Winning the new financial era

Chapter 261 Option Exercise
After staying at home for another two days, when it was almost time to go to work, Zhang Yida bid farewell to his parents and returned to the capital with Zhao Erya.

The next day.

The first day of work in the new year.

"Goldman Sachs has finished reducing its holdings?"

Zhang Yida asked Fan Hongyang while looking at Yimin Wangjin's unaudited fourth quarter report and annual report.

"The reduction of holdings is over, and these foreign devils have made a lot of money. The average price of the reduction is 23.51 US dollars, and 1 million US dollars have been cashed out in one fell swoop."

Fan Hongyang said a little sourly that the founders of his hard-working entrepreneurs are still living a "hard life" and insist on not cashing out.Goldman Sachs made a lot of money, and they worked for capital.

"In January last year, Goldman Sachs invested US$1 million in us, and got back a quarter of the capital at once, but they only sold one-eighth of their shares...

In one year, the income has doubled, and the capital operation is still used to make money! "

It is normal for Fan Hongyang to complain, and Zhang Yida understands this.When Goldman Sachs took a stake last year, he cashed out a large sum of money, but Fan Hongyang didn't even have one.

Now watching Goldman Sachs eating meat in the pot, he can only circle around the pot, he must be unwilling.

"What is our stock price now?" Zhang Yida put down the financial report in his hand and asked Fan Hongyang.

"It's down another 5% today, and it's down to $22.1."

Fan Hongyang looked distressed, and said, "Except for Goldman Sachs, other investment banks have adjusted our stock rating from "hold" or "positive" to "neutral" or "sell."

"It's okay!" Zhang Yida pointed to the financial report on the table, "I've handed it over to the accounting firm for audit. Send it out as soon as possible, and it should raise the stock price a bit."

When mentioning the financial report, Fan Hongyang finally showed a smile, "Mr. Zhang, 2015 was a bumper year. We have basically completed the coverage of offline stores in first-, second- and third-tier cities across the country."

"Not bad!" Zhang Yida nodded, "The year-round loan matching exceeded 400 billion yuan, the annual revenue was 57.2 billion yuan, and the net profit was 18.48 billion yuan."

Fan Hongyang waved his hand, "We have to thank Ruixiang for providing us with credit endorsement and business diversion, which saved us a lot of marketing expenses."

"If there is no Ruixiang, at least our annual net profit will be halved."

Fan Hongyang has been operating Yimin Wangjin for more than two years, and he also knows how deep the industry is.

In P2P, there are three biggest costs, one is the cost of advertising and marketing to acquire customers, one is the cost of capital, and the other is bad debts.

Both Yimin Wangjin and Ruixiang have a common boss - Zhang Yida, which provides Yimin Wangjin with an opportunity to gain fame.

Even without promotion, there are often a group of tap water users who sign up for the Yimin Wealth Management Platform under Yimin Wangjin.

When the customer service returned to visit these customers, these customers said that they came here because of the reputation. They heard that it was Zhang Yida's company. They came here to invest with peace of mind and sleep well.

This is the status quo of the current Internet financial investment platform. User investment attaches great importance to the background of the platform, for example: who is the boss?Do you have the ability to cover the bottom line?Can its assets cover the platform to be collected?
The two most well-known companies under Zhang Yida are Ruixiang and Huimin Bicycle. In the past two years, these two companies have become popular all over the country, and Zhang Yida has gradually become known to the public.

In addition, Yimin Wangjin has always obtained the best advertising recommendation positions in Touronghui Financial Supermarket, and the price has a lot of discounts compared with other peers.

In terms of capital costs, Yimin Wangjin has also been optimizing, introducing bank funds and injecting its own funds into its small loan companies.

In addition, after the listing of Yimin Wangjin, the brand has been upgraded, and a product interest rate reduction adjustment has also been carried out.

For 1-36 months of financial products, interest rates ranging from 0.5% to 2% have been lowered.

A small number of users expressed dissatisfaction with this, but most users are still very supportive.

After all, Yimin Wangjin was successfully listed with a market capitalization of 60 billion U.S. dollars. They can invest in such a big company with confidence. Although it hurts to lose one or two points of interest, the security of investment has undoubtedly taken a big step.

In terms of risk control, Yimin Wangjin has fully connected to Mung Bean Credit, and the big data credit investigation of hundreds of millions of users can be cross-referenced, which greatly reduces the overdue rate.

"You are too modest!" Zhang Yida laughed, "Although Ruixiang has provided some help to Yimin Wangjin, it is just a normal business relationship."

"Don't worry too much about it." Zhang Yida got up and patted Fan Hongyang on the shoulder, "Just watch, Goldman Sachs will regret it sooner or later."

"I'm actually alright, my annual salary and bonus are enough, and it doesn't affect me much whether I cash out or not."

Fan Hongyang smiled wryly, and said: "It's mainly the middle management of the company, seeing that the company is listed, and the lifting period has passed, the shares cannot be cashed out yet.

Especially now that the stock price has plummeted by nearly 20%, I am a little anxious. "

"Let's do this!" Zhang Yida thought for a while, and then said, "They want to cash out, so don't stop them, entrust them to a brokerage to sell it for them!"

"Isn't that going to make them so beautiful?" Fan Hongyang laughed, "At the beginning, the cost of exercising a share was only a few dollars. Even if the stock price is only in the early 1s, they have made several times!"

"The company has been developed for more than two years now, and it is time to give an explanation to the key employees who joined the company earlier."

Fan Hongyang nodded: "All right! I'll arrange it!"

……

When Fan Hongyang reported the good news to the company's middle-level management and key employees, the employees who had been tossed down by the recent plummeting stock price were all as if they had been beaten to death.

The exercise period of Yimin Wangjin's options is divided into three years and five years. Every year, you can get the right to "buy the company's allocated equity shares at a lower price"!

The reason for this setting is also for the purpose of binding employees.

More than half of the options of the employees who joined early have been unlocked, and everyone has the right to buy tens of thousands or hundreds of thousands of ordinary shares in the option pool at a low price.

The conversion from ordinary shares to ADS stock depositary receipts is 5 to 1.On this point, Zhang Yida is more kind and doesn't cheat his employees.

Some listed companies, such as some cool, exchange 18 ordinary shares for 1 ADS, which greatly cheated employees.

All U.S. stocks are traded in ADS, and stock prices are also measured in units of ADS.

In some companies, employees exercise their options in exchange for 20 million ordinary shares, which is only 1 or a few thousand shares when converted into ADSs.

In addition, according to the U.S. tax law, the longer the beneficiary holds the stock, the greater the tax benefits that the beneficiary can enjoy.

持有股票时间在12~18个月的，税率为28%；超过18个月税率为20%；不满12个月，期权收益将作为普通收入缴纳个人所得税，税率最高达39.6%。

Therefore, the employee's option value is equal to: the difference between the value of a single share minus the exercise cost, multiplied by the number of shares, and finally deducting taxes and fees.

Yimin Wangjin, that is quite kind. The early exercise cost was 1 USD. Later, the company increased capital and expanded shares. The total number of common shares increased, and the exercise cost did not increase much. The most recent exercise cost was only 4 Dollar.

For employees who exercise their options early, the exercise of 1 dollar per share is the most profitable.

Those who joined the company later were paid two or three dollars a share, and they still made some money.

I joined the company not long ago, 4 dollars a share, 5 ordinary shares exchanged for 1 ADS, compared with the stock price in the early 20s, I can't make much money, and I might even lose money...

Take Lu Zheng, a risk control model technician, as an example. He joined the company at the end of 2013. Although he did not serve as a manager, he is a key employee with superb skills. In recent years, he has obtained a total of 25 stock options.

Among them, 10 shares were awarded to him for participating in the research and development of the company's Hawkeye risk control system at the end of 13, with an exercise period of 3 years.

The other 15 shares were awarded by Fan Hongyang himself for discovering a small loophole in the Hawkeye risk control system in 14 and providing a solution, which saved tens of millions of losses for the company.The vesting period is 5 years.

14年和15年，他分别解锁了第一笔奖励的10万股期权的30%，获得了公司上市后以6万美元的行权成本购买6万普通股的权利；
15年，他还解锁了第二笔20万股期权奖励20%，获得了公司上市后以10万美元的行权成本购买4万普通股的权利。

This year's options have not yet been unlocked, which are the last 10% of 40 options and 20% of 20 options, and we have to wait a few more months.

Lu Zheng walked out of the meeting room with an excited face. The department manager just informed him of good news.

He, Lu Zheng, can exercise his options to purchase 16 common shares in the company's option pool at a cost of US$10.

Just now, colleagues from the financial department explained the "conversion ratio between common stock and ADS" to a group of programmers including him.

Lu Zheng secretly calculated that he bought 16 common shares of the company for US$10, which is equivalent to 2 ADSs.

At current share prices, that's worth $44.2.

Subtracting the exercise cost of $16, he would have made a profit of $28.2.

No, there is another US non-resident personal income tax of 39.6%.Every time he thought of this, Lu Zheng's heart would bleed, he was so ruthless.

He calculated that he would pay $11 in taxes!

He has never paid so much tax to his own country, so why should he pay it to Americans?
A financial colleague told him: No way, the company is listed in the United States, so it has to be like this!If he has an investment or a green card in the United States, there may be some room for maneuver.

Lu Zheng was still a little worried that he couldn’t afford the $16 for exercising the rights. His financial colleagues told him: entrust Goldman Sachs with full authority to operate as an agent, first lend money to you to exercise the rights, and then return part of the money from the sale of stocks to Goldman Sachs, and the rest The rest is yours.

This greatly solved Lu Zheng's worries.

Lu Zheng chose to exercise his rights and entrusted Goldman Sachs to sell all the shares he had acquired.

After deducting the exercise cost, taxes and fees, Lu Zheng received 111.56 RMB, equivalent to about 17 U.S. dollars, a few days later.

And this is not over yet, Lu Zheng has to pay 20% personal income tax to China.

The only good news is that the $11 tax paid in the United States can not be included in the taxable income.

In the end, there were only about 80 in Lu Zheng's hands.

But Lu Zheng was still very happy, and with the more than 30 he had saved in the past few years, he could make a down payment in the capital.

　Thanks: I am the carrot, reader 1198582920910487552, two book friends for their rewards!

　　Thank you for your recommendation votes, monthly tickets, and subscriptions!Thanks!

　　
　
(End of this chapter)