BoCom International issued a research report that Reisi Lighting earlier announced the resignation of Wu Changjiang as chairman, deacon director and CEO. The bank believes that the news will put pressure on the share price in the short term.

However, BoCom International stressed that the impact of Wu Changjiang's resignation on the operation of the company remains to be seen. Rex's core earnings grew by 21 per cent in 2011, below the bank's expectations. Based on moderate growth expectations and rising raw materials and staff costs, the bank downgraded Rex's rating from "buy" to "long-term buy" on March 28, with a target price of $4. The bank is still reviewing the company's ratings and profit forecasts.

Wu Changjiang has more than 15 years of experience in the lighting industry and is the founder and key manager of Leishi. Wu Changjiang is mainly responsible for corporate strategy and corporate management. He and two business partners founded Huizhou Rex Lighting in 1998 and immediately became a leader in the domestic lighting industry. Rex Lighting was listed on the Hong Kong Stock Exchange in July 2010. SAIF and Goldman Sachs Group were strategic investors before the company went public. In July 2011, Schneider Electric (China) acquired a 9.2% stake from Wu Changjiang / SAIF/ Goldman Sachs Group and partnered with Lexi Lighting as a strategic partner. According to the Hong Kong stock exchange, as of may 25, Wu Changjiang / SAIF/ Schneider Electric (China) / Goldman Sachs Group respectively held 19.97% of Lex Lighting's shares, 18.48%, 9.21% and 5.67%, respectively.

Rex Lighting closed at HK $1.76 on Friday.