Cement Character Series: Landscape is still the same, but Zhang Caikui is not seen in those days

Cement is a great cause, carrying the people's yearning for a better life, and laying a solid foundation for economic and social development. Over the past decades, China's cement industry has been developing continuously and making great progress, realizing the technological leap from shaft kiln to new dry process, completing the transformation from following to leading in the world, and becoming a basic industry with great international competitiveness in China. In the course of the vigorous development of the cement industry, a large number of figures have emerged, who have profoundly reshaped the development pattern of China's cement industry. In the near future, China Cement Network will review the influential figures in the cement industry from the perspective of a third party.

Today we bring you "

He summed up a set of management methods with the words "people-oriented" and "cost", and won the first prize of the first national management innovation achievement in China's cement industry, known as the "good monitor of state-owned enterprises".

He turned a pilot plant with a design of 550,000 tons and an actual annual output of less than 100,000 tons into the second largest cement group in China, and pushed it to the Hong Kong Stock Exchange, becoming the first red chip in China's cement industry.

With a two-page withdrawal plan, he turned himself from a "hero who saved the factory" into a defendant of 3939 employees, and was expelled from the board of directors by the capital, the court and the company he founded.

He is Zhang Caikui, former party secretary and chairman of Shandong Shanshui Cement Group Co., Ltd.

I. The 12th Factory Director

In 1972, the construction of the

factory made up a doggerel: "Going to work is the same as going to the market, the workshop is the same as going to the latrine, and the leader speaks the same as not speaking."

Ten years, eleven factory directors, like a merry-go-round. In March 1990, the twelfth term of office arrived: Zhang Caikui, 39 years old, a native of Qinghe, Hebei Province, born in 1951, joined the work force in 1968, and worked all the way from the branch secretary and workshop director of Jinan Dongfanghong Cement Plant to the party secretary. He was elected by a high vote in the democratic election and served as secretary of the Party Committee and director of the factory. Before he

took office, he made a request: "When the organization is appointed, it should announce that I am the secretary and factory director, not the factory director and secretary." At the first workers' meeting, he said, "All the workers in the factory are my brothers and sisters, and I am willing to serve you." In the Spring Festival of that year, when the enterprise could not afford to provide welfare for its employees, he took more than 20 Party members and cadres to make honeycomb briquette by himself, more than 80 tons, and sent it door to door.

" Only failed operations, There are no failed enterprises; there are only backward leaders, and there are no backward masses. The loss of enterprises, in the final analysis, is the loss of people's mental state and work style. Zhang Caikui spoke bluntly.

His factory management strategy was later summarized as "two-oriented" management: people-oriented and cost reduction, officially called "cost management with people-oriented characteristics". In 1998, this method won the first prize of national enterprise management modernization innovation achievement, which is the first time in the cement industry.

The leading group laid down a rule: "Whoever touches a penny of public money will have his rice bowl." It was the hardest work to make kiln leather. In the high temperature of more than 70 degrees Celsius, he was the first to get into the kiln. This style was summed up by him in a more commonly quoted phrase- "It is better to do something than to shout out your voice."

In 1990, Shandong Cement Plant completed its annual production plan 86 days ahead of schedule, turning losses into profits at one stroke. Since then, the output has increased by 100000 tons annually, reaching 600000 tons in 1993, with profits and taxes exceeding 20 million yuan. Somebody asks him to do an enterprise to fear what most, he answers: "Heaven is not afraid, the ground is not afraid, the worker does not trust the most terrible."

Third, rebuild the two kilns.

The two lines are the test lines of the new dry process in China. Restricted by the technical level at that time, the design is congenitally deficient, the output is low and the energy consumption is high. In 1993, Zhang Caikui and the members of the team made the final decision: the two lines were all transformed.

Money is the hardest part. In 1994, the No.1 kiln was renovated, with a total investment of 45 million yuan and only 20 million yuan of the enterprise's own funds. The gap was filled by 15 million yuan of voluntary fund-raising by employees and 10 million yuan of compensation trade.

In order to save money, the leaders of the factory organized more than 400 people to dismantle the equipment, dig the foundation and clear the garbage by themselves every day, saving more than 5 million yuan. In June of that year, the No.1 kiln was successfully ignited at one time, stopped production, constructed and put into operation in that year. In 1997, the transformation of the second line was completed. The total investment in the

two technological transformation projects was less than 100 million yuan, the output increased from 600000 tons to 1.2 million tons, and the profit increased from 6.6 million yuan to 27 million yuan, setting the lowest investment record for similar projects in China at that time.

He listed four things during his term of office: turning losses into profits, setting up a group, relocating two factories, and restructuring. The Building Materials Bureau was reorganized into a group as a whole, and the administrative relationship became an asset link. In 1997, Jinan Shanshui Group was established. At the beginning of the 10th Five-Year Plan, Shanshui decided on the layout of "expanding eastward and westward, radiating north-south" along the Jiaoji Railway, and laid out eight

The issue of property rights was also put on the table. In August 2001, he led the formation of Jinan Innovation Investment Management Co., Ltd., with 2518 employees paying cash for shares. In 2004, Shanshui completed the restructuring of state-owned enterprises, all state-owned shares were withdrawn, and 17 cement enterprises with a capacity of 15 million tons became the second largest cement group in China at that time. In 2005, Morgan Stanley, CDH and IFC became shareholders one after another. July 4,

2008, Hong Kong Stock Exchange. Code 00691, issued 650.84 million shares, HK $2.80, raising 18. This is the first cement enterprise in Shandong listed in Hong Kong, and also the first Hong Kong red chips in China's cement industry. He was 57 years old

that year. The number of shareholders of a

Hong Kong company cannot exceed 50, and the shares of 3,939 employees have to be put into two trusts: Zhang's Trust and Li's Trust. The trustees are Zhang Caikui and his old partner Li Yanmin respectively. At the time of listing, Zhang Trust held 65.55% of the shares and Li Trust 16. According to the trust deed, the trustee has absolute discretion over these shares-he can dispose of the shares for nearly 4000 people as he sees fit. In January

2011, Li Trust's shares were transferred to Zhang Trust, and Zhang Trust's holdings rose to 81. Nominally, only 13 of the 81.74%.

Salary has also become a topic in recent years. In 2010, he received a discretionary dividend of 30.589 million yuan from the listed company; in 2011, his annual salary was 48885 100 million yuan, equivalent to 1.

In 2010, he stepped down as general manager and his son Zhang Bin took over. Zhang Bin carried out centralized procurement and internal reform, and many veteran executives left one after another. The crack between father and son and the old minister can't be hidden here.

6. Two Documents

In November 2013, Shanshui Investment issued two internal documents: the Share Repurchase Plan of China Shanshui Investment Co., Ltd. and the Distribution Plan of Withdrawal Income of Overseas Trust. The former is aimed at 7 prominent shareholders, while the latter is aimed at 3939 unnamed employee shareholders.

The core is only one sentence: all withdraw, leaving only one shareholder, Zhang Caikui, in Shanshui Investment.

The terms are as follows: liquidation is divided into three phases, in principle, every 10 years, a total of 30 years; equity value is linked to the stock price, the first phase is 20% off, the second phase is 10% off, the third phase is no discount; all the repurchase funds come from the annual dividends obtained by Shanshui Investment from the listed company, and the employees no longer enjoy the right to dividends from the date of signature. The

worker sums up this clause into a word: Take oneself share out bonus, buy oneself stock. As soon as the

document came out, thousands of employees petitioned against it, six of the seven prominent executives defected, and the plan was aborted. The former "brothers and sisters" have become two parties in court. In the second half of 2014, employees and former executives sued Zhang Caikui in the High Court of Hong Kong. On May 20,

2015, the Hong Kong court ruled that the shares held by the suing employees should be entrusted to Ernst & Young; As more people joined the lawsuit, the entrusted shares eventually reached 45% of Shanshui Investment. Zhang Caikui's control ratio slipped from 81.74% to 36%. He lost absolute control of Shanshui Investment, which was the source of his power in Shanshui Cement.

Side effects soon emerged: Shanshui's investment holdings were diluted from 30.11% to 25. Anyone who bought more than 25 in the secondary market, a fortress, suddenly became a piece of fat meat without an owner.

Old shareholder Asia Cement made the first move, spending HK $902 million in more than a month, increasing its shareholding from 13.42% to 20. The real hunter appeared in 2015: Henan Tianrui Group bought 10.51% on March 31. On April 15, the shareholding reached 28. The public shareholding dropped to 9.

So far, there are four players sitting on the table: Tianrui 28.16%, Shanshui Investment 25.09%, Asian Mud 20.90%, and China Building Materials 16. No one can have the final say alone, and everyone wants to have the final say. At the annual shareholders'meeting on May 22, Zhang Bin became chairman and Zhang Caikui became director-the father and son put their last position on the board of directors. The

kiln fire was extinguished

. On October 13, 2015, the extraordinary general meeting of shareholders was held. Zhang Caikui was removed as a director. At the moment, he has only one identity left: holding 13.18% of Shanshui Investment and Shanshui Cement 3.

A month later, the collapse began with cash flow. On November 11, Shanshui Cement announced that it could not raise enough funds to repay 2 billion yuan of ultra-short-term financing bonds "15 Shanshui SCP001" the next day. This is the first case of ultra-short-term financing default in China's bond market. The reason is not that the business has collapsed, but that the shareholders are fighting. In the same month, the board of directors applied to the Cayman Court for liquidation, which was revoked a few days later. On December 1, the special general meeting of shareholders was presided over by an independent person sent by the High Court of Hong Kong, and all the original board members resigned.

However, Zhang's father and son still hold the official seal and account books of Shandong Shanshui, a domestic entity. The new board of directors could not get in, and the two sides confronted each other across the headquarters building in Changqing, Jinan. On January 26, 2016, nearly 2000 Shanshui employees from nine provinces and regions gathered outside the headquarters department, holding the sign "Return my official seal". 50 P. M. on January 30, more than 2000 employees lined up to enter the headquarters square of Shanshui Industrial Park, counting property and taking over seals one by one. The whole process was quiet and orderly. The factory

he saved finally said goodbye to him in this way.

In 2015, Shanshui Cement lost 6.694 billion yuan, with an asset-liability ratio of 83. A company with an annual revenue of 20 billion yuan and a solid position in the industry was dragged into ICU by a control war.

It's just that all this has nothing to do with Zhang Caikui. He is 75 years old, and his name has not appeared in the annual report for many years.

From the democratic election in March 1990, to the Gong of the Hong Kong Stock Exchange on July 4, 2008, to the quiet flow of people in front of the Changqing Headquarters Building on January 30, 2016-three pictures, 26 years. It is up to one man to

save a kiln, and it is up to one man to push nearly four thousand people to the opposite side. There is a common sense in the

cement industry that once the kiln is ignited, it cannot be stopped at will. Stop and order again, the price is extremely high. So is

the human heart.