Case
Teaching Notes
Supplementary Resources
Abstract
On December 8, 2009, Shanghai Zhenhua Heavy Industries Co., Ltd. (600320.SH, “ZPMC”) issued a press release that 76-year-old President Mr. Guan Tongxian had decided to resign due to his age, and his resignation had been accepted by the XPMC Board of Directors. A special shareholders' meeting was convened on Christmas Day and agreed to recruit a new president. “Age might not be the main reason of his resignation. He's had his mind set for some time,” said an investment company manager familiar with ZPMC. Mr. Guan told his employees that he wanted no media interviews so his departure would be low profile. However, his experiences and achievements in the past decade were flashing through his mind as he left ZPMC, the world's largest manufacturer of port machinery and large steel structures. As the eldest CEO of a state-owned listed company, he had created a miracle over the past several years.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved
Resources
Table I: Major Accounting Data and Financial Index of ZPMC during 2001–2009. | |||||||||
---|---|---|---|---|---|---|---|---|---|
Index items | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 |
Major business revenue | 2,885,460,045 | 3,074,237,616 | 4,628,172,800 | 7,193,674,688 | 12,104,795,828 | 16,808,374,363 | 21,005,474,031 | 27,443,405,347 | 27,564,115,642 |
Net profit | 191,532,232 | 137,004,461 | 277,692,747 | 465,028,796 | 1207,529,083 | 1,602,472,072 | 2,004,572,836 | 2,551,063,379 | 839,853,345 |
Total assets | 4,467,633,868 | 5,205,288,896 | 7,281,864,087 | 10,828,538,152 | 13,975,965,881 | 19,640,876,401 | 29,115,331,106 | 53,582,768,850 | 51,066,425,862 |
Shareholders' equity (excluding the minority shareholders' equity) | 1,805,331,883 | 1,851,036,344 | 2,128,729,091 | 3,487,064,467 | 4,571,319,950 | 5,865,608,022 | 11,113,874,846 | 15,320,701,808 | 15,812,245,251 |
Net assets per share (yuan/share) | 3.95 | 4.05 | 4.66 | 3.39 | 2.97 | 1.90 | 2.94 | 3.49 | 3.60 |
Net cash flows per share from operating | -0.44 | -0.33 | -0.27 | 0.15 | -0.30 | 0.29 | 0.17 | -1.21 | 0.13 |
Earning per share (fully diluted) | 0.42 | 0.30 | 0.61 | 0.45 | 0.78 | 0.52 | 0.65 | 0.76 | 0.19 |
Weighed average return on net assets after non-recurring profit and loss (%) | 9.94 | 7.23 | 15.31 | 19.78 | 30.04 | 30.70 | 27.72 | 10.44 | 4.63 |
Source: 2000–2009 Annual Report of ZPMC.
Table II: Remuneration of Senior Executives (President and Vice President) of ZPMC in 2008. | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Name | Position | Gender | Age | Shares held at beginning of year | Shares held at end of year | Amount of stock options held | Amount of shares with trading restriction | Amount of shares increased/decreased | Total rewards given by the Company in the report period (10K RMB, pre-tax) | Amount of shares with exercisable right | Amount exercised | Exercise price (RMB) | Whether be given by the shareholder units or other associated units |
Guan Tongxian | Executive director, president | Male | 76 | 0 | 0 | 0 | 0 | 0 | 35 | 0 | 0 | 0 | No |
Liu Qizhong | Executive director, vice president | Male | 45 | 0 | 0 | 0 | 0 | 0 | 38 | 0 | 0 | 0 | No |
Yan Yunfu | Executive director, vice president | Male | 50 | 0 | 0 | 0 | 0 | 0 | 37.91 | 0 | 0 | 0 | No |
Sun Li | Executive director, vice president | Male | 37 | 0 | 0 | 0 | 0 | 0 | 35.45 | 0 | 0 | 0 | No |
Wang Jue | CFO, director | Male | 45 | 0 | 0 | 0 | 0 | 0 | 33.83 | 0 | 0 | 0 | No |
Huang Hongyu | Vice president | Male | 55 | 0 | 0 | 0 | 0 | 0 | 37.49 | 0 | 0 | 0 | No |
Tian Hong | Vice president | Male | 46 | 0 | 0 | 0 | 0 | 0 | 36.55 | 0 | 0 | 0 | No |
Cao Wenfa | Vice president | Male | 62 | 0 | 4,000 | 0 | 0 | 4,000 | 35.45 | 0 | 0 | 0 | No |
Cao Weizhong | Vice president | Male | 53 | 0 | 0 | 0 | 0 | 0 | 36.89 | 0 | 0 | 0 | No |
Zhai Liang | Vice president | Male | 63 | 0 | 0 | 0 | 0 | 0 | 35.45 | 0 | 0 | 0 | No |
Huang Qingfeng | Vice president | Male | 34 | 0 | 0 | 0 | 0 | 0 | 36.3 | 0 | 0 | 0 | No |
Dai Wenkai | Vice president | Male | 42 | 0 | 0 | 0 | 0 | 0 | 41.14 | 0 | 0 | 0 | No |
Fei Guo | Vice president | Male | 47 | 0 | 0 | 0 | 0 | 0 | 42.67 | 0 | 0 | 0 | No |
Zhou Qi | Vice president | Male | 37 | 0 | 0 | 0 | 0 | 0 | 36.47 | 0 | 0 | 0 | No |
Chen Gang | Vice president | Male | 42 | 0 | 0 | 0 | 0 | 0 | 33.66 | 0 | 0 | 0 | No |
Liu Jianbo | Vice president | Male | 46 | 0 | 0 | 0 | 0 | 0 | 40.63 | 0 | 0 | 0 | No |
Source: 2008 Annual Report of ZPMC.
Table III: Top 20 container terminals and their throughput for 2007, 2008 and 2009 (in TEUs and percentage change). | |||||
---|---|---|---|---|---|
Port name | 2007 20-feet standard container | 2008 20-feet standard container | 2009 20-feet standard container | Percentage change 2007–2008 | Percentage change 2008–2009 |
Singapore | 27 935 500 | 29 918 200 | 25 866 400 | 7.10 | -13.54 |
Shanghai | 26 150 000 | 27 980 000 | 25 002 000 | 7.00 | -10.64 |
Hong Kong | 23 998 449 | 24 248 000 | 20 983 000 | 1.04 | -13.47 |
Shenzhen | 21 099 169 | 21 413 888 | 18 250 100 | 1.49 | -14.77 |
Busan | 13 261 000 | 13 425 000 | 11 954 861 | 1.24 | -10.95 |
Guangzhou | 9 200 000 | 11 001 300 | 11 190 000 | 19.58 | 1.72 |
Dubai | 10 653 026 | 11 827 299 | 11 124 082 | 11.02 | -5.95 |
Ningbo | 9 360 000 | 11 226 000 | 10 502 800 | 19.94 | -6.44 |
Qingdao | 9 462 000 | 10 320 000 | 10 260 000 | 9.07 | -0.58 |
Rotterdam | 10 790 604 | 10 800 000 | 9 743 290 | 0.09 | -9.78 |
Tianjin | 7 103 000 | 8 500 000 | 8 700 000 | 19.67 | 2.35 |
Kaohsiung | 10 256 829 | 9 676 554 | 8 581 273 | -5.66 | -11.32 |
Port Klang | 7 118 714 | 7 970 000 | 7 309 779 | 11.96 | -8.28 |
Antwerp | 8 175 952 | 8 663 736 | 7 309 639 | 5.97 | -15.63 |
Hamburg | 9 900 000 | 9 700 000 | 7 010 000 | -2.02 | -27.73 |
Los Angeles | 8 355 039 | 7 849 985 | 6 748 994 | -6.04 | -14.03 |
Tanjung Pelepas | 5 500 000 | 5 600 000 | 6 000 000 | 1.82 | 7.14 |
Long Beach | 7 312 465 | 6 487 816 | 5 067 597 | -11.28 | -21.89 |
Xiamen | 4 627 000 | 5 034 600 | 4 680 355 | 8.81 | -7.04 |
Laem Chabang | 4 641 914 | 5 133 930 | 4 621 635 | 10.60 | -9.98 |
Total Top 20 | 234 900 661 | 246 776 308 | 220 905 805 | 5.06 | -10.48 |
Source: Review of Maritime Transport 2010 (p. 97).
Table IV: World Seaborne Trade in 2001–2009 (millions of tons).
Source: Review of Maritime Transport 2002, 2006, 2010.
Table V: Global Orders of Ship-to-shore Container Cranes in 2001–2009.
Source: World Cargo News 2001–2010.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved