Half an hour later, everyone finished reading the documents in their hands and expressed no major objections. Lu Feng continued, "As for the mobile phone business, I suggest that it be handed over to Du Guoying. The reasons are as follows: First, like the pager brand, they understand the communications market better. Second, the marketing department is already quite large, and the mobile phone business needs careful nurturing. I still hope they can do a good job with the home appliance business."
After Lu Feng finished speaking, he looked at Zhu Lidong, who immediately responded, "I agree!"
Du Guoying was extremely excited. Being given such a core business meant that, overnight, his status in the group had jumped to the level of being on par with Zhu Lidong.
"I will definitely live up to the company's expectations and do a good job," Du Guoying assured.
Seeing that no one had any objections, Lu Feng then asked John, "Does the major shareholder have any objections?"
"No, that's not true. It's up to President Lu," John said sarcastically.
"Everyone agrees on next year's budget, so let's leave it at that and move on to the next item: profit sharing!" Lu Feng said to everyone, "There's been a lot of discussion about profit sharing within the group lately, but I think this matter should be based on the overall interests of the group, not on the personal interests of any one person."
"The group not only needs to develop, but also needs to face risks. You are all senior executives of the company, and the shareholders are also the heads of other companies. I believe you all know that the market changes and competition every year are extremely fierce. It's not that the market stabilizes and becomes a money-printing machine where you can take out and distribute all the profits every year. It's not just about market competition, but also about the overall economic situation. I don't need to explain this to you, right?"
No one spoke at the scene, so Lu Feng continued, "Looking at the world's top companies now, are there any with a dividend yield of more than 10%? I believe it's very difficult to find one. Although we are not listed, we still need to protect the interests of minority shareholders and the interests of the hundreds of thousands of workers at Jiafeng Group."
"Large dividends are not in line with the company's development, nor with the overall interests, and even less so with the Company Law promulgated in 1993 in our country. We are a large enterprise, not a small workshop. To be honest, anyone who makes such a request is truly ignorant of the law, or perhaps just stupid and contemptuous of the law. In European and American companies, no one would dare to make such a request. It's just that some people think that our country has many loopholes in this area of law and that supervision is not strict. In the minds of ordinary people, the company belongs to the boss, and the boss belongs to the company."
"We also need to have long-term development goals, so I propose that this year's dividends can be increased, but they should be kept within a reasonable range. 500 million yuan, which was 120,000 to 130,000 yuan per person last year. This year, there are many more people, so even with 500 million yuan, it's still only about 100,000 yuan per person."
Wei Yandan was the first to speak: "An annual bonus of 100,000 yuan is already a very high income. There are no companies that pay bonuses every year. We are the only ones in the whole country that can do what we do."
“But we are an international company,” John reminded them.
"We must be wary of becoming extravagant before we are wealthy. Take housing as an example, what is the current housing price in Shenzhen?" Lu Feng asked the crowd, "Does anyone know?"
Du Guoying said, "It's about three thousand per square meter, around six thousand in a good location."
"Are they all this expensive now?" Lu Feng asked in surprise.
"The price of commercial housing has been rising in recent years. Many people say that the price increase is outrageous, and most people are waiting for the price to drop before buying," Du Guoying said helplessly.
"In other words, the average person's dividends over three years can buy a house, which is already a very good income."
However, those within the group who receive profit sharing are all top talents, and their average annual salary is around 100,000.
John sensed that he didn't have much of a chance this year, so he looked at Su Yourong and asked, "President Su, what do you think?"
"I have no objection to the dividend plan, but the board of directors must explain what to do with the remaining money. Even excluding this year's budget, there are still about one billion US dollars of idle funds in the company's account. Should this money be kept in a bank account to earn interest, or should it be used for investment?" Su Yourong asked.
"This money cannot be touched; it must be kept in the bank. Why can't it be touched? Because I believe that there are serious problems with the Asian economy, and a financial storm may occur in the next year or two. Recently, several investment banks and well-known financial experts have issued warnings. We must pay attention to overcapacity and the hollowing out of industries in some regions. As a major Asian country, it is difficult for us not to be affected, not only internationally but also domestically."
"The reform of state-owned enterprises has reached a point where it is imperative. The constraints between the private sector and state-owned enterprises are very serious. A large number of jobs do not produce value, and it is getting to the point where change is inevitable. The situation is not optimistic, both domestically and in Asia. This is why I hope that enterprises will keep a large amount of cash on hand."
After listening to these questions, Su Yourong asked, "Since you are not optimistic about the mainland's economy in the next few years, and Jiafeng has no overseas market, where will the future growth point be?"
"The overall business structure in mainland China needs adjustment, but I don't think the economy will have problems. This adjustment is an opportunity. When an external crisis occurs, many companies will look for better places to transfer assets. These assets are not money, but industrial assets, that is, factories."
"First of all, the mainland's population structure is very young, with most people having only primary or junior high school education. Don't underestimate these educational levels. Compared with neighboring countries and regions, they are highly educated people. This is the internal situation. As for the external situation, the problem of industrial overcapacity is very serious in high-growth countries and regions in Asia."
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