Share This

Public company info - NVC International Holdings Limited , 02222.HK
Input the stock code or the company name     Search  
 
 Profile   Information   Data   Financial Ratios   Profit Loss   Cash Flow   Balance   Earnings   Dividend 

NVC International Holdings Limited, 02222.HK - Company Profile
Chairman WANG Donglei
Share Issued (share) 4,227,000,000
Par Currency U.S. Dollar
Par Value 1.0E-7
Industry Furniture & Household Goods
Corporate Profile Business Summary: The Group is principally engaged in the design, development, production, marketing and sale of a variety of lighting products including commercial lighting products and home lighting products. Performance for the year: The Group’s revenue from continuing operations amounted to RMB2,222,610,000, representing an increase of 31.9% as compared with the Corresponding Period. The Group’s gross profit from continuing operations amounted to RMB533,361,000, representing an increase of 60.7% as compared with the Corresponding Period. The Group’s loss before income tax from continuing operations amounted to RMB5,469,000, with the loss before income tax amounted to RMB471,731,000 in the Corresponding Period. Loss attributable to owners of the parent from continuing operations amounted to RMB101,524,000, with the loss amounted to RMB717,245,000 in the Corresponding Period. Business Review： The Group has been deeply engaged in the lighting industry for more than 20 years and has established sales networks and channels in major countries and regions such as Europe, Australia, North America, East Asia, Middle East and Southeast Asia. During the Reporting Period, the Group established a production base in Vietnam and has completed the preparatory work for the production, which is another key measure for the Group to explore overseas markets. In addition, on 12 December 2019, the very substantial disposal of a majority equity interest in the Disposal Business was formally completed, through which the Group received large amounts of cash dividends from the disposal of the increasingly mature China lighting business, to reward shareholders and at the same time finance the Group’s further development. The Group shifted the focus of its lighting business from China to the international market and focused its China business to non-lighting products and systems of the NVC brand. In 2019, the Group’s continuing operations achieved revenue of RMB2,222,610,000, representing an increase of 31.9% compared with the Corresponding Period, the discontinued operations achieved revenue of RMB3,335,389,000, representing an increase of 3.6% compared with the Corresponding Period; the Group’s gross profit from continuing operations amounted to RMB533,361,000, representing an increase of 60.7% compared with the Corresponding Period, and the gross profit from discontinued operations amounted to RMB1,286,503,000, representing an increase of 12.2% compared with the Corresponding Period, which was in line with the Group’s expectation as a whole. PRC Sales (Discontinued Operations) As a leading enterprise in the PRC lighting industry, during the Reporting Period, the Group continued to devote itself to technology innovation of products in the Chinese market, with a focus on the research and development of high-end lighting products and solutions, and sold lighting products under the NVC brand through its exclusive regional distributors and its more than 3,000 exclusive outlets throughout China. During the Reporting Period, the NVC brand gained satisfactory results in market segments such as commercial lighting, home lighting and e-commerce channels through adopting differentiated strategies to deepen channel development. In the commercial lighting sector, the Group has effectively improved its engineering service capability and project conversion rate by adopting a sales strategy of “keeping the existing market share and exploring the incremental market”, focusing on key projects and customers and supporting the development of specific engineering products. During the Reporting Period, the Group completed the supply of goods for many RMB10-million-level outdoor projects such as “7th CISM Military World Games in Wuhan”, “Bengbu Urban Night View Lighting Improvement Project (Phase III)”, “Lishui Landscape Lighting Project” and “Chengdu Metro Line 5”; the amount of shipments to Top 50 customers in real estate industries including China Overseas Property, Evergrande Real Estate, Poly Real Estate and Greenland Group also exceeded RMB10 million. In the home lighting sector, the Group continued to promote the construction of homestyle outlets. During the Reporting Period, it established and upgraded a total of more than 700 home-style outlets. It supported the Group’s channel penetration strategies, making efforts to promote the upgrading and transformation of outlets in township channels, so as to expand the coverage of outlets in township channels. In addition, by optimizing the supply chain and streamlining the product pool, and promoting product standardization, modularization and platform reform, the gross profit margin of retail channels was improved during the Reporting Period compared with the Corresponding Period. In the e-commerce sector, with a focus on the channel strategy of “platform centralization and product refinement”, the Group made efforts to develop business mainly on core platforms such as Tmall, JD Proprietary and Suning Flagship Store. Through large-scale brand activities on platforms, enhancement of visual display of products, precise advertising and media resource investment, the sales volume on core platforms increased steadily; by adjusting key product structure to balance the planning for offerings, ceiling lamp, bath heater and table lamp saw double-digit growth. In terms of backend support, the Group has also continuously improved its warehousing and distribution capabilities and built a quality management system adapted to the internet, ensuring user experience and brand reputation on the internet. Since the Company will continue to indirectly hold a 30% equity interest in Disposal Business, it will continue to benefit from the future development of Disposal Business. International Sales With many years of rich marketing experience and an excellent global operation team, the Group continued to make great progress in international markets during the Reporting Period, gradually unlocking the development potential of overseas markets. The Group divides the international market into mature channels and emerging channels by region features. It has become an industry consensus for many years that winning the North American market, which is the world’s largest lighting market, is winning the international lighting market. In 2019, the North American market remained the largest market for overseas mature channels of the Group. In terms of retail channels in the North American market, during the Reporting Period, the Group actively assisted its largest customer in completing the launch of more than 50 differentiation projects, and supported the customer in the promotion of core product lines such as downlights, high bay lights and ceiling lamps, and adjusted its pricing policies in a timely manner in line with market conditions and policy changes, thus ensuring a steady increase in sales despite severe market conditions. Commercial channels in North American focus on the proprietary brand. In order to alleviate the impact of Sino-US trade friction, the Company’s marketing team actively prepared for inventory in advance, tracked the price changes of competitive products throughout the process and formulated various targeted promotion plans, to prevent the decline in sales and maintain the stability of gross profit margin to the maximum extent. During the Reporting Period, business expansion in the Japanese market was accelerated. A number of bulb lamp and ceiling lamp series have been successfully introduced to major home appliance hypermarkets in Japan, with a steady increase in the order volume. In mature markets including the UK, the Group continued to maintain its wholesale business with wholesalers in key channels, and focused on and optimized its core product lines to improve product profitability. At the same time, the Group reached strategic cooperation with well-known local builders in the UK and acquired more than 20 project mandates pending implementation, thus expecting a considerable return in 2020. The Group also actively developed its engineering business. After a year of follow-up, the first large hotel and apartment construction project in Australia was successfully converted into orders, for which products were shipped successively. In overseas emerging channels, breakthrough development was achieved in the Southeast Asian market during the Reporting Period, with the Indonesian market continuing to play a leading role. During the Reporting Period, the number of terminal retail outlets increased to more than 2,000. Through an investment of online and offline marketing resources, tertiary sales in the Indonesian market and the influence of the NVC brand in this area were significantly improved. At the same time, the Group continued to promote the construction of the Vietnamese market and has established a representative office in Vietnam, with a focus on developing the Mekong River region and developing new agency and wholesale business in the central region. In terms of engineering channels, the Group actively granted authorization to engineering distributors and made plans for unconventional channels, and set up new exhibition halls in Cambodia, to expand its cooperation with various contractors. In terms of the Belt and Road Initiative projects, the Group won the bid for the “Rye Railway Project”, the first double-track railway in Nigeria and has delivered products for the first phase. In the Middle East region, the Group continuously strengthened the development of and support for major projects in 2019, and successfully won projects for certain stadiums of the “2022 Qatar FIFA World Cup”, and completed delivery of products. At the same time, substantial progress was achieved for some pavilions and related supporting facilities for the Expo 2020 Dubai. Product Research and Development and Brand Honors The Group has been deeply engaged in the lighting industry for more than 20 years. It has been adhering to the craftsman spirit of professionalism and dedication. It has committed to the innovative development of product quality, the satisfaction of the increasing demand of consumers and corporate customers around the world for high-quality lighting products, and made unremitting efforts to build a world-renowned brand. In China’s top 500 list in terms of brand value published in December 2019, the Group ranked among the list again, with a brand value of RMB33.126 billion, further improving its brand value and reputation. During the Reporting Period, the Group’s research and development focused on classification management of product lines and platform standardization. Through the introduction of the advanced ecological tree management system, the Group has divided product pools into the professional category, the application category and the brand category, while upgrading the performance and lighting effects of various products according to those of international first-class brands to control the cost and price competitiveness of strategic products. In terms of platform standardization, the standardization and process efficiency improvement team was established to build and upgrade various series of product standardization platforms and carried out a unified upgrade, management and control through including main components and parts in the standardization library, thus achieving the target of the Group to reduce cost by technologies. In the field of intelligent development and application, during the Reporting Period, the Group successfully developed and iterated smart home applications, and supported suppliers in making a connection to software systems of smart power supplies. At the same time, intelligent control applications were developed and a connection was made to the voice control system of Google Home in the North American market. APP systems were also developed in an orderly manner in the Toshiba market in Japan. Intelligent modules, intelligent remote controllers and intelligent desk lamps for main products also successfully entered the main marketing channels. Prospects: Under the complex environment with internal and external difficulties, the Group has actively adjusted its development strategy. In 2020, it will take steady growth as its primary goal and continuously expand its business coverage by adopting the policy of expanding channels, reducing costs and creating quality products. It will continuously promote its internal restructuring and resource allocation optimization to achieve its sustainable development. In retail channels in North American, as a strategic supplier of global leading building material retail enterprises, the Group will continue to maintain the characteristics and advantages of a frontrunner in innovation and quick response, to ensure the supply of quarterly new products, while maintaining the spirit of innovation in product functions and supporting installation to further enhance the added value of products. In the future, the Group will also increase decorative lighting products and commercial lighting products for use in offices and schools, and continuously expand and strengthen ODM business to expand the production capacity and enhance the marginal contribution of products. In terms of commercial channels, the Group will intensify its marketing efforts, focus on developing more powerful local distributors, adhere to the market positioning of high cost-effective products, and focus on increasing the sales volume of customized projects and energy management projects. In addition, the Group established a Vietnamese factory in 2019 and completed the upfront investment and staffing, the output of which in the second quarter of 2020 will be expected to meet the export demand in Southeast Asian and North American markets, which will effectively buffer the impact of tariff growth on the North American market. Meanwhile, the phase II self-built building of the Vietnamese factory will be completed by the end of 2021, with the economies of scale effect and cost advantages gradually appearing, and a further improvement in the core competitiveness of the products. In 2020, in the Japanese market, efforts will be made to gradually expand B2B channels towards distributors while continuously expanding B2C retail channels towards consumers, so as to comprehensively upgrade its business in the Japanese market. In order to fully seize favorable opportunities arising from the authorization by Toshiba Japan, the Group has established subsidiaries in China to fully carry out the business of Toshiba China. In the future, the Group will orient its business towards numerous Japanese general contractors and factory owners in Beijing, Shanghai, Guangzhou and Shenzhen, and assist distributors in first and second-tier cities in project matching to quickly enter the Chinese market. With the strong national distribution network and the strategic property developer cooperation network of Toshiba China, the Group will implement targeted grafting to reach out to the blue ocean market. In overseas emerging channels, the Group will establish a Vietnamese subsidiary in 2020, and take Vietnamese market projects as an opportunity to enhance the value of the brand of NVC International in the local quality lighting product market. At the same time, it will take Vietnam as the starting point of service and extend the coverage to neighboring countries such as Cambodia and Laos, so as to accelerate the overseas market expansion. In newly developed regions such as Italy, Pakistan and South Africa, the Group will focus on engineering channels and plans to increase the number of shop-in-shops in Italy from 16 to 100 by 2021, covering major Italian cities and regions to provide professional engineering support services for end customers. In the Middle East region, the Group will continuously enhance its project support capacity, develop localized products and professional lighting solutions meeting local demand, and strive to obtain more supporting projects of the 2022 Qatar FIFA World Cup and Expo 2020 Dubai. At the same time, the Group will focus on improving the image display and sales capabilities of exclusive outlets in Gulf states, tap customer demand through targeted resource investment, and improve the ability of an outlet to acquire small projects. In terms of product development and brand building, the Group will continue to accelerate the development of new products and technology upgrades with a focus on market and customer demand in 2020. Through the establishment of a close research-production-marketing communication mechanism, it quickly adjusts its product strategy to adapt to the changing market environment and create the brand of a world-leading lighting product solution service provider, with the aim of creating value for customers. In terms of organizational structure and personnel training, the Group will continuously promote the automation reform of factories in 2020, streamline the organizational hierarchy of functional platforms and establish a flat organizational structure to reduce fixed costs. At the same time, through the effective access to overseas resources, it has introduced high-quality international talents to realize the localized operation and has established a cost-effective and competitive talent service system to ensure that there are adequate human resources for the sustainable and healthy development of the Company. In terms of supply chain management, the Group will continue to implement the JIT system in factories, make early plans for production capacities of suppliers, and coordinate with all factories to properly schedule their production capacities. In 2020, the Group will improve the system of introduction and evaluation of logistics providers and integrate logistics resources to reduce logistics costs. Meanwhile, it will strengthen the control of product inventory ages, formulate plans to treat expired products in a timely manner and reduce warehousing costs. In addition, the Group has spared no effort to strengthen information construction. A new ERP system will be fully implemented in the Elec-Tech System in 2020. The system based on the cloud platform model will facilitate business and information flow among companies and realize global cross-regional cooperation and data sharing for major businesses, effectively shortening business operation time and improving work efficiency. Subsequently, it will successively integrate research, production and marketing and other company platforms within the Group to realize the interconnection of data flow and information management within the Group, thus improving the overall operational efficiency of the Group.

Information from the financial statements of listed companies

Mobile | Full
Forum rule | About Us | Contact Info | Terms & Conditions | Privacy Statment | Disclaimer | Site Map
Copyright (C) 2024Suntek Computer Systems Limited. All rights reserved
Disclaimer : In the preparation of this website, 88iv endeavours to offer the most current, correct and clearly expressed information to the public. Nevertheless, inadvertent errors in information and in software may occur. In particular but without limiting anything here, 88iv disclaims any responsibility and accepts no liability (whether in tort, contract or otherwise) for any direct or indirect loss or damage arising from any inaccuracies, omissions or typographical errors that may be contained in this website. 88iv also does not warrant the accuracy, completeness, timeliness or fitness for purpose of the information contained in this website.