In the outside world, Wang Donglei has two titles, one is the bread machine king, and the other is the LED industry predator. For these two "nicknames", Wang Donglei said with a smile: "I am positioning myself as an engineer."
When the small household appliances were doing well, he led Dehao Runda (002005) to transform into LED. In the five years since entering the LED market, he has invested 7 billion yuan in investment. At present, Dehao Runda has become one of the largest LED chip production enterprises in China. At the beginning of this year, Dehao Runda acquired 1.3 billion yuan and became a major shareholder of NVC. After entering NVC lighting, how Dehao Runda has played a synergistic effect has been the focus of the market.
As the chairman of two listed companies, Dehao Runda and NVC Lighting, Wang Donglei has his own experience in industrial transformation, LED industry development and private enterprise management. In an exclusive interview with the reporters of the 21st Century Business Herald, he said: "Before we become the top three in the world, I will not do other things. Just like the original small household appliances, I will do the best and then consider other things."
"The LED industry must have a big investment"
"21st Century": Dehao Runda has been doing small appliances before, why did it choose to transform to the LED industry at a peak?
Wang Donglei: I have investigated the LED market for two years before making up my mind to invest. Dehao Runda is actually a company that has grown with the development of China's economy. We do OEMs for small appliances, which is a low threshold, low investment, and creativity. We are indeed at the peak of it, and the market share of the three products is the world's forefront.
China's economy is overheated, all raw material prices have increased, and workers' wages have continued to grow. These things are not controlled by our entrepreneurs. Environmental changes have also prompted us to transform. At that time, the state encouraged strategic emerging industries. I chose to inspect lithium iron phosphate batteries for wind power, LED, solar energy, and electric vehicles. After investigation, I decided to concentrate on LEDs. We enter from the downstream and do it upstream. With the support of the local government, we will do the upstream from the downstream, do the lights, make the display screen, quickly go to the chip, make the epitaxial film, and complete the entire industrial chain.
"21st Century": What is the positioning of small household appliances in the strategic deployment of Dehao Runda? Why do you throw 7 billion when you switch to LED?
Wang Donglei: Small household appliances are a key point in our industry positioning. After several years of adjustment, the number of workers dropped from nearly 20,000 to more than 6,000, and sales also fell by nearly 30%, but achieved double transfer, that is, high-end OEM transformation, transfer to the brand. The quality of management is also better. From 2014, we can maintain healthy growth. I think the adjustment is basically in place. In the past few years, the small household appliances sector has been developing for the enterprise, providing cash support for LED transformation.
The investment in five years is nearly 7 billion yuan. The investment is very big. In fact, the operation of Dehao Runda has a basic idea. It is only one thing to do for a while. Since you have chosen to do LED, you must do it well. As far as lighting companies are concerned, we are already the first in China. Our goal is to achieve the top three in the world in five to ten years. This must have two leads to win, one must be technically advanced, and the second should be leading. These two points are indispensable. To be ahead, you have to invest so much money.
In fact, in the semiconductor industry, we are still a small business. However, the semiconductor industry does not allow small businesses to exist, and the semiconductor industry is a monopoly in the future. Be sure to have a large enough scale and high enough scientific research to support its future development. So 7 billion is not much. For the LED industry, this is not a big number, but for a private enterprise, the investment is still very big.
"The synergy with NVC will appear"
"21st Century": After entering the LED industry, Dehao Runda also carried out a series of acquisitions. What was the original intention of the acquisition of NVC?
Wang Donglei: The acquisition of NVC is an accident in itself. However, the acquisition of a channel, branded lighting company, this is the first day of Dehao Runda to do LED planning. Because there were some problems inside NVC at the time, it gave us an opportunity to acquire. We took it very quickly and took it directly. The response is fast, which may be a benefit for private companies.
When the acquisition of NVC, there was basically no hindrance, and it took only one week. At that time, the contradiction of NVC's board of directors had reached an almost irreconcilable level. After entering the company, Dehao Runda improved the ecology of the board of directors, and everyone could sit down and discuss the development of the company. Moreover, Dehao Runda has also made some reorganizations as a major shareholder, improving the ecology of the entire board of directors and restoring it to normal operation. As much as possible to the interests of each shareholder. This is everyone's welcome.
In addition, as the flagship enterprise in traditional lighting, NVC lighting urgently needs to rapidly transform into LED. It is urgent to have a company with deep basic knowledge of LED to promote their transformation and make them transform faster. The development of the enterprise itself is also a need, but also a strong alliance. Based on these two points, the board of directors welcomes us all at the level of shareholders.
"21st Century": From the acquisition to the present almost one year, how has the development of this year affected the two companies?
Wang Donglei: I am also the dean of the Academia Sinica at NVC, and it is faster to promote this. Dehao Runda and NVC are now looking at the division of labor. Now, Dehao is the light source, and NVC is the light fixture. The product lines of the two companies are properly separated. This is also to avoid direct competition and complement each other. This is basically recognized by the board of directors of the two companies, and cooperation is better. At present, Dehao's product preparation is also in place. After the product is in place, the sales growth in the NVC channel is good. The run-in is a bit slower, but now it seems to be getting more and more mature, and sometimes it can't be done overnight. It takes time.
"21st Century": In addition to the possibility of seeking expansion overseas, what is the next strategy of Dehao Runda and NVC?
Wang Donglei: For NVC, I hope to expand the market share in China and continue to maintain the number one position in the Chinese market. Overseas, I hope that through a long period of efforts, I can make the NVC brand global. Mr. Wu Changjiang has recently gone overseas and is working hard to promote this. For Dehao and NVC, we will make greater efforts to promote their integration, and through their integration, they will complement each other and bring out synergies. This is the most important job for us in the next one to two years.
"The development of LED industry cannot rely on subsidies"
"21st Century": The development of LED enterprises is still affected by policies. The government has also carried out some high subsidies.
Wang Donglei: LEDs are still losing money in the past few years. You look at our huge investment interest expenses and earn money to rely on government subsidies to live. The government subsidies are still there, but the intensity and intensity of subsidies are gradually decreasing. LED is also an industry actively supported by governments. Countries support this strategic new industry from the perspective of energy conservation and environmental protection.
Without government subsidies, corporate profits will have an impact, but businesses will be healthier. Dehao Runda should still have some subsidies, but in my opinion, it is a windfall. From the data in this financial report, a non-operating income, a kind of operating income, relying on government subsidies, the initial stage can be, the long-term significance for business operations is small, and enterprises must ultimately rely on self-reliance.
However, due to the large amount of subsidies from the government in the past few years and the release of production capacity, the price of LED chips has dropped rapidly. The rapid and popular growth in the downstream will inevitably lead to an increase in upstream demand. That is to say, without relying on government subsidies, this industry can already have a market. Competitive. For Dehao Runda, it is a whole industry chain factor. When the upstream is slightly stressed, the downstream is very good, because the cost is low, sales and profits are gone up.
"21st Century": The LED industry is now also overcapacity, and the situation of underemployment is relatively common. In your opinion, what will happen to the future of this industry?
Wang Donglei: LED lighting is the fourth revolution of lighting. 90% of human lighting will be replaced by LEDs. At present, the penetration rate is less than 10%, and the market space is very large. Therefore, the LED industry is a bright industry with very good prospects. For those of us who do industry, it is difficult to meet the opportunity of an industrial revolution. Then LED lighting is a revolutionary transformation. When China's lighting to the world is replaced by LED, this is a big market, the relevant institutions. Research, the global market has a total size of nearly one trillion. From now on to the next few years, the future of the industry itself is bright.
The first phase of the LED itself is now an alternative use, and the second phase will change the human habit of using light into intelligent lighting and emotional lighting. This will create a new era of human energy! With the support of the Chinese government, the Chinese turned LED into a popular product overnight. This makes us feel the creativity of Chinese people, the creativity of Chinese entrepreneurs and the driving force of the Chinese government.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
When the small household appliances were doing well, he led Dehao Runda (002005) to transform into LED. In the five years since entering the LED market, he has invested 7 billion yuan in investment. At present, Dehao Runda has become one of the largest LED chip production enterprises in China. At the beginning of this year, Dehao Runda acquired 1.3 billion yuan and became a major shareholder of NVC. After entering NVC lighting, how Dehao Runda has played a synergistic effect has been the focus of the market.
As the chairman of two listed companies, Dehao Runda and NVC Lighting, Wang Donglei has his own experience in industrial transformation, LED industry development and private enterprise management. In an exclusive interview with the reporters of the 21st Century Business Herald, he said: "Before we become the top three in the world, I will not do other things. Just like the original small household appliances, I will do the best and then consider other things."
"The LED industry must have a big investment"
"21st Century": Dehao Runda has been doing small appliances before, why did it choose to transform to the LED industry at a peak?
Wang Donglei: I have investigated the LED market for two years before making up my mind to invest. Dehao Runda is actually a company that has grown with the development of China's economy. We do OEMs for small appliances, which is a low threshold, low investment, and creativity. We are indeed at the peak of it, and the market share of the three products is the world's forefront.
China's economy is overheated, all raw material prices have increased, and workers' wages have continued to grow. These things are not controlled by our entrepreneurs. Environmental changes have also prompted us to transform. At that time, the state encouraged strategic emerging industries. I chose to inspect lithium iron phosphate batteries for wind power, LED, solar energy, and electric vehicles. After investigation, I decided to concentrate on LEDs. We enter from the downstream and do it upstream. With the support of the local government, we will do the upstream from the downstream, do the lights, make the display screen, quickly go to the chip, make the epitaxial film, and complete the entire industrial chain.
"21st Century": What is the positioning of small household appliances in the strategic deployment of Dehao Runda? Why do you throw 7 billion when you switch to LED?
Wang Donglei: Small household appliances are a key point in our industry positioning. After several years of adjustment, the number of workers dropped from nearly 20,000 to more than 6,000, and sales also fell by nearly 30%, but achieved double transfer, that is, high-end OEM transformation, transfer to the brand. The quality of management is also better. From 2014, we can maintain healthy growth. I think the adjustment is basically in place. In the past few years, the small household appliances sector has been developing for the enterprise, providing cash support for LED transformation.
The investment in five years is nearly 7 billion yuan. The investment is very big. In fact, the operation of Dehao Runda has a basic idea. It is only one thing to do for a while. Since you have chosen to do LED, you must do it well. As far as lighting companies are concerned, we are already the first in China. Our goal is to achieve the top three in the world in five to ten years. This must have two leads to win, one must be technically advanced, and the second should be leading. These two points are indispensable. To be ahead, you have to invest so much money.
In fact, in the semiconductor industry, we are still a small business. However, the semiconductor industry does not allow small businesses to exist, and the semiconductor industry is a monopoly in the future. Be sure to have a large enough scale and high enough scientific research to support its future development. So 7 billion is not much. For the LED industry, this is not a big number, but for a private enterprise, the investment is still very big.
"The synergy with NVC will appear"
"21st Century": After entering the LED industry, Dehao Runda also carried out a series of acquisitions. What was the original intention of the acquisition of NVC?
Wang Donglei: The acquisition of NVC is an accident in itself. However, the acquisition of a channel, branded lighting company, this is the first day of Dehao Runda to do LED planning. Because there were some problems inside NVC at the time, it gave us an opportunity to acquire. We took it very quickly and took it directly. The response is fast, which may be a benefit for private companies.
When the acquisition of NVC, there was basically no hindrance, and it took only one week. At that time, the contradiction of NVC's board of directors had reached an almost irreconcilable level. After entering the company, Dehao Runda improved the ecology of the board of directors, and everyone could sit down and discuss the development of the company. Moreover, Dehao Runda has also made some reorganizations as a major shareholder, improving the ecology of the entire board of directors and restoring it to normal operation. As much as possible to the interests of each shareholder. This is everyone's welcome.
In addition, as the flagship enterprise in traditional lighting, NVC lighting urgently needs to rapidly transform into LED. It is urgent to have a company with deep basic knowledge of LED to promote their transformation and make them transform faster. The development of the enterprise itself is also a need, but also a strong alliance. Based on these two points, the board of directors welcomes us all at the level of shareholders.
"21st Century": From the acquisition to the present almost one year, how has the development of this year affected the two companies?
Wang Donglei: I am also the dean of the Academia Sinica at NVC, and it is faster to promote this. Dehao Runda and NVC are now looking at the division of labor. Now, Dehao is the light source, and NVC is the light fixture. The product lines of the two companies are properly separated. This is also to avoid direct competition and complement each other. This is basically recognized by the board of directors of the two companies, and cooperation is better. At present, Dehao's product preparation is also in place. After the product is in place, the sales growth in the NVC channel is good. The run-in is a bit slower, but now it seems to be getting more and more mature, and sometimes it can't be done overnight. It takes time.
"21st Century": In addition to the possibility of seeking expansion overseas, what is the next strategy of Dehao Runda and NVC?
Wang Donglei: For NVC, I hope to expand the market share in China and continue to maintain the number one position in the Chinese market. Overseas, I hope that through a long period of efforts, I can make the NVC brand global. Mr. Wu Changjiang has recently gone overseas and is working hard to promote this. For Dehao and NVC, we will make greater efforts to promote their integration, and through their integration, they will complement each other and bring out synergies. This is the most important job for us in the next one to two years.
"The development of LED industry cannot rely on subsidies"
"21st Century": The development of LED enterprises is still affected by policies. The government has also carried out some high subsidies.
Wang Donglei: LEDs are still losing money in the past few years. You look at our huge investment interest expenses and earn money to rely on government subsidies to live. The government subsidies are still there, but the intensity and intensity of subsidies are gradually decreasing. LED is also an industry actively supported by governments. Countries support this strategic new industry from the perspective of energy conservation and environmental protection.
Without government subsidies, corporate profits will have an impact, but businesses will be healthier. Dehao Runda should still have some subsidies, but in my opinion, it is a windfall. From the data in this financial report, a non-operating income, a kind of operating income, relying on government subsidies, the initial stage can be, the long-term significance for business operations is small, and enterprises must ultimately rely on self-reliance.
However, due to the large amount of subsidies from the government in the past few years and the release of production capacity, the price of LED chips has dropped rapidly. The rapid and popular growth in the downstream will inevitably lead to an increase in upstream demand. That is to say, without relying on government subsidies, this industry can already have a market. Competitive. For Dehao Runda, it is a whole industry chain factor. When the upstream is slightly stressed, the downstream is very good, because the cost is low, sales and profits are gone up.
"21st Century": The LED industry is now also overcapacity, and the situation of underemployment is relatively common. In your opinion, what will happen to the future of this industry?
Wang Donglei: LED lighting is the fourth revolution of lighting. 90% of human lighting will be replaced by LEDs. At present, the penetration rate is less than 10%, and the market space is very large. Therefore, the LED industry is a bright industry with very good prospects. For those of us who do industry, it is difficult to meet the opportunity of an industrial revolution. Then LED lighting is a revolutionary transformation. When China's lighting to the world is replaced by LED, this is a big market, the relevant institutions. Research, the global market has a total size of nearly one trillion. From now on to the next few years, the future of the industry itself is bright.
The first phase of the LED itself is now an alternative use, and the second phase will change the human habit of using light into intelligent lighting and emotional lighting. This will create a new era of human energy! With the support of the Chinese government, the Chinese turned LED into a popular product overnight. This makes us feel the creativity of Chinese people, the creativity of Chinese entrepreneurs and the driving force of the Chinese government.
(This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED. Readers need to verify the relevant content by themselves.)
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