Home > News content

Fifty-six days after “shock”, chairman of ZTE will airborne employees ready to return to work

via:博客园     time:2018/6/14 12:02:14     readed:559


"Like someone who has been walking in the dark for a long time, suddenly saw the light. Resumption of the game means a new beginning for ZTE, despite the heavy price." On June 13, an unnamed person inside ZTE said to id narwhal technology (ID: dujiaojingkeji).

For 33-year-old ZTE, on April 16 this year, the U.S. Department of Commerce’s Bureau of Industry and Security activated the decision to reject ZTE and ZTE Corporation’s refusal to become the largest “black swan” in history. On the 20th, Zeng Xingyi, chairman of ZTE, said at the meeting that such sanctions enabled the company to immediately enter the "shock state."

However, this sudden re-emergence of "bright" has suddenly come from the market, "sap".

On June 13, the A+H shares of ZTE after 56 days of trading suspension resumed on the same day. In the morning opening, ZTE A shares fell below the threshold of 28.18 yuan. The ZTE H-shares fell 37.5% to HK$16/share during the open auction stage and finally closed at HK$14.96, a decrease of 41.56%.

In the evening, Zhongxing Lianfa issued 7 announcements. The company will hold the 2017 annual general meeting of shareholders at Shenzhen headquarters on June 29 at 9:00 am. This time, the overall "deployment" "ZTE's next senior management "changing blood" and the new personnel arrangements, as well as including the 2017 annual report, the election of non-independent directors, the election of independent non-executive directors, financing plans and other 16 proposals.

ZTE paid US$1.4 billion in fines for the resumption of trading. ZTE had already paid a fine of US$890 million after the resumption of trading. At this point, its repaid price was a total of more than 2.29 billion US dollars (about 14.6 billion yuan).

At the same time, current senior executives will fully exit the bank and apply for a comprehensive credit line of RMB 30 billion + USD 6 billion from the bank. Where will the new management team lead ZTE?

Chairman will airborne, existing senior management team "out" & rdquo;

The existing ZTE executive team is facing a full-scale "out of office" situation, while the new chairman will "airborne".

As part of the settlement agreement between the two parties, ZTE needs to replace all members of the board of directors of the company and ZTE Kangxun within one month and is currently the senior vice president and all the above senior leaders.

On the evening of the 12th, ZTE issued an announcement to disclose the progress of major events and announced the resumption of trading. According to the announcement, ZTE will pay a total of US$1.4 billion in civil fines, replace all board executives within 30 days, hire coordinators to supervise, and a 10-year refusal order.

On the evening of the 13th, the appointment of personnel in the senior management team was further clarified. ZTE re-disclosed three announcements. It is proposed that the “Articles of Association” is to be deleted. “The chairman of the board must be able to generate from directors or senior management personnel for more than three years.” ;, And also some of the terms and conditions are changed to “ non-independent executive director of not less than one-third of the board of directors, "and independent non-executive director of not less than one-third of the board of directors."

After the general public are concerned about the big shakeup of the executives, who will take control of ZTE?

The narwhal technology (ID: dujiaojingkeji) has learned through multiple verifications that according to the new regulations and the existing management team of ZTE, it is now possible to determine that the chairman of the board will “airborne” and the president’s staff may be internally generated from ZTE. Probably elected for the probability of the people.

According to informed sources, Zhuwei’s personal qualities are very good and they are very prestigious in high-level cadres. However, young cadres may not understand him.

Informed sources told narwhal technology (ID: dujiaojingkeji) that ZTE could find someone from the original entrepreneurial veteran to stabilize the situation because the people transferred from the outside did not understand ZTE.

An informed source close to ZTE stated that in the next 30 days, ZTE parties should negotiate their shareholding structure and expect some adjustments.

A ZTE employee told narwhal technology (ID: dujiaojingkeji), the key is to see how the subsequent equity structure of ZTE changed. If there is no major change, pick some from the original Napa business veterans. If we want Wei Xiantong to withdraw, all senior executives who are senior vice presidents have now been fired, so there is really no suitable candidate.

At present, the main shareholder of ZTE Corporation is Shenzhen Zhongxing New Communication Equipment Co., Ltd. (abbreviated as "Zhongxing New"), holding 30.34% of the shares, while ZTE's largest shareholder is Shenzhen Zhongxing Weixiantong Equipment Co., Ltd. (abbreviated as "" Zhongxing Wei Xiantong ”), holding 49%. Zhongxing Wei Xiantong is a private company that is 100% invested by Hou Weigui and 38 former ZTE entrepreneurs and current Zhongxing executives as natural persons. Its chairman, Hou Weigui, holds 18%, and Yin Yimin holds 5%.

“The level of internal management staff at ZTE is 1,234 cadres. The senior VP is above the second tier. The following are VPs and are tier 3 cadres. In general, the span from the vice president to the president is too big to be possible. ”

Earlier, media reports said that ZTE has lifted the positions of two senior executives. Xu Huijun, executive vice president and chief technology officer of ZTE, and Huang Dabin, who is responsible for the company's operations, no longer fulfill their regular duties.

After idling whale science and technology (ID: dujiaojingkeji) inquired the business registration information, ZTE Communications Co., Ltd. on May 29 this year, made changes to the records of senior management (directors, supervisors, managers, etc.).

New board candidate with British and US financial and legal background

On the evening of the 13th, ZTE announced five non-independent director candidates and three independent non-executive director candidates. Most of the above candidates are "Old ZTE" people, as well as international financial and legal knowledge such as British and American.

In April this year, after the US activated the refusal order, ZTE undertook strengthening compliance management, requiring each employee to re-learn the knowledge of European and American laws, regulations, and anti-bribery, and to participate in the compliance exam to achieve 100 points (full marks) before passing.

Some analysts indicated that ZTE’s newly nominated candidate not only strengthened the possibility of ZTE’s embarking on a management position, but also increased the external talents with international perspectives, making up for ZTE’s international legal and financial issues in this incident. Loss caused by reason.

According to the above-mentioned personnel's histories, the five candidates for non-independent directors all have the background of the shareholders or indirect shareholders of the controlling shareholders of ZTE Corporation, among which Zhu Weimin and Fang Yi used to hold positions at ZTE Corporation; the total number of independent non-executive director candidates 3 people, Cai Manli has a background in the work of the Securities Regulatory Commission, and Bao Shuming holds the qualifications of barristers in the Supreme Court of the United States and China. Bao Shuming holds the qualifications of lawyers in England, Wales and Hong Kong, and has experience in listing and mergers and acquisitions.

Specifically, Zhu Weimin, born in 1966, is an old Zhongxing ” this time, he was nominated as a non-independent director of the seventh session of the Board of Directors. When the term of office of the board of directors expires (ie March 29, 2019).

Zhu Weimin started working in ZTE Semiconductor Development Department in 1991 and served as the deputy general manager of ZTE Holdings. He has also served as Chairman/Director of Shenzhen Zhongxing International Investment Co., Ltd. and some of its subsidiaries since 018; Equipment Co., Ltd., Shenzhen Xinyu Tengyue Electronics Co., Ltd., and Shenzhen Fudekang Electronics Co., Ltd. Directors.

Fang Yi, who was nominated this time, will be selected as the non-independent director of the company's seventh board of directors. She started her new position at Zhongxing in 1995 and has been the director and executive vice president of Zhongxing Development Co., Ltd. since 2009.

This time, Cai Manli, who was nominated as an independent non-executive director of the seventh session of the Board of Directors, served in the China Securities Regulatory Commission from 2002 to 2015, and served as the general manager of Yi Ruisheng Asset Management Co., Ltd. and the senior advisor of King & Wood Malleable Law Firm since 2015; 2016 Since then, he has served as external supervisor of Sichuan Xinwang Bank Co., Ltd.

Yuming Bao (Ba Baoming), who is also an independent non-executive director of the 7th Board of Directors, is qualified as a Chinese lawyer and qualified as a barrister at the US Supreme Court. Wu Jundong, an independent non-executive director of the seventh session of the Board of Directors, holds a master's degree in intellectual property and is qualified as an attorney in England, Wales, and Hong Kong. He has experience in listing and mergers and acquisitions.

The staff is ready to return to work and the time for resuming work is unknown

The narwhal technology (ID: dujiaojingkeji) was informed by multiple sources that ZTE employees will return to work on June 14 as soon as possible. An industry source stated that ZTE not only pays full wages for employees in order to retain overseas employees and even pay new employees. However, for the resumption of work news, ZTE Communications said that the company announcement shall prevail.

Employees of ZTE Shandong Branch said to narwhal technology (ID: dujiaojingkeji) that at present, the company has not notified specific start time. However, the company informed a month ago that "ready to go" ready. According to the company's requirements, it is impossible to work immediately, and preparations must be made at any time. Starting is inevitable, and we have been working hard to make this preparation. "In the period of work stoppage, our salary was issued, frontline employees were not affected, and the leadership had partial adjustments." ”

According to an insider of China Mobile, the ZTE engineers stationed at the mobile station were mostly anti-contractors (project contractors). They were not officially employees of ZTE, but the contracts were signed with ZTE and ZTE also worked for China Mobile. . Owned personnel, some of the original resident, follow-up mobile interface, did not withdraw, do not let work, stay every day, pay monthly salary. Individuals evacuated. "The project contractor did not work, but first withdrew, and raised it with a very low base salary, but many people took the opportunity to resign. ”“There is still no return to work and no work has been resumed. ”

According to informed sources close to ZTE, for ZTE, the most critical thing now is to resume product delivery and service to customers and restore customer relationships after the US Department of Commerce’s ban expires. At the same time, the re-establishment of internal employees, external supply chain, capital and media public opinion on ZTE's confidence.

On December 12, the ZTE Corporation announced that it will resume business activities affected by the refusal orders of April 15, 2018 as soon as possible after the BIS terminated its refusal order on April 15, 2018. In addition, according to the new settlement agreement, the U.S. Department of Commerce can only lift the ban on ZTE's business dealings with U.S. companies after ZTE has paid US$1 billion in fines and US$400 million in guarantees.

A ZTE internal employee told narwhal technology (ID: dujiaojingkeji) that during this time the company has made all-round preparations. Once the refusal order is lifted, it will restore the service to customers and partners for the first time. Now it is patient. Wait for the United States to lift the refusal order.

According to the 2017 annual report disclosed by ZTE, the expenditure for wage-related expenses for the year was 21.11 billion yuan, a year-on-year increase of 8.8%. The financial report for the first quarter of 2018 before the adjustment shows that the related cash, such as wages for employees after the merger of subsidiaries, was 3.903 billion, an increase of 3.1% year-on-year.

Many industry insiders believe that the ZTE incident has little impact on the bottom-level employees. An industry analyst told narwhal technology (ID: dujiaojingkeji) that the current task is to restore morale, layoffs may exist, but not in the short term. After replacing the management team, the most important thing is to restore the relationship with customers. Due to the huge changes, it may cause long-term shocks.

China IT News APP

Download China IT News APP

Please rate this news

The average score will be displayed after you score.

Post comment

Do not see clearly? Click for a new code.

User comments