China Jinmao Chairman Resigns After One Month on the Job

The recently appointed chairman of China Jinmao Holdings has walked out the door after just 33 days in the role, to be succeeded by another longtime hand from the developer’s parent group, state-owned Sinochem Corporation.

Li Congrui resigned as chairman of China Jinmao with effect from 31 May, the company said Wednesday in a filing with the Hong Kong stock exchange. Li ceased to hold any position in any subsidiary of the company, according to the announcement.

China Jinmao stated that Li’s resignation was “due to work adjustment” and that his successor, Sinochem executive Zhang Zenggen, was appointed to the post with immediate effect.

While a number of high-level executives in mainland China have been removed from their jobs due to corruption investigations, Jinmao made no mention of any legal proceedings or other enforcement issues as it notified investors of the abrupt change in management.

Welder Wins

“Mr Li has confirmed that he has no disagreement with the board and there are no matters relating to his resignation that need to be brought to the attention of the shareholders of the company,” Zhang said in the filing.

Before his brief spell as chairman, Li had served as executive director and CEO of China Jinmao since January 2013. During that time he was recognised as one of China’s top 10 real estate CEOs for three consecutive years.

His elevation to chairman on 28 April came as part of an overhaul of top management that saw the departure of his immediate predecessor, Li Fanrong (no relation), from China Jinmao’s board to focus on other duties with the group, as well as the appointment of Tao Tianhai and Qiao Xiaojie as executive directors.

Li’s last public appearance was a 12 May meeting with local leaders in Qingdao, according to a report in the party-affiliated Economic Daily.

Like Li, Zhang joined Sinochem in the 1990s and progressed through a series of managerial roles, including chairman of the group’s Shanghai-listed international unit from 2007 to 2016. Most recently he was secretary of the party committee of the chlor-alkali division of Sinochem Holdings Corporation.

Zhang holds a bachelor’s degree in welding and a master’s degree in welding technology and engineering, both from Tsinghua University, and an executive MBA from the China Europe International Business School. He will be paid an annual salary of over RMB 2.2 million ($310,000), considerably less than the nearly RMB 3 million to which Li was entitled during what was intended to be a three-year term.

AGM Rescheduled

The latest shake-up in the China Jinmao boardroom has led to a postponement of the 7 June annual general meeting, which will now be held on 28 June. Zhang will be subject to election by shareholders at the rescheduled AGM.

China Jinmao posted a 2022 profit of RMB 2 billion, down 58 percent, on revenue of RMB 83 billion, down 8 percent, amid a tough economic environment in China last year.

For the first four months of 2023, the developer’s contracted sales amounted to RMB 58.6 billion, up almost 40 percent from year-earlier levels.