On March 26, NVC Lighting (2222.HK) released its 2013 annual results announcement in Hong Kong. As of December 31, 2013, compared with the previous year, NVC Lighting's operating income increased by 6.4%, and its profits surged by 2,809.7%. The overall performance exceeded expectations.
The financial report released by NVC Lighting not only reflects NVC’s own development trends, but also reflects the current status and trends of industry development. In the future, for Chinese lighting brands, LED lighting business and overseas markets may become two important areas for market expansion.
The explosive growth of LED business has become the core driving force for the development of NVC
In recent years, with the policy boost, the cost reduction of LED lighting, and the global ban on incandescent lamps taking effect in batches in 2014, the obvious energy-saving and environmentally friendly characteristics of LED lighting have become more and more advantageous, prompting the share of LED lighting in the entire lighting field to continue to rise. The LED lighting market has ushered in great development opportunities, and the lighting industry has rapidly entered the LED era. Under the favorable market environment, NVC's LED business has developed smoothly. In 2013, NVC Lighting's LED lighting products achieved a rapid growth of 197.4%.
As a leading company in China's lighting industry, NVC Lighting began to intervene in the research, production and sales of LED lighting as early as 2007. In the early stages of the development of LED lighting, NVC has carried out targeted research and layout. When the market gradually matured and quickly entered the critical period of the LED lighting era, it rapidly increased its research and development and production of LEDs, and successively reached strategic cooperation with world-renowned LED chip companies. At the same time, it fully integrated LED upstream resources and successfully realized the integration of the entire industry chain of upstream chips, midstream packaging and downstream lighting applications in the LED field, forming a vertically integrated LED layout and mastering the right to speak in the industry.
On March 15, NVC Lighting grandly released its 2014 new LED products at the National Aquatics Center (Water Cube) in Beijing. Such a large-scale full series of new product launches made the industry marvel at NVC’s R&D capabilities. It also showed NVC’s confidence in the LED development prospects in 2014, and also sounded the clarion call for NVC’s development in 2014.
Vigorously expand into emerging markets, with revenue from overseas markets hitting new highs
As the lighting brand with the most international potential in China's lighting industry, NVC Lighting's overseas market business has been steadily advancing. In 2013, NVC increased its efforts to expand into emerging markets. In addition to establishing a branch in Brazil and successfully expanding its sales territory to the South American continent, NVC also developed the Inner Mongolia market and increased investment in markets such as Indonesia, the United Arab Emirates, and Saudi Arabia. In 2013, NVC's sales revenue in overseas markets increased by 20%. Among them, the proportion of LED products in the sales categories increased rapidly from 7.3% to 17.2%.
Mr. Wu Changjiang, founder and president of NVC Lighting [Weibo], once said that in order to build NVC into a world brand, an international company, and a respected enterprise, we must promote our own brands to the global market. At present, domestic sales account for about 80%, and we hope that export sales will account for 60% or even 80% in the future. In the next three to five years, NVC will strive to become one of the top three lighting companies in the world.
In addition to its efforts in LED and overseas markets, NVC also continued to increase its design and research and development efforts in 2013, actively consolidated its channel advantages domestically, and increased channel construction in third- and fourth-tier markets. At the same time, we continue to strengthen our brand promotion efforts at home and abroad. Signing to become the official partner of FINA provides NVC Lighting with a stage for global display and also plays a positive role in promoting the promotion of overseas markets. With the help of the favorable market environment and NVC's own advantages and efforts, NVC Lighting has delivered a beautiful report card in 2013, and its development in 2014 is worth looking forward to.
ANNA