Lighting firm looks to make a splash

NVC sees Europe and company shake-up as carrying it forward

NVC Lighting, China's biggest lighting manufacturer, will look for more business opportunities in Europe, its chairman and CEO Wang Donglei says.

Wang Donglei (L), chairman and CEO of NVC Lighting, China's biggest lighting manufacturer, presents the awards at the Diving World Series in London in May. Provided to China Daily

"The European market is highly mature, and the economy continues to recover, and that will give us opportunities," Wang says.

"We can upgrade our technology and research and development abilities, and enrich our team and expertise through our business activities, including collaboration, throughout Europe."

Wang unveiled his plan at the Diving World Series held in London from May 1 to 3. In 2013, NVC signed a deal with the International Swimming Federation to sponsor the series until 2017. The company was the official lighting supplier for the Olympic Games in Beijing in 2008 and the 2010 Asian Games in Guangzhou.

"NVC has grown quickly in recent years and the brand is now well-known," Wang says. "Our collaboration with the swimming federation is helping us promote our brand on the world stage.

"We want to demonstrate Chinese manufacturing industry's professionalism, which fits hand in hand with positive sportsmanship."

Wang's confidence springs not only from NVC's market share in China, but also its rich experience in Britain. The brand has been the fastest-growing area of business for its UK company, now four times the size of its original equipment manufacturing business.

"Our growth in Britain has proved that we are highly professional and can compete with European brands," Wang says.

Since entering the British market in 2007, NVC has competed head-to-head with Thorn Lighting and Dextra Lighting, and shipped products to nearly half of the more than 3,500 electrical wholesalers in the UK.

The British subsidiary of NVC employs more than 100 people, 15 times the number seven years ago. It has also provided a fillip to Birmingham, in the Midlands, where 95 percent of NVC's British employees live.

"NVC is now among the top 20 lighting companies in Britain," Wang says, adding that it has become a standard bearer for Chinese companies that want to globalize

NVC has focused on innovation, R&D, building brand and service, and this year, the company says, is one of transition, one in which will press on with corporate restructuring, make a switch to LED technology and set up an online and offline marketing system.

The company employs more than 10,000 people worldwide and is expanding rapidly in Europe, Asia, Africa and Latin America. It has distributors in more than 40 countries.

As more Chinese companies go abroad, Wang says, the biggest problem for many is brand recognition. "You need to build up trust among customers through the quality and service of your brand."

Last August the company's board removed its founder and CEO Wu Changjiang from his post and appointed Wang interim CEO. Wu had authorized the right to use the NVC Lighting brand to three related companies for 20 years in 2012.

NVC Lighting was suspended from trading on the Hong Kong Stock Exchange three days after Wu's removal.

Several weeks later the board unanimously approved his removal as chairman and banned him from any other related positions. More than 95 percent of shareholders approved the move.

In November, NVC said Wu and employees of four Chinese banks were under police investigation in China for allegedly helping to divert company funds.

In January, Wang was appointed CEO. The Hong Kong stock exchange has attached a series of conditions that NVC Lighting must meet before resuming trade on the exchange.

These include dealing with any financial regulation violations, informing the market about the company's financial situation and operations, establishing a financial reporting procedure, and ensuring that management adheres to market guidelines for listed companies. The company also has to publish all findings from China's legal authorities and internal monitoring and publicize all related information.

Moreover, NVC Lighting must follow listed company market rules, and all Hong Kong regulations or according to norms of the place of company registration. Only by meeting these conditions can NVC Lighting resume trade.

On Jan 12 Guangdong provincial police detained Wu over the suspected misappropriation of 100 million yuan ($16.1 million; 14.4 million euros) in company funds.

zhangchunyan@chinadaily.com.cn

(China Daily European Weekly 05/08/2015 page20)