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Chapter 521 Making Hundreds of Billions Without Dividing Money?

Gao Yang took the microphone, smiled slightly and said:

"I think everyone is very puzzled now, how can the company make a sudden profit of 1400 billion yuan and transfer it to the group company's account.

Here, I just want to emphasize one point. All companies in the 51 Group are expected to have a business scale of more than 30 billion this year.

It has been more than five years since Sunshine was founded in 2002. After the main business direction of 5 Group shifted to the Internet, it has only completed the initial layout.

There is still a long way to go in the future. Some companies have a good cash flow, while others are still losing money. The group needs to make overall arrangements for funds.

Starting next year, investment in the capital market will mainly be at the group level. Each project company will only allocate part of the funds to invest in stocks. Each company has a budget of 20 billion, and the investment department of the group will still be responsible for the operation.

We have earned 1400 billion, and we cannot lose the mental state of struggle just because we suddenly have such money.

51 Group currently has more than 9000 employees, and there may be hundreds of thousands 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 the founding shareholders, we cannot patronize ourselves to get rich and ignore the value created by our employees for the company.

Only by continuing to share the company's growth income with employees can the company continue to grow stronger and bigger. The core of this is to creatively arrange employee shareholding, link the growth of employees with the growth of the company, keep people's attention, and get rich together.

Employee shareholding, this year we have hired a professional consulting company to design, below, CEO Fang Jian will introduce to you. "

Fang Jian took the microphone from Gao Yang's hand and said:

"Dear shareholders and colleagues, the professional consulting company we hired once designed the internal virtual equity system for Huawei, but the design is different for the specific situation of 51 Group.

On the one hand, 51 Group will be transformed into a holding company next.On the other hand, the development goal of each project company is to achieve listing financing and arrange an exit channel for investors.

Specifically, the current shareholding structure of each project company remains unchanged, and PE capital will also be introduced before reaching 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 companies in the form of a parent company by holding each project company.

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

Some of the projects we invested in in the early stage, such as Sunshine Company, 51.com and other companies, were invested by natural persons or legal person companies as founders.

New projects after the establishment of 51 Group are invested through 51 Group.

Therefore, next, except Sunshine Company, 51 Tongcheng, 51 Renren and other Internet companies, all shareholders' equity will be transferred to the group company at a ratio of 51%.

For the corresponding shareholders' equity of the group company, the financial department will hire a third-party organization to recalculate and determine a new equity structure.

After completing this step of equity arrangement, the group will announce the specific rules of the employee stock ownership 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 stock ownership. In principle, it is the design model Fang Jian just introduced. If you have any suggestions, you can put them forward."

Jin Yang, CEO of 51 Tongcheng, took the lead in saying: "Mr. Gao, with the current arrangement, will the employee stock ownership plans of the project companies that were originally planned be abandoned?"

Gao Yang nodded and said: "Yes, the project company does not engage in employee stock ownership before the IPO.

After the listing, the issue of employee shareholding can be arranged through share repurchases in the secondary market and equity incentives.

There are two forms. One is to directly grant shares repurchased by the company to senior managers and R&D talents, or to set exercise conditions and arrange for these core employees to exercise their rights.

Second, in some special periods, such as the fifth and tenth anniversary of the company's listing, large-scale gifts of shares repurchased by the company are given to employees.

Therefore, after the project company is listed, it is necessary to register and establish an employee stock ownership platform in advance, so that it can find the right time to arrange share repurchase in advance. "

Ding Lei asked: "Mr. Gao, 51 Group will promote employee stock ownership on a large scale. Where do these shares come from? Will the current founding shareholders pay this part of the shares?"

Gao Yang replied: "President Ding, let me introduce the general idea.

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

Second, this kind of internal virtual equity can be traded. Our company will customize and develop a set of equity trading system, 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 eligible to hold shares.

The specific shareholding amount will also have a series of conditional restrictions, such as the position of the management line or the level of the technical line, 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 the group determines a transaction price every quarter, which directly anchors the company's current net assets.

As for where this part of equity comes from, we assume that the current net assets of the group are 1000 billion and the total share capital is 1 million, so the current price per share is 1000 yuan.

I personally hold a lot of shares in the group, together with Wu Ruohan and Gu Yawen, the total shareholding ratio exceeds 50%, that is more than 500 billion, 5000 million virtual shares.

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

The 500 employees who hold shares in the pilot program can consider a total of 300 million shares based on an equity value of 15 million per capita, which is 150 billion.

Wu Ruohan, Gu Yawen, myself, and I took out the 150 million shares, and asked this group of employees to buy them at half price.

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

As the founding shareholder, we have transferred the shares of this person, and the proportion of voting rights remains unchanged, that is, the shares we hold will increase the voting rights according to the proportion of the transfer.

The first batch of employees piloted shareholding, and that's how it was arranged.

The founding shareholders can only sell the equity, but cannot buy the equity. The equity of the founding equity must be gradually diluted. This is a principle condition.

The source of equity for the second batch of employee stockholdings is the net profit of the group for the year. About 30% is withdrawn as capital reserve, and then capital reserve is used to increase share capital. This part of the newly increased share capital is arranged for a new group of employees who are eligible to hold shares. Batch employees are purchased at original price.

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

After the shares of the founding shareholders are diluted, the voting rights remain unchanged.

This process will be relatively slow, and it will take about 5 to 8 years.

Eight years later, that is, in 8, if all the strategic planning of the 2015 Group develops smoothly, the total number of employees may reach 51 or even 15. About 20%. "

Feng Jinsong, the boss of CPI Group, said: "Gao Yang, such a shareholding design is equivalent to a two-tier structure."

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

Before the end of the year, shareholders of project companies that the group has not yet controlled, including CPI, Yiwang and Baidu, must convert 51% of the project company’s equity they hold into group equity, just like natural person shareholders, so that the group Realize direct holding of all project companies. "

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

Gao Yangdao: "I personally negotiate with the founding shareholders who want to exit to buy according to the market valuation level."

Gao Yang wanted to be happy, and after a few years, the fool would withdraw his shares after the group demonstrated its terrifying ability to make money.

After Gao Yang explained it like this, all the founding shareholders also had no objections.

Everyone understands that Gao Yang is willing to take out the group equity equivalent to 15 billion net assets and let 500 non-shareholder employees buy it at half price, which is equivalent to donating 7.5 million yuan to promote employee stock ownership.

This is only the book value. If it is valued according to the real market, it will be worth at least 20 billion yuan, which is really willing.

Zhou Wenbin suddenly asked with a smile: "Mr. Gao, this year we earned more than 1400 billion, and the next Chinese New Year is coming. Isn't it a super fat year?"

Gao Yang smiled slightly: "This year's dividend, in principle, is arranged at the group level, the founding shareholder with the lowest shareholding ratio, the dividend should not be less than 1000 million.

At the project company level, according to the system, 20% of the operating net profit is allocated to arrange employee dividends.In addition, take out 30% of the profits for shareholder dividends.

Considering that the operating conditions of each project company are quite different, for example, 51 Express Company is at a loss and has no profit to divide, so the group arranges subsidies and distributes year-end bonuses to employees.

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

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

Even if we have a large amount of funds now, we still need to consider long-term development and start arranging a lot of investment immediately.

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

Next year, the Special Economic Zone, Shanghai Metropolis, and other central cities in the region will build their own regional headquarters one after another.

In addition, provincial capital cities and key prefecture-level cities also have to purchase office buildings or build office buildings themselves.

In each city, it is necessary to arrange to purchase or find a developer to customize a batch of commercial housing, which will be used as employee dormitories, and employees will be rented at 50% of the local rental price. The excess housing can be arranged to be rented out to the market.

Next, the group will also invest in some large projects, such as investing in its own brand smart phone project, the investment scale may exceed 100 billion.

It is also necessary to set up a group investment center to be responsible for the acquisition of some projects. "

Wu Bo was surprised: "We want to enter the industry?"

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

The English version of android has been developed for two years, and it is relatively mature now, no worse than Apple's iOS system.

We now have funds and resources to develop our own brand of smart phones, which is also an industry that 51 Group must strive for. If it succeeds, the revenue of the mobile phone project will be on the scale of hundreds of billions.

Of course, I won’t go into details here, and the specific investment plan will be discussed at the board meeting in the future. "

Gao Yang said that 51 Group wanted to enter the smart phone industry, which surprised everyone. This ambition is really too big.

However, everyone also understands that with Gao Yang's character, no one can stop him from doing this project.

Among those present, only Lu Tao, the general manager of Luxshare Seiko, was secretly excited that Gao Yang's self-owned brand mobile phone project, which had been planning for a long time, was finally about to start.

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

Gao Yang smiled slightly: "Brother Tao, 51 Group is leading the investment in this project, 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 of Gao Yang's plans, and they both smiled slightly, saying that to make smart phones, Yiwang and Baidu must also participate.

(End of this chapter)