On August 7, NVC Lighting Holding Ltd released earning estimate, it is expected that the profits in the first six months of 2013 will grow about 50% compared to the same period of 2012.
Changjiang Wu, the founder of NVC, was elected as executive director with votes of most of the shareholders on June 21, which also means that Changjiang Wu returned to NVC Board, and brings a profit advantage for NVC. It is clearly wrote in Earnings forecast statement that the growth in profits is mainly attributable to the decline in management costs after the management is stable, especially the significant decline in accounts receivable provision.
Changjiang Wu had resigned as chairman of NVC in May of 2012, which also led to infighting. In December, Wu transferred the holdings to Elec-Tech, helping Elec-Tech to be a new major shareholder of NVC, then the pattern that a Roland for an Oliver between major shareholders of NVC comes to end. In return, Changjiang Wu is expected to become the second largest shareholder through the subscription of non-public additional shares of Elec-Tech.
Though it has not been long since Changjiang Wu returned to the Board of Directors, he still has far to go as the CEO. Data shows that the "infighting" in last year caused great decline in NVC's sales, net profit in 2012 sharply declined by 98.46% year-on-year, less than 8.42 Million Yuan. As company's important strategic goods, LED lighting products just achieved the sales of 200 million Yuan, less than 10% of company's revenue.
Changjiang Wu said that sale of LED lighting has grown rapidly in the first half of this year. In this year, NVC will achieve a sales growth of at least 20% in lighting products, and the proportion of LED lighting will increase from 10% to 20% -30%.
