Dumped down in bitter water saying that investors are vulnerable groups

Executives resigned, stock prices dipped, shareholders clamored, and employees went on strike. NVC Lighting, a Hong Kong-listed company that once sat on the top spot in the lighting industry in China, has been presenting the scenes of a public showdown between the founder of the company and the big brother of PE. On the evening of August 21st, the current Chairman of NVC Lighting Co., Ltd. also received an exclusive telephone interview. In an interview, Zhai said that NVC's most important problem was caused by Wu Changjiang. He went back against the Seoul and again and again violated the will of the board of directors and he was totally "being a chairman." At the same time when the government was pouring back, it was stated in this incident that "investors are vulnerable groups."

"Resumption attack" is not based on the reporter: Wu Changjiang once said that on August 15th NVC lighting problem has not been resolved and the stock will resume trading. You are attacking him. What do you think of it?

阎焱: The stocks of our listed companies must be traded every day. When there is important information to announce, we can ask for a suspension. Our company was suspended by the Hong Kong Stock Exchange and requested a suspension. During the suspension, it requested the board to provide a lot of materials. When the information request is completed, it must be resumed as soon as possible. We have been trading from suspension of trading to resumption of trading for a long time. Resumption of trading is a requirement of the Listing Rules. The stock price of the listed resumption card is the same, and it is the same for anyone. It is illegal to keep trading. Moreover, all we do is make decisions on the board rather than me alone. All of our board of directors voted in favor of resuming the transaction.

Anyone who knows a little about Hong Kong's listed company rules knows that resumption is required by the rules. Saying that I attacked him has no basis! A company can't be out of stock because of you, and the company's stock will never trade. How can this be possible? And he unprovoked in the media that I manipulate the stock price is to bear legal responsibility!

He must win other details, etc.. Announcement Reporter: Wu Changjiang said that an extraordinary general meeting of shareholders will be held in the near future and said that he will receive the support of small and medium shareholders through the general meeting of shareholders to resolve the current company's operating problems. What's your opinion?

Ruan: Wu Changjiang wants to open a shareholders' meeting. But I think he can't win in the end. (Convening a general meeting of shareholders) is his power and we support it. But I have my opinion and I think I definitely win. In terms of operations, the (company) did not strike long ago and everything was normal. His cronies, his younger brother control the company’s important positions, and the dealers have to purchase, but he does not ship.

Reporter: For this matter, the board does not have any new measures?

A: The executives sent out let their workers block out. The strike has driven us all out.

Reporter: Did not you say that everything has returned to normal?

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Reporter: What happened to the shipment?

Hey: You don't ask such details. What else do you have to do? We will publicly announce this announcement as a listed company.

The investor is a vulnerable group reporter: What is the problem with the relocation of the company's headquarters?

At that time, the board of directors agreed to spend two billion yuan to build a sales company in Chongqing. It never said that the headquarters had been moved. Instead, the board of directors had eight votes against nine to move the headquarters. Later, he did not tell the board what he was doing. The company he took the land was not NVC Lighting, but he owned a private company. In the board of directors made it clear that the headquarters will not be moved, he will also be forcibly removed. I do not think this is a good intention.

This is not the first time he has included the land in his personal account. In 2008, in Wanzhou, Sichuan, when NVC was not yet listed, he signed a contract to establish a production center at NVC in Wanzhou with the help of a board of directors. As a result, the local government gave 700 mu of land. Wu Changjiang gave the 700 acres to his personal company called NVC Real Estate. NVC Lighting did not have a penny stake in it. After we discovered that we specifically discussed this issue, he was not an example in the face of all of us. He always invests in companies and promises to put local taxes, sales, and benefits into personal companies. To be honest, investors are a disadvantaged group. It is not a last resort. It is not that things are too special and they will not get to the front desk. Therefore, I said on Weibo that I am “being a chairman”. We invest in more than 200 companies in the country. I don't have the ability and energy to manage them. I rely more on company management. It was not forced and I would not come to the front desk.

Reporter: Wu Changjiang once said that he gave away the shares of two related companies to you. What do you think?

A: At the time, as a package investment, (Saifu) also had shares in those two companies. However, we never participate in the management of the two companies. The listing rules require that more than 30% of the related shares be disclosed. We only account for more than 10% of the shares and we have not disclosed them. We opposed the related party transactions from the very beginning. Even if we have shares, we also oppose the related party transactions.

This related transaction was all tied to the company's account. We were investing in a package deal. If you have opened a restaurant and you have a vegetable garden, I will invest in your restaurant and will definitely invest in your garden. This is basic knowledge in investment and it is called preventing the transfer of benefits. This was a matter of 2006. At that time, our company sold tens of millions of dollars. Now that we have more than 50 billion yuan a year, how can we say something about it at that time?

Is it "tragedy card" or "conspiracy theory"?

Reporter: In August 2008, Wu Changjiang said that he planned to acquire a lighting company in the United Kingdom. He himself said that 100,000 pounds was simply a floor price. However, he mentioned that the board of directors denied it because overseas acquisitions rarely had precedents for success. In the end, he bought himself, and until the company made a profit, the board gave him 1.5 million in principal.

Hey: He is lying again. Our company has stipulated that investment behavior must be approved by the board of directors. He went to London without the consent of the board of directors. At that time, he signed the plan to buy the entire company. We understand through other channels that this company is going bankrupt. I deliberately went to London and came back to tell him that the company can't vote. My suggestion is that buying assets is not buying companies. What you don't have to approve with the board of directors is definitely personal. He always talks about specious things and gains sympathy.

Reporter: How is it that Wu Changjiang has borrowed from distributors?

A: There is a concern on our board. He admitted to our independent investigation committee that he took money from ten dealers. As a listed company’s professional conduct, (Wu Changjiang) cannot borrow money from distributors. He mixes personal interests with the interests of the company, which is contrary to basic professional ethics. Now he is playing two cards outside, one is nationalism. Schneider has to control NVC, but Schneider gave him the introduction. One is a tragedy card. He said that the investor is going to push him out. What do we do? What time? How can we have such great ability?

Reporter: Some people have asked, as investors are just coming to profit, Saifu Tony NVC should be back early, why do you want to control?

A: We are more optimistic about the lighting industry, lighting industry in China to achieve the first in the world to achieve the first, because 70% of energy-saving lamps are in China, the industry in China is the global NO. 1. Frankly speaking, we know Wu Changjiang very well. If we do not have enough shares to compete with the company, he will dare to do anything. We do not trust. Holding is also for greater profits.

Choosing NVC not to regret to meet the conditions Wu still comes back Reporter: If Wu Changjiang meets the three conditions you proposed before, can he still come back?

阎焱: First of all, he must meet the requirements of Hong Kong listed companies to meet independent investigations. If he does not meet the requirements of the rules, he will not be able to return. He did not make clear many important things now and refused to provide evidence. (NVC Lighting) The gates are all wide open, but the independent investigation team does not agree that he will return and he will not be able to return. This independent investigation team is composed of our directors and lawyers. Satisfying these three conditions is unchanged. The most basic aspect of the modern enterprise system is that you must act according to the requirements of the board of directors. He has the responsibility to cooperate with the independent investigation committee to complete the investigation and must give us a copy of the contract.

Reporter: Do you regret choosing NVC now?

A: No regrets, everything cannot be successful. In addition, I still think that the lighting industry is particularly good and there is nothing to regret.

Reporter: When things have developed to the present, how do you feel most likely to end?

A: You must do things in accordance with the Listing Rules. You can't use the company as your own money bag, and you can't violate the rules of the listing rules and the decisions of the board of directors. If Wu Changjiang can do it, we can still cooperate, but it must be in accordance with the listing rules. This is not something you must come back to and must be approved by the Stock Exchange.

I think the current bad tendency is to turn the issue of whether a business is in compliance with the contract into a national problem. This is a nonsense. The media must not politicize or ethnicize this matter. If he did not act according to the contract, he said that he was a national (enterprise) issue. If Chinese companies are like this, Chinese companies have no hope.