Lechuang has a new move! Spending 20 million to motivate employees

In the cross-border e-commerce industry, talent is the core of enterprise development . In order to motivate, retain and attract core talents , enterprises often launch different incentive mechanisms.

As a well-known cross-border e-commerce seller, in order to maintain the company 's rapid growth, Leckey will continue to offer generous rewards and grant 2.776 million restricted shares as equity incentives to 210 eligible employees!

Logchuang launches stock incentive plan

According to the announcement released by Lechuang, it is planned to grant 2.776 million shares , accounting for 0.89% of the company's current total share capital of approximately 311 million shares; the source of the shares is the company's A-share common stock issued by the company to the incentive targets; the grant price of restricted shares is 8.19 yuan per share, that is, after meeting the grant conditions and vesting conditions, the incentive targets can purchase the company's restricted shares granted to the incentive targets at a price of 8.19 yuan per share .

Legg Holdings released the announcement on June 16, when the share price was 15.65 yuan per share. If it had been purchased at 8.19 yuan per share, it would have been basically a half-price investment . The total cost to be amortized by Legg Holdings is approximately 20.7 million yuan.

The total number of incentive recipients granted the first grant under the incentive plan is 210, including directors, senior managers, middle-level managers and core technical (business) personnel who are employed by the company (including its holding subsidiaries) when the company announces this incentive plan, but does not include independent directors, supervisors and shareholders or actual controllers who hold more than 5% of the company's shares individually or in total, and their spouses, parents and children.

The validity period is from the date of grant of restricted shares to the date when all restricted shares granted to the incentive targets are fully vested or invalidated, and shall not exceed 60 months.

However, for eligible employees, successfully holding shares still requires a certain amount of time and conditions.

The stock reward of Lechuang Holdings is divided into two levels of assessment, namely the company's performance level and the individual level.

The company's performance assessment covers the three fiscal years from 2024 to 2026 , and the performance assessment targets involve the net profit attributable to shareholders of listed companies , which represents profitability .

It is divided into three vesting periods . The performance evaluation target for the first vesting period is that the net profit attributable to the shareholders of the listed company in 2024 is no less than 450 million yuan . The performance evaluation target for the second vesting period is that the net profit attributable to the shareholders of the listed company in 2025 is no less than 500 million yuan. The performance evaluation target for the third vesting period is that the net profit attributable to the shareholders of the listed company in 2026 is no less than 550 million yuan .

The individual employee assessment needs to be implemented according to the relevant performance assessment system of Lechuang . The individual evaluation results of the incentive object are divided into four levels: A, B, C, and D. The corresponding attribution ratios are as follows:

If the company-level performance appraisal meets the requirements, the number of restricted shares actually vested in the incentive target in that year = the number of shares planned to vest in the individual in that year × the personal vesting ratio (N).

If the restricted shares that are scheduled to be vested in the current period cannot be vested or cannot be fully vested due to assessment reasons, they will be invalidated and cannot be deferred to the next year .

From the perspective of company-level performance appraisal, from 2020 to 2022, Lechuang's net profit attributable to shareholders of listed companies was approximately RMB 217 million, RMB 185 million, and RMB 219 million, respectively.

Although 2021 has declined compared to 2020, 2022 is significantly higher than the previous two years.

From 2020 to 2022, Lechuang's revenue was 1.941 billion yuan, 2.871 billion yuan, and 3.208 billion yuan, respectively, maintaining a steady growth trend.

The company-level goals of the stock incentive plan launched by Lechuang this time are to achieve net profits attributable to shareholders of listed companies of no less than 450 million yuan, 500 million yuan and 550 million yuan from 2024 to 2026, respectively.

However, the company's net profit attributable to shareholders of listed companies in 2022 was 219 million yuan, which means that it will more than double in two years by 2024, which still puts some pressure.

Because in 2022, the net profit attributable to shareholders of the listed company after deducting non-recurring items was only 104 million yuan, a year-on-year decline of 4.95%. Lechuang pointed out that the reason for the decline in net profit after deducting non-recurring items was that the company increased its investment in research and development , the RMB exchange rate fluctuated in the first half of 2022 , and was affected by multiple factors such as the severe high shipping costs .

However, the stock incentive plan launched by Lechuang this time is also to a certain extent intended to help the company's performance growth.

Public information shows that Lechuang Holdings has implemented three stock incentive plans from 2018 to 2021, and the proportion of employee shares held by the company exceeds 10% of the company's total share capital.

Among them, the exercise conditions for the third exercise period of Lechuang's stock option incentive plan in 2020 were met, and 75 employees met the incentive conditions and could obtain the company's shares at a price of 10.1 yuan per share, totaling 1.322255 million shares.

Investing millions to buy houses and tens of millions to improve food, Lejia has always been generous to its employees!

Lechuang has always been generous in motivating its employees. In addition to equity incentives, it has also invested heavily in buying houses and improving meals for its employees.

In June 2022, Lechuang released an announcement regarding the company's financial assistance to employees for purchasing houses. The announcement mentioned that relevant proposals had been passed, and RMB 3 million was planned to be used as employee housing loans. After the amount is used, the loans returned by the employees and the unused amount will be used in a recycling manner for subsequent company employee housing loan applications.

It is understood that the scope of Lejia’s loan employees refers to full-time employees, who must have served the company and its branches and subsidiaries continuously for one year or more.

However, in addition to the above conditions, the borrowing employees must also have excellent work performance and excellent performance evaluation within the team, and the area where the loan is used to buy a house must also be recognized by the company.

The loan term for Leckey employees is most often no more than 5 years. If an employee leaves within 1 year, the loan interest rate is calculated at an annual rate of 8%; if an employee leaves within 1 to 3 years, the loan interest rate is calculated at an annual rate of 6%; if an employee leaves after 3 years, the loan interest rate is 0%.

In December 2022, Xiang Lehong, chairman of Lechuang Holdings, posted on his WeChat Moments: Lechuang uses an annual nominal expenditure of 60 million yuan to provide employees with healthy meals and afternoon tea, which caused heated discussions in the circle.

You know, the net profit of Legg Group in the first half of 2022 was only 130 million yuan, but it was willing to spend 60 million yuan to improve the meals of its employees , which is really generous.

In fact, Lejia Holdings' chairman Xiang Lehong is very serious about improving employee meals. Previously, Xiang Lehong posted a video titled "Xiang's Seafood Market Diary" on a social platform. In the video, Xiang Lehong said that in order to allow employees to eat fresh seafood, he would go to the seafood market in person at 2 a.m. to purchase goods.

According to Lechuang employees, Lechuang's chairman Xiang Lehong has often mentioned brand building at meetings at all levels since the first half of 2022 , and the company needs to comprehensively strengthen public relations, one of which is to improve employee meals. Xiang Lehong insists on the idea that only when the company treats employees well can employees better serve customers.

Talent is the key factor for the stable development of an enterprise. Many successful enterprises have tried their best to retain talents. These big sellers have taken the initiative to invest and provide various supports for core employees, which to a certain extent also proves their sincerity in retaining talents. At the same time, increasing investment in employee benefits can also fully mobilize the enthusiasm and creativity of employees, which will greatly promote the future development of the enterprise.

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Equity Incentive