Shulou(Shulou.com)11/24 Report--

According to the latest announcement issued by Ziguang on January 3, 2023, H3C Holdings Limited ("HPE Cayman") and Izar Holding Co, wholly-owned subsidiaries of Hewlett Packard Enterprise Company, will sell their 49% stake in Xinhua Group Co., Ltd. to Ziguang International Information Technology Co., Ltd., a wholly-owned subsidiary of Ziguang.

This means that the well-known domestic manufacturer Xinhua three (H3C, netizens jokingly called "change three times") ushered in another shareholder change. After the completion of this transaction, Ziguang shares will achieve 100% shareholding in Xinhua III.

What kind of company is Xinhua San? Why did it go through so many shareholder changes? Look at the following:

█ was appointed to fight against Cisco in March 2003, and the infringement dispute between Huawei and Cisco entered the most critical juncture.

At that time, Cisco filed a full lawsuit against Huawei in Federal Court for the Eastern District of Texas. The 77-page lawsuit charges Huawei with 21 counts of patent infringement, unfair competition and theft of trade secrets.

In the face of Cisco's aggressive offensive, Huawei firmly responded. They argue that they do not have any infringement and that all Huawei's product designs are original intellectual property rights.

The two sides reached a stalemate and the lawsuit was deadlocked. At a critical moment, 3Com CEO Bruce Krafflin (Brucel Claflin) appeared in court to testify for Huawei. He said Huawei did not have any problems with the intellectual property rights of its data communications products.

Bruce Krafflin 3Com is an American company, and the main reason for helping Huawei is to work together to block Cisco.

At the time, 3Com not only testified for Huawei, but also formed a joint venture with Huawei. The name of the company is Huawei 3Com Technology Co., Ltd. (also known as Huawei Sankang, hereinafter referred to as Huawei 3Com).

The company LOGO Huawei 3Com was officially established in November 2003 (the joint venture intention was reached in March 2003), registered in Hong Kong and headquartered in Hangzhou. At the beginning of its establishment, it had 1500 employees.

Most of these 1500 people are directly from Huawei. Huawei has invested in technology and personnel and owns 51% of the company's shares. 3Com invested $165 million, accounting for 49 per cent of the remaining shares. Among the board seats, five are from Huawei and four are from 3Com. Bruce Krafflin and Huawei boss Ren Zhengfei are the company's chairman and CEO respectively.

The support from 3Com has really helped Huawei a lot. Finally, on July 28, 2004, Huawei, Cisco and 3COM submitted an application to the court to terminate the lawsuit. The court issued a decree terminating the whole action.

After █ broke away from Huawei and returned to Huawei, Huawei 3Com continued to operate.

The company focuses on the market of data communication equipment for government and enterprise users, mainly producing equipment such as medium-and low-end routers.

With its relationship with Huawei, 3Com and NEC (Nippon Electric Co., Ltd.), it is like a fish in water in domestic and foreign markets.

At that time, Huawei 3Com sold switches and routers in China with the Huawei brand, the European and American markets with the 3Com brand, and the Japanese market with the NEC brand, which can be said to have taken full advantage. The mid-and low-end switches and routers branded by Huawei on the market are actually made by Huawei 3Com.

In 2005, Huawei transferred 2 per cent of its stake in Huawei 3Com to 3Com, making 3Com a majority shareholder with 51 per cent. A year later, Huawei sold the remaining 49 per cent stake to 3Com for $882 million. At this point, Huawei 3Com has become a wholly owned subsidiary of 3Com and has nothing to do with Huawei.

In February 2007, Huawei 3Com officially changed its name to H3C (Hangzhou Huasan Communication Technology Co., Ltd.).

Huawei wants to sell Huawei 3Com for two reasons. First, Huawei hopes to spin off its low-end enterprise network business and focus on the telecom network market. Second, Huawei made a series of missteps in the PHS and CDMA markets at that time and was frantically chased by its rivals. In the face of the upcoming 3G and the expansion of the international market, Huawei is very short of money. So Huawei 3Com was sold. In fact, the cash obtained from the sale of Huawei 3Com did help Huawei tide over the difficulties at that time.

It is worth mentioning that when Huawei sold all its shares, it also handed over all its enterprise network business to the nascent H3C and signed an 18-month gentleman agreement: the site of the enterprise network business is yours in Huasan. I Huawei only focuses on the operator market.

After 3Com wholly-owned H3C, the operating performance has not been improved, still continues to decline. As a last resort, 3Com reconsidered selling H3C.

On the other hand, Huawei, on the other hand, wants to buy back the H3C it founded because of changes in the external situation. As a result, the two sides also discussed buyback matters.

In addition to H3C, Huawei even wanted to buy the entire 3Com parent company directly (H3C accounted for more than half of 3Com at the time, but it didn't cost much more). They teamed up with Bain Capital to make an offer for 3Com for $2.2 billion.

As a result, the US government blocked the acquisition on national security grounds. In desperation, Huawei and Bain Capital withdrew their bid.

In 2010, 3Com couldn't make it any longer and sold it all to HP for $2.7 billion. As a result, H3C has become a subsidiary of HP.

█ strike storm, seeking independence in 2013, the "Snowden incident" broke out, and the domestic requirements for independent control in key areas of information technology were strengthened, and the procurement and use of foreign-funded high-tech equipment were reduced. The performance of H3C with wholly foreign-funded status has been greatly affected, and its market share has dropped sharply.

In 2014, HP was split into HP Inc. (HPQ) and Hewlett-Packard (HP Enterprise). Hewlett-Packard is engaged in the business of personal computers and printers, while Hewlett-Packard is engaged in the business of server and data storage equipment, software and service software for enterprises. Among them, H3C belongs to HP Enterprise (HPE).

The successive changes of ownership have brought subtle changes to the mood of Huasan's internal employees. At the beginning of 2015, there was a serious strike within Huasan.

The cause of the outbreak of the storm stems from the personnel adjustment of Hewlett-Packard China's three communications management.

At that time, according to Hewlett-Packard China's appointment plan, Hewlett-Packard China chairman Mao Yunan will also serve as chairman of Huasan Communications, with former chairman Matt Greenly as vice-chairman.

Mao Yunan's move was unanimously opposed by all the staff and management of Huasan Communications.

The reason why Huasan employees spontaneously boycotted Mao Yunan is because they are worried that Mao Yunan will use the means of capital operation, regardless of the interests of employees and the development of the company, to sell Huasan again. Many veteran employees of Huasan have gone through the process of changing ownership many times before, and they really do not want Huasan to be "sold back and forth".

At that time, Huasan had more than 5000 employees, more than 5000 patent applications (nearly 90% were invention patents), annual sales of more than 10 billion yuan, firmly ranked first in the domestic enterprise network market, and belonged to absolute high-quality assets.

Many of Huasan's employees are from Huawei, and they are eager to achieve full shareholding like Huawei. They also hope that Huasan can be listed independently, so that their own interests can be protected.

In order to express their aspirations, nearly 1,000 Huasan employees held a collective protest at the Hangzhou headquarters and Huasan Beijing R & D base at that time. The scene of the protest was covered with banners: "hold a staff meeting to demand full shareholding,"safeguard national information security,"unite all forces that can be United,"resolutely support the three collective fruits of China, and defend Hua San."...

Employees protesting collectively (photo from the Internet) however, despite the anger and strong opinions of Huasan employees, they still can not influence the change of the situation. Hewlett-Packard China has a 100% controlling stake in Huasan, enough to make a decision on the development of the company.

A few months after █ held hands with Ziguang, Hewlett-Packard China selected Ziguang Group as a joint venture among more than a dozen potential partners in May 2015. The two sides reached an agreement that Ziguang, a subsidiary of Ziguang Group, would acquire a 51% stake in Huasan Telecom and become the company's controlling shareholder.

In addition to Huasan Communications, Hewlett-Packard also established a joint venture with Ziguang Holdings.

Ziguanghua Mountain is mainly for servers, storage and technical services, while Hangzhou Huasan is responsible for network, wireless, security and other products. Together, the two companies formed the Xinhua third Group.

Ziguang Co., Ltd. belongs to Ziguang Group, while Ziguang Group belongs to Tsinghua Holdings. They bring not only the background of state-owned enterprises, but also the background of colleges and universities to Xinhua 3, paving the way for its market expansion.

Since then, the development of Xinhua San has tended to be stable and there has been no change in ownership.

In July 2021, Xinhua San was again pushed to the forefront of the storm. Ziguang Group, which has assets of 300 billion yuan, issued a bankruptcy reorganization notice because it defaulted on its debt, which caused a shock to the whole industry. The future trend of Ziguang Group's Xinhua 3, Ziguang Zhanrui, Ziguang Guowei and other enterprises has become the focus of attention.

As a matter of fact, the bankruptcy and reorganization of Ziguang Group has not affected the development of these companies, and the business has not changed.

In July 2022, Ziguang Group issued an announcement announcing the successful completion of the substantive merger and restructuring of Ziguang Group. The two original shareholders, Tsinghua Holdings Co., Ltd., and Beijing Jiankun Investment Group Co., Ltd., all withdrew. Beijing Zhiguangxin Holdings Co., Ltd. (hereinafter referred to as "Zhiguangxin Holdings"), a holding platform established by the strategic investor "Zhilu Jianguang consortium", has inherited 100% of the shares of Ziguang Group.

The successful completion of the delivery of the shares of Ziguang Group indicates that Ziguang Group has entered a new stage of development. Many subsidiaries of Ziguang Group, including Xinhua 3 and Ziguang Zhanrui, have also entered a new stage of development.

Today, Ziguang Group has achieved 100% control of Xinhua III, which is also an important turning point for Xinhua III. Xiaozao Jun personally believes that this change is beneficial to Xinhua San and Ziguang Group. After the news came out, the share price of Ziguang shares closed at the beginning of trading, with a market capitalization of 64.1 billion yuan, which also shows the attitude of the market.

At present, the development of Xinhua 3 is very sound.

The company is no longer a simple data communication equipment manufacturer, their products cover cloud computing, big data, data center network, wide area network, campus network, server, storage, commercial PC, security solutions, unified operation and maintenance, intelligent terminals and other fields.

In terms of service objects, Xinhua 3 has already cut into the operator market, serving customers in various fields, such as operators, government, finance, power, energy, health care, education, transportation and so on.

The Xinhua 3 Group Building located in Hangzhou High-tech Zone is worth mentioning because Xinhua 3 has two headquarters, administrative and marketing headquarters in Beijing, and technical and operational headquarters in Hangzhou. They have rich experience in the toB market, so they have been poached a lot of talents by competitors such as Ali Yun in the same city in recent years, especially those with channel resources.

On the whole, the employees of Xinhua 3 are very confident about the ability of the company, but they are obsessed with the ownership of the company. After all, there is a parent company above, although they make money, but a lot of money is used by the parent company to subsidize brother companies, so it is more uncomfortable. Xiaozao Jun communicates with several friends of Xinhua San in private, and they still hope to control their fate in their own hands, but in fact this is no longer possible.

All right, that's the introduction of Xinhua III.

In the current macro situation of digital transformation, Xinhua three with its own resources in the industry for many years, I believe it will usher in a good wave of development. Let's wish them luck!

Thank you! Goodbye!

This article comes from the official account of Wechat: fresh Jujube classroom (ID:xzclasscom), author: Xiaozaojun

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