Dongfang Shenghong (000301. SZ) disclosed the "Second Phase of the Employee Stock Ownership Plan (Draft) of Oriental Shenghong", which involved 2,958 employees, including 6 directors, supervisors and senior management personnel of the company; the number of employee shares to be granted in the employee stock ownership plan reached 205.8081 million shares, accounting for 3.46% of the company's total existing share capital, and the transfer price was 15.84 yuan per share;
The total amount of funds to be raised initially shall not exceed 3260 million yuan, of which the source of funds, the ratio of financing funds to self-financing funds shall not exceed 1:1, and the self-financing of employees shall not exceed 1.63 billion yuan. Shenghong Technology, the controlling shareholder of the Company, or its parent company provides joint and several guarantees for leverage, pursues the liability for margin replenishment, and provides a guarantee for employees' self-financing and expected returns, and after deducting relevant taxes, ensures that the part of the employee's capital contribution is not less than 8% annualized at simple interest.
In fact, as early as 2020, Oriental Shenghong has done a phase of the employee stock ownership plan, and then we will compare the similarities and differences between the two incentive plans of Oriental Shenghong.
Let's first understand what Oriental Shenghong does? Dongfang Shenghong was formerly known as Guowang Hi-Tech, a subsidiary of Shenghong Technology, which is mainly engaged in the research and development and production of differentiated chemical fibers. In 2018, through the backdoor Oriental Market, it was renamed "Oriental Shenghong". After the reorganization, the controlling shareholder of the company is Shenghong Technology, and the actual controllers are Miao Hangen and Zhu Hongmei.
Have you found that Oriental Shenghong did 2 phases of the employee stock ownership plan will have a very obvious node: the first phase of the employee stock ownership plan was implemented after the asset restructuring, renamed Oriental Shenghong, when the company's stock price was 4.14 yuan / share; "The second phase of the employee stock ownership plan" was implemented after the Shenghong refining and chemical integration project was put into production, after October 2021, the company's stock price fell all the way, shortly before the implementation of the incentive plan, the stock price fell all the way to 14.18 yuan / share.
Among the incentive recipients of the two phases, except for Sun Yihong, who retired to the statutory age, Ma Xiaoyong resigned for personal reasons, other executives were incentivized in both phases, and the number of employees in the second phase of the shareholding plan increased from 172 to 2958.
After the asset restructuring, Shenghong began to acquire Shenghong Refining and Honggang Petrochemical, further creating a new high-end textile industry chain of "crude oil refining -PX/ethylene glycol-PTA-polyester-chemical fiber". Form a whole industry chain business model from "one drop of oil" to "one silk".
Such a whole industry chain is a great test of the stability of the company's management and a large number of outstanding talents. Take R&D investment, Oriental Shenghong invested 703 million yuan and 749 million yuan in 2018 and 2019, respectively, and the proportion of R&D investment in revenue was 3.82% and 3.01% respectively. In the first half of 2020, R&D investment was 290 million yuan, and R&D investment accounted for 3.06% of revenue. The company's R&D investment as a proportion of revenue is in a leading position among comparable enterprises in the same industry.
In fact, through the acquisition of Sierbang Petrochemical and the investment and construction of large-scale refining and chemical projects, Oriental Shenghong has been driving on the fast track of development. According to the 2021 annual performance forecast, Oriental Shenghong expects to achieve a net profit attributable to the mother of 4.1 billion yuan to 5 billion yuan in 2021, an increase of 435% to 552% over last year.
Enterprises doing incentive plans must have a purpose:
It can be to help businesses achieve rapid development. For example, the first phase of the Oriental Shenghong employee stock ownership plan, when the company was listed shortly after the reorganization, the stock price has been very depressed, employees can get the company's shares with 5 yuan / share, and now the stock price of Oriental Shenghong has reached more than ten yuan per share, and the stock of employees at this time is doubled;
It can be to attract and retain excellent management talents and business backbones. For example, the second phase of the Oriental Shenghong employee stock ownership plan, the company's stock price continues to fall, employees may be "discouraged", there is no confidence in the company's future development, this time to do incentive plans for employees, but also for employees to self-financing and expected income to provide a guarantee, at present, Oriental Shenghong has started construction of three tens of billions of tons of projects, 16 million tons / year refining and chemical integration project is also put into production, at this time the effective incentive and constraint mechanism, you can let the company to a new level.
What do you think companies will do to implement incentive plans for? If a non-listed company does incentives, can the percentage of the listed company's equity incentive plan standards be applied? Feel free to leave a message in the comments section.