Wu Changjiang's Responding to Insider Trading Challenges

For the “Flash Marriage” of BDO Runda (002005) (002005. SZ) and NVC Lighting (02222. HK), the capital market failed to fully understand it, which has led to questioning. Experts in the industry analysis said that the marriage of the two can open up the upstream and downstream industry chain of LED lighting, but the key to success is running-in.

Wu Changjiang's "Retreat for Progress"

After the news of BDO Runda’s acquisition of NVC announced on the 27th, the two companies’ shares fell for two consecutive days. There are clearly concerns and concerns in the capital market: Can BDO Runda stabilize the NRS board and distributor system? Why does Wu Changjiang, the largest shareholder of NVC, who wants to regain control of the board suddenly give up the equity? There is also suspicion that Wu Changjiang was suspected of insider trading, and made a net profit of 300 million yuan through "high sales" of NVC shares and "low buy" of BDO Runda shares.

Recently, Wu Changjiang broke the silence and lamented on Weibo that it was not understood. He said: “Looking back at the past year, my mood couldn’t be expressed in words at the moment, I wanted to cry, I wanted to cry, I even wanted to find someone to fight. But what I wanted most was to go home with my family and find a Turn off the phone in a quiet place and take a few days off."

Wu Changjiang also said: “More than a decade of entrepreneurial development has been difficult, but it has been fortunate. It may be an unruly man who does not follow the rules, but it is definitely a commitment to abide by it. Righteous people. If every one of my decisions, every step of the strategy can be understood, it may not be true for NVC today."

After letting out a controlling stake in NVC and then investing in shares to become a shareholder of BDO Runda, Wu Changjiang once again did not follow the usual rules, and this move was seen as “retreat”. One introduced the power of BDO Runda LED industry chain to accelerate the transformation of NVC to emerging LED lighting; second, it broke NVC's board's “three points of the world” and dispersed ownership.

In fact, it is hard to say that Wu Changjiang is trying to escape the funds. His sale of NVC shares will recover HK$950 million in cash, but the acquisition of 130 million shares of BDO Runda will cost 760 million yuan.

Some industry insiders believe that BDO Runda's acquisition of NVC is a major case of marriage between LED upstream and traditional lighting. The key to success is whether the two sides can run on multiple levels such as the board of directors and management.

Wang Donglei has already passed Ji and Zhu Hai?

After completion of the acquisition, BDO Runda will account for 20.05% of NVC, becoming the largest shareholder of NVC. Moreover, BDO Runda has a preferential right to purchase 6.79% of the shares of NVC held by Wu Changjiang. If fully subscribed, BDO Runda will increase its shareholding in NVC to 26.84%, close to SAIF Asia and Schneider Electric. 27.69% of the sum of shares held by NVC.

Nashi was involved in internal disputes in 2012, and although it has been calmed down, it still needs to be stabilized. Nowadays, BDO Runda suddenly enters NVC, whether SAIF Asia and Schneider Electric accept it, which will determine whether NVC’s board of directors can “coexist peacefully” in the future.

An insider of BDO Runda said that BDO Runda Chairman Wang Donglei had met with Saife Asia Partners, the current chairman of NVC, and Zhu Hai, President of Schneider Electric China.