Chapter 464 Year-end bonus and fund use planning

The last document that needs to be signed by his boss is the year-end reward implementation plan. The year-end reward offered by Xuanwu Technology is the same as last year, and the plan is to issue only one month more salary reward.

Ye Zishu frowned when he saw it. The reason why the year-end bonus last year was only a one-month salary reward was not that Ye Zishu was stingy, but that Xuanwu Technology Company did not make any money at all throughout the year last year, and was generally in the stage of pure investment.

Under such circumstances, the year-end bonus will definitely not be given out wantonly, and the one-month salary reward is just a sign of comfort for the employees who have been busy with the company for a year.

This year is different. The overall revenue of Xuanwu Technology has shown explosive growth. He predicted that the net profit margin should be around 35%, but it turned out to be 40%. This is very scary.

You must know that a considerable part of their revenue is used to expand production capacity, which is included in the cost, otherwise the net profit margin will be higher.

The reason why it exceeded his expectations was mainly because the back-end industry was too aggressive. I thought it would take a while for the back-end industry to generate large-scale revenue, but I didn't expect these subsidiaries to move so fast.

The back-end industry is basically a high-tech industry, which is a high-margin commodity. In addition, the overall R\u0026D investment is not particularly high, which makes the net profit margin reach 40%.

The company has made so much money, if it only pays one month's salary, it's a bit unreasonable. I don't know how to say that the boss is stingy behind the scenes.

Moreover, it is impossible for employees to fully enjoy the benefits brought about by the development and growth of the enterprise, which is very detrimental to the operation of the enterprise. It is necessary to closely link the interests of employees with the interests of the enterprise.

It is unlikely that he will distribute shares to employees. If he is still so stingy in the distribution of benefits, everyone may not have much opinion now, after all, the salary is generally not bad.

However, with the development of other private enterprises in the future, more incentives will come out, and the current treatment may be regarded as stingy behavior in the eyes of many employees.

And if the treatment is not good for a long time, it is very likely that these newly trained employees will be poached by other companies with higher salaries, which is a bit of a loss.

The salary needs to be determined according to the overall level of society and cannot be too high, but the year-end reward cannot be so conservative, so he gave his opinion in the year-end plan implementation document, positioning the year-end bonus as a 6-month salary.

This year-end reward is applicable to all employees of Xuanwu Technology Company, whether they are senior intellectuals or employees on the assembly line, they will be handled uniformly and will not be treated differently.

Of course, this year-end bonus still needs to be determined according to the employee's actual entry month this year. Only employees who have been employed for one year can receive the 6-month reward.

If it is less than one year, it needs to be calculated according to the actual number of months of employment. If it is less than one month, it is calculated by rounding up. In fact, many people cannot get the full year-end bonus.

Because many employees are newly hired this year, and a considerable number of employees have even been employed for less than half a year. Even so, this reward is definitely one of the most generous in the country.

Finally, there is the issue of profit distribution. 40% of the net profit means that the net profit has reached 280 billion yuan, which is a very large number.

The reason for such a high profit margin is mainly because the entire industrial chain is in their own hands, resulting in the phenomenon of profit spillover not being obvious enough, and most of the profits can be locked within the group.

Ye Zishu didn't intend to use the profits of Xuanwu Technology Company. After all, Xuanwu Technology Company is under heavy employment pressure, leaving more reserve funds on hand, which can enhance the ability to resist risks.

However, these funds are too much. If they are all in the hands of Xuanwu Technology, most of them can only lie in the bank and earn interest, which is too serious a waste.

Therefore, in terms of profit disposal, Ye Zishu changed his previous thinking and directly divided 50% of the net profit, that is, 140 billion yuan will be used by him, and the remaining 140 billion yuan will be disposed of by Xuanwu Technology Company itself.

The 140 billion yuan is not paid out in the form of dividends, and it will directly become his personal property, which is completely unnecessary. Anyway, these funds are also for investment, and there is no need to pay a personal income tax.

It is better to use it in the form of a loan, so that Xuanwu Technology Company will be better off. Although there is no interest on the loan, it must be returned after all, and it belongs to the group's assets.

If it is taken away by Ye Zishu in the form of personal dividends, it really has nothing to do with Xuanwu Technology Company, and the net assets of Xuanwu Technology Company will be greatly reduced.

He intends to use this fund on Kirin Industrial Group, mainly because Kirin Industrial Group is also facing the problem of a huge increase in capital demand for new business growth.

In addition, after the existing business is completed, it will immediately enter the stage of production expansion, and the demand for funds will further increase. Kirin Industrial Group can fully digest this fund.

In fact, Wancheng Foundation is also in urgent need of funds. The reason why they don't give it to Wancheng Foundation is mainly because Wancheng Foundation's current profitability is too poor, and they don't know when they will be able to return the money they borrowed.

Although Xuanwu Technology Company is now very profitable, the huge number of employees is there. If there is any trouble, the money needs to be returned as soon as possible to make up for the lack of funds of Xuanwu Technology Company.

In contrast, the profit return period of Kirin Industrial Group Company is much shorter. There may be a certain return this year, and it may be a bumper harvest next year. At that time, the money can be returned to the account of Xuanwu Technology Company.

In addition to the signing of these necessary documents, Leaf Book also provided some suggestions, such as investment in R\u0026D expenses, which had not been specifically planned before.

All the technical materials before were from his hands, and the R\u0026D personnel only need to develop step by step. Generally, they will pay as much as they spend, because no matter how high it is, it will not be much higher.

But now it’s different. The technical information that Yeshu will provide to Xuanwu Technology will be less and less, unless it is the supporting technology of other industries, which requires the industrial cooperation of Xuanwu Technology, it will be provided to them.

It is impossible to organize technical materials for Xuanwu Technology Company alone. Xuanwu Technology Company is already on the right track, and if he supports it, it will be a bit unreasonable.

But the replacement of electronic semiconductors is too fast, especially now that they are in the leading position, other semiconductor giants will definitely catch up desperately.

If they want to maintain a lasting leading edge, they must continuously invest huge sums of money in research and development, so Ye Zishu has set a rule for them, which is to define the proportion of research and development investment.

In normal times, the ratio of investment in R\u0026D funds to revenue is set at 10%, which is the same as the ratio of R\u0026D investment he set for Taiji Group before. In special times, he said otherwise.

Although this ratio of investment in research and development is not the highest among many high-tech companies, it is not very low.

In addition, their revenue scale is already very large, and the technical information he provided can continue to play a role. Both the total investment and the return on investment are much higher than other companies.

In addition to this, Ye Zishu once again brought up the issue of talent training. They had previously discussed investing in higher education to train top electronic semiconductor and industrial scientific research talents for themselves and the country.

It's just that neither they nor Qinglong Technology Company were on the right track before, and planning too early was a bit unrealistic, so they didn't submit an application for running a school like Taiji Group did.

With so much money earned this time, it is practical to allocate part of the funds for higher education. The specific amount of investment needs to be determined according to the actual situation, but he hopes that the annual investment in education will not be less than 10 billion yuan.

Part of this money will be invested in higher education, and part will be invested in the training of group employees. The distribution ratio of the two needs to be adjusted according to the actual situation. Ye Zishu does not intend to participate too much.

Group employee training is more complicated. On the one hand, it is necessary to improve the overall knowledge level of employees. This mainly refers to low-educated employees, especially assembly line employees, who generally have low education.

Now it seems that they are competent for the current job, but in the future, with the intensification of competition and the increase of labor costs, the number of assembly line jobs may be greatly reduced.

What will these employees do then? Either improve their capabilities from now on, so that they can be qualified for higher value-added positions in the future, or they can only lay off employees, and there is no third way to go for the time being.

In line with the attitude of being responsible for employees, and at the same time preparing for the further upgrading of my country's industry, it is very necessary to spend a sum of money every year to train employees.

In addition, there are senior intellectuals in the group who also need re-education and training. On the one hand, it is to increase the depth of their professional capabilities, and on the other hand, it is to broaden their horizons.

It's just that there is no good measure to train these employees. After all, employees have to create value for the company, and it is impossible to leave their posts to study.

However, the situation may not be good for them to go to night school every day. The number of people is too large, and no night school can accommodate them. What's more, doing so will also be resisted by some employees.

If New Oriental Education Group alone expands the number of teachers for them, then these teachers will be idle most of the time, but the salary cannot be reduced by half, and the per capita training cost will be too high.

After thinking about it, online education and training came into his field of vision. Before that, he planned to help New Oriental Education Group build an intelligent online education and training system, but he never started.

The main reason is that the current artificial intelligence is still a bit flawed in doing this. It may be difficult to find the communication in a short period of time, but after a long time, you can still detect that the person communicating with the students is a virtual person.

Originally, he planned to wait until the development of more advanced artificial intelligence technology before starting to solve this problem, but now it seems that such a system must be developed now.

As for the shortcomings mentioned above, it can only be made up by new technologies, and try to be the best, so that students can have a more immersive learning atmosphere and a sense of communication.