ZTE's business empire: ZTE and subsidiaries ' interest entanglements

    In the carding of ZTE's equity relationship, the complex structure behind it often appears cloud-shrouded, but when a cobwebs to clarify the shareholder relationship of its multiple holding companies, it can be found that many with ZTE has a business-related subsidiaries or equity companies, In its shareholder list more or less the emergence of ZTE's many senior executives or the backbone of the figure.      As a result, a large number of affiliated companies have been created around ZTE, which is involved in many industries such as real estate, energy and music, and what role are these companies playing in Houweigui's business empire? What impact do they have on the listed companies?      November 17, ZTE announced that it intends to sell its holdings of long-flying investment stakes.      A long time ago, ZTE and its subsidiaries and affiliated enterprises of the interests of disputes, has always been criticized by the outside world.      "This action was launched under the unified requirements of the SFC. "In the future, even the top level, if not a subsidiary, will not hold a subsidiary," Sun Guogo, vice president for strategic business at ZTE, told the Daily economic news reporter. "     long-flying investment was founded in 2003, mainly responsible for ZTE mobile phone research and development and production tasks." Currently has 4 holding companies: Shenzhen Technology Co., Ltd. (hereinafter referred to Xing Fei technology), Shenzhen Rui Tak Electronics Industrial Co., Ltd. (hereinafter referred to Rui de Electronics), Shenzhen City de Communications Equipment Co., Ltd. (hereinafter referred to as the communication) and Shenzhen Cang Electrical Co., Ltd. (hereinafter referred to as Cang electromechanical).      Former President Yin, who did not endorse the plan of the listed company, abstained in the scrutiny of the relevant bill. However, in the view of some employees, the decision to sell the long-flying investment stake in the company to clean up its subsidiaries and affiliated enterprises in the process, with "specimen significance." But they may be overly optimistic.      "Daily economic news" reporters looking at industry and commerce data found that in the decision to give up the long-term investment stake, ZTE in August this year, one of the long-flying investment holding companies-hing fly technology, and hold 12% shares.      In addition, ZTE's top executives are inextricably linked to long-flying investment.      listed company annual report disclosed, ZTE major shareholder for Shenzhen ZTE New Communication Equipment Co., Ltd. (hereinafter referred to as ZTE New), shareholding 30.76%, Shenzhen ZTE Equipment Co., Ltd. (hereinafter referred to as ZTE) is holding ZTE's new 49% stake, Xi ' an microelectronics and aerospace Guangyu hold the remaining 34% and 17% equity shares respectively.      ZTE's shareholders are the leaders and elders of ZTE, led by Houweigui. Among them, Houweigui own shareholding 18%, Yin shareholding 5%, others such as Shi, Wei, all for the people, Zhou Susu and other shareholding 3%, Shiyou shareholding 2.1%.      The fact is, in the long FEI Investment holding enterprise, still flashed ZTE and ZTE's first-pass figure.      Business scope includes all kinds of adapters, mobile phone chargers, LED power supply, cell phone batteries and other products, research and development, production and sales of Rui Tak Electronics, long FEI Investment holding the company 57.4712% stake, Shenzhen ZTE Communications Equipment Co., Ltd. (hereinafter referred to ZTE New Land) and natural persons Feng Xizhang respectively hold 22.9885% and 19.5402% equity.      The first major shareholder of ZTE's new land is ZTE's new, holding 70%, and another two shareholders are Shenzhen Investment Co., Ltd. (hereinafter referred to as Poly-yin investment) and natural person Gao Jianbin, holding 15% respectively.      Poly-Yin Investment is also a company owned by ZTE's top management. The company has a total of 11 natural shareholders, including 16% of ZTE's president Assistant and Enterprise Development Minister Zhao, ZTE Wireless Research Institute Dean Luco, senior vice President Assistant and Executive Minister Wang Neshi, the second marketing Department of Engineering assistant deputy Zhanglin, and so on.      This constitutes another chain of interest: ZTE transferred a stake in the long-flying investment, but the company's senior and elder members, in the holding of shares of listed companies and profits, shares in the long FEI investment enterprises, and these enterprises business, more or less related to ZTE.      A glimpse of ZTE      long-flying investment is currently owned by ZTE 75.3838%, natural persons for the public shareholding 16.2162%, Liu Weili shareholding 8.4%.      ZTE announced that the company will first acquire the Liu Weili holdings of long-term investment 5.6162% shares, after the completion of the acquisition, the listed companies will have a long flight investment of 81% stake. Subsequently, ZTE will transfer 30% of the shares to the Bank International (Shenzhen) Investment Co., Ltd. and transfer the remaining 51% stake to Guangdong All-through Connaught Special Communication Technology Co., Ltd. The company said that the proceeds from the sale of shares would be used to supplement working capital to meet the needs of strategic development.      November 16, ZTE held a board of directors to consider the relevant bills.      In the motion on the sale of Shenzhen Mayor Fei Investment Co., Ltd. 51% and on ZTE (Hong Kong) Limited subscribe to ChinaYin all abstained in the motion on shares and convertible bonds of the wholly Tong (Holdings) Limited. "According to the current information, the company sold long FEI Investment 51% Equity and ZTE (Hong Kong) Limited to subscribe to China's full pass (Holdings) limited shares of the future comprehensive income uncertainty." "Yin thinks.      Long-flying investment in the current business structure, in addition to the above mentioned 4 holding enterprises, the company also shares the Poly-Fei photoelectric (300303. SZ), Shenzhen Fu Tak Kang Electronics Co., Ltd., Shenzhen si-code Special Electronics Co., Ltd., Shenzhen zhongxing Soft Circuit Co., Ltd., Shanghai Thai-Czech Communications Technology Co., Ltd. and Shenzhen Micro-high Semiconductor Technology Co., Ltd. In addition, the company also invested 1 billion yuan in the Huizhou, building an area of 1100 acres of long FEI Huizhou mobile phone Industry Park. "Investment business covers the mobile phone and the upstream supporting products in various fields," Chang Fei Investment website Introduction Road.      In the long-flying investment holding enterprises, Hing FEI Technology was established in 2005, the company 2011 output value of 1.23 billion yuan, has more than 10 modern terminal product assembly line and packaging line. This August, Hing Fei Investment has occurred shareholder changes, from the original long flight investment shareholding 80%, Natural Chen shareholding 20% of the structure, become more long-term investment shareholding 80%, ZTE shares 12%, Chen shareholding 8%.      The remaining shareholders of the other holding company's communications, including 22.5% of ZTE's shares and 15% of the natural-owned people. Lixin communication business involves the development, production and sales of TFT, LCD, OLED, CSTN and other liquid crystal display module products. ZTE will increase the maximum cumulative transaction amount of the liquid crystal display module to 800 million yuan, according to a December 14, 2011 announcement.      In addition, ZTE's first general rule shares the Cang electromechanical, and holds 27.5% of the equity. Cang Mechanical and electrical business for mobile phones, digital cameras, MP3 and other high-end electronic products, precision plastic parts manufacturing.      The remaining shareholders of Rui de Electronics, including ZTE New and natural Feng Xizhang. ZTE's new shareholders are ZTE's new, Poly-hyun Investment and natural Gao Jianbin.      This year July 17, ZTE issued a bulletin, the company's 5 holding subsidiaries ZTE Kang Xun, ZTE Microelectronics, ZTE Software and long-flying investment will be invested in the direction of the investment to reduce capital, after the completion of the capital, Poly-Yin Investment will no longer hold the above-mentioned company equity. At the same time, ZTE will be the acquisition of Poly-Yin Investment held in Guangdong New Fulcrum 10% stake.      Poly-Fly Optoelectronics disclosed in the listing of documents revealed by ZTE's top management in the stake of the Poly-Yin investment holding or equity enterprises, there were 13. If heldStock 70% Shenzhen ZTE Management Consulting Co., Ltd. (hereinafter referred to ZTE Management Consulting), 45% of Shenzhen Zhongxing Development Co., Ltd., holding 20% of Shenzhen ZTE International Investment Co., Ltd.      Shenzhen ZTE International Investment Co., Ltd. by the natural person Yu Yu shareholding 40%, Poly-Yin Investment, ZTE and ZTE Development of the first-hand and zhongxing 20% respectively. Yu Yu, vice president of ZTE Communications, resigned in 2008.      At present, the shareholding structure of ZTE Management consulting has changed to 10%, Shenzhen Technology Co., Ltd. holding 90%.      Shenzhen zhongxing Development Co., Ltd. has been renamed as ZTE Development Co., Ltd. (hereinafter referred to as ZTE Development), in addition to poly-Yin Investment shareholding 45%, ZTE's first-pass shareholding 36%, ZTE's new shareholding 9%, two natural Bo and Peng Yan respectively Holdings 4.25% and 5.75%. The development of      ZTE has become a real estate development platform in recent years, which has formed the core of multi-plate business in the fields of development and operation of science and technology parks, real estate development and management, software technology, biomedicine and property management, and set up branches in several important cities and overseas in China. Develop and operate ZTE Industrial park and industrial investment. Houweigui personally as Chairman of ZTE Development.      March 2012, there are reports that ZTE will invest 3 billion yuan in Zaoyang to start building green technology Industrial park. April 2012, Guangdong Province Heyuan party committee Secretary Ho Zhongyu met with ZTE, ZTE said the base is striving to put into production next June. October 12, Zhongqing and ZTE signed the "joint promotion of production and education integration development" Cooperation agreement, ZTE will be in Chongqing to build radiation southwest of the production and teaching fusion demonstration base. October 19, Henan province Governor Gengmao met with Houweigui in Zhengzhou, the same day, ZTE (Zhengzhou) industrial Park held a groundbreaking ceremony.      in Nanchang, Jiangxi Province, ZTE Development and ZTE, Nanchang University joint venture established ZTE Software Technology (NANCHANG) Co., Ltd. The company then invested in the construction of "ZTE Nanchang software industry Park." The company develops in Nanchang another project, then is Nanchang zhongxing and the garden, the real estate close to AI Xihu National Wetland Park, covers an area about 230,000 square meters. "ZTE and the park" named Brand real estate projects, has been in Chongqing, Hangzhou, Beijing, Yan Jiao, Shenyang and other land launch.      Cleaning or retention?      In fact, ZTE's subsidiaries or affiliates are far more than these. In the opinion of former ZTE employee Liu Yang, these subsidiaries and affiliated enterprises were created mainly by the original shareholders and former executives of the company, and partly by ZTE's new establishment. Under the system of ZTE's state-owned private sector, theseA company or affiliated enterprise becomes one of the ways to solve the problem of exit for these people.      In the 1993 reorganization, Houweigui pioneered the "state-owned private" property rights system. "But this is different from the shareholding structure of individual holding, when the private enterprise is listed, the shareholder throws out the stock." However, for Houweigui, ZTE's new reduction will lead to the loss of the state-owned shareholders and ZTE's control over the listed companies. The Houweigui have to work here, and in addition, he is looking for ways to distribute benefits to the middle and senior. At this point, it is not necessarily true how much profit is actually sought, and the key is that it will easily affect the company's ethos. "Wu said.      "The actual amount is not large, the main effect is morale." For example, you can't tell if someone is smeared, because there may be a problem, but the problem is not that big. "Liu Yang, the former ZTE Communications employee, said.      "Shi after taking office, began to reduce costs, originally our domestic travel accommodation standard is a first-tier city 250 yuan, after the internal compression to 200 yuan." However, after asking us to come to Shanghai on business, to stay and Thailand, the hotel's room rate is how much? 238 Bucks! "Zhou somewhat dissatisfied.      Zhou and Thai Hotel department Shenzhen ZTE and Thai Hotel Investment Management Co., Ltd. (hereinafter referred to ZTE and Thailand) under the name of assets. June 27, 2012, ZTE issued a notice, said the company will be 25.174 million yuan price, to ZTE's development of the sale of ZTE and Thailand's 82% stake. After the deal was completed, ZTE held a 82% stake in ZTE and Thailand, while ZTE held the remaining 18% per cent stake. "Who is it to deliver the benefits?" Zhou asked.      in Tan Ming, a senior advisor to the German telecommunications consultancy, China, ZTE has a completely different incentive mechanism under the state-owned private system than the purely private mechanism of Huawei. "According to the usual understanding, it is natural to think that Huawei's full shareholding model attracts a considerable amount of staff." Under such circumstances, how can the wages of state-owned enterprises be held against? ZTE's operators must consider both the requirements of the laws and regulations, while also playing a very good incentive mode, this model must be enough to match or contend with Huawei's incentives to ensure that the company's core staff incentives and retention. "Tan Ming said.      effect seems obvious, as of this year, ZTE has not seen the core of technical personnel, staff exodus phenomenon. "For the core talent, experts and people with market resources, their competition is very market-oriented, must have matching, equivalent incentives." An employee who has a customer relationship with a region or market will be tempted to be very big, and if he doesn't get enough incentive, he will resign without the reason to leave, which means that his internal motivation is sufficientTo contend with an opponent. "Tan Ming thinks.      ZTE has tried to motivate more employees. June 13, 2011, ZTE announced that the company's controlling shareholder ZTE New 25.88 yuan/share of the average price, reduce 48.495 million shares. At that time, that is, media reported that the party for ZTE Internal staff entrusted to the Third-party Trust Company.      in the local branch office Wu bought this batch of shares, "this matter I do not want to say, the price is more than 20 yuan, then I know throwing water." "    " is the most stressful place for management. Liu Yang told reporters.