After reaching an settlement agreement to the tune of $1.4 billion with the United States, ZTE finally survived, but on the first day of resumption, its Hong Kong shares fell by 37.5% and A shares fell 10%. As a result, ZTE Corporation will hold the 2018 Annual General Meeting of Shareholders on June 29. Due to prolonged delay and many changes in the hierarchy of the company, the content of this general meeting of shareholders will be quite large. There were as many as 16 proposals that need to be considered, including a special resolution to amend the Articles of Association and the relevant rules of the Rules of Procedure of the Board of Directors.
Gizchina News of the week
ZTE plans to apply for a comprehensive credit line of 30 billion Yuan ($4.6 billion) to Bank of China Co., Ltd. and a similar credit line of 38 billion Yuan ($6 billion) to the Shenzhen Branch of the China Development Bank. This brings the total loan that the company seeks to 68 Billion Yuan ($10.6 Billion). The credit line refers to the stock management index of short-term credit granted by the commercial bank for a customer. As long as the credit balance does not exceed the corresponding service variety index, regardless of the cumulative payment amount and the number of issuances, the commercial bank business department can quickly provide short-term credit to the customer, that is, the company can conveniently and cyclically use the bank’s short-term credit funds to satisfy its customers.
In addition, ZTE will provide a total of no more than $200 million in performance guarantees for nine foreign wholly-owned subsidiaries, which will provide Zhongxing Hong Kong with medium and long-term debt financing (including but not limited to syndicated loans, bank credits, issuance of corporate bonds, etc.). According to the settlement agreement with the U.S., all board members of ZTE and ZTE Kangxun must be replaced. All current senior vice presidents and all senior leaders, managers, or senior staff must cancel their previous contracts.