In the home market denounced 1.5 billion to build new base extension NVC home lighting

According to YAHOO news reports in Hongkong, more than 14 months of suspension NVC yesterday (26) day of resumption. During the incident as chief executive chairman Wang Donglei said that in the past more than a year's time, is not only the internal, external economic environment changed, so that the NVC needs most "transition". Since Wang Donglei took the helm after NVC began to enter the home lighting products market profit rate higher, he expected the future of this kind of product to equal income.

At the end of June this year for mid, the mainland and overseas income from the NVC brand were recorded in the number of units or. Wang Donglei pointed out that this is because China's economic growth slowed down, and the relationship between the property market weakness, and this trend is expected to continue to deteriorate, the traditional lighting product sales will decline, NVC need to find new profit growth point, and to the "business transformation" and is one of them.

Wang Donglei believes that the household lighting like in the "sale of art", there is a higher premium, the gross profit margin of about 30%, higher than the gross profit margin of 21.5% NVC interim. He said that despite the decline in traditional business will offset part of the increase in home business, but the overall gross margin is expected to remain about 1 percentage points of growth. In addition, another profit growth point of the NVC is the transformation from traditional lighting to LED, vice president and chief financial officer of Eagle refers to the first half of this year, NVC lighting products, 60% of its revenue from LED, expected by the end of the year will increase to 85%. Wang Donglei believes that LED business will remain stable, home lighting products are expected to grow faster to half of the revenue and business. To support the development of household products, NVC to spend 150 million yuan to build the new base, standardized production of home lighting products, in order to control costs, is expected to be completed next year.

In addition, the NVC in the sales channels to O2O (online to offline) transformation, Wang Donglei refers to in all 3600 stores in O2O, the renovation will be completed this year the 300 shop, next year will be completed in 800, after the transformation of the average area increased more than 30% retail shops. He expected, NVC three years later in the retail area can be doubled, and covering 90% counties and 30% towns.

Wang Donglei's plan is more than the mainland market, his goal is to become the world's top three NVC lighting company. He refers to the international will be achieved through mergers and acquisitions, will begin in Europe, the acquisition must be the best in the global or regional market.

For the issue of integration, and major shareholder of BDO Runda NVC market concern Wang Donglei refers to the specific measures currently integrated with multiple options, but inconclusive, and strong adjustment is imperative, but not the actual schedule.

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