Original title: $1 billion 400 million fine + replacement of all directors, ZTE resumed today! How many falls will there be?
In April 16th, the US Department of Commerce issued a sanctions order, which led ZTE to a serious crisis. ZTE's A shares and H-shares also announced the suspension.
Although there are concerns and support from all over the country, more than 80 thousand employees and 310 thousand shareholders of ZTE have had a rough time in these two months. Now that ZTE is back to normal business, investors are also coming to the last big news.
In the evening of June 12th, ZTE announced that the A shares of the company will resume trading on the morning of June 13, 2018.
The announcement also confirmed that in accordance with the agreement, ZTE will pay a total of $1 billion 400 million (about RMB 8 billion 900 million yuan) civil fines, and the replacement of all board members of the company and ZTE xxon within 30 days after the signing of the BIS order.
ZTE A shares announced resurgence
Zhongxing communications in the evening of June 12th announced that the company and the wholly owned subsidiary, xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx have reached an alternative settlement agreement with the Department of industry and safety of the United States Department of Commerce (hereinafter referred to as "BIS") to replace the conciliation agreement between ZTE and BIS in March 2017.
At the same time, BIS has come into force in June 8, 2018 (American time) through the approval agreement on ZTE's alternative order (hereinafter referred to as "the June 8, 2018 order").
In accordance with the agreement, ZTE will pay a total of $1 billion 400 million in civil fines, including a one-time payment of $1 billion within 60 days after the issuance of the June 8, 2018 order by BIS, and for 90 days after the issuance of the June 8, 2018 order of June 8, 2018 to the US Bank trusteeship, approved by ZTE and BIS, and postponed during the monitoring period. The extra $400 million is fined (in the supervision period, if ZTE complying with the terms of supervision and the June 8, 2018 order and the June 8, 2018 order, a fine of $400 million will be exempted after the expiration of the monitoring period).
In addition, ZTE will replace all the board members of the company and ZTE Hong Kong within 30 days after the BIS issue of the June 8, 2018 order. Within 30 days after the change of board members, ZTE should set up a special audit / compliance committee composed of three or more new independent directors on the board. The chairman may serve as a member of the Committee but shall not serve as chairman of the Committee.
Every sub editor (micro signal: nbdnews) noticed that at present, there are 14 members of the board of directors of ZTE, whose average age is about 54 years old.
There is still a lot of work to be done
Although ZTE has temporarily lifted the crisis this time, it does not mean "safe landing".
Each minor (nbdnews) notes that the previous sanctions were equivalent to only temporary enforcement, and the US Department of Commerce had the power to reactivate the refusal order at any time.
In order not to let the "Damour and Chris" sword fall, ZTE needs to maintain compliance work to meet the standards.
ZTE will be responsible for all the senior vice presidents and above senior vice presidents of the listed company and ZTE xxon within 30 days after the issuance of the June 8, 2018 order of the BIS, as well as any party involved, the oversight letter issued by the BIS in March 2017 or the Bank of the April 15, 2018 refusal order. Any management or senior officer will terminate the contract and prohibit ZTE and its subsidiaries or affiliates from employing the above personnel. At the same time, ZTE should inform BIS about the implementation of this provision in time, and BIS can freely decide whether to exempt the relevant personnel.
ZTE will appoint an independent special compliance coordinator at its own expense within 30 days after the issuance of the June 8, 2018 order by BIS. The coordinator will be responsible for coordinating, monitoring, assessing and reporting ZTE and its global subsidiaries or associated enterprises to comply with the 1979 U.S. export management bill, regulations, agreements and 2018 during the monitoring period. The order of June 8th was also reported to ZTE president and board of directors, BIS.
ZTE will complete and submit nine audit reports on compliance with the U. S. export control law. The remaining six audit reports will be completed by the coordinator after the expiration of the term of office of the independent compliance inspector based on the agreement reached by the company and the United States Department of justice and any relevant court orders.
ZTE will provide extensive and applicable export control training for its leadership, management and employees, global subsidiaries, related enterprises and other entities of ZTE and other entities controlled by ZTE.
Several funds downgrade ZTE's valuation
As of the end of the first quarter of this year, the Wind data showed that 189 of the funds were sent to ZTE's communications, among which 16 of the first major stocks were ZTE, with a total of 187 million 417 thousand and a stock market of 5 billion 650 million yuan.
ZTE's closing price in April 17th was 31.31 yuan. After the suspension of trading on that day, the public fund immediately launched its first round of valuation adjustment in April 18th and April 19th. The valuation price of CITIC Prudential, rich country, Central Europe, national sea Franklin, Chinese mail business, building letter, Jiashi and so on is 25.05 yuan, and the valuations of Pingan China, Xingquan, Xingye and Chinese businessmen are 25.36 yuan.
However, with the ups and downs of ZTE's development, the public offering fund will also be valued and adjusted again. Even in June 12th, 3 companies issued adjustment valuation notices.
Up to now, the most undervalued value of the public fund for ZTE is 20.04 yuan, such as tadahuli, Franklin, Jiashi, building letter, rich country, and another part of 20.54 yuan, such as Chinese merchants and East China certificates, 22.82 yuan, Kami Mane, the Great Wall, and Soochow, and the highest valuation, and the highest valuation. It is the 25.36 yuan of the Tian Zhi fund. The lowest value of Hong Kong stocks is HK $16.38.
As we all know, the public fund to reduce the value of the valuation is to advance the impact of the decline after the return of ZTE, lest the net value of the fund is high, the net value of the future resurgence of ZTE has a big drop, triggering a chain reaction.
Of course, the trend after ZTE's re licensing is critical, according to the current valuation of the maximum of 4 falls and at least 2 falls, if ZTE is less than 4 fall stops or 2 falls, then the corresponding related funds have arbitrage space, after all, the stock price will be higher than the stock valuation of its holdings, resulting in floats. Profit.
Review of crisis events
For all the ZTE people, all the pressure and sadness in the past two months may be unforgettable.
In April 16th, the US Department of Commerce announced that it banned US companies from selling components to ZTE in the next 7 years. ZTE announced its suspension in the A and H-share markets, and some of its US suppliers' share prices plummeted.
In April 17th, ZTE announced that the working group on crisis response should be launched to make every effort to face the crisis. On the same day, the Ministry of Commerce said it would pay close attention to the progress of the situation and stand ready to take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises.
In April 20th, ZTE communications held a press conference in Shenzhen headquarters, and ZTE chairman Yin Yimin said such sanctions would make the company into a state of shock.
In April 25th, ZTE's announcement showed that the company was actively communicating with the relevant government departments of the United States, "the management of the company has decided to take some actions related to the order under the relevant American Law".
In May 4th, a spokesman for the Chinese Ministry of Commerce said in response to a reporter's question that in the Sino US economic and trade consultations held from 3 to 4, the Chinese side made a solemn negotiation with the United States on the case of ZTE. The US side attaches importance to China's negotiation and will report to the president of the United States the position of China.
In May 9th, ZTE announced major progress announcements, saying that the main business activities of the company could not be carried out because of the refusal order.
In May 10th, according to the Wall Street daily, a spokesman for the Department of Commerce and safety of the U. S. Department of Commerce said that the US Department of Commerce was examining the appeals submitted by ZTE and would give timely consideration to the complaint material.
On June 7th, US Commerce Secretary Ross announced a new settlement agreement with Zte Corp on 7.
Editor in responsibility: Huo Yuang
Waonews is a news media from China, with hundreds of translations, rolling updates China News, hoping to get the likes of foreign netizens