Locked in the door of the red Flag, the Beijing headquarters, a new bulletin was pasted on the gate.

February 10, closed the door of the locked central red Flag in Beijing, a new announcement was pasted on the gate, which completely cracked the hope that those who still stick to the company's work "Save China Red Flag".

The bulletin said: "Because of Beijing Red Flag Software Technology Co., Ltd. operating serious difficulties, the board of directors on December 13, 2013 to dissolve the company from now on, and set up a liquidation committee in accordance with the law of the company liquidation." January 22, 2014, a liquidation Working group has been set up, which is responsible for and carries out relevant liquidation work.

13th, 21st century economic reporter called the former president of the red Flag Liu, he said in the phone: that is 10 years ago! December 2003, due to disagreement with shareholders, but also because of the future of domestic Linux, Liu in the board of directors to resign, declared "for physical reasons to leave."

Liu was surprised that the company, which was founded in 2000 to challenge itself, ended in liquidation.

Hong Qi, the incumbent executive of the red Flag in 21st century, said in an interview with the Economic Report: "The red flag ended up closing, the responsibility is not only staff, but also not only management, the contradictions between shareholders is the root cause."

Red Flag existing shareholders, including the Chinese Academy of Sciences Software, Sadie and other shareholders, there are 7 directors, including two directors from the major shareholder of the Chinese Academy of Sciences software. According to the company's Articles of association, 7 directors have one veto and 8 shareholders often disagree, and no strategy can be implemented.

The senior executive has been sticking to the goal of maintaining the company's survival for nearly a year; Even though the days of panic had lasted a year before the company closed the door, 58 employees continued to work here, including company product sales, customer service and so on.

Game and watch

December 27, 2013, Linuxeden Open source community issued a signed Wei Bing Red Flag employees wrote a petition-"precarious, where the red Flag road." According to the petition: since April 1, 2013, the Chinese Academy of Sciences Software has not honoured the commitment to pay the company's nuclear Shishou special supporting funds, resulting in the company's capital chain interruption, thus stopping the full wage. Nuclear Shishou Project is the Ministry of Industry for the core of electronic components, high-end general-purpose chips and basic software products, science and technology major special.

In April 2013, hundreds of red flag employees were summoned to meetings. Red Flag President Jadong told employees, the company's capital chain problems, the monthly wages can not be issued as scheduled. The petition said: "The total wage has been suspended, in the software and other owners of major shareholders in many representations, have been treated with indifference."

Petition said: Many times after the lack of fruit, the workers collectively to take legal rights, October 11 completed the Haidian Arbitration Court, October 22 to the Chinese Academy of Sciences, Beijing Branch petition Office delivery call letter, November 8 completed the Haidian Court enforcement case, but employees have not yet received a total of tens of millions of dollars in wages.

"Wages have not been paid since April last year, and by the end of last December the red flag was stopped at the headquarters of the Zijin building in Haidian District, Beijing, due to long-term arrears of property rentals," the executives said.

December 30, 2013, January 3, 2014, the red flag part of the staff to pull up the "software also I nuclear shishou special funds, large shareholders ignore employees anyway" banner to industry letter, the Chinese Academy of Sciences petition for salary.

The petition said: "For the successful completion of the nuclear Shishou project, Red Flag advance the RIRUERXI for the follow-up company's development of reserve funds and staff salary budget, so as to make up the funding gap." This led directly to the red flag in the March 2013 began to appear in the capital chain of lack until the complete rupture. ”

Shortly after the petition was issued, the Chinese Academy of Sciences Software issued a statement on the red flag in China on January 6, 2014. In the statement, the Chinese Academy of Sciences Software gave another explanation: the issue of Red flag in the division is a business problem, but not nuclear shishou issues, nuclear shishou topics generally have industrialization indicators, with the last two years a large number of technical personnel lost, the red flag in the division of the need to advance other funds to engage in nuclear Shishou project work.

Red Flag from 2008 began to declare the national nuclear Shishou Special project so far, a total of 5 projects, one of the topics led by the joint commitment of 4 subjects. The subject of red flag for the desktop operating system (project amount of 70 million yuan), to build four projects including server operating system, distance education, cooperation and construction of the Chinese Academy of Sciences to lay down the software of another company, that is, the Sino-German side.

The above executives said the red flag has completed the desktop operating system industrialization indicators. What bothers him is that the server operating system is led by the German side, the project amount is 190 million yuan: The red flag in the division has obvious advantage in this respect, because the division of Germany is the software subordinate project legal person Unit, and the red Flag of the division consists of 8 shareholders, including the Chinese Academy of Sciences Software, Sadie and other shareholder units.

The above executives said that the red flag in the division is Baoyang, the Central division of Germany is biological, the treatment is therefore different.

14 years of wind and rain to survive

The senior executives said that in the 14-year history of Red flag in China, the bankruptcy liquidation of Red Flag in Central division was the only unanimous announcement among major shareholders. December 13 last year, the software reminded shareholders that the red flag arrears of workers wages, if not resolved in a timely manner, will lead to a series of legal issues. December 13, Red Flag Provisional Board formed a resolution, set up a liquidation committee to the red flag in the liquidation.

Red Flag in the division was established in June 2000, is the Chinese Academy of Sciences software wholly-owned enterprises branch soft innovation and Beijing Sadie and other 8 shareholders set up joint venture. Registered capital of 9.62 billion U.S. dollars, branch soft innovation capital of 3.9 billion U.S. dollars, accounting for 40.5% of shares, as the largest shareholder.

According to the Articles of association, General matters shall be agreed by a two-thirds majority of the directors present at the meeting, and the directors on behalf of the JV parties have a legal vote of veto on the major matters of the company, which leads to the extremely low efficiency of the company's decision-making. In addition, the joint venture must be agreed by all joint venture parties, the other joint-venture party has a veto power, the joint venture is difficult to normal circulation of equity, it is difficult to introduce new investors.

The software in the bulletin said: the establishment of red flag more than 10 years ago, in addition to some shareholders in the way of equity transfer proceeds, including software/branch soft innovation in all shareholders did not receive any dividends. Although the red flag in the domestic Linux operation in all areas have a greater influence, but the company has been very difficult to operate, the last ten years time to rely on the first major shareholder of the Chinese Academy of Sciences software additional blood transfusion support.

Software has changed the company's charter, to improve the corporate governance structure, improve decision-making efficiency, joint venture transfer of domestic capital transformation, joint-stock reform and listing, capital increase and the general manager authorization, etc., but all because individual shareholders (directors) continue to exercise the veto, or deliberately delay without forming a final resolution, cannot be implemented.

The capital market has a downward trend in the valuation of red flag in China. 2001, the red flag was set up about 1 years, Shanghai joint venture will transfer 5.07% of the shares to Shandong nine Fat Mushroom Co., Ltd., the transfer amount of RMB 11 million yuan, the value of more than 200 million yuan. In November 2003, the red Flag of the Division brewing introduced the latest round of private placement, and the sale of shares up to 30%, raise capital of 50 million yuan, that is, the valuation of about 167 million yuan.

Red Flag in the Chinese Academy of Sciences, the Deputy Director of the Institute of Software, Sun Yufang under the leadership of the establishment, the consensus was "China must have independent software operating system" in order to have a foothold in the booming computer industry. Red Flag was established in the division, Sun Yufang has been chairman and chief scientist of the company.

Because of this, Sun Yufang has the title of "Red Flag bearer". 2005 Sun Yufang died of illness, the company's operation and management into chaos, in the fight for industrial resources, and major shareholder communication has also lost strong support. The senior executives said that Sun Yufang died, the red flag became "no Niang children."

The executives said that if the red flag has been in accordance with the Sun Yufang of the road, China's software industry may usher in a new development: After the 2008 financial crisis, in order to save money, more companies and organizations began to use open source Linux operating system, while with cloud computing, large data, parallel computing development, The Linux system is recognized by more and more companies, in this context, the red flag in the division may win a turnaround.

After 14 years, the red flag was eventually abandoned by the major shareholders, the dream has been blown away by the rain.

Dream Broken Domestic OS

The importance of desktop operating systems is self-evident. The executive says the operating system is equivalent to a motorway, and the application software is equivalent to a car running on a freeway, and the highway is not repaired and the car cannot run. He said "Jinshan WPS is an example", must follow Microsoft's operating system update, how to challenge Microsoft Office?

It is based on this judgment, Sun Yufang advocated the establishment of red flag.

In the 18th text support, in the domestic software procurement, at one time the red flag was the main government procurement, access to a lot of state-owned enterprises, government orders. In addition, the red flag also received a lot of OEM orders: in the protection of intellectual property rights, combating piracy in the background, the regulator banned the listing of computer streaking, must have installed operating system. To reduce costs, Lenovo, Dell, and other companies have installed the red flag system computers.

The Chinese Academy of Sciences accused the red flag annual revenue has never been tens of millions of dollars, the above executives think impossible.

In fact, last April 1, after the company announced the dissolution of the company, many employees still remain in the company's work, in addition to sales, more is to provide customers with a variety of services. The above executives said, in the software to promote the legalization, as well as the priority of procurement of domestic software policies, many government agencies have purchased the red flag system, the red flag bankruptcy liquidation, these orders will become a big problem.

The senior executives believe that the software has ulterior motives: the original thought that as long as not pay wages, employees will automatically leave, did not expect that although a large number of employees automatically leave, and finally there are still employees in the company adhere to. According to its disclosure, April ago, the company's staff number is roughly 130, to the present, still adhere to the staff of 58 people. During the company's good year, when the nuclear Shishou project was officially launched in 2010, the company employs more than 200 people.

The executives said that all the presidents, including Liu, Xiao Liang, and Jadong, had ideas and ambitions to make a career, but unfortunately it was impossible to do anything. He thinks there are three reasons: first, the shareholder is dispersed, the opinion is difficult to unify; the other is the large shareholder's excessive interference to the company's business; The third is that the management has no right of speech. According to the reporter investigation, including Liu, Chaoxiaoliang, Jadong and other three presidents, do not hold any shares of the company.

The executives said the software was too much for the dead. As a limited liability company, large shareholders should not be the company's decision-making, but the software determines all of the red flag, including what products and business. After the death of Sun Yufang in 2005, the company began some software projects, 2008 years later, began to undertake nuclear Shishou project, gradually deviated from "do Chinese own operating system, challenge Microsoft's original intention."

Red flag because of "domestic OS Dream" and Born, the reasons for the failure is manifold, the first is the red flag is the product of the plan, rather than the product of the market, government procurement orders are also the government will result, as Lenovo, Dell and other installed Red Flag Linux system, But to meet the market's demand for low prices: Users bought a computer that is expected to have a red-flag Linux system, go home and unload, and install pirated windows.

The second reason is that under the globalization tide, IT industry is the global division of labor industry, a country, a company should be in the strongest link exerting force, Lenovo's success to prove this, closed doors to develop has been impossible.

The third reason is China's intellectual property environment, the so-called "before there is piracy, after Microsoft," before the piracy is a fatal reason, in the software era, China did not produce a successful enterprise, Ufida, gold disc is a highly customized development of the enterprise field of success.