According to Zhang Xiaofei, 20 companies are exploring new lighting channel models, hoping to skip the middle dealers, and the brand manufacturers directly push products to consumers. This channel model can integrate engineering procurement, distribution wholesale and retail. In one, it saves a lot of space expenses, personnel management expenses, intermediate circulation costs and product promotion expenses for the enterprise.
"When we built the channel model, I believe we have enough power to let NVC lighting dealers follow us to open up new LED channels." Zhang Xiaofei said.
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NVC board denied that Huizhou Wanzhou was discontinued
On the 21st, NVC Lighting (2222.hk) issued an announcement denying the news that the media reports on the suspension of production in Huizhou, Wanzhou, Zhejiang and Shanghai, saying that the raw material suppliers of Huizhou factory still stopped supplying raw materials, but Huizhou and The Wanzhou factory did not stop operating under its influence.
According to the outside world, the NVC Lighting Zhejiang and Shanghai plants belong to a raw material supplier system and the Huizhou factory belongs to a raw material supplier system. As the supplier stops supplying raw materials and faces production stoppage, NVC Lighting stated that the two do not belong to the same raw material supplier system. Will not be affected, the factory operates normally.
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