Media Tycoon since 1999

Chapter 468 Annual meeting, brilliant 2006 (two in one)

On February 2, the 10rd of the twelfth lunar month, 23 Group held its annual meeting in Xiaotangshan Hot Spring Resort.

Last weekend, when Gao Yang was still on a business trip in the United States, each project company of the group had already held their own annual meeting, which was also planned before.

The number of employees of 51 Group reached more than 2006 in 3500.

If you add Yuanda Company and Yueju Company, the number will be close to 4000.

A total of more than 460 people participated in the annual meeting of the group, all of whom were middle-level and above management cadres of various project companies, as well as 60 outstanding employees of the group.

There are more than 51 cadres of Jiaoyang Company and 200.com's regional companies distributed all over the country to Beijing to participate in the group's annual meeting.

At 9 o'clock in the morning, the annual meeting started. Apart from Gao Yang and Fang Jian, there were nine group vice presidents on the stage.

Gao Yang looked around the 500 people in the audience, and he could name only about 300 people.

Most of the middle-level cadres of the regional companies are unknown to Gao Yang, and he has never met.

In the future, wait for the employees of the 51 companies to grow to 1, 5, 10...

Gao Yang thought about such a scene, and smiled slightly. At that time, more than 90% of the employees may not know him.

The annual meeting is chaired by CEO Fang Jian. As usual, the chairman or CEO of each project company makes a work report one by one, which is equivalent to a work report.

First, Wu Bo, chairman of Sunshine Company, made a speech:

"2006 was a year of victory for Sunshine. Under the leadership of the group, Sunshine achieved brilliant results, with revenue reaching 4.86 million yuan, a year-on-year increase of 25%.

Among them, the total revenue of the solar media business exceeded 4.5 million yuan, including 2.41 million yuan from exhibition activities and 2.12 million yuan from media advertising.

2006 was also the year of transformation for Sunshine. The distribution center of Sunshine began to transform from a cost center to a profit center, and 51 Express, a city express company, was established.

51 Express has successively carried out intra-city express business in 30 key cities across the country, delivering solar magazines, undertaking 51 intra-city e-commerce order delivery and intra-city catering takeaway delivery.

In 2006, the revenue scale of 51 Express exceeded 3000 million, which is a gratifying achievement.

51 Express employs more than 300 people. If the courier dispatch system is added, there are more than 3200 employees in total.

According to the group's plan, in 2007, 51 Express will be spun off from Sunshine Company and operated independently, the dispatch system of couriers will be converted to a contract system, and the distribution business of Sunrise Company will be outsourced to 51 Express.

In addition, 51 Express will also cooperate with Jingdong Mall in some areas to undertake part of the intra-city express business of Jingdong Mall.

After 51 Express operates independently, it is estimated that the number of employees will soon exceed 1..."

After Wu Bo’s report, Jin Yang, chairman of 51.com, made a speech:

"In 2006, under the strong support and leadership of the group, the business of 51 Tongcheng ushered in explosive growth, and the revenue scale exceeded 6.5 million yuan, reaching 6.62 million yuan, a year-on-year increase of 591%.

Among them, the advertising revenue was 2.6 million yuan, the same-city e-commerce business revenue was 3.22 million yuan, and the same-city takeaway and other businesses had a total revenue of 8000 million yuan.

In 2006, the rapid growth of 51.com's revenue was due to the reorganization of the business department into a divisional system of operation, and the second was that after the launch of 51pay, it quickly opened up the two branches of the same city business.

For 51.com, this is just the beginning.

According to the group's plan, in the next step, 51.com will be transformed into a group company, with intra-city e-commerce, same-city food delivery, job hunting, online travel...

Every time these business departments mature, they will be spun off, reorganized from a business unit model into a company, and operated independently.

At the same time, the platform of 51 Tongcheng is still the basic support point for all businesses..."

接下来，51人人、51游戏、51talk、51财富、51卫士、51微博、51调研、51pay、51研究院……

The person in charge of each project company took turns to make a summary speech, look forward to 2007, and related business development plans.

After 4 p.m., the project company’s concluding speech was over. CEO Fang Jian smiled and began to summarize his work:

"2006 was a glorious year for the 51 Group. The efforts of the project companies were reflected in the revenue performance, and they also received rich returns.

In mid-July last year, when the group's board of directors held a semi-annual summary meeting, we expected that the annual revenue would exceed 7 billion, which is expected to hit 14 billion. The result finally reached 15 billion, which greatly exceeded expectations.

Among them, the performance of 51 Games is very impressive. Four games, including Kung Fu Panda and 51 Happy Farm, have exploded in overseas markets, and the revenue share has exceeded 4 million US dollars, which is gratifying.

In addition, the revenue of 51 Fortune and 51 Weibo both exceeded [-] million, which also greatly exceeded expectations.

Other projects also have bright spots worthy of recognition.

Especially for 51pay, nearly 2006 billion of the group’s 19.86 billion revenue in 16 was settled through 51pay. The promotion of 51pay has been very successful, and the acceptance of partners is very high, and the acceptance of individual users is also steadily increasing.

Just like Mr. Jin of 51.com said in his speech, 51pay helped 51.com to open up the two channels of Ren and Du at the business level, and the same is true for 51 Group.

Since its launch, 51pay has successively received the support of four strategic partners, Jingdong, Yiwang, Baidu and Qihu. In 2006, the payment scale of 51pay has exceeded 80 billion.

In 2007, it is expected that the penetration rate of 51pay will increase exponentially, and the payment scale will increase by more than three times..."

After Fang Jian's speech, the audience burst into applause. The 51 Group's revenue scale exploded in 2006, which is indeed something to be proud of.

Fang Jian waved his hand, and the audience was silent: "Next, let the chairman speak."

The audience burst into applause again.

Gao Yang waved his hand, suddenly became silent:

"In 2006, thanks to the joint efforts of colleagues present today and all employees, 51 Group achieved a major breakthrough in its business performance. Here, on behalf of the group's board of directors, I would like to express my heartfelt thanks to everyone."

The audience roared with applause again.

Gao Yang waved his hand and said again:

"I won't talk about clichés such as making persistent efforts. I want to warn every colleague that the achievements are gratifying, and remember not to be complacent.

The 51 Group is developing rapidly, and it is also facing many management problems, which need to be carefully studied and solved.

Today, I will focus on three major events.

The first thing is the independent operation of 51 Express.

When discussing the arrangement of 51 Express’s dispatch system of couriers to contract system, there were fierce disputes among the group’s management, mainly due to internal management problems and a substantial increase in the company’s labor costs.

After 51 Express operates independently, in the initial stage, it may increase revenue but not increase profits, and there will be continuous financial losses.

However, even in the face of several years of losses, we must make arrangements in this way. 51 Group does not engage in a dual-track system of internal and external staff, and must undertake corresponding social responsibilities.

Of course, after signing the employment contract with the company, the courier is an employee of 51 Group and must be bound by the company's management system.

Those who are unwilling to sign the contract will be treated as part-time jobs. The part-time courier and 51 Express are in a cooperative relationship and need to sign a cooperation agreement. 51 Express only undertakes the management responsibilities within the agreement.

The strategic development goal of 51 Express is to develop into a first-class, professional third-party logistics service enterprise, and the group level will strongly support it.

When the time is right, you can study the acquisition of an express logistics company to rapidly increase the business scale and business coverage of 51 Express.

The medium and long-term development goal of 51 Express is an independent IPO.

In the future, if 51 Express is successful, it may become the company with the largest number of employees in the 51 series, with tens of thousands of employees, or even more than 10.

Therefore, in the design of business processes and internal management, there must be research and preparation in advance. "

The audience applauded once again, and the management of 51 Express, headed by Liu Yue, looked excited.

Gao Yang waved his hands, and continued:

"The second major event is that after the Spring Festival, the group will invest in the construction of headquarters office buildings, 51NB joint R&D centers, staff dormitories and other projects near the Shangdi Industrial Park.

Build a 800 Science and Technology Park with a garden-style design covering an area of ​​51 mu.

The 800 mu of land purchased by the group in Shangdi will go through the land transfer procedures after the Spring Festival, and then the bidding will start. The estimated investment is about 20 billion, and the project will be completed before the Olympic Games.

51 Science and Technology Park project related promotion plan will be reported and arranged by Vice President Gu Yawen tomorrow morning..."

The audience applauded again, extremely enthusiastic, and the crowd was excited.

The group has the strength to build the headquarters building, and it has invested 20 billion, which is awesome!
This matter was only known to the top management of the group before, and it has been kept secret.

Gao Yang waved his hand and continued:
"The construction of the 51 Science and Technology Park and the headquarters building in Beijing is only the first step in the 51 Group's self-built office facilities.

In the future, starting from the Shanghai Metropolis and the Special Economic Zone, regional headquarters buildings, research and development centers, logistics centers, and other infrastructure will be built one after another.

Our goal is that 51 Group will build or purchase office space in key prefecture-level cities and above cities in the country, and the logistics facilities of 51 Express and the IT infrastructure of each company in the group must be constructed nationwide.

Next, I will talk about the third thing, which is also very important, and it is related to the long-term development of 51 Group.

We will gradually implement employee stock ownership so that employees can share the growth with 51 Group and truly have a solid sense of belonging to the company.

The salary and welfare system of 51 Group needs careful study and redesign.

Here, I would like to propose a new concept of internal management and motivation in companies: the capitalization of knowledge.

The competition among Internet companies is essentially the competition of talents and knowledge, and knowledge is always valuable.

Our current salary design is a model of salary, performance bonus, welfare subsidy and year-end dividends. The salary packages of 51 Group companies are higher than those in the same industry in all regions of the country.

The career planning we design for employees mainly includes two types of ascending channels: management and technology.

I personally think that these are not enough. The so-called retention of people, the incentive model of the existing salary design system is not enough to completely retain talents and attract better talents.

Therefore, we need to study employee stock ownership, and the ultimate goal is to cover about 50% of employees, so that everyone can directly participate in the company's annual profit dividends through shareholding.

The basic idea is that the company should study the establishment of virtual equity, a kind of equity that can be traded within the company and only has the right to pay dividends.

This is a virtual equity at the group level and has nothing to do with the current equity structure of each project company.

How to implement employee stock ownership, the Group Human Resources Department may consider hiring a professional consulting agency to discuss and design, and then form a system and gradually implement it.

This is the capitalization of knowledge, so that the knowledge of various talents can be realized through capitalization within the company or enjoy corporate development dividends, deeply binding the personal interests of employees with the overall interests of the company.

Only in this way can employees reflect their own value to the greatest extent and combine their efforts with the company's medium and long-term development goals.

While employees are working hard for the company, they are also fighting for themselves.

Now, the year-end dividend system of our project companies is 20% of net profit. After the implementation of employee stock ownership, the level of year-end dividends for non-shareholding employees can basically remain unchanged, and the total amount of dividends will be reduced.

The equity dividends for shareholding employees can be significantly higher than the level of dividends for non-shareholding employees, widening the distance.

Generally speaking, in a word, the bigger the cake, the better for everyone.The bigger the pie, the more returns for shareholders and employees.

Employee stock ownership is a sustainable model with clear expectations of returns, and it also allows most employees to find their own direction of efforts and is bound to the company's development..."

90% of the employees in the audience did not understand Gao Yang's speech on knowledge capitalization, but everyone understands that employee stock ownership is definitely a good thing.

According to Gao Yang's thinking, the goal of employee stock ownership in the future is about 50% of all employees, so everyone who is present at the group's annual meeting today will definitely have a share.

The total number of existing shareholders of each company in the 51 Group is less than 50 at the most. With the implementation of employee stock ownership, based on the current number of employees in the group, there will be about 1600 people who are eligible to hold shares.

This is the biggest good news at the annual meeting.

After Gao Yang finished speaking, it was unknown who took the lead, all the employees in the audience stood up and applauded softly.

The agenda for the first day of the annual meeting is over.

At this time, Fang Jian and other group leaders were a little confused.

Gao Yang had indeed proposed the idea of ​​employee stock ownership before, but today he suddenly asked the Human Resources Department to prepare for the implementation, which was quite unexpected.

What does knowledge capitalization mean?
At dinner in the evening, Fang Jian, Wu Bo, Jin Yang and others raised this question, all waiting for Gao Yang to give an answer.

Gao Yang said with a smile: "The truth is actually very simple. In feudal dynasties, the imperial examinations were used to select talents. There is a saying that goes, 'Learn the art of literature and martial arts, and the goods are like the emperor's family'.

When we didn't start a business before, we worked part-time for others, and it was the same way. We earned money to support our families with our skills and knowledge.

Now that we are our own bosses, the most important thing to consider is naturally to retain and attract talents, and to stimulate their self-initiative to be used by me.

In the past, we considered the issue of employee stock ownership. First, let some employees hold stock before the IPO of the project company. After the IPO, more employees will be allowed to hold shares through equity incentives and other means.

Generally speaking, these methods can only solve some employees, mainly management cadres, and the proportion will not be high, otherwise the interests of the founding shareholders and investment shareholders will be obviously eroded.

The 51 Group can only maintain the long-term stability of the company's talent team and continuously absorb new talents. It can only be solved by implementing employee stock ownership on a large scale. At the group level, design a virtual equity that can be traded internally, like Huawei's , to solve this problem. "

Fang Jian suddenly realized: "Huawei Company does have a lot to learn, but Huawei publicly stated that it will not consider going public, and our 51 Group's various project companies are planning to go public."

Gao Yang said: "This is not contradictory. Each project company should go public when it should be listed. In the next step, 51 Tongcheng will be transformed into a group company, and 51 Group will be transformed into a holding company. Equity dividends in listed companies.

It is also impossible for some business projects to go public in the future, such as our investment in the stock market, our investment in Jingdong and Qihu, and the investment of asset management companies in US stocks.

These are all assets at the group company level, and will be the assets of the holding company in the future.

When the bull market of A-shares is almost over, the accounts of each company will arrange for a substantial reduction or even liquidation of positions to generate investment income. First, the construction expenses of the 51 Science and Technology Park will be paid, and then half will be transferred to the group.

This part of the funds will open a new account in the name of the group and continue to invest in A shares. The investment income generated in the future will have nothing to do with the project companies. "

Fang Jian and others finally understood that Gao Yang's plan was that after the 51 Group was transformed into a holding company, at the level of the holding company, it would learn from Huawei's model and promote employee virtual shareholding.

Important non-listed assets will be assigned to the holding company, and the holding company will be the biggest profit center of the 51 series in the future...

(End of this chapter)