In these two days, Wang Donglei, chairman of Dehao Runda, was very excited.

Three years ago, when Wang Donglei, who started small appliances, announced the company's transformation of LEDs, there was no doubt about the voice. After all, Dehao Runda had no existing experience in the LED field. It is difficult to judge whether the company's LED project can quickly release its performance.

But nowadays, the successful transformation of Dehao Runda has undoubtedly become the benchmark of the industry in the context of the repeated transformation frenzy and fruitlessness of domestic listed companies.

Recently, Dehao Runda released the 2011 financial report that in 2011, the company achieved operating income of 3.067 billion yuan, an increase of 18.12%, operating profit of 146 million yuan, a substantial increase of 2633.23%.

It is worth noting that the LED business, with its operating profit margin of 38.4%, drove the operating rate of 15.96% of the small household appliances business, making its overall operating rate in 2011 rise to 22.7%.

Previously, Wang Donglei knew that everyone was the title of his "bread machine king"; now, the LED industry has become the topic he talked about most now.

On April 23, Wang Donglei was difficult to conceal when interviewed by reporters. "In 2012, the company will also accelerate the transformation and increase the layout of LED business. It is expected to continue to maintain its leading position in 2012. At least 50% this year, strive to double ."

Bread machine king's backwaters
If you follow the original road, perhaps, the current Wang Donglei is not the "bread machine king" and "leader of the LED industry", but one of the decision makers of a certain institution in Beijing.

11 years ago, Wang Donglei, then deputy director of China National Shipbuilding Corporation, was attracted by an article on a bread machine. In the following five years, Wang Donglei has been working on the research of bread machine and designed a fully automatic computerized bread control. Machine products.

With this unique product, in 1996, Wang Donglei resigned from the public office of everyone, and founded China Resources Electric Co., Ltd. in Zhuhai, Guangdong. In 2001, it was renamed Guangdong Dehao Runda Electric Co., Ltd.

In just 8 years, the "Baker King" has created myths again and again.

In 1999, Dehao Runda's bread machine market share has reached 40%, ranking first in the world.

In 2002, Dehao Runda's oven and oven products accounted for 30% of the global market, and the electric fryer series accounted for 20% of the global total.

In 2004, Dehao Runda acquired the US-based ACA North American Electric (Zhuhai) Co., Ltd., which is the No. 1 in the United States, and obtained the brand's permanent use rights in Asia.

Although Dehao Runda, which started from the bread machine, has long been the second largest home appliance company in the world, the company's profitability and development level have not satisfied Wang Donglei.

"The world's small household appliances market is only 40 billion US dollars, the scale is very small, and the industry's competition incentives, manufacturers' gross margin is very low." Wang Donglei said.

Since 2007, Wang Donglei has been studying new growth points for the company's transformation.

"The company is already the world's second largest home appliance company. It is obviously not the way to continue to expand production capacity. To develop the domestic market of its own brand is not a one-off effort, and it will not be effective in the short term." Wang Donglei said.

In this context, Wang Donglei turned his attention to the LED business, and the financial crisis in 2008 exacerbated the idea of ​​Wang Donglei's transformation. “The financial tsunami gave Dehao Runda a heavy blow. The company’s operating profit and net profit all lost more than 6000. Ten thousand yuan." Wang Donglei recalled.

At the juncture of this crisis, in 2009, Wang Donglei demonstrated his thundering business methods and rapidly transformed into LED business in the form of outreach mergers and acquisitions.

In early 2009, strategic investor Guangdong Jianlongda was introduced. Since then, Dehao Runda has invested 100 million yuan in holding Taishan Jianlong and has received all the fixed assets related to the LED business of Guangdong Jianlongda and Enping Jianlong, and successfully entered the LED packaging field.

In order to open the downstream application market, Dehao Runda acquired Shenzhen Ruitu Display Technology Co., Ltd., which is highly competitive in the domestic outdoor LED display field, in August of that year.

In October of the same year, Dehao Runda officially announced the transformation and raised 1.5 billion yuan to invest in the construction of LED projects in Wuhu.

The huge amount of investment in its investment has made the industry stunned. An LED industry insider said, “After the financial crisis of 2008, Dehao Runda was greatly surprised by the investment transformation in 2009. In the context of the time, Dehao Runda was a battle.”

Nowadays, Dehao Runda's LED business has basically completed the layout of the midstream and downstream industries, and has become a leading LED enterprise with considerable scale and technology in China, including LED street lamps, indoor lamps, LED displays and LED packages.

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