This is the first impression left by Li Zixue, the new chairman of ZTE (000063.SH, 00763.HK), at the shareholders' meeting held on June 29th.
During the voting at the shareholders' meeting, some small shareholders specially moved to the next seat, took a mobile phone and took a few photos to the incoming new chairman. 'You see, the new chairman should be him.' Huang Liang (a pseudonym), a small shareholder who came to Anhui, told the First Financial Reporter.
On the same day (June 29), ZTE released a new presidential candidate and a new management list. As speculated by the outside world, Li Zixue from Xi'an Microelectronics Technology Institute became Yin Yimin's 'successor'. ' Some people call it the 'between the defeat and the fate between the two.'
At the general meeting held on the morning of the 29th, Mr. Li Zixue said in his speech on behalf of the candidate: “The refusal order has not been lifted, and our mission is to boost the confidence of the entire company, including the company’s employees (confidence). After the refusal order is lifted, resume production as soon as possible, and then do some work after that.'
Communication veteran 'airborne'
Although he is about to take over ZTE, there is not much understanding of Li Zixue, and his public information is very small.
According to the information, Li Zixue was born in 1964 and is 54 years old. He graduated from Xi'an Jiaotong University with a bachelor's degree in electrical components and materials in 1987. In the same year, he joined Xi'an Institute of Microelectronics Technology and held 1987-2010. Technician, Deputy Director, Deputy Director of the Mixed IC Division, Minister.
From 2010 to 2014, Li Zixue served as deputy director of Xi'an Microelectronics Technology Research Institute, deputy secretary of the Party Committee, secretary of the Disciplinary Committee, and supervisor of the board of directors. From 2014 to 2015, he served as party secretary and secretary of the Disciplinary Committee of Xi'an Institute of Microelectronics Technology, and chairman of the board of supervisors. Deputy Director; Since 2015, he has served as Party Secretary and Deputy Director of Xi'an Microelectronics Technology Research Institute.
Li Zixue's nearly 30 years of microelectronics, integrated circuit technology research and development, may be longer than communication equipment, and in the integrated circuit, chip technology, ZTE has a short-term focus on the future.
From the work experience, the 54-year-old Li Zixue and ZTE’s management style of “Lesser School” have been somewhat unfamiliar in recent years, but from the perspective of the Xi’an Institute of Microelectronics Technology and ZTE’s source, He may be the most suitable candidate.
'Many people don't know. Before 2004, the director of Microelectronics served as the chairman of ZTE, and Hou Weigui was the general manager at the time. 'A ZTE resigned executive who had contact with Li Zixue told the First Financial Reporter. Xi'an Institute of Microelectronics Technology is one of the shareholders of ZTE, which is equivalent to the family of the mother. At present, there is no more suitable candidate.
When ZTE applied for an IPO, Zhang Taifeng, director of the Preparatory Committee, was the director of Xi'an Microelectronics Technology Research Institute at that time and the first chairman of ZTE. A ZTE executive who had left the company told the First Financial Reporter that ZTE had previously Tian Dongfang, secretary of the party committee of the communication, is also from Xi'an Institute of Microelectronics Technology.
From the perspective of equity relationship, Xi'an Microelectronics Technology Research Institute is one of the shareholders of Zhongxingxin, the controlling shareholder of ZTE Corporation, and has a deep relationship with it.
The official website of Xi'an Institute of Microelectronics Technology (771) shows that the institute is also known as Lushan Microelectronics Co., Ltd., which is affiliated to the Ninth Research Institute of China Aerospace Science and Technology Corporation. It was founded in October 1965 and is mainly engaged in computer and semiconductor integration. Circuit, hybrid integration of three major research and development, batch production, testing and management, is the country's only large-scale professional research institute integrating computer, semiconductor integrated circuit and hybrid integrated scientific research and production. Its predecessor is '156 Engineering Office', At that time, the leaders of the state personally instructed the establishment of the national defense, integrated circuits and computer development, and made great contributions. The founder of ZTE, Hou Weigui, also came from the institute.
In the early 1980s, the creation of a sideline business became a common practice in scientific research units. As a unit of technical chief, Hou Weigui, in the name of 'introduction technology' led the team to look south for opportunities, and later ZTE.
Therefore, there is a voice that Li Zixue’s appointment as the new chairman of ZTE is actually at the helm on behalf of the major shareholder.
Previously, in order to successfully complete the reelection of the board of directors, ZTE's major shareholder Zhongxingxin Communications submitted three interim proposals for amending the Articles of Association and the Rules of Procedure of the Board of Directors, electing non-independent directors and electing independent non-executive directors. The Articles of Association intends to delete 'the chairman must be produced from a person who has served as a director or senior manager of the company for more than three years', and the other two clauses are changed to independent non-executive directors.
Some ZTE insiders told reporters that the above clauses were removed, indicating that the chairman or airborne, also expanded the range of options.
It can be seen that in the new board of directors, all members are from ZTE's multiple shareholder camps. Li Buqing is a director of Zhongxing New's shareholder Shenzhen Aerospace Guangyu Industrial Co., Ltd.; Gu Junying is the indirect shareholder of Zhongxingxin China Aerospace Electronics Technology Research Institute Assistant to the Dean; Zhu Weimin is a director of Zhongxing New Shareholder Shenzhen Zhongxing Weixiantong Equipment Co., Ltd.; Fang Wei is a director and executive vice president of Zhongxing New Shareholding Company Zhongxing Development Co., Ltd.
Among the candidates for independent directors, Cai Manli worked in the supervision of listed companies in the Securities and Futures Commission; Yuming Bao (Bao Yuming) is currently the vice president and chief legal officer of Jerry Group (002353.SZ) and its subsidiary Jerry Group; Wu Jundong is currently China Aerospace Wanyuan (01185.HK), the independent director of Feida Holdings (01100.HK).
The most difficult moment
'The most optimistic thing, but turned into a black swan.'
After experiencing the 8 down-limits of ZTE, a shareholder sent the above-mentioned sigh to the management of ZTE at the shareholders meeting held on June 29. In addition to expressing dissatisfaction with the reality, he also hopes that the manager sitting on the stage They can give him some clear signals, or some hope, 'What will happen to ZTE in the future?'
In the past few months, this shareholder has held more than 80,000 shares from a surplus of millions to a loss of hundreds of thousands. Even if it is unwilling to accept it, the securities company’s constant debt reminder has brought him back to reality. At the shareholders' meeting, a small shareholder like him is not in a minority. Huang Liang told reporters: 'Nobody thought that this would happen. Yesterday (June 28), I went to the headquarters one day in advance and took a trip. Ask the company about the situation. '
But obviously, he can't get clear positive information from any population until the 'rejection order' has not been lifted.
From the occurrence of the 'embargo incident' to the present more than 70 days, according to the agreement reached with the US Department of Commerce on June 8, ZTE needs to reorganize the board within 30 days. At the same day's shareholders meeting, despite Yin Yimin The shareholders expressed 'very sorry' and said that the T0 restructuring plan will help the company to resume operations quickly, but he still did not give an exact timetable for the ban on the refusal. On his last day as chairman of ZTE, ZTE is still at the center of the storm.
At this time, ZTE is facing the most difficult moment in history. For Li Zixue, no matter what time the ban is coming, the challenges he faces will not be small.
Although Yin Yimin emphasized that 80,000 enterprises, compared with last year, there were only more than 100 employees leaving the company. This shows that ZTE has not changed greatly in terms of personnel. However, from the realistic environment, long-term business stagnation has begun to let Some insiders have developed anxiety. A ZTE Wuhan Institute staff told reporters that many people have begun to look for new job opportunities.
For the more affected terminal departments, how to retain existing talent is also a difficult problem.
'The refusal order has not been lifted. Our mission is to boost the confidence of the entire company, including the confidence of the company's employees. After the refusal order is lifted, resume production as soon as possible, and then do some work after that. ' Face to how to proceed The work of the stage, Li Zixue said.
Li Zixue did not elaborate on the specific measures. At the shareholders' meeting, he spent more time listening to the opinions of the shareholders on the spot. The face did not have much expression, and the most mentioned words in the speech were ' Confidence' and 'compliance'.
Communication expert Xiang Ligang told the First Financial Reporter that Li Zixue’s death was manifested by the will of the major shareholders. It is difficult to say that there will be any special 'big-bang' reforms in specific work, but in the management mechanism, stability may be It is the most desired effect of the current management team.
'But for ZTE, the market environment and the problems within the company at this time need a market-oriented person, to stimulate the vitality, and to re-establish a new cohesion in the market. ' Xiang Ligang The reporter said, but such people are not good to find, if the management mechanism has no way to make a new breakthrough, for ZTE, it may be more serious than the cost of paying hundreds of millions of yuan in fines.
In fact, Xiang Ligang is more worried about how ZTE, which has experienced heavy losses, has gained new recognition in the highly competitive communications market and returned to the 'stable' old road. For ZTE, the future development will not optimism.
How to recover
Throughout the years, the changes in the communications industry can be described as overwhelming. The network infrastructure of operators has begun to be shared among each other. Operators in Europe and the United States have been merging, and companies that have been in the middle of the day are either losing weight, being merged, or gradually disappearing. Other companies are rapidly emerging due to rapid innovation or unique models. Freshmen are rapidly subverting traditional businesses and business models, and they may soon be replaced by more dynamic models and products.
Even Hou Weigui, the founder of ZTE, who has always been 'seeking stability', has to re-examine his style of doing things that has been 'stable and balanced' for years, considering changes. He said in his internal speech that if traditional telecommunication thinking is adhered to Then, the future may be defeated. Therefore, from 2013 onwards, the outside world can see the changes in ZTE, and the company's 'least strong faction' in the strategic adjustment is constantly on the rise.
The reporter found out that in the previous management list of the board of directors, Zeng Xuezhong, Xu Huijun, Zhang Zhenhui were born in 1973, Chen Jianzhou was born in 1970. ZTE said to reporters at the time: 'The new management is a young, energetic, A dedicated team dedicated to continuous technological innovation and global business development, committed to complying with the highest business standards in the world.'
A person familiar with ZTE once told reporters that no matter who is the manager, the younger generation will start to take over the power of ZTE. The era with Hou Weigui will gradually fade away. Young governors may bring this The company has a fresh air.
'These successors are young, highly educated, and are typical professional managers. In the future, the taste of ZTE's state-owned enterprises may gradually fade.' The above-mentioned person said that although ZTE has reported frequent reports in recent years, people who have visited ZTE know Compared with ZTE, Huawei, the difference between the two is still very large. Moreover, although ZTE has undergone joint-stock reform and successful listing, the state-owned enterprises that remain in ZTE are still very strong.
'But now it seems that the young managers who understand and are willing to fight for it have left. This is ZTE’s biggest loss this time. ' Xiang Ligang told reporters.
According to the announcement on June 29, the original directors of the board of directors of ZTE, Yin Yimin, Zhang Jianheng, Qu Jubao, Zhao Xianming, Wang Yawen, Tian Dongfang, Zhan Yichao, Wei Zaisheng, Yan Weidong, Zhang Wei, Chen Shaohuasheng, Lu Hongbing, BingshengTeng (Teng Binsheng), A total of 14 directors of Zhu Wuxiang submitted a written "Resignation Report", unanimously agreeing to immediately resign as a director of the company and to serve as a professional committee under the board of directors.
Earlier, the backbone of such forces as Zeng Xuezhong and Xu Huijun also left or resigned.
Yin Yimin still seems to hope to restore the confidence of ZTE as much as possible in the shareholders' meeting. He constantly emphasizes the T0 restructuring plan and constantly emphasizes ZTE's leading position in 5G.
The 'T0 working group made a specific recovery plan a month ago, and it will not change the company because of management changes. Our core research and development capabilities still exist.' He said that since the signing, there have been more than 20 days since the signing. The company set up a special working group to implement the settlement agreement. At that time, it was known that the company's board of directors and management would undergo drastic changes. The executive team decided at the outset that it was not responsible for the individual and was only responsible for the organization. The old board is responsible for the old board at the time, and the new board is responsible for the new board at the time. We have only the final link in order to reach the goal of resolving the refusal order. I also believe that the company has done its part. Responsibilities and obligations.
Yin Yimin also apologized to the shareholders at the scene and said, 'I am sorry everyone, I feel very embarrassed'.
In terms of age, Yin Yimin is one year older than Li Zixue, the successor of the successor. However, he has no way to control the future of ZTE. For those who have devoted nearly 30 years of youth, such a departure may be Full of regrets.
For Li Zixue, when I came out of the institute, I can imagine that the burden on the future will not be easy. I walked out of Xi'an, where I worked for 30 years, and went to Shenzhen to meet an unknown challenge. This kind of succession was a bit heavy and some hastily.
How does ZTE 'rejuvenate'? In any case, this is not a question that managers can answer.