Wu Changjiang: LED Industry Integration and Future

Recently, Xiaolan Town, Zhongshan City, held a two-day 2013 China (Zhongshan) LED Midstream and Downstream Industry Conference. The relevant government leaders, experts and scholars in the industry, domestic and foreign LED industry elites, and midstream and downstream supporting manufacturers gathered together. Summarize and analyze the experience and existing problems in the development of the LED industry in the past year, and discuss the trends and strategies for the development of the downstream industries in the LED industry in 2013. Among them, Mr. Zi Bo, Deputy Secretary-General of the Alliance (CSA), Mr. Zhou Xiang, Vice President of the National Key Laboratory of Semiconductor Lighting Innovation, and Mr. Wu Changjiang, President of NVC Lighting, delivered speeches that were brilliant around LED industry topics.

As we all know, overcapacity, blind production, and vicious price warfare... In the past two years, the dilemmas of the LED industry have intensified and the industry consolidation is just a matter of timing. Recently, the alliance between NVC Lighting and BDO Runda has sounded the first clarion call for industrial integration in the LED lighting industry, and is still a major concern in the industry.

At the meeting, Wu Changjiang, the president of NVC Lighting, focused on the cooperation between NVC Lighting and BDO Runda and expressed his opinion on the topic of “Industrial Integration and Industry Future”.

Wu Changjiang said that it is necessary to use one sentence to conclude that the current status of the domestic LED industry is "chaotic". As the saying goes, "heroes in troubled times," it is now a huge opportunity for many LED companies. “China’s opportunities are good. Enterprises should integrate with each other. LED is a light source. It is a standard thing and will inevitably develop towards scale. Therefore, it is necessary to combine strengths and strengths to integrate and reorganize. It is only through the use of a good market. Let the company develop quickly."

He revealed that NVC had been planning for integration many years ago, but did not specify which company to cooperate with. Therefore, the cooperation with BDO Runda is not an internal shareholder speculation that has been speculated by outsiders. It is a strong cooperation. . It is understood that as the lighting industry's leading position of NVC lighting, its brand appeal and strong channel advantages are obvious to all within the circle, which is NVC lighting high-quality assets, but also a compelling force for the competitors. This just made up for the shortcomings of BDO Runda.

Good-looking insiders said that Wu Changjiang’s integration risk is high and the opportunity is even greater. Considering Nashi Lighting’s leading position in the industry and the status of Wu Changjiang’s leader in the lighting industry, it’s a feat to exchange shares with BDO Runda. It will play a catalytic role in the transformation of the lighting industry. According to the analysis, BDO Runda can use this to expand its downstream applications while using NVC Lighting's strong brands and channels to sell its own LED lighting products. NVC can also use this to capture the upstream technology and product resources in the industry. To make up for its own shortcomings, the outlook for the LED industry is high.

Goldman Sachs also published a research report, maintaining its long-term growth prospects for LED lighting. It is expected that the demand for LED lighting will maintain its long-term growth since this year, which is mainly due to the increase in demand as the average price of LED lighting products declines, the reduction in production costs due to technological progress, and the increase in government support. Goldman Sachs is optimistic about the downstream market share leader and believes that such companies should benefit most from the accelerated growth of LED lighting demand in 2013.