NVC's aftereffects of "innervation" appear

Recently, Wu Changjiang, the founder of NVC Lighting, shook hands with the incumbent chairman Xun and the chairman of Schneider (China) Zhu Hai. On October 9th, the day after the "Eleventh" holiday ended, NVC Lighting's share price rose 6.897%, which echoed with the sharp drop in the share price when Wu Changjiang's "quiet resignation" occurred on May 25. As a sign of this, NVC battles are temporarily coming to an end.

Internal hemorrhoids sequelae appear
Since the arrival of Renesse, its share price has once dropped to HK$0.8. Although the stock price has stabilized at around HK$2 after the recent continuous rally, it is still more than HK$1 more than the highest share price of HK$3 before the resignation of Wu Changjiang. This also reflects the huge impact of the incident on NVC Lighting from a side.

At present, NVC is making full efforts to compensate for the operating losses caused by the previous infighting. Wu Changjiang revealed that the company’s production and sales have returned to normal. However, this does not mean that this "infighting" has disappeared without trace. The calmness on the surface may mean that the sequelae caused by internal hemorrhoids have only just begun to appear.

In the new brand launch conference held on October 12th by Shenzhen Green Semiconductor Lighting Co., Ltd., many NVC dealers from Inner Mongolia, Shandong and other places were invited to attend. Some dealers stated that NVC's headquarters dispute caused its own losses, and NVC's products have failed to keep up with the pace of market development. Therefore, NVC has begun to consider more products than NVC.

A distributor from Inner Mongolia cooperated with NVC for more than 10 years. He told the media that before NVC's products appeared to be out of stock, signed engineering orders had to be cut off. Although supply has now returned to normal, the company’s high-level disputes have dampened the confidence of dealers, and now more or less is still somewhat affected.

The above dealers said that there are concerns about NVC's product upgrading. “Now the lighting industry is in the adjustment period. The future trend is to replace traditional lighting with LED lighting, and NVC's products are still based on traditional lighting, so I want to find a strong brand that specializes in LED lighting.” He said.

Zhang Xiaofei, director of the Gaogong LED Research Institute, also believes that NVC currently has a small share in the LED field. Last year, LED lighting sales were less than 200 million yuan, less than 1/20 of its total sales, accounting for the entire industry. The proportion is even more negligible.

Zhang Xiaofei also stated that NVC has severely depressed its channels and exacerbated its difficulty in the LED field.

In addition, the same problem is faced in cooperation with end customers. The real estate developer Beijing Guangyao Oriental Group Co., Ltd. (hereinafter referred to as “Guangdong Oriental”), which intends to sign a strategic partnership agreement with him in June, was once ready to stop cooperation after the incident. "After this incident, we are also very worried that if we fear the impact of the current supply, we will fear that if NARI's future development is affected by this incident, it will certainly affect our long-term cooperation with NVC. NVC's timely return to work did not affect the supply to us. Under their coordination and interpretation, we finally signed a strategic cooperation agreement,” said Zhang Baoqing, director of cost procurement at Guangyao Oriental, told reporters.

Although the contract was signed, but Zhang Baoqing, who was in a quandary, was still very reluctant to tell reporters that he did not know if there would be any changes in the next few days.

Sincere cooperation? Helpless?

In this regard, the opinions of people in the industry are not consistent. Some people think that after this incident, Wu Changjiang, Yan Zhu, and Zhu Hai will draw lessons and converge, and will find a new balance point driven by the leverage of interest.

At the same time, some people believe that the differences between Wu and the investors are the differences between the traditional rule of the people and the modern rule of law. They are cultural differences, differences between the Chinese autocratic culture and the western democratic culture, and deep-rooted differences among the bones. Moreover, the previously-related issues such as related transactions and commercial bribery have not been fully clarified, and these will become hidden dangers in the future development of the company.

Renhao Ning, a researcher in the energy industry of China Investment Advisors, told the media that when the three companies broke up, they were not favored by the industry. The majority of investors were worried about the future of NVC Lighting. If they are cracked because of “small” issues such as employee benefits and leadership conflicts, Wu Changjiang will eventually be out of the game. I am afraid that industry professionals are not convinced.

At the same time, there are always suspicions that the outside world is trying to disguise "external contradictions" by upgrading "internal contradictions". There are also comments that this reconciliation is a frustrating compromise. Ning Hao believes that as a strategic investor, Schneider, Saifu's only goal is to profit, holding or holding power, the implementation of various means, a variety of strategies are to serve their huge profits. Wu Changjiang, as the founder of NVC Lighting, played a very important role in the entire development process of NVC Lighting. This is something that no one else can replace. Neither Yan nor Schneider knew this clearly.

Zhang Yanlin, research director of China Investment Consulting Co., Ltd., said that the production of NVC lighting farce is not surprising, and it is also in line with market expectations. From the moment of Wu Changjiang’s bold introduction of foreign investment, it has been doomed to the various contradictions among them. There are many conflicts that are difficult to reconcile between the administrators of the Hayao heroic era and the modern enterprise management system.

At the same time, he also believes that as a well-known traditional lighting company in China, NVC Lighting has a very strong comprehensive strength in the field of lighting, the leadership can promptly get back on track, has a very positive significance for the stability of employee emotions, adjust the development strategy. The market of LED lamps is huge and the development speed is fast. It is likely to become the leading product in the lighting field in the future. What NVC lighting will take again to seize the commanding height of the market deserves our expectation.