In just two years, every employee who bought Lansili Clothing Company's shares has made a profit of 15 times on paper. If you also include the natural increase after the company's successful backdoor listing, the profit for these small shareholders
For us, it is a small fortune.
Allowing employees to purchase their own company's stocks at a certain proportion not only improves employees' sense of identification and cohesion with the company, but also allows employees to share in the dividends brought about by the company's rapid development. This is the starting point for Sun Dahai's suggestion that employees participate in internal equity participation in the company.
However, even Sun Dahai had no idea that Lansili Clothing Company had developed so rapidly and had brought such high returns to its employees in just a few years.
After consultation and discussion, Sun Dahai, Huang Feifei and Wu Dawei finally chose Lansili Clothing Company as the pilot for employee stock ownership. There are inherent reasons.
Shiweitian is an enterprise based on domestic development. In 1984 and 1985, domestic discussions on whether stocks and joint-stock companies should be named "capital" or "social" were still secretly and fiercely carried out among senior executives.
Even if the country liberalizes its policies and starts pilot projects, it will definitely start with state-owned enterprises. Companies like Shiweitian with the title of foreign capital will not need to think about it in a short time.
To make life and years peaceful, it is nominally a dowry for Cao Yue and Sun Weihong, and the shares of the younger generations of the family are mixed in, so it is not suitable for employees to participate in shares.
Sun Dahe and Sun Yuanyuan also have Heyuan Luye and Yayuan Racecourse (Yayuan Equestrian Club) under their names.
However, these two industries themselves are relatively partial and will be two small personal industries in the future, so people will not take them into consideration.
In Sun Dahai's company, there are quite suitable projects. The No. 9 Hot Pot Restaurant, which is well known to employees, is very suitable for receiving internal investment from employees in terms of its business scope and project characteristics.
However, the problem lies with Sun Dahai. As a financial industry insider in his previous life, he knows too much about the capital circle and the stock market. Therefore, he does not want his company to be listed. At least those projects that he values will not be listed easily.
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No. 9 Hot Pot Restaurant is in the catering industry, and its future development direction is large-scale international catering chain enterprises. Although No. 9 Hot Pot Restaurant has high profits, almost all profits are used to open branches.
If it weren't for the fact that No. 9 Hotpot Restaurant still has two small shareholders, Old William and Cao Yong, Sun Dahai would have to set aside some profits for dividends every year. Otherwise, Sun Dahai might be happy and even pour money into it.
For such a company, which has neither a listing plan nor a guarantee of distributing a large amount of profits to shareholders, employee stock ownership has little meaning.
Therefore, after much deliberation, they felt that if they mobilized internal employees to participate in shares, Lansili Clothing Company would be a good platform.
Lansili Clothing Company is a short-selling enterprise registered in Xiangjiang by the Sun family in order to help the government revitalize state-owned garment factories that are on the verge of bankruptcy.
Lansili itself has no fixed assets and no business projects. It is only a joint venture symbol and has the management rights, foreign trade rights and brand management rights of Landa Garment Factory.
As a standard Sino-foreign joint venture, 51% of the shares of Landa Garment Factory are owned by the government, and Lansili is only a minority shareholder with 49% of the shares.
However, in the joint venture contract between the two parties, it is clearly stipulated that the management rights of Landa Garment Factory belong to Lansili.
The government will arrange for a deputy manager and a financial director to enter the management of the garment factory, mainly responsible for coordinating the relationship between the garment factory and other administrative departments and financial supervision.
This joint venture model is quite effective. Not only did the Landa Garment Factory come back to life in the year of the joint venture, it also continued to expand its production scale and solved the employment problem for hundreds of additional people for the local government.
The predecessor of Landa Garment Factory was Hongda Garment Factory with nearly 200 workers, and a civilian quilt factory with 30 to 40 people.
Today, Landa Garment Factory has become a large-scale comprehensive clothing production enterprise with 12 production lines and 500 employees, and has become the largest export-earning enterprise in the capital's clothing industry.
The business of Landa Garment Factory is mainly divided into several parts. The domestic business is mainly school uniforms and work clothes. The production of these orders has been scheduled for half a year.
With the emergence of uniforms for students of Yingcai School, as well as units such as Food for the Sky, Decoration Life and Agricultural Bank of China, which took the lead in wearing uniform uniforms, student uniforms and work uniforms have become a fashion in the capital.
Lansili is responsible for arranging a dedicated team of designers for each customer, who will carry out individual designs based on the customer's specific work needs.
Lansili's choice of this as the entry point into the market is very accurate. Now the domestic economic development has just started, and the individual's pursuit of personalized clothing is still in its infancy.
In view of this situation, Lansili wisely chose to enter the field of clothing customization. This can not only provide workers with sufficient production tasks and increase their income, but also gain a firm foothold in the capital's clothing industry and build a reputation.
In terms of finished garments, Landa Garment Factory currently does not have products for domestic sales.
The company's finished clothing orders all come from overseas. At the beginning, the number of orders from Southeast Asia (including Xiangjiang) and Europe was evenly matched, each accounting for half.
Since Lansili acquired Shengzhiwen's Colemi Clothing Company for a friendly price of US$3 million, orders from North America have increased significantly, accounting for more than half of the company's total export orders.
Export orders are not only large in quantity and batch, but also highly profitable. Therefore, in Lansili’s annual financial statements, almost all of the company’s profits come from export orders. As for the customized clothing business, it is more about increasing the company’s visibility
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According to the current national foreign trade export policy, Lansili's clothing has been exported in large quantities to earn foreign exchange. Not only has it received strong praise and support from governments at all levels, but it has also received a large number of export tax rebates, which has once again increased the company's profit margin by a large margin.
In addition, Landa Garment Factory also has some orders for bedding. As Landa merged with the quilt factory, although they took over the production equipment and employees of the original unit, they were not prepared to develop in this area at the beginning.
However, along with the orders for Yingcai School's student uniforms and teachers' uniforms, there is also a large order for a full set of bedding that is large in quantity and valid for a long time.
Yingcai School adopts a boarding system from kindergarten to middle school. Therefore, every year there are at least as many sets of bedding as there are new teachers and students entering the school.
This forced Lansili Company to add special equipment and urgently recruit and train a group of production personnel to ensure that every new student in the school can receive their own bedding in time when they enroll.
