Wang Donglei: promoting Rex's return to A shares and creating a whole industry chain lighting enterprise

The company is planning the merger and acquisition of NVC controlled manufacturing business and related enterprises in China, which is a major asset reorganization, the company announced recently. Statistics show that the target of this asset reorganization is NVC's core asset, Rex optoelectronics, which is expected to be priced at 4 billion.

The announcement shows that at present, Rex optoelectronics is located at the domestic first-class level in terms of brand influence, sales channels and production capacity. In China, there are 34 operation centers (exclusive distributor) in the country, and there are more than 4000 franchised stores under the regional distributors and their affiliates. The capital city coverage rate is above 90%, and the prefecture level city is located. The coverage rate is above 85%, and the coverage rate is above 60% at County-level or county level cities.

"In addition to sleeping for 7 hours, basically every day is working, sometimes there is an hour of exercise time, the only hobby is golf because of wasting time being abandoned." Wang Donglei talked to reporters about his daily schedule.

At present, NVC has gone through the recovery stage, and integration with de Hao run Da is advancing. Wang Donglei hopes that the LED chip, packaging technology and products upstream of de Hao run Da will be connected with the lower reaches of Rex to improve the efficiency of resource operation and become a lighting industry of the whole industry chain.

Code flip chip

In recent years, three major international lighting companies have been withdrawing from the market. PHILPS divestiture lighting assets separately listed, OSRAM and GE repeat the same action, also stripped the sale of lighting assets.

Wang Donglei believes that lighting core technology in China, de Hao run Da holds the technology initiative. Recalling the opportunity to cross the border from small appliances to LED, Wang Donglei said: "at that time, the state pushed forward seven strategic emerging industries," de Hao run Da "contacted the new energy industries such as plasma batteries, solar energy and LED semiconductors, and found that the energy saving effect of the LED chip was remarkable, and it was the new material industry, which coincided with the fourth time of the global lighting industry. The choice of this industry means that we have the opportunity to start with global enterprises at the same time.

But domestic large-scale technology introduction and policy support soon created the red sea of the industry, the domestic LED industry once overcapacity, terminal prices fell. In order to lead the industry again, de Hao run Da invested in developing LED flip chip at the right time. In June 2014, de Hao Ran released a new Sirius LED blue light flip chip and Polaris CSPLED white chip flip chip.

The concept of LED flip chip was put forward in 2012, but it was shelved because the market and technology were not mature enough. Nowadays flip chip has been regarded as the latest development direction of LED.

"Every watt lumen is not the most essential factor. Because of the pursuit of cost, high-power driving is the core factor, which is why we see that flip chip is the mainstream chip today. In the Southeast Asian market, China's rural market and below county market, the use of flip chip chips on a large scale has emerged as the most cost-effective chip, which has led to the use of flip chip in general lighting.

Wang Donglei explained that the hottest part of LED is Mini LED and Micro LED, as the display backlight and the next generation display technology. Mini LED and Micro LED are flip chips instead of positive chips, so flip chip is the future direction.

At present, the stability of the industry has improved slightly, but there is still no uniform industry standard in the industry. The update cycle of chip parameters is extended to 6 months. "Flip chip is a little better, and the chip of de Hao is leading the domestic industry standard," Wang Donglei said.

Industry is hard and profits are thin. By contrast, the house prices of Tangjia Bay in Zhuhai, where the headquarters of the headquarter are located, has been rising. In the years of the development of the chip, the average price of Tangjia bay house has gone from less than 10 thousand yuan to the 3 prefix age. Industry can not win real estate is almost the consensus of the industry, but Wang Donglei has never thought of getting involved in the real estate industry, and has always focused on manufacturing.

"As long as there are people who need night lights, the industry is a natural anti cyclical", Wang Donglei speaks fast, "for the core brands such as Rex, now instead of a better strategic opportunity, the market is concentrating on core brands."

Wang Donglei told reporters that at present, the LED flip chip technology is ranked second in the world and its capacity reaches third. With the accelerated implementation of the company's additional investment projects, it is expected to eliminate the bottleneck of LED's flip chip links, improve the structure of the chip products and enhance the company's operational indicators.

Over the past few years, Wang Donglei has gradually left the forefront of scientific research. "I can't choose from today. My vice president once said," I can't go to the lab every day. What should I do with the bankers and fund managers? What kind of location do I do? I still focus on the technical direction, keep the technical sensitivity, do not have to care about the technical details, but look at the details of the whole industry and make the shareholders. Value maximization ".

Pushing Rex back to A

Wang Donglei believes that the value of NVC, which has been listed on the HKEx for 8 years, has been undervalued for a long time. At present, the market value of NVC is only HK $2 billion, and the P / E ratio is 6-8 times, while the A share price of the same tier listed company is almost 40 times that of OPPLE.

"NVC is a subsidiary of de ho run Da, and its current valuation is relatively low. It is also a pity and a waste for investors of A shares. We want to integrate this asset back and retain the position of Rex in Hongkong. Dunfee, vice president and executive director of de Hao run Da, said.

In 2016 and 2017, the net profit of the target assets was 228 million yuan and 330 million yuan respectively. According to the forecast, the net profit of 2018 years to 2021 after deducting non recurring gains and losses was 370 million yuan, 450 million yuan, 550 million yuan and 600 million yuan respectively. After the completion of this transaction, de Hao run Da will become the leading lighting enterprise in China, and its assets scale, business scale and profitability will be enhanced effectively.

In the upstream and middle reaches, NVC went downstream, which was planned in 2012 when the company was involved in the reelection. According to Wang Donglei's plan, under the background of LED transformation, the two companies can better achieve complementary advantages and bring industrial synergy effect.

The fact also proves that the cost control and efficiency of de Haolun Da is very strong. After the gene's grafting to Rex, the gross profit margin of NVC products increased from 23.4% to 26.8% to 28.9% in 2015 to 2017. But there is still a gap between the reform of Rex and the modern management enterprise, waiting for Wang Donglei not only to earn profits from Reyes, but also to rebuild the cultural consensus.

Speaking of the progress of this integration, Wang Donglei seems more serious: "the speed of integration is slow, it has not reached our own expectations, and is lower than market expectations. There are reasons for the Rex itself, as well as the reasons for the instability of China's stock market in recent years, and so on. We can only improve the effectiveness of integration." He believes that the foundation of the two enterprises' industry is more and more solid in time.

The brand and channel of Rex are also improving steadily. At present, there are 4200 terminal stores in Rex. In 2016, the data was 3800. Under the downward pressure of the industry, the recovery period of Rex can be said to be short.

In addition, it launched the brand of upgraded home lighting, such as "Liz" and "Castle". "We want to use the latest products and technology to bring consumers' artistic sense, perfect combination of technology and art to form the kernel of the products, which is actually a bit like apple, opening up a new era of IT products." Wang Donglei said.

With the cooperation of Tmall elves, NVC plans to become the entrance of smart home. At present, the scientific research in this sector is specially charged by the Shenzhen Research Institute. The next step for the board to give Rex is to build a new retail companies for building materials. The rapid growth of online business has brought the flow base to the Rex brand platform.

Wang Donglei wants to build an influential company in the world. "From the beginning of our business, we set the number one strategy and still insist on it today. Our goal is very firm, that is, the top three in the world.

Source: Securities Times e company

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