Wang Donglei said Dehao Runda will not transfer NVC equity

On the 14th, ten more NVC operation centers supported the board of directors and the new management of NVC Lighting headed by Wang Donglei, including dealers in Datong, Inner Mongolia, Ningxia, Dalian, Chongqing, Jingzhou, Huizhou, Heyuan, Hainan, and Shanxi.

On August 12, dealers in Beijing, Nanjing, Liaoning, Shandong, Fujian, Guangxi, Shenzhen, Guangzhou and other places have signed a statement supporting the NVC board of directors, covering the largest provincial operation centers with NVC sales ranking among the top 16 in the country. Their combined sales account for more than 80% of NVC's total sales.

Gradually gaining support from dealers, NVC Chairman and Interim CEO Wang Donglei seems more confident. Regarding the rumors that Dehao Runda may sell its NVC shares to Wu Changjiang, Wang Donglei said at a press conference in Hong Kong today that Dehao Runda has no intention of selling NVC shares. "I believe that firstly, Mr. Wu Changjiang does not have any capital strength to buy it. Secondly, out of the responsibility of protecting the interests of shareholders, I can responsibly say that even if Dehao Runda sells its shares in the future, it will not be sold to anyone but Mr. Wu Changjiang."

However, the resumption negotiations at the Wanzhou base have stalled. Zhang Hongfei, manufacturing director of NVC's Chongqing Wanzhou base, told reporters that today's resumption negotiations with Wang Donglei were temporarily canceled due to Zhang Baoyu, general manager of the Chongqing Wanzhou base, who was on a business trip.

Wang Donglei said that Wu Changjiang still controls the NVC Chongqing headquarters, and the financial seal and business license are still under his control. Corresponding measures have been taken to prevent major accidents in the bank's important funds as much as possible; the Wanzhou factory is also controlled by Wu Changjiang and his related parties with consistent interests. "We are further communicating with them through the local government and doing everything we can to protect the interests of the company and shareholders."

Wu Changjiang, the founder and former CEO of NVC, is in a passive situation. In addition to privately licensing the NVC brand to affiliated companies for 20 years, he was also accused of establishing a business unit in NVC this year in order to "pass a layer" of profits in the product distribution process. His younger brother Wu Changyong is in charge of procurement and has also "passed a layer" in linking with affiliated companies.

However, an NVC insider close to Wu Changjiang told this reporter that if NVC's profits can be guaranteed, affiliated companies will also make money, indicating that cost control is good.

Instead, he accused Dehao Runda of transferring NVC's light source business and looking for external suppliers to manufacture the products. The prices were high and the quality was poor, and NVC dealers didn't like it. Moreover, Dehao Runda's LED chips are more expensive than other domestic chips of comparable quality, with the price difference between Cree's chips being only five percentage points. "If Wang Donglei takes over, NVC will no longer be the same NVC."

Wu Changjiang claimed that he still owns 2.54% of NVC shares, but Wang Donglei said, "Our company secretary is currently unable to find the shares he claims to own. The company secretary has sent him a letter asking him to prove the 2.54% shares he claims. In fact, the company's major shareholders, including our previous largest shareholders, unanimously support the board of directors' resolution (referring to the removal of Wu Changjiang as CEO)."