Shenzhen sells 40 million to motivate employees, and the vice president born in the 1990s with an annual salary of 470,000 is among them

Shenzhen Dama released a draft stock incentive for 2025, intending to grant certain equity to 17 core managers, including a vice president born in the 1990s, with a total estimated amortization cost of more than 40 million yuan. The indicator for this incentive is based on the company's net profit, but the company's profitability is poor and it is currently in a state of continuous losses.

Yinzhijie plans to motivate 17 employees

Recently, Yinzhijie announced the 2025 Restricted Stock Incentive Plan (Draft), which plans to grant 2.53 million shares to 17 employees.

The restricted stocks granted to the incentive targets this time are 2.53 million shares, accounting for about 0.36% of the company's total share capital of 706.6405 million shares, and the grant price is 21.29 yuan per share. Among them, 2.03 million shares are granted for the first time, accounting for about 0.29% of the total share capital of 706.6405 million shares, and the first grant accounts for 80.24% of the total rights granted this time; 500,000 shares are reserved, accounting for 19.76% of the total rights granted this time.

Finally, the company recognized the share-based payment expense of this incentive plan based on the fair value of the Class II restricted shares on the grant date, and the total amortization expense is expected to be RMB 40.2711 million . The expense will be amortized in proportion to the vesting arrangement during the implementation of this incentive plan.

The 17 employees who received the award include directors, senior managers and core managers of the company (including subsidiaries and branches). They are core talents that have a direct impact on the company's operating performance and future development.

Among them, Liu Yi, the company's director, deputy general manager and secretary of the board of directors, was granted 800,000 restricted shares, accounting for 31.62% of the total number of restricted shares granted, Zhang Chunlei, the financial director, was granted 80,000 shares, accounting for 3.16%, and Wu Jiaqi and Yang Guo, deputy general managers, and Xiang Lingtao, the director, were each granted 50,000 shares, accounting for 1.98%. The remaining 12 core management personnel were granted 1 million shares, accounting for 39.53%.

Every company’s equity incentive basically has corresponding assessment conditions, which generally include the company level and the individual level.

The restricted stock assessment year of Yinzhijie this time is three fiscal years from 2026 to 2028, with assessment once in each fiscal year. The performance assessment targets for each year are different and will increase year by year starting from 2026.

The "net profit" indicator pointed out by Yinzhijie here is the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses in the company's audited consolidated financial statements.

In addition to the company-level assessment, Yinzhijie also sets assessment indicators for the individual level of the grantees. According to the implementation of the company's internal performance assessment system, the actual attributable amount of the incentive recipients is determined by the individual assessment results .

Specifically divided by levels , ABCDE correspond to excellent , good , general , qualified and unqualified respectively , among which the attribution ratios of ABC are 100% , 80% and 60% , while DE is unqualified and the attribution ratio is 0.

The vice president born in the 1990s who earns 470,000 yuan a year received incentives

Wu Jiaqi, who is among the incentive targets, was born in 1991 and has a postgraduate degree. He served as the company's investment manager from April 2016 to April 2019, the company's assistant to the general manager from April 2019 to August 2021, and has served as a director of the company's subsidiary Beijing Jiezhirong Software Co., Ltd. since November 2019. He has served as the company's deputy general manager since August 2021 and a director of the company since May 2023.

It is worth noting that according to Yinzhijie's 2023 data, the salary of Wu Jiaqi, a post-90s vice president, is 473,000 yuan, ranking second among executives. The highest is the company's female vice president Yang Guo, who has an annual salary of 480,000 yuan and is also among the incentive targets.

Yang Guo was born in 1988 and holds a master's degree. He served as the company's software product manager from July 2012 to May 2014, the company's assistant general manager and director of the innovation and development department from May 2014 to August 2021, and has served as the company's deputy general manager since August 2021.

It is understood that the chairman of Yinzhijie is Chen Xiangjun, 60 years old this year, and the general manager is Li Jun. Both of them will receive a salary of 410,100 yuan in 2023 and are the actual controllers of the company.

The company will hold the first extraordinary general meeting of shareholders in 2025 on March 7 to review proposals on matters related to this restricted stock incentive plan.

According to the company, this restricted stock incentive plan sets a net profit indicator and a tiered attribution assessment model to achieve dynamic adjustment of the equity attribution ratio and ensure the expected incentive effect, which is conducive to mobilizing employee enthusiasm and enhancing the company's core competitiveness.

As of February 10, the number of shareholders of the company was 142,058, a decrease of 39,548 from the previous period (2024-11-08), a month-on-month decrease of 21.78%.

Net profit losses for consecutive years

Compared with other companies in the same industry that often set a net profit assessment target of hundreds of millions, Yinzhijie's standard is not high. But even so, the current situation is not optimistic.

Not long ago, Yinzhijie announced its performance forecast for 2024, with a net profit attributable to shareholders of the listed company of a loss of 100 million to 130 million yuan. The net profit attributable to shareholders of the listed company in the same period last year was a loss of approximately 117 million yuan.

Yinzhijie stated that the company's overall operating income in 2024 is expected to decrease by about 13.6% compared with the previous year, among which the financial information technology business will decrease by about 32.7%; the mobile information service business will decrease by about 16.26%; and the e-commerce business will decrease by about 2.52%.

It is understood that Yinzhijie is located in Futian District, Shenzhen City, Guangdong Province. It was established on October 28, 1998 and listed on May 26, 2010. Its main businesses include financial information technology, mobile information services and e-commerce. In 2024, the three major businesses all declined.

Looking back at the past few years, the company has been in a loss-making state. In 2023, the revenue was 1.015 billion yuan, a year-on-year decrease of 9.06%, and the net profit loss was 117 million yuan; in 2022, the revenue was 1.116 billion yuan, a year-on-year decrease of 6.05%, and the net profit loss was 122 million yuan; in 2021, the loss was even greater, with revenue of 1.188 billion yuan, a year-on-year decrease of 14.55%, and a net profit loss of 283 million yuan.

According to current data, Yinzhijie’s consecutive losses over the past four years have amounted to at least 600 million yuan.

After several years of continuous losses, there is currently no sign of a significant increase in performance or profitability for Yinzhijie, and it is difficult to guarantee profitability from 2026 to 2028.

The company's losses are also incredible. While its revenue has been growing rapidly, its net profit has dropped sharply. In 2014, Yinzhijie's revenue was 192 million yuan, and in 2023, its revenue soared to 1.015 billion yuan, but the company's net profit dropped from 28 million yuan in 2014 to -117 million yuan in 2023. For a long time , the company has been expanding its revenue and profits through acquisitions and mergers.

Yinzhijie’s journey towards mergers and acquisitions also began in 2014.

In 2014, Yinzhijie spent RMB 300 million to acquire 100% of the equity of Yimei Softcom. By acquiring this SMS service agent, the company realized its layout in the field of mobile Internet data services. After that, it also acquired Anke Youxuan and laid out cross-border e-commerce services.

The company's e-commerce business focuses on cross-border e-commerce of home security and smart home products, and its service areas cover more than 110 countries and regions around the world. It has performed particularly well in the North American, Australian and European markets. As of the first half of 2024, the company's e-commerce service business achieved operating income of 174.1605 million yuan.

Based on the company's current business situation and profitability, it is still unknown whether this equity incentive can be fulfilled.

Silver Master

Equity Incentive