Commentary: The first round of 'reshuffle' in China's lighting industry is basically complete

　　According to statistics from relevant industry departments, there are now 50 enterprises in China with annual sales exceeding 100 million yuan, more than ten with annual sales exceeding 600 million yuan, and many enterprises are rapidly moving toward group-based and large-scale operations. Relevant experts analyze that the era of 'whale devouring' in China's lighting industry has arrived.

　　NVC Lighting Chairman Wang Donglei: No one can absolutely control NVC

　　On the evening of July 14, NVC Lighting announced changes in directors of multiple companies under its umbrella, stating that original NVC executives Wu Changjiang, Wu Changyong, Mu Yu, Pei Jinhua, Yang Wenbiao, and other 'NVC faction' executives have completely exited board seats. Directors of 11 subsidiary companies were replaced by executives of the Dehao Runda (002005, Stock Bar) faction — Wang Donglei and Wang Dongming, Xiao Yu — as well as Schneider representative Zhu Hai and Softbank SAIF representative Lin Heping. This is the largest wave of 'purge' of NVC faction executives that NVC Lighting has witnessed since the end of May, when original NVC executive Mu Yu exited the board. After this adjustment, all NVC faction executives have exited the boards of the 11 subsidiary companies, while Wu Changjiang continues to serve as executive director of NVC Lighting Holdings Limited.

　　Comment: In December 2012, Dehao Runda spent HK$1.65 billion to acquire approximately 20% of NVC Lighting by absorbing Wu Changjiang's personal shares. After a series of equity changes, in the just-passed April, Dehao Runda once again spent HK$500 million to increase its stake in NVC Lighting by 6.86%, becoming NVC's largest shareholder with 27.1% of the shares. As the largest shareholder, it is inevitable to grow the Dehao Runda brand. Wang Donglei also frankly stated that the increase in holdings is to enhance the company's influence in NVC Lighting, in order to facilitate further integration at a later stage.

　　LED marketing genius Wu Zhengzhe leaves Everlight

　　On July 14, Everlight Group officially announced that Wu Zhengzhe and Wang Bingbing no longer hold any positions at Everlight and have officially left the Everlight Group. The position of General Manager of Everlight Lighting, originally held by Wu Zhengzhe, has been taken over by Li Jiannan; Wang Bingbing's position has been taken over by Su Huixian.

　　Comment: Wu Zhengzhe's departure has triggered much speculation in the industry. Was it Wu's "wrongful" departure? Or did Everlight lose a talent? Or has Wu completed his historical mission, with both sides reaching a "Happy Ending"? Regarding this matter, Wu Zhengzhe told the media that it was not convenient to respond for the time being, adding more suspense.

Li Xuliang subscribes fully with 500 million in hard cash; Kingsun's private placement may be paving the way for M&A

　　Recently, Kingsun Optoelectronic (002638, Guba), whose trading had been suspended for over a month, announced that it plans to issue 40.33 million shares via non-public offering at 12.30 yuan per share to actual controller Li Xuliang, raising 496 million yuan to supplement working capital.

　　Commentary: The 'King of Street Lights'—Kingsun Optoelectronic—has finally lifted the veil amid the peak of public opinion surrounding the 'wave of executive departures' and 'sparking an LED price war'. The LED industry has extremely low concentration, and the huge market opportunities in the coming years require extensive M&A to capture. Li Xuliang's full subscription with real money this time is essentially paving the way for becoming a giant in the LED lighting field,' an industry insider analyzed.

　　Osram Accused of False Advertising; May Pay $30 Million Settlement

　　According to foreign media reports on the 15th, Osram has agreed to pay $30 million to settle with consumers who had previously filed a class action lawsuit. Consumers alleged that the company's SilverStar car light products engaged in false advertising, claiming the products offered greater brightness and projected light beams with wider coverage, providing drivers with better driving visibility.

　　Commentary: According to the settlement agreement, qualified class action members will be entitled to a proportional share of the settlement funds after deducting attorney fees and other expenses, with each consumer receiving approximately $10. Osram denied wrongdoing but agreed to modify the front and back packaging images of the SilverStar series car bulbs.

　　Nanoleaf Releases Second-Generation LED Energy-Saving Bulbs — Li Ka-shing Seeks Mainland Partners

　　On July 14, Nanoleaf launched its second-generation product on the U.S. crowdfunding platform Kickstarter, four years after the concept was first conceived. Two Nanoleaf founders recently revealed that the new product adds a brightness-adjustment function, further enhancing its energy-saving potential. Priced at USD 40 each, the second-generation bulbs will be sold on Kickstarter for 60 days, with mass production set to begin next month. They are currently seeking partners in mainland China.

　　Commentary: The "Li Ka-shing effect" has raised Nanoleaf's profile and attracted the attention of many investors, but the two founders consistently insist that "money is not important; philosophy is." However, the current task is to find mainland partners and break into the mainland market within this year.

　　Leyard (300296, Stock Forum) Acquires 100% Equity in Shenzhen Jinda Lighting

　　On July 11, Leyard Optoelectronic Co., Ltd. (600184, Stock Forum) announced that the company has acquired 100% equity of Shenzhen Jinda Lighting Co., Ltd. through the issuance of shares and cash payment, and that Jinda Lighting was converted into a wholly-owned subsidiary of the company in May 2014. To further accelerate the business development of Jinda Lighting and expand its market and business scale, the company plans to make a cash capital injection of RMB 59,200,000 into it.

　　Commentary: Leyard stated that this capital increase in Jinda Lighting will promote the development of Jinda Lighting's production and operations as well as the improvement of operational efficiency, enhancing Jinda Lighting's sustainable operating capability; it is conducive to better serving and meeting customer needs, and better expanding existing markets and businesses; it is also beneficial to the company's long-term planning and development. Part of the capital increase funds for Jinda Lighting comes from the company's own funds, which will have a certain impact on the company's cash flow. If the capital increase fails to meet expectations, it will have a certain impact on the company's cash utilization efficiency.

　　Jiawei Shares (300317, Stock Bar) Acquires 100% Equity of Pingshang Lighting for 120 Million

　　Jiawei Shares announced on the evening of July 16 that on May 19, the company signed the "Equity Transfer Agreement between Shenzhen Jiawei Photovoltaic Lighting Co., Ltd. and All Shareholders of Zhongshan Pingshang Lighting Co., Ltd. regarding Zhongshan Pingshang Lighting Co., Ltd." with all shareholders of Zhongshan Pingshang Lighting Co., Ltd. (hereinafter referred to as "Pingshang Lighting"), agreeing to transfer 100% of the equity of Pingshang Lighting for a cash consideration of RMB 122.5 million. After the company's preliminary due diligence, the company and all shareholders of Pingshang Lighting recently signed a supplementary agreement to the equity transfer agreement. Upon completion of the above transaction, Pingshang Lighting will become a wholly-owned subsidiary of the company.

　　Commentary: Through this acquisition, Jiawei will quickly enter the domestic lighting market with huge market capacity, and the domestic market sales scale will rapidly increase, which will to a certain extent reduce the risk of an excessively high proportion of overseas markets; at the same time, since Jiawei has good advantages in R&D, product quality, talent mechanisms and other aspects, and has strong business synergy with Pingshang Lighting, Jiawei's profitability will be continuously improved. In the future, as a wholly-owned subsidiary and main sub-brand of Jiawei, Pingshang Lighting will accelerate its development after the listed company continuously invests advantageous resources.