Chapter 133 Incentive Plan
At the end of the year, Rouyu Company has truly stood up in the entire industry.
From upstream raw materials, to screen panel production, and finally to downstream suppliers.
Such a complete industrial chain has basically been completely controlled by "Zhou Zhen".
In the past year, Rouyu also achieved more than 400 small goals and became the king of the domestic screen panel industry.
Especially in the third and fourth quarters, Rouyu relied on its high-quality screens to successfully capture 42% of the screen share of domestic mobile phones.
It has successfully become the screen panel manufacturer with the largest shipment volume in the entire screen panel industry.
Sansang, which has been competing with Rouyu, only occupied 36% of the domestic mobile phone market share due to its poor performance in the third and fourth quarters.
Basically, the current mid-to-high-end screen panel industry is basically a battle between Sansang and Rouyu. Both parties are trying their best to dominate the screen panel market in China.
At the year-end conference, Zhou Zhen's face was filled with an excited and excited smile.
The company's revenue this year has been very good, with screen sales reaching 46.3 billion.
Excluding corresponding taxes, corresponding costs, and R&D investment, the company earned a net profit of nearly 13.6 billion from screen sales this year.
At present, the entire screen panel industry is mainly divided into two camps, OLED screens and LCD screens.
The cost of OLED screens is relatively high, coupled with the high technical content and corresponding high-color, high-contrast display effects, they are generally used in mid-to-high-end products.
The cost of LCD screens is relatively much lower, and there are still many brands using LCD screens in mid- to low-end products.
Among domestic mobile phones in 2017, nearly 79% still use LCD screens.
Among domestic mobile phones in 2018, the screen ratio of mobile phones with LCD screens has dropped from 79% to 66%, and the proportion of OLED screens has also increased from less than 20% to 34%.
This year, the share of OLED screens in the entire mobile phone market has also increased from 34% to 40%.
Although the current major mobile phone manufacturers have basically regarded OLED screens as the future trend of the entire mobile phone industry.
However, most of the mobile phones with large shipments in China are still mid- to low-end products.
Take this year’s mobile phone market as an example. Currently, the mobile phones with the largest shipments of domestically produced mobile phones are basically thousand-yuan phones.
For example, Honor 9x and Juchang’s Changxiang series.
Or let’s talk about Redmi’s note7 series and note8 series.
The main offline products are the y series from the blue factory and the a series from the green factory.
These products with relatively large shipments all use LCD screens to save corresponding costs.
After all, in the current domestic mobile phone market, the main products consumed by most user groups are basically products worth less than 2,000 yuan.
In order to save costs and add the highlights that these products should have, they will naturally perform corresponding castration on the screen and use high-quality and low-priced LCD material panels to serve as screens.
This has also led to the fact that on the Internet, although most users value mobile phones with OLED screens, under the overall market sales environment, the largest shipments are still LCD screens.
Of course, with the upgrading of consumption, the upgrading of the product supply chain, and the reduction in the cost of OLED production, OLED screen panels will gradually replace LCD screens and become the mainstream.
In next year's screen panel market, basically most models priced at 2,000 yuan will use OLED screens, and even some 1,000 yuan phones are trying to use OLED screens.
After 2021 and 2022, the entire LED screen will become the absolute mainstream in the screen panel industry, and LCD screen products will become an alternative among alternatives.
Some manufacturers will even use LCD screens to promote their products.
"The company's revenue this year is very good, but I hope we can continue to work hard next year and strive to exceed 65 billion in sales!"
"Of course, as the boss, I am grateful for the support of the company's employees and corresponding scientific researchers. I will use the two-year dividend rights of 50% of my shares as an employee incentive award."
It can be said that the development of Rouyu Company has been very smooth in the past few years. The company's net profit has continued to grow every year, which is inseparable from the efforts of the company's employees.
At present, the company's scientific research team has a total of 215 people, and the company's employees have a total of 869 people.
It has been almost four years since the company was established in early 2016.
In the past four years, the company has developed very rapidly, from a small company that just entered the screen panel industry to a dominant player in the domestic screen panel industry.
Zhou Zhen vaguely remembers that when he first established his company, there were only thirteen people including Liu Peng in the company.
This is the company's most innovative team.
Liu Peng and He Wei are Zhou Zhen's closest comrades, and they are also Zhou Zhen's right-hand men in Rouyu Company.
As the core, Liu Peng and He Wei each own 1.2% of the company's shares.
The remaining ten start-up employees of the company also own 1.4% of the company's shares.
As time goes by, nearly half of the company's core team has gradually left.
However, Zhou Zhen still left his shares to these departing partners.
As time goes by, the company's scientific research team becomes larger and more mature, and at the same time, the company has more and more employees, gradually becoming a truly large company.
"This time I will distribute the dividend rights of 3.5% of the company's shares to the company's core 7 veteran employees. I would like to thank these 7 veteran employees for growing together with Rouyu!"
"Secondly, I will distribute the remaining 36.5% dividend rights to the company's scientific research team. I would like to thank these scientific research teams for their unremitting efforts in the company's technological innovation!"
"With the remaining 10% of the stock dividend rights, I will establish a mutual aid foundation for the company's employees. If any employees in the company get sick or have any problems, the foundation's funds will help employees solve these problems!"
Zhou Zhen also fully divided the dividend rights of 50% of the shares.
Don't underestimate this 50% share dividend right.
As for the company's net profit last year, 15% of it was used as stock dividends.
Rouyu Company is estimated to be able to distribute 2.04 billion in dividends in 2019.
Zhou Zhen's willingness to use the dividend rights of his shares as a reward has already made many employees overjoyed.
Especially for the scientific research team, 36.5% of the shares are distributed as dividends, which means that when the company starts to rely on share dividends next year, the scientific research team can receive an additional bonus of 740 million yuan.
The additional bonus of 740 million next year is not a small amount.
If the reward is distributed evenly to each member of the scientific research team, each member of the scientific research team can receive an additional reward of 3.7 million yuan.
Even if the leader of the scientific research team takes part of the big share, basically every member of the scientific research team can receive a bonus of one million yuan.
A bonus of one million yuan is enough to make the company's scientific research team happy for a while.
Even some dividend rewards are higher than the annual salary of some scientific research team employees.
In addition to the excitement of the scientific research team, the senior members of the company are also a relatively happy group of people.
The 3.5% dividend right is equivalent to 0.5% share dividend for each person on average. This means that the company's head can receive an additional 10 million yuan in dividend income next year.
As for the remaining 10% of the dividend rights, the corresponding company's mutual aid foundation has been established to help company employees in need.
After all, 240 million yuan can do a lot of things, and it can also help many families of employees suffering from sudden illnesses.
In the past few years, because the company's revenue was relatively low, and the corresponding R&D investment was too high, without corresponding technology accumulation, Zhou Zhen was unable to implement these strategies in a true sense.
But now the company's technical barriers have been completely built, and the company's scale and corresponding revenue have reached a new level.
This also gave Zhou Zhen the confidence to make the company better.
This year's earnings brought the company's total dividends to 2.04 billion, and if Zhou Zhen was unwilling to give up the dividend rights of these shares, he would only be able to get 2 billion.
However, the corresponding dividend income is not particularly large for Zhou Zheng. After all, Zhou Zhen can still rely on patents to collect corresponding income.
For example, during the production process of the screens used by Rouyu Company, Zhou Zhen basically has to pay Zhou Zhen a patent licensing fee of 40 to 60 RMB for each screen.
And Zhou Zhen can earn about 2.5 billion in patent fees a year by relying on patent fees.
Now that the company has begun to take shape, Zhou Zhen still needs to build the company into a solid piece of steel.
Opening up the structure so that more of the company's core employee scientific research teams can receive company dividends is equivalent to completely binding these employees and the scientific research team together.
This will allow company employees to completely regard themselves as a part of Rouyu Company.
At the same time, the corresponding distribution of stock dividend rights can also create a positive working atmosphere within the company.
After all, dividends are distributed in proportion to the corresponding net profit.
The company's one-time bonus bonus is for two years, which means employees can receive equity dividends twice.
After these core employees and scientific research teams have corresponding dividend rights, they naturally hope that they can obtain more dividend income in the coming time.
Naturally, they will work hard to improve the company's efficiency, thereby obtaining more additional income through share dividends.
On the other hand, the share dividend this time is based on a two-year dividend system, which means that these dividend rights will be withdrawn and reissued after two years.
What if the performance is not good and the next share dividend rights are gone?
Chapter completed!