After staying at home for another two days, it was almost time to go to work. Zhang Yida said goodbye to his parents and returned to the capital with Zhao Erya.
The next day.
The first day of work in the new year.
“Has Goldman Sachs finished reducing its holdings?”
Zhang Yida asked Fan Hongyang while looking at the unaudited fourth quarter report and annual report of Yimin Net Finance.
"After the reduction, these foreign devils made a lot of money. The average price of the reduction was US$23.51, and they cashed out US$117.56 million in one fell swoop."
Fan Hongyang said with some sourness that founders like him who worked hard to start a business are still living a "hard life" and insist on not cashing out. Goldman Sachs has made a lot of money, and they are just working for capital.
"In January last year, Goldman Sachs invested US$444.42 million in us, and now they got back a quarter of their capital, but they only sold one-eighth of their shares...
In one year, I have doubled my income, but I still make money through capital operations!"
It is normal for Fan Hongyang to complain, and Zhang Yida understands this. When Goldman Sachs bought shares last year, he cashed out a large amount, and Fan Hongyang had no hair.
Now seeing Goldman Sachs eating meat in the pot, he can only circle around the pot, and he must be unwilling to do so.
"What is our stock price now?" Zhang Yida put down the financial report in his hand and asked Fan Hongyang.
"It has fallen another 5% today and is only $22.1."
Fan Hongyang looked heartbroken and said, "Now, 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 gave it to the accounting firm for audit. I will send it out as soon as possible. It should be able to increase the stock price a little."
Speaking of the financial report, Fan Hongyang finally showed a smile, "Mr. Zhang, 2015 was a great year. We have basically completed the offline store coverage in first, second and third tier cities across the country."
"Not bad!" Zhang Yida nodded, "The loan financing for the whole year exceeded 40 billion yuan, the annual revenue was 5.72 billion yuan, and the net profit was 1.848 billion yuan."
Fan Hongyang waved his hand, "We have to thank Ruixiang for this. Ruixiang provided us with credit endorsement and business diversion, and we saved a lot of marketing expenses."
"If there is no sharp direction, at least our full-year net profit will be discounted in half."
Fan Hongyang has been trading Yimin Net Finance for more than two years, and he also knows how deep this industry is.
When engaging in P2P, there are three biggest costs: advertising and marketing customer acquisition costs, capital costs, and bad debts.
Yimin Wangjin and Ruixiang both have a common boss - Zhang Yida, which provides Yimin Wangjin with an opportunity to gain fame.
Even without promotion, a group of tap water users often register for the Yimin Financial Management Platform under Yimin Wangjin.
When the customer service visited these customers, they all said that they came here because of the reputation. They heard that it was Zhang Yida's company. They felt at ease when they came to invest and sleep well.
This is the current status of Internet financial investment platforms. User investment attaches great importance to the background of the platform. For example: Who is the boss? Is he able to cover up? Can his assets cover the platform and be collected?
The two most well-known companies under Zhang Yida are Ruixiang and Huimin Bicycles. 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 had the best advertising recommendation position in Touronghui Financial Supermarket, and its prices are much more favorable than those of 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 been carried out.
The interest rates for financial products ranging from 1 to 36 months have been reduced by 0.5% to 2%.
A small number of users have expressed dissatisfaction with this, but most users are still very supportive.
After all, Yimin Wangjin was successfully listed and has a market value of five to six billion US dollars. They can invest with confidence in such a large company. Although it is heartbreaking to lose one or two points in interest, the investment security has undoubtedly been improved to a big level.
In terms of risk control, Yimin Wangjin has fully integrated into Mung Bean Credit, and the big data credit reports of hundreds of millions of users can be cross-referenced, greatly reducing the overdue rate.
"You are being too modest!" Zhang Yida said with a smile, "Although Ruixiang has provided certain help to Yimin Wangjin, it is just a normal business transaction."
"Don't take it too seriously." Zhang Yida stood up and patted Fan Hongyang on the shoulder, "Just watch, Goldman Sachs will regret it sooner or later."
"I'm actually fine. The annual salary and bonuses are enough. Whether or not I cash out doesn't have much impact on me."
Fan Hongyang smiled bitterly and added: "It's mainly the middle management of the company. Seeing that the company is listed and the lock-up period has passed, the shares cannot be cashed out.
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: "If they want to cash out, don't stop them. Entrust it to a brokerage to sell it for them!"
"Aren't you going to flatter them to death?" Fan Hongyang laughed, "The exercise cost of one share was only a few dollars at the beginning. Even if the stock price is only in the early 20s now, they have made several times the profit!"
"The company has been developing for more than two years now, and it's time to give an explanation to the key employees who joined the company earlier."
Fan Hongyang nodded: "Okay! I'll make the arrangements!"
…
When Fan Hongyang informed the company's middle management and key employees of the good news, all the employees who had been a little listless due to the recent plummeting stock price felt as if they had been given blood.
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 equity shares allocated by the company at a lower price"!
The reason why this is set up is also for the purpose of binding employees.
More than half of the options for employees who joined early have been unlocked, and everyone has the right to buy tens of thousands or hundreds of thousands of common shares in the option pool at low prices.
The conversion from ordinary shares to ADS stock depository receipts is 5:1. At this point, Zhang Yida is kind and does not cheat his employees.
Some listed companies, such as a cool company, exchange 18 shares of common stock for 1 ADS, which greatly embarrasses their employees.
All U.S. stocks are ADS, and the stock price is measured in ADS units.
In some companies, employees exercise options in exchange for one or two million common shares, which is only 10,000 or a few thousand shares when converted into ADS.
In addition, according to U.S. tax laws, the longer the beneficiary holds the stock, the greater the tax benefits he or she can enjoy.
If the stock is held for 12 to 18 months, the tax rate is 28%; for more than 18 months, the tax rate is 20%; for less than 12 months, option income will be subject to personal income tax as ordinary income, with a tax rate of up to 39.6%.
Therefore, the employee's option value is equal to: the value of a single share minus the exercise cost, multiplied by the number of shares, and finally deducting taxes.
Yimin Internet Finance is quite kind. The early exercise cost was 1 US dollar. Later, the company increased capital and expanded its 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 rights early, the most profitable exercise is $1 per share.
Those who joined the company later paid two or three dollars per share, and still made some money.
I recently joined the company and exchanged 5 common shares for 1 ADS at 4 US dollars per share. Compared with the stock price in my early 20s, I can't make much profit, and I might even lose money...
Take risk control model technician Lu Zheng as an example. He joined the company at the end of 2013. Although he did not serve as a manager, he was a key employee with superb skills and received a total of 250,000 stock options in the past few years.
Among them, 100,000 shares were awarded to him for his participation in the development of the company's Eagle Eye risk control system at the end of 2013, with an exercise period of 3 years.
The other 150,000 shares were awarded by Fan Hongyang personally for discovering a small loophole in the Hawkeye risk control system in 2014 and providing a solution, which saved the company tens of millions of losses. The exercise period is 5 years.
In 2014 and 2015, he unlocked 30% of the first 100,000 share options respectively, and obtained the right to purchase 60,000 common shares at an exercise cost of US$60,000 after the company went public;
In 2015, he also unlocked 20% of the second tranche of 200,000 share option awards and obtained the right to purchase 40,000 common shares at an exercise cost of US$100,000 after the company went public.
This year’s options have not yet been unlocked, the last 40% of the 100,000-share options and the 20% of the 200,000-share options respectively, and we have to wait a few more months.
Lu Zheng walked out of the conference room with excitement on his face. The department manager had just informed him of good news.
Lu Zheng was able to exercise his option and purchase 100,000 common shares in the company's option pool at a cost of US$160,000.
Just now, my colleagues in the finance department explained "the conversion ratio between common stocks and ADS" to a group of programmers including him.
Lu Zheng secretly calculated on his own and bought 100,000 common shares of the company for US$160,000, which is equivalent to 20,000 ADS shares.
Based on the current stock price, it is worth US$442,000.
Subtracting the exercise cost of US$160,000, he can make a profit of US$282,000.
No, there is also the US non-resident personal income tax of 39.6%. Lu Zhengxin bleeds every time he thinks of this, it is so cruel.
He calculated that he had to pay $111,672 in taxes!
He has never paid so much tax to his own country, so why should he pay it to Americans?
His financial colleague told him: There is no way, this is what the company has to do if it is listed in the United States! If he has investment or a green card in the United States, there may be some room for maneuver.
Lu Zheng was originally worried that he would not be able to afford the $160,000 to exercise the option. His financial colleagues told him: Entrust Goldman Sachs to operate it as a sole agent. He will first lend you money to exercise the option, and then return part of the money from selling the stocks to Goldman Sachs, leaving the rest.
What you place down is yours alone.
This greatly solved Lu Zheng's worries.
Lu Zheng chose to exercise his rights and entrusted Goldman Sachs to sell all the shares he received.
After deducting the exercise costs, taxes and fees, Lu Zai received 1.1156 million yuan in a few days, equivalent to about 170,000 U.S. dollars.
And that's not all, Lu Zheng still has to pay 20% personal income tax to China.
The only good news is: the $110,000 tax paid in the United States is not included in the taxable income.
In the end, Lu Zheng only had more than 800,000 yuan.
However, Lu Zheng was still very happy. With the more than 300,000 he had saved in the past few years, he could make a down payment in the capital.