After the completion of the equity transfer, Li Bin, chairman of Ziguang Group, issued a letter to all staff today, talking about why the group did not exert its advantages but went into bankruptcy and reorganization, and several important needs to be promoted in the near future. matter.
In response to the group's bankruptcy and reorganization, Li Bin said that in addition to the misallocation of funds, there are two things missing: First, industrial synergy, the companies in the group are fighting for themselves, there is no resource sharing, collaborative management, no The second is the construction of the industrial chain. There are many subsidiaries of the group and the system is huge, but there is no complete industrial chain layout, and there are obvious shortcomings in some key links.
Li Bin pointed out that Ziguang Group will set up three headquarters in the future, namely the business headquarters, the empowerment headquarters, and the management headquarters. Among them, the business headquarters will divide the core business of the group into several sections, and help the group's entity enterprises achieve steady growth from the perspectives of development strategy, investment and financing, and industrial coordination. The Empowerment Headquarters will set up three centers for capacity construction, scientific research innovation, and international cooperation to integrate resources for the construction of industrial chains that are urgently needed by subsidiaries but do not have enough funds and talents to complete independently, as well as the development of some cutting-edge technologies. Unified investment. The management headquarters will provide financial, human, legal, informatization, and other mid- and back-office service support for various industrial companies controlled by the group.
The following is the full text of the letter from Li Bin, chairman of Ziguang Group:
Hello everyone!
In the current difficult situation of the turbulent international environment, the outbreak of the new crown epidemic, and the outbreak of the Group's debt crisis, in order to ensure the normal operation and stable development of the company, all colleagues have been sticking to their posts and tide over the difficulties together. For this, we would like to express our high respect and sincere thanks! A few days ago, Tsinghua Unigroup officially completed the shareholding change. As the new Tsinghua Unigroup is ready to go, on behalf of the board of directors of the group, I would like to share with you some considerations for the future development of the company.
In the past few years, Tsinghua Unigroup and its branches and subsidiaries have made a lot of achievements, especially in the fields of chips and cloud networks, they have carried out a good layout and occupied a leading position in the industry. The group has a large scale, many branches and subsidiaries, and a wide range of business coverage. It is a leading enterprise in my country's high-tech industry. Of course, we must also be soberly aware that in recent years, Ziguang Group's debt ratio has remained high, the capital chain has broken, and the company's cash flow cannot even cover the loan interest, let alone repay the principal. All creditors lost confidence in the group's development, and the group had to go through judicial procedures for bankruptcy and reorganization. It has a very negative impact on the operation, financing, R&D, and external cooperation of each subsidiary. At the same time, companies in various industries are also facing many problems such as market competition, talent stability, and supply security. At this time of crisis, under the auspices of the managers of Tsinghua Unigroup, through judicial reorganization, a development opportunity has been created for the group to start from a new starting point. As a strategic investor in the judicial reorganization of Tsinghua Unigroup, Zhilu Jianguang Consortium proposed the best overall restructuring plan for Tsinghua Unigroup in terms of debt repayment and industrial coordination, which has been recognized and supported by relevant parties. In the past few months, during the bankruptcy reorganization process, the administrator has worked objectively and impartially with all employees in a pragmatic and efficient manner, which has played an important role in maintaining the operation and business stability of the group. Here, I would like to express my gratitude to the management team of Tsinghua Unigroup, all employees, creditors who support the company's development, the original shareholders of the company, and the managers who promote the restructuring of Tsinghua Unigroup in accordance with the law.
The development history of Tsinghua Unigroup is similar to that of China's high-tech industry. It is both dangerous and organic. It is a microcosm of the growth of China's technology industry. Although breakthroughs and innovations have been made in some fields, the core technologies of many products still rely on imports. In the future, growth requires well-organized elements of the entire industrial chain such as design, manufacturing, packaging and testing, materials, equipment, and software, and the introduction and absorption of innovative resources. , not only insist on independent research and development but also drive enterprises to actively participate in international competition and fully integrate into the global industrial chain. The Group's next development has five dimensions of value orientation: first, to contribute to the development of the country's emerging technology industry; second, to be responsible for the future and careers of all employees; third, to protect existing investors, The interests of shareholders; the fourth is to ensure the safety of the assets of the original creditors; the fifth is to assume the corresponding social responsibilities. This is the basic principle that the Group should follow in its future work.
The future and destiny of an enterprise are closely related to each employee. The following are some important matters that need to be promoted in the near future in open and transparent communication with you:
The first is to solve the current debt and capital problems, rebuild the company's credit and reputation with a healthy balance sheet and capital management system, restore the confidence of investors and creditors, and restore the equity and debt financing capabilities of various entities. If this problem is not resolved, the subsidiaries of the Group will continue to carry a heavy burden, which will affect their future survival and stability, reputation, and morale, and neither the Group nor its subsidiaries will be able to further develop sustainably and healthily. In this regard, we will first use a large amount of equity capital invested to repay creditors, greatly reduce the debt ratio, and go into battle lightly, so as to create a good operating environment for each subsidiary.
After the company resumes normal operations, it needs to carefully study the group's long-term development strategy, core technology, and core competitiveness. This requires an in-depth analysis of the current situation and the domestic and foreign competitive environment with the existing management team and then making a decision. In the future, we will fully listen to the opinions and suggestions of the leadership of the Group and various subsidiaries, formulate short, medium, and long-term business and strategic plans based on existing products, technologies, and market conditions, and supplement resources as needed to provide corresponding support and support. strategic support.
Another focus is the issue of R&D investment. This is closely related to our long-term strategy and future development. As a technology industry group focusing on the digital economy, Tsinghua Unigroup invests heavily in research and development and deploys core IP, design, technology, tool software, etc., which is the top priority of future development. The group will discuss with various industrial companies to set up special classes in the related directions of structure, materials, and technology, to help connect domestic and foreign leading enterprises or scientific research institutions and cooperate with them to jointly tackle key problems. By concentrating the strength of the whole group for precise investment, a joint force is formed to help industrial companies occupy the high ground of core technology.
Another key to business success is the talent aspect. The fundamentals of technology companies are core technologies and talents, so we insist on encouraging companies to increase R&D efforts, cultivate talents, and stabilize talents. The talents recruited and used must be from all corners of the world, and must not engage in hilltopism. It is necessary to share the operating income with the management team and core talents of the enterprise and provide them with sufficient authorization, sufficient resources, and an effective incentive mechanism. It is our important goal to create a higher-level and broader career development platform for the professional, market-oriented and international development of the Group's employees. Of course, the talent strategy of an enterprise is not only on the incentive mechanism but also creates a good environment for high-tech talents from the aspects of the enterprise's development direction, development strategy, future growth space, and corporate culture.
In terms of the enterprise development model, Tsinghua Unigroup has a very good industry layout, and each entity enterprise also has a group of experienced management teams, but why did it not give full play to its advantages and instead went bankrupt and reorganized? In addition to the misallocation of funds, we believe that two things are still missing: first, industrial synergy. The companies in the group are fighting for each other, and there is no resource sharing, collaborative management, and no synergy; second, the construction of the industrial chain, the group There are many subordinate enterprises and a huge system, but there is no complete industrial chain layout, and there are obvious shortcomings in some key links. The enterprises of Zhilu Jianguang Holdings and the existing business of Tsinghua Unigroup are highly complementary, which can make up for the shortcomings of some industrial chains for the group. Such as semiconductor packaging and testing, materials, equipment, wafer manufacturing, software, etc., the layout of Zhilu Jianguang can provide different levels of supply chain guarantee for group companies. As for market customers, it can help some of the group's enterprises enter the automotive electronics, industrial control, and other fields where the original market share is not high, and further consolidate and strengthen the group. Dominant position in consumer electronics, mobile communications, and the Internet of Things.
In order to meet the development needs of being a leading industrial group in the field of intelligent technology, the group will set up three headquarters in the future to support the efficient development of industrial companies, namely the business headquarters, the empowerment headquarters, and the management headquarters. The business headquarters will divide the core business of the group into several sections, and help the group's entity enterprises achieve steady growth from the perspectives of development strategy, investment and financing, and industrial coordination. The Empowerment Headquarters will set up three centers for capacity construction, scientific research innovation, and international cooperation to integrate resources for the construction of industrial chains that are urgently needed by subsidiaries but do not have enough funds and talents to complete independently, as well as the development of some cutting-edge technologies. Unified investment. The management headquarters will provide financial, human, legal, informatization, and other mid- and back-office service support for various industrial companies controlled by the group. The core team members of the major industrial subsidiaries will also participate in the group's overall strategic planning and industrial collaboration. In the future, incentives and authorizations will also be tilted towards front-line business, market, R&D, production, and other departments. It is hoped that everyone can form a joint force, complement each other's advantages, and share resources so that Xinziguang will radiate more vitality and release more potential.
Regarding the future development strategies and principles, I would like to share a few views with you:
The first is to be forward-looking. In the future, social progress will have the development trend of digitization, virtualization, and networking. The accelerated integration of new technologies such as blockchain, new materials, genetic engineering, neural networks, and quantum computing will have a relatively large impact on the traditional enterprise system, knowledge structure, and education system. Both companies and individuals should look at the present and the future with a forward-looking perspective, keep track of the most cutting-edge innovations and keep learning and progressing.
The second is to maintain openness. Historically, any enterprise, organization, or country will benefit from extensive cooperation and be open and inclusive. Learning from our peers and learning from our opponents will make us stronger. Competition should be welcomed, and opponents should be respected. Often, the stronger the opponent, the higher your achievement. In modern times, the powerful countries in Europe and the United States benefited from the environment of open competition and became stronger, and China's rapid development in recent decades is also inseparable from the national policy of reform and opening up.
The third is to ensure fairness. Under the trend of decentralization of the digital economy in the future, it is very important for each individual to give full play to their initiative. This needs to ensure the fairness of various resource allocations and opportunities. The power of individuals in an efficient organization is insignificant, and it must rely on platforms and collectives to play a role. For enterprises, all incentive measures must have a unified normative system and value contribution evaluation to ensure transparency, fairness, and justice for all employees.
The fourth is to adhere to marketization, that is, to do a good job in independent management, make good products, seek benefits from the market, and reduce dependence on the government. We have always advocated that enterprises should not rely on government subsidies, but rely on their own ability to contribute to market competition. It will become a truly powerful and viable enterprise and make corresponding contributions to the country and society.
The fifth is to promote internationalization, that is, to integrate into the global economic cycle, not only to learn the advanced technology of developed countries but also to learn their advanced management experience. At the same time, our products and services must be exported to developing countries, so that more people can benefit from the improvement of life brought about by technological innovation. There is also respect for the internationally accepted commercial rules and regulatory order, and special attention should be paid to the protection of intellectual property rights.
Looking at the growth timeline of Tsinghua Unigroup, it was founded in the passionate 1988. Shuimu Tsinghua is our deep imprint. In 1993, Tsinghua Tsinghua Unigroup (Group) Corporation was reorganized and established in 2010. Mixed ownership. In 34 years, Ziguang has developed from a small team in Tsinghua Garden to a comprehensive high-tech industrial group today. Generations of Ziguang people have contributed greatly. Today's Tsinghua Unigroup controls more than ten high-tech enterprises with leading positions in sub-sectors. The scale is already large, but the level of business development and management is uneven. In addition to capital problems and the pressure of debt, it faces competition and The challenges are also very big. If we combine with a group of large and medium-sized enterprises of Zhilu Jianguang Holdings, which is our shareholder, the scale will be larger, the industry coverage will be wider, the management will be more complicated, and it will become more and more important to the industry chain. Larger enterprises and organizations have greater responsibilities, should seek cooperation more widely, and should be more modest and prudent. Great and difficult undertakings should start small, starting from simple, which is the so-called "more than the details, the picture is difficult and easy." It should be fully recognized that the times and industries have given us today's opportunities. As an enterprise and a team, our mission is to develop newer technologies for the industry and society, provide better services, and create more value. Any major benefits and resources belong to everyone, society, and the country.
"Going high, creating value" is our firm belief and value. "Aim high and go far" is to take a long-term perspective, not just focus on immediate interests and personal interests. People who are too shrewd and smooth are often difficult to achieve grand careers. There is a great future. To "create value", we must be down-to-earth and reflect our own value by creating more value for customers, enterprises and others. Our ultimate goal is not just to make more products and create more wealth, but to make life happier for more people, including ourselves. True happiness must be accompanied by giving full play to one's own potential and talents to change the world. Recently, the epidemic has been raging, the international situation is complicated, and the domestic economy has declined. Business operation is like moving forward in a difficult and dangerous environment with turbulent waves and layers of mountains and mountains. Everything is uncertain, only the lofty beliefs stand as strong as a rock, guiding us to always walk on a bright and right path. The belief in creating value for the industry and society is like a mirror that reminds us to stick to the right direction, adopt the right way of doing things, and realize our lofty ideals.
History has proved that one of the reasons for the success of the development of all sciences and the prosperity of the country lies in admitting one's ignorance, maintaining a strong curiosity, and constantly exploring, learning, and progressing. The more closed the country is to others, the more they must embrace the world with an open mind; the more difficult the future is, the more important our career responsibility is; Today, in the face of the rapid development of the global emerging technology industry, it is necessary to act cautiously with the mentality of walking on thin ice, but at the same time, it is necessary to speed up the pace and have the courage and courage to cross mountains and rivers.
The voice of "constant self-improvement and great virtue" is still in my ears. I hope that the future of Ziguang Group will shine like the stars in the Milky Way. I hope that the purple light from everyone's hard work will not only illuminate our own growth path but also lead to intelligent technology. The road of independent research and development in the industry! Let us new Ziguang people work with our partners to illuminate a happy life with the light of technology and make the world smarter, more open, fairer, and better!
Li Bin, Chairman of Ziguang Group
July 2022
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