Elec-Tech discloses Q3 report, Jan-Sep net profit exceeds 70 million
As a model of traditional lighting companies, NVC Lighting is facing a series of serious corporate problems such as LED strategic mistakes, infighting among shareholders, management disorder, the company's management breaking with distributors, and chaos among agents, which may lead NVC to long-term turmoil or even eventual extinction. The fierce battle between "Wu (Wu Changjiang) and Wang (Wang Donglei)", whether in terms of brand image or team strength, has caused severe internal injuries too painful to look at directly.
Due to the impact of the battle for "control" between Wang Donglei and Wu Changjiang at NVC Lighting, Elec-Tech's current development situation is also receiving great attention from industry insiders. On Wednesday evening, Elec-Tech disclosed its Q3 report. The company achieved a net profit of 70.4539 million yuan in the first three quarters, a year-on-year increase of 196.15%; earnings per share of 0.0526 yuan. Elec-Tech continues to acquire NVC Lighting.
Jan-Sep net profit 70.45 million, year-on-year increase of 196%
The report indicated that the company achieved a net profit of 70,453,900 yuan in the first three quarters, up 196.15% year-on-year; earnings per share stood at 0.0526 yuan.
During the period, sales of small home appliances grew, while chip and packaging sales surged significantly, driven by the release of production capacity in the LED industry. The company achieved operating revenue of 3.139 billion yuan, an increase of 38.29% compared with the same period last year.
The financial statements show that during the reporting period, asset impairment losses and non-current asset disposal losses decreased significantly, while investment income rose notably, benefiting performance.
Dehao Runda stated that its small home appliance business performance has improved compared with the same period last year. Meanwhile, shipments of LED chips and packaging products rose substantially year-on-year. The company expects to turn losses into profits, with net profit expected to range between 60 million yuan and 90 million yuan.
Execution of major operating contracts
On March 15, 2014, the Company entered into the "2014 Annual Regional Operations Center Distribution Agreement" with 37 operating centers nationwide of NVC Lighting Holding Co., Ltd. The intended aggregate sales amount between the Company and the aforementioned 37 operating distributors was approximately RMB 1 billion of LED lighting products. The agreement was valid from January 1, 2014 to December 31, 2014. As of the end of the reporting period, the agreement had cumulatively realized sales revenue of RMB 210,015,400, with collected payments of RMB 159,208,200 and period-end accounts receivable of RMB 86,509,800.
On the Related-Party Transaction Concerning the Continued Acquisition of Equity Interests in NVC Lighting
The Company's report states that, through its wholly-owned subsidiary Hong Kong Dehao Runda, between December 11, 2012 and December 21, 2012, it acquired an aggregate of 260,380,000 ordinary shares of NVC Lighting, a company listed on the Main Board of the Hong Kong Stock Exchange, by way of on-exchange and off-exchange transactions on the Hong Kong Stock Exchange, representing 8.24% of its total issued ordinary shares of 3,158,513,000 shares, with a transaction amount of HKD 703,474,160.05.
On December 26, 2012, the Company entered into the conditional "Share Transfer Agreement" with NVC Inc., one of the major shareholders of NVC Lighting, pursuant to which the Company intended to acquire from NVC Inc. 372,921,000 ordinary shares of NVC Lighting it held (together with dividend rights), representing 11.81% of the total issued ordinary shares of NVC Lighting, at a transaction price of HKD 2.55 per share, for an aggregate transaction amount of HKD 950,948,550. In March 2013, the transfer of the shares under the agreement was completed.
On April 20, 2014, Hong Kong Dehao Runda entered into the conditional "Agreement on the Transfer of 6.86% Shares of NVC Lighting Holding Co., Ltd." with Mr. Wu Changjiang, a natural person, and NVC Inc. The Company intended to acquire from Mr. Wu Changjiang and NVC Inc. 214,508,000 ordinary shares of NVC Lighting they held (together with dividend rights), representing 6.86% of the total issued ordinary shares of NVC Lighting, at a transaction price of HKD 2.34 per share, for an aggregate transaction amount of HKD 501,948,720. As of the disclosure date of this report, 212,445,000 shares out of the aforementioned shares had completed the transfer, while 2,063,000 shares had not yet been transferred.
Currently, since NVC Lighting is a Hong Kong-listed company and does not disclose quarterly reports, Dehao Runda has not disclosed its period-end book value and period profit/loss.
Explanation Regarding the Company's Planning of Major Matters
Due to the planning of major matters, the Company suspended trading from the opening of the market on August 8, 2014, and has been publishing progress announcements every five trading days. As of the disclosure date of this announcement, the Company and relevant intermediary agencies are actively advancing the work on this matter. Given that this major matter remains uncertain, the Company's stock remains in a trading suspension state.
How many connections are there currently between NVC Lighting and Dehao Runda? Industry insiders are still speculating. At present, both major companies are in trading suspension. How much confidence does the market actually have in Dehao Runda? Please stay tuned!