NVC Announces 2010 Annual Results Profit Attributable to Owners of the Company up455.5% to US$71.34 Million

Consolidating position as Luminous Environment Expert

Striving to develop energy-efficient lighting products

HONG KONG, March 24, 2011 /PRNewswire-Asia/ --

Financial Highlights:

NVC Lighting Holding Limited ("NVC" or the "Company" and, together with its subsidiaries, the "Group", stock code: 2222), a leading supplier of lighting products in China, announced its final results for the year ended 31 December 2010 (the "year under review").

Benefiting from the rapid growth in the PRC lighting industry, the Group achieved impressive results during the year under review. The Group generated revenue of approximately US$471.73 million, representing an increase of approximately 54.3% over the same period in 2009. The gross profit for the year increased 63.3% to approximately US$137.253 million. Profit attributable to owners of the Company amounted to approximately US$71.34 million, representing a 455.5% surge from a year earlier. The gross profit margin increased 1.6 percentage points to 29.1%, while the net profit margin climbed 10.9 percentage points to 15.1%. Earnings per share were 2.69 US cents. The board of Directors of the Company declared a dividend payout of HK3 cents per share for the year ended 31 December 2010.

Mr. Wu Changjiang, Chairman, CEO and Executive Director of NVC, said, "The lighting industry maintained a rapid growth in 2010. Developing a low carbon economy resulted in great attention to low carbon products including energy-saving lights. During the year under review, with effective strategies, strengthened brand building and increased sales, production and R&D efforts, the Group recorded excellent results."

During the year under review, sales of luminaire products increased by 67.9% due to improved distribution channels, the increased number of specialty stores and growing professional engineering customers and key accounts. Sales of lamp products increased by 33.5%, of which NVC brand lamp products increased by 65.7% and non-NVC brand lamp products increased by 21.1%. The growth was mainly attributable to global economic recovery, the energy-saving and emission reduction policy of China and increased promotion of energy-saving lamp products by the Company. Sales of lighting appliances went up 64.5% due to the increase in sales of luminaire and lamp related products.

During the year under review, the Group’s number of outlets grew by 349 to 2,810 as at 31 December 2010, covered 1,851 cities. During the year under review, the Group had 76 large professional engineering customers with transaction volume exceeding RMB1 million each and 92 key accounts. Sales to professional engineering customers and key accounts amounted to US$92.9 million. In a bid for government subsidized energy-saving lighting products in 2010, NVC, as one of the finalists for the first time, won the bid for the supply of 8 million units of energy-saving lighting products, which generated sales of US$21.600 million. The Group’s products were included in the country’s first application and demonstration program for LED lighting.

During the year under review, in order to promote the NVC brand through various channels, the Group established Luminous Environment Experience Halls in Huizhou (where the Group is headquartered) and some other cities such as Beijing, Shanghai and Nanjing to demonstrate the concept of NVC’s Luminous Environment". The Group committed itself to increasing the brand value and seized the opportunities of its listing on Main Board of the Stock Exchange and winning projects of Shanghai World Expo and Guangzhou Asian Games to promote the NVC brand name with a combination of advertisements, media reports, event sponsorship and community charities. For example, the Group sponsored various events and became the lighting product supplier for the Asian Games. In this way the Group effectively increased its brand recognition.

The Group also made significant progress in overseas sales channel expansion. During the year, the Group ventured into Brazil and Qatar. NVC also heightened its awareness in existing markets like Australia as well as South Africa, and carried out indoor lighting projects for the Durban Airport. The Company further expanded its sales channels in the Middle East and Southeast Asia by opening NVC outlets and authorized counters. During the year, the Group also opened seven specialty stores in India and raised the number of NVC UK outlets from 50 at the beginning of 2010 to 200 at the end of 2010. Of the total sales in the UK, 50% were taken up by Edmonson, UK’s largest electrical appliance distributor. At the same time, NVC has been included in the supplier list of Edmonson and the Buying Group, the fourth largest electrical appliance distributor in the UK.

With increasing attention to energy saving and environmental protection across the world and the popularity of LED products in the lighting industry, the sector will see a brighter future and greater growth potential. Mr. Wu said, "Since its establishment, the Group has been focusing on developing energy-efficient lighting products to achieve sustainable development, and has adopted well to the changes in the market and technologies achieving remarkable results.. After years of efforts, NVC’s development is in full gear. The Group strives to build a complete production chain for the development of energy-saving lights."

Looking ahead, as the professional engineering customers have stronger demand for lighting solutions, there will be greater concentration in the industry in which our customers operate businesses. The Group will focus on developing key accounts brand chains, large engineering projects, industrial lighting projects and display lighting projects to consolidate NVC’s position as a Luminous Environment Expert in the industry and further expand its market share.

In the overseas market, the Group will mainly focus on sales of NVC branded products before those of famous brand products on an ODM/OEM basis. The Group will actively promote sales of NVC branded products in the mainstream outlets in the UK, and leverage the experience there to promote products in North America or Europe. The Group will also tap emerging markets in India, Brazil, the Middle East and Africa. As for the ODM/OEM business, the Group will continue to serve major multinational enterprises and maintain a long-term partnership with them, aiming to achieve consolidation and be in touch with technological trends.

Mr. Wu concluded, "The Group has adhered to its philosophy and the goal of becoming a world famous brand and the best player in the industry. The Group will continue to improve with its professionalism in and dedication to the industry. We strive to provide a beautiful, comfortable, safe and energy efficient lighting environment for our customers, high quality of living and a better environment."

About NVC

NVC is a leading lighting products supplier in China, and was listed on the Stock Exchange of Hong Kong Limited on 20 May 2010. According to the Report from China Association of Lighting Industry (CALI), the Company is the largest domestic lighting brand supplier and ranked the second amongst all lighting brand suppliers in China based on 2009 sales revenue The Company designs, develops, produces, markets and sells a variety of lighting products, including luminaire products, lamp products and lighting electronics products. NVC products were sold through a nationwide sales network of 36 exclusive regional distributors and 2,810 NVC outlets covering 31 provinces, municipalities and autonomous regions in China.

Issued by Porda Havas International Finance Communications Group for and on behalf of NVC Lighting Holding Limited. For further information, please contact:

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