Chapter 521: If you make a huge profit of 100 billion yuan, you don’t have to pay any money?

Gao Yang took the microphone and smiled slightly:

"I think everyone is confused now. The company suddenly made 140 billion yuan, so why should it be transferred to the group company's account?

Here, I only emphasize one thing that all companies in 51 Group are expected to have a financial business scale of more than 3 billion this year.

Since the establishment of Jiaoyang Company in 2002, it has been more than five years since 51 Group’s main business direction has turned to the Internet, but it has only completed its initial layout.

The future is still long. Some companies have good cash flow, while others are still in losses. The group needs to coordinate funding arrangements.

Starting next year, investment in the capital market is mainly at the group level. Each project company only arranges part of the funds to invest in stocks, and each company has a budget of 2 billion yuan, which is still managed by the group investment department.

We have earned 140 billion yuan, and we cannot lose the spirit of striving and hard work just because we suddenly have such money.

51 Group currently has more than 9,000 employees, and may have 100,000 or even hundreds of thousands of employees in the future. All of this depends on the continuous expansion of the business scale of each company.

As founding shareholders, we cannot just be rich and ignore the value created by our employees for the company.

Only by continuously sharing the income from the company's growth for employees can the company continue to become stronger and bigger. The core of this is to creatively arrange employee shareholding, bind employee growth with the company's growth, keep people attentive and get rich together.

Employee shareholding, this year we have hired professional consulting companies to design. Below, CEO Fang Jian will introduce it to you."

Fang Jian took the microphone from Gao Yang and said:

"Dear shareholders and colleagues, the professional consulting company we hired has designed an internal virtual equity system for Huawei Company. The designs are different based on the specific situation of 51 Group.

On the one hand, 51 Group will next become a holding company. On the other hand, the development goals of each project company are still to achieve listing financing and arrange an exit channel for investors.

Specifically, the current equity structure of each project company remains unchanged, and PE capital will also be introduced before it meets the listing standards.

The design of the internal virtual equity system is arranged at the group level. The group participates in the profit distribution of the project company through controlling various project companies and in the parent company.

The group's internal virtual equity is open to employees of all project companies. In principle, the employee shareholding ratio must gradually reach about 50%.

Some of the projects we invested in in the early stage, such as Jiaoyang Company, 51.com, are invested in natural or legal person companies as founders.

Only new projects after the establishment of 51 Group are invested through 51 Group.

Therefore, next, except for Internet companies such as Jiaoyang Company, 51.com, 51 Renren, etc., all shareholders' equity must be converted into group companies at a ratio of 51%.

The financial department will hire third-party institutions to recalculate the corresponding shareholders' interests in the group company and determine the new equity structure.

After completing this equity arrangement, the group will announce the specific details of the employee shareholding system.”

After Fang Jian introduced these basic institutional arrangements, Gao Yang said:

"The internal virtual equity of the group implements the institutional arrangement of employee shareholding, which is in principle the design model introduced by Fang Jian just now. If you have any suggestions, you can put forward it."

Jin Yang, CEO of 51.com, took the lead in saying: "Mr. Gao, now this is the case. Have you given up the employee stock ownership plan of each project company?"

Gao Yang nodded and said, "Yes, the project company will not engage in employee shareholding before the IPO.

After listing, employee shareholding issues can be arranged through share repurchase in the secondary market and equity incentives.

There are two forms: one is to directly grant the company's repurchased shares for senior management and R&D talents, or set the right exercise conditions and arrange the exercise of these core employees.

Second, at some special periods, such as the fifth anniversary of the company's listing and the tenth anniversary, employees are given large-scale stocks repurchased to their employees.

Therefore, after the project company goes public, it is necessary to register and establish an employee stock ownership platform in advance. You can find the right opportunity to arrange share repurchase first."

Ding Lei asked: "Mr. Gao, the 51 Group level needs to implement employee shareholding on a large scale. Where does these equity come from? Will the current founding shareholders distribute this part of the equity?"

Gao Yang replied: "Mr. Ding, let me introduce the overall idea.

First of all, 51 Group or 51 Holdings will not be listed in the future, so all equity will be converted into virtual equity.

Secondly, this kind of internal virtual equity can be traded. Our company will customize and develop an equity trading system internally, which can only be traded internally.

Of course, those who can participate in equity transactions must be employees who have been approved by the Human Resources Department and are qualified to hold shares.

Specific shareholding will also have a number of conditions and restrictions, such as the management line position or technical line level, working years, performance appraisal, etc., and there will be a comprehensive evaluation and scoring system.

Third, the price of this virtual equity is fixed, and a transaction price is determined by the group every quarter, which directly anchors the company's current net assets.

As for where this part of the equity comes from, we assume that the current net assets of the group are 100 billion and the total share capital is 100 million, then the current price per share is 1,000 yuan.

I personally hold more shares in the group, and with Wu Ruohan and Gu Yawen, the total shareholding ratio exceeds 50%, which is more than 50 billion and 50 million virtual shares.

We have previously identified 200 employees to pilot employee shareholding, which can be increased to 500 next year.

These 500 employees who are piloting shareholding can consider a shareholding value of 3 million per capita, that is, 1.5 billion, with a total of 1.5 million shares.

The 1.5 million shares will be taken out by Wu Ruohan and Gu Yawen, and let this group of employees buy them at half price.

The equity held by employees only has dividend rights and no voting rights. At the same time, there must be a certain lock-in period, such as two years before it can be traded internally.

As the founding shareholder, we have sold the equity of this person, and the proportion of voting rights remains unchanged. That is, the equity we hold will increase the voting rights according to the transfer ratio.

The first batch of employees piloted shareholding, and this is how they were arranged.

Founding shareholders can only sell their equity and cannot purchase equity. The equity of founding equity must be gradually diluted, which is a principle condition.

The source of equity in the second batch of employee shareholding is the group's net profit that year. It withdraws about 30% as capital reserve and then uses the capital reserve to increase capital. This part of the new capital will be arranged to purchase a new batch of employees who are qualified to hold shares at the original price.

In this way of expanding the total share capital every year, the equity in the hands of the founding shareholders is gradually diluted, giving way to employee shareholding, and gradually reaching the level of about 50% of the employee shareholding ratio.

After the equity of the founding shareholder is diluted, the voting rights remain unchanged.

This process will be slower, which will take about 5 to 8 years.

Eight years later, that is, in 2015, if all the strategic planning of 51 Group develops smoothly, the total number of employees may reach 150,000 or even 200,000, which is estimated to be basically stable, and the employee shareholding ratio will also be promoted to about 50%.

Feng Jinsong, the owner of CPI Group, said: "Gaoyang, such an equity design is equivalent to a double-layer structure."

Gao Yang nodded and said, "Yes, in terms of equity, the group distributes the profits of the project company through holdings, and at the same time basically divides the group's equity structure from the project company's equity structure.

Before the end of the year, project companies that the group has not yet controlled, including CPI, Yiwang and Baidu, must convert 51% of the project company's equity into group equity like natural person shareholders, so that the group can directly control all project companies."

Li Yan asked again: "Mr. Gao, the founding shareholder of various project companies of 51 Group, what if he wants to withdraw from the group's equity in the future?"

Gao Yang said: "I personally negotiated with the founding shareholders who want to withdraw based on the market valuation level."

Gao Yang wanted to be happy. In a few years, the fool would withdraw his stocks after the group showed his terrifying ability to make money.

After Gao Yang's explanation, all the founding shareholders had no objection.

Everyone understands that Gao Yang is willing to take out the group equity equivalent to 1.5 billion net assets and let 500 non-shareholders buy it at half price, which is equivalent to donating 750 million yuan to promote employee shareholding.

This is just book value. If it is based on the real market valuation, it will be worth at least 2 billion yuan, which is really willing to do so.

Zhou Wenbin suddenly asked, "Mr. Gao, we have made more than 140 billion yuan this year. The Chinese New Year is coming. Is it a super fat year?"

Gao Yang smiled slightly: "In principle, this year's dividends are arranged at the group level. The founding shareholder with the lowest shareholding ratio will be no less than 10 million yuan.

At the project company level, according to the system, 20% of the net operating profit will be used to arrange dividends for employees. In addition, 30% of the profit will be used to distribute dividends for shareholders.

Considering that the operating conditions of each project company are relatively large, for example, 51 Express Company is in a loss and has no profit to share, the group will arrange subsidies and pay employees' year-end bonuses.

In principle, the year-end bonuses for employees of each company, in different regions and companies, should not be too big.

At that time, the median number of each company will be taken to perform appropriate balance.

We have a large amount of funds now, but we still need to consider long-term development and immediately arrange a lot of investments.

This year, we started building the headquarters building and the 51 Science and Technology Park in Beijing.

Next year, the Special Administrative Region, Magic City and other central cities in major regions will gradually build their own regional headquarters.

In addition, provincial capital cities and key prefecture-level cities also need to purchase office buildings or build their own office buildings.

In each city, it is necessary to arrange to purchase or find a developer to customize a batch of commercial housing for employees to use it as a dormitory for employees to rent at 50% of the local rental price. The excess houses can be arranged to be rented for the market.

Next, the group will also invest in some large projects, such as investing in private brand smartphone projects, and the investment scale may exceed 10 billion.

We also need to set up a group investment center to be responsible for acquiring some projects.”

Wu Bo said in surprise: "We are going to enter the industry?"

Gao Yang said: "Yes, Mr. Wu, and Android company is about to set up a Huaxia R&D center to develop a Chinese version of the smartphone operating system.

The android English version took two years to develop and is now relatively mature, no worse than Apple's iOS system.

We now have the funds and resources to make our own brand smartphones, which is also an industry that 51 Group must compete for. If it succeeds, the revenue of the mobile phone project will be at a scale of 100 billion.

Of course, I won’t go into details here. The specific investment plan will be discussed at the board of directors in the future.”

Gao Yang said that 51 Group was going to enter the smartphone industry, which surprised everyone. This ambition was too great.

However, everyone also understands that with Gao Yang's personality, no one can stop this project if he wants to do it.

Only Luxshare Seiko's general manager Lu Tao was secretly excited that the private brand mobile phone project that Gao Yang had been planning was finally about to start.

Lu Tao asked: "Mr. Gao, is this smartphone project independent investment by 51 Group, or will it accept other investors?"

Gao Yang smiled slightly: "Brother Tao, this project is led by 51 Group and will seek joint investment, including personal investment."

Lu Tao smiled and said, "Okay, what I'm waiting for is your words."

Ding Lei and Li Yan also knew some Gao Yang’s plans, and they all smiled slightly. To make smartphones, Yiwang and Baidu must also participate.
Chapter completed!