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收藏本信息编号:4317 发布时间:2012-09-10 截止日期: 地区:

The Future of NVC Lighting Remains Uncertain due to the Continual Opposition between "the Founder" and "the Investor"

Since May 25 when Wu Changjiang announced his resignation from NVC Lighting and its subsidiaries, the conflict between the founder and the investor has become gradually clear to the public. The process of the conflict was full of twists and turns. The complicated relationship between Wu Changjiang, Yan Yan, Shi Naide and others turned into the severe conflicts between employees, managements, and investors.
August 10 was the deadline for Yan Yan to give reply to the recovery of supply chain on Wu Changjiang's return. But the board did not give any formal announcement on this matter. More than 20 suppliers of NVC Lighting officially sent contact letters to the purchasing department of NVC Lighting later that day, saying that the board represented by the present Chairman Yan Yan had broke the promise, and that they will stop their supply completely and immediately, and ask for the settlement of all the payment on goods and the solution for the inventory.
On the evening of August 14, NVC Lighting made an announcement that Vice President Li Ruihe of the company and Manager Li Yuxin have resigned from their office, who had been employees of Schneider Electric. It was announced at the same time that the board thought it was inappropriate to reappoint Wu Changjiang as the president and director of the company. On one hand, Yan Yan employed the "delay strategy" to deal with Wu Changjiang's return; on the other hand, Wu Changjiang, the founder of NVC Lighting, who could no longer wait for the "official reply" from the board represented by Yan Yan, said that he would "return" to NVC Lighting as a major stock holder. He also took series of actions to comfort employees, and had negotiations with suppliers for new supply. "The founder" opposed "the investor" openly again, and the infighting of NVC was fierce.
The victim of this continual conflict may not be Wu Changjiang or Yan Yan, but NVC brand. As the leading enterprise in the traditional lighting industry, NVC lighting has been rooted deeply in people's minds. Before long, NVC Lighting made an announcement that about 25 dealers of Huizhou and Wanzhou factories expressed that they would not provide any supply any more. With the stop of supply, the production of NVC is now facing serious tests. Some insider revealed that the present inventory in NVC can only support about four days of production. The position of NVC as the leading company in the industry is experiencing challenges.
Besides, NVC Lighting's announcement predicted that the performance of the first half of this year would face an obvious year-to-year decrease and one of the reason contributed to the decrease was Wu Changjiang's resignation in May. Meanwhile, since the strike, about 55 employees in Wanzhou Factory and about 102 employees in Huizhou Factory have left. This indicates that 2.60% of the employees in Wanzhou Factory and 4.10% in Huizhou Factory quitted their jobs.
As to the dealers, President of NVC denied that the dealers' suspension of orders would have any major influence on the business and financial situation of the year, unless dealers decide not to resume their orders in the longer term in the future.
Meanwhile, as to the news that dealers would establish a new company, the board of directors believed that if it was the fact, their action would have substantial influence on the business and financial situation of NVC Lighting. Under such circumstances, NVC lighting will seek ways to distribute products or use other dealers, or directly distribute products through secondary dealers.
Finally, the board of directors did not exclude the possibility that the employees in Huizhou Factory will start to work after the strike. The day when trading was resumed, NVC Lighting stock sank to the lowest level in history, with only 0.7 HKD.

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