ST Zhongchang (600242), caught in a management dispute, has new changes in personnel appointments and removals. Dissatisfied with the new management, the company’s vice president Liu Yong and vice president and board secretary Fang Yuan resigned in anger a week ago. The front foot of the two had just resigned, and the back foot was re-appointed at the latest board meeting. At the same time, vice presidents Ye Qiwei and Ma Kai, who were previously dismissed by the board of directors, were also hired. Ji Mingrui, the executive vice presidents who took office when Ye Qiwei and Ma Kai were dismissed, took office less than a month ago. He was dismissed on the grounds that his management policies were changed rapidly during his tenure, and he failed to carry out relevant work in accordance with the corporate governance requirements of a public company. Does it mean that the management of ST Zhongchangyuan has regained the right to speak? That’s a big question hanging on investors’ minds right now.
Personnel appointments and removals reproduce drastic changes
On the evening of April 10, ST Zhongchang announced that the company’s board of directors appointed Zhu Congshuang as the company’s president. Nominated by Chairman and President Zhu Congshuang, the company’s board of directors appointed Wu Yuanya, Ye Qiwei, Ma Kai, and Liu Yong as the company’s vice presidents, and Fang Yuan as the company’s vice president and board secretary.
Just a few days ago, on April 6, ST Zhongchang announced that the company’s vice president Liu Yong and vice president and board secretary Fang Yuan resigned. When the two resigned, they expressed strong dissatisfaction with the company’s new management. Fang Yuan said, “In view of the fact that some members of the company’s current board of directors and new management have recently ignored relevant laws and regulations on corporate governance and information disclosure, and abused the authority of the board of directors and management to undermine corporate governance and normal operations, I strongly disagree with these inappropriate behaviors. Disappointed and helpless, he was forced to resign from the positions of board secretary and vice president.” Liu Yong said, “Due to the recent drastic changes in the company’s senior management team and the occurrence of conflict incidents, it has seriously affected the safety and security of the operation and management team’s performance of duties and the normal operation of the company. At the same time, the company’s board of directors and its temporarily appointed new management team policies are changing rapidly, and I failed to carry out relevant work in accordance with the corporate governance requirements of a public company. I am unable to correct it but I cannot stand with it. I am resigning from the position of vice president and general manager of the Beijing Business Center.”
The proposal to appoint Fang Yuan as vice president and secretary of the board of directors was approved by the board of directors of ST Zhongchang with 6 votes in favor, 1 abstention and 1 vote against. Li Qunnan voted against this, citing Fang Yuan’s personal behavior, which has exacerbated internal conflicts in the board of directors many times, and is not suitable for the position of board secretary of a listed company.
Economist Song Qinghui said that disputes in the management of listed companies are harmful to the company’s performance development, and if the disputes continue, it will also bring great uncertainty and risk to the company’s future development. Investors should maintain this. alert. In response to company-related issues, a reporter from Beijing Business Daily called ST Zhongchang’s board secretary office for an interview, but the other party’s phone was not answered.
Executive Vice President Ji Mingrui was dismissed
It is worth noting that, in addition to Fang Yuan and Liu Yong, who returned and returned, Ye Qiwei and Ma Kai also served as vice presidents of ST Zhongchang among the newly appointed vice presidents. Their positions were approved by the board of directors on March 19. recall. At that time, the reason for their dismissal was that they failed to effectively resolve the company’s operational difficulties and risks during their tenure as vice presidents of the listed company.
At the same time, the board of directors of ST Zhongchang reviewed and approved the “Proposal on Removing Mr. Ji Mingrui from the Position of Executive Vice President” with 6 votes in favor, 2 abstentions, and 0 votes against. Operation, do not change management management frequently, hope that the board of directors will propose candidates after full consideration.
It is worth noting that Ji Mingrui was elected as the executive vice president of ST Zhongchang when Ye Qiwei and Ma Kai were dismissed, and he has been in office for less than a month. ST Zhongchang said that in view of Ji Mingrui’s management policy changing rapidly during his tenure, and failing to carry out relevant work in accordance with the corporate governance requirements of public companies, the board of directors intends to remove Ji Mingrui from the position of executive vice president upon the proposal of President Zhu Congshuang.
When Ji Mingrui was appointed and Ye Qiwei and Ma Kai were dismissed, the Shanghai Stock Exchange hurriedly sent an inquiry letter to ST Zhongchang, requesting ST Zhongchang to explain whether the current corporate governance was compliant and whether the internal control was effective. The inquiry letter has not yet received a response from the company.
Behind the internal turmoil of ST Zhongchang’s management, the company’s operating performance came under pressure. According to ST Zhongchang’s 2021 performance forecast, according to preliminary calculations by the financial department, the company expects that the net profit attributable to achieve in 2021 will be a loss compared with the same period of the previous year (statutory disclosure data), with an estimated loss of 416 million-504 million yuan.
It is worth mentioning that among the 20 typical illegal cases in the 2021 CSRC audit recently disclosed by the China Securities Regulatory Commission, the actual controller of ST Zhongchangyuan is on the list. It is understood that from February 2018 to January 2019, the then actual controller of ST Zhongchang, Chen Mou, instructed General Manager Xie Mou and market trader Hu Mou to control the use of 101 securities accounts, and manipulate ST through continuous trading, reversal and other methods. Zhongchang stock price, illegal profit of 11.47 million yuan. The CSRC stated that the case warned that listed companies and actual controllers should enhance corporate value in compliance with laws and regulations, and adhere to the “four bottom lines” of not engaging in insider trading, not disclosing false information, not manipulating stock prices, and not harming the interests of listed companies.
Beijing Business Daily reporter Dong Liang Ding NingReturn to Sohu, see more
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