Breaking: Sunlight Lighting & Qi Xiaoming "Part Ways"

On January 9, 2023, Sunlight Lighting announced that on January 6, the company signed a 'Equity Transfer Agreement' with related party QI XIAOMING (Qi Xiaoming), agreeing to acquire 15% equity of Zhiyi IoT held by QI XIAOMIN (Qi Xiaoming) for RMB 12 million. The funds for this equity acquisition are from the company's own resources. Following this transaction, Zhiyi IoT will become a 100% wholly-owned subsidiary of the company.

Review the past relationship between Sunlight Lighting and Qi Xiaoming:

What are Qi Xiaoming's thoughts on this "breakup"? What has Qi Xiaoming done at Sunshine over the past year and a half? To find out, China Light Network interviewed Mr. Qi Xiaoming.

Q About Breakups

Qi: After cooperating with Sunshine for 2 years and working in the group (as Acting General Manager) for 1 year, both parties have come to know each other better. However, there are some differences in views on future business judgment and operating philosophy, and performance has been unsatisfactory. The business needs a clear and defined direction. After friendly negotiations, Sunshine acquired my shares invested in Zhejiang Zhiyi through an Acquisition. We hope Sunshine's business will continue to develop steadily.

Q What was done in the sun

Qi: In 2021, we launched the brand proposition "See the Difference," aiming to shape a brand path suitable for sunlight starting from customer perception. At the same time, we have made significant efforts in product development and management processes, from expanding our basic product series to improving efficiency through more systematic management approaches, such as overall procurement supply chain management and IPD.

Traditional manufacturing must face an highly uncertain future. It cannot rely solely on a simple 'input-output' mindset, but must adopt a more systematic approach based on data analysis and logical judgment across various dimensions. Currently, due to the short timeframe, some results have already emerged, while many measures and actions remain difficult to evaluate or show obvious effects. However, if enterprises maintain long-term strategic resolve, they will certainly reap rewards.

Q Regarding market competition

Qi: Competition in the Chinese market should be more intense than in overseas markets, mainly due to the high transparency of the production supply chain. Therefore, the key to breaking through lies in comprehensively considering and strategically planning from product cost-performance ratio to (Sales) channel reach, from marketing tactics to brand elevation, from offline to new retail, etc., in order to find suitable tactics to achieve strategic goals.

The impact of the 2022 pandemic on business exceeded expectations, significantly affecting many companies in the industry, including Sunshine. However, in 2022, Sunshine also stocked up on many innovative products, improved service management processes, and achieved numerous project bids and shortlistings. With pandemic control entering a stable phase in 2023, this presents a great opportunity for well-prepared brand enterprises.

Q Past Review and Challenges

Qi: My experience is that strategic adjustment must begin with cultural change, and transforming a company's existing corporate culture is highly challenging.

Q Views on Future Lighting

Qi: After nearly 10 years of rapid development before the pandemic, general LED lighting has already become a traditional Industry. Therefore, it is inevitably characterized by price competition, value destruction, and involution. The future direction will certainly lie in system applications and intelligent technologies within lighting. The key lies in how the entire Industry evolves—not passively, but actively. Especially for leading enterprises with ideals and capabilities, they should have greater aspirations and responsibilities to drive innovation and change.

As a manager with a background in technical products, I still believe in the concept of 'technology changes life', but it should not be overly abstract technology, nor flashy technology, nor self-indulgent technology; rather, it should be technology and corresponding products and solutions that can withstand verification by the market and users.

Q What is the future plan?

Qi: I will continue to closely monitor the lighting and related smart fields, hoping to have time to think about and gain insights into the future development direction of lighting from other dimensions or system innovation perspectives.