The 37-year-old TCL Group (000100.SZ) has grown and evolved in constant change. On March 3, TCL Group announced that the company launched a global partner and creation plan involving 2,285 employees, accounting for about 3% of the company's total. This is the second time the TCL Group has launched an equity incentive plan. The equity incentive plan, which was implemented in 2011 and implemented in 2015, has benefited 164 executives and core staff.
A number of brokerage research reports said that TCL Group's large-scale equity incentive plan will be deeply bound to core employees and build a core interest community, which is a big plus for the company itself and the market. The TCL Group, which was listed in early 2004, was a local state-owned enterprise. After three major changes, it has successively implemented measures such as globalization, diversified industrial layout, equity incentives, and employee shareholdings to revitalize the company. The company has expanded rapidly and is now a global company. The data shows that from 2014 to 2016, TCL Group's operating income exceeded 100 billion yuan for three consecutive years, and its net profit was stable at more than 2 billion yuan. Insiders analyzed that from the third quarter of last year, 2017 will be the company's fourth billion years.
The official website shows that after years of industrial layout, TCL Group's products include telephones, televisions, mobile phones, refrigerators, washing machines, air conditioners, small appliances, LCD panels and other fields. In order to support the expansion of globalization, TCL Group continues to raise funds. Wind data shows that since the listing, the company has raised a total of 351.2 billion yuan, of which direct financing of the capital market is close to 50 billion yuan.
After three years, push the equity incentives to change
Earlier this month, TCL Group disclosed the 2018 Restricted Equity Incentive Program, also known as the “creation plan†for the middle-level grassroots. The company plans to grant 38.789 million restricted stocks to 1,585 people, including mid-level management/professionals. The grassroots supervisor/professionals, etc., the source of the stock is the company's shares issued to the incentive object, and the price is 1.83 yuan/share. On the eve of the launch of the plan, on March 2, the closing price of the company's stock was 3.64 yuan. This means that more than 1,500 employees can get company shares at half price.
At the same time as the Restricted Incentive Program, there is also a global partner program for corporate executives and core backbones. The shareholding plan has a duration of 5 years and is rolled out every year. The first phase of the shareholding plan is expected to be no more than 280 million yuan. The underlying stock will be obtained through legal compliance methods such as secondary market purchase. The incentive targets include the company's chairman, president, vice president, headquarters department head, director, general manager of the subordinate business unit and members of the management team. The two plans are superimposed to cover 2,285 employees at the company's high, middle and low levels, accounting for 10% of the company's total. The company said that the launch of the incentive program is to stimulate the company's employees' second-time entrepreneurial passion.
With TCL Group's forecast of 2017 net profit of 2.6 billion yuan to 2.8 billion yuan, this year's net profit will reach 3 billion yuan to 3.2 billion yuan, the senior management team can obtain this batch of equity.
In the face of the incentive plan for middle-level employees, there are also performance constraints. Specifically, in 2018 and 2019, the company's net profit growth rate is no less than 10% and 20% compared with 2017. Based on this standard, in 2018 and 2019, the company's net profit will reach 2.8 billion to 3 billion yuan and 3 billion yuan to 3.2 billion yuan respectively. According to public information, as early as last April, TCL Corporation launched a new round of changes, through the reduction of staff, cost reduction, efficiency, improve overall efficiency, and brewing employee incentive plan. The Changjiang Business Daily reporter found that this is the second time that TCL Group has launched an employee stock ownership plan.
As early as 2011, the company had planned to launch 86.236 million stock option incentive plans. The exercise price of the first grant of 77,512,800 stock options was 4 yuan, which was enjoyed by 164 executives and core personnel. The first batch of executives with the most equity granted was TCL Group's executive director and COO (Chief Operating Officer) Bo Lianming, which was awarded 3,347,700 shares, accounting for 3.99% of the equity granted. In 2015, the plan was officially released.
In response to the above equity incentive plan, a number of research reports commented that TCL Group's deep binding of core employees will boost the company's development confidence.
Last year's net profit increased by over 1 billion
A new round of employee stock ownership plans may increase investor confidence in TCL Group.
Last week, some investors told the Changjiang Business Daily that the TCL Group launched the equity incentive plan again. In addition to realizing the bond with employees and accelerating the globalization, it also related to enhancing investor confidence and stabilizing stock prices.
Changjiang Business Daily reporter noted that on November 10 last year, TCL Group's share price reached 5.14 yuan, the highest point of last year, and fell to 3.30 yuan on February 9 this year, to 3.64 yuan on March 2, a higher point Goed 35.80%. This is not in line with the company's operating performance, and the valuation is low. On January 16 this year, the company's 2017 performance forecast showed that the estimated net profit was 2.6 billion yuan to 2.8 billion yuan, an increase of 62% to 75% compared with the net profit of 1.6 billion yuan in 2016.
The company explained that thanks to the market share advantage of Huaxing Optoelectronics and the sales of LCD TVs of TCL Multimedia increased by about 16% year-on-year, as well as the steady growth of sales of air conditioners and washing machines, coupled with the divestiture of non-core businesses, the company's profitability increased.
This profit level is the second annual outstanding performance of TCL Group in the 14 years since its listing. The best year is 2014, and the net profit is 3.183 billion yuan. In comparison, the profitability in 2015 and 2016 decreased slightly. However, the company's operating income has grown steadily.
The data shows that in 2014, the company's operating income exceeded 100 billion mark for the first time, reaching 101.297 billion yuan. In 2015 and 2016, it was stable in the 100 billion camp, with 104.878 billion yuan and 106.618 billion yuan respectively. According to the third quarterly report last year, the company's operating income was 82.337 billion yuan, a year-on-year increase of 5.84%, and the growth rate was higher than the two years of 2015 and 2016. Industry insiders expect that from the performance forecast, many sectors such as home appliances and multimedia have seen significant growth, and TCL Group's operating income last year may exceed 110 billion yuan. This means that the company will have revenues of more than 100 billion for four consecutive years.
Until November last year, TCL Group basically completed the capital restructuring. Previously, the company increased its stake in Huaxing Optoelectronics to over 80%, and the company will transform into a financing platform for the display panel business in the future, becoming the second-largest company of A-shares behind the display panel leader BOE A. At the same time, its holding subsidiary TCL Multimedia changed its name to “TCL Electronic Holdings Co., Ltd.†and became its brand end consumer electronics industry group.
Compared with BOE A, which has a revenue of less than 100 billion, the market value of TCL Group is much lower. As of March 9, BOE's market value was 204.267 billion yuan, while TCL Group had only 51.627 billion yuan. It is worth mentioning that some of the strategic investor stocks that participated in the TCL Group's fixed increase three years ago have been lifted, and the Guokai Department's Guokai Innovation, Guokai Jingcheng, and Guokai Equipment have been reduced. As of now, the cumulative has been reduced by 0.5%.
Financing 350 billion yuan for industrial layout
The TCL Group's operating income exceeds 100 billion, the color TV's global sales volume is the third, and the panel's fifth global achievement is closely related to the company's frequent industrial layout.
According to wind data, since the listing, TCL Group has accumulated a total of 351.2 billion yuan of financing, including direct financing of 49.854 billion yuan (including initial sales of 2.513 billion yuan, fixed increase of 17.141 billion yuan, and issuing bonds of 30.2 billion yuan). The accumulated new short-term and long-term loans are 38.376 billion yuan. In addition, the cash received from the accumulated borrowings was 301.345 billion yuan.
Judging from the fixed increase in equity refinancing, the company has implemented five fixed increments since 2009. Except for the fundraising in 2009, which was 905 million yuan less than 1 billion yuan, the other 4 times exceeded 1 billion yuan. From 2010 to last year, the total increase of 4 times was raised to 16.623 billion yuan.
In addition, starting in 2016, TCL Group initiated the establishment of four rounds of M&A funds, raising more than RMB 23 billion.
Specifically, it established a 10 billion industrial M&A fund with Ziguang Group, focusing on the core links of the upstream and downstream of the semiconductor and electronics industries, and conducting global industrial investment and mergers and acquisitions in the fields of semiconductor chips, semiconductor displays, industrial intelligent manufacturing, and Internet+. Together with Hubei Changjiang Guidance Fund and Hubei Science and Technology Investment Co., Ltd., a multi-billion-scale industrial M&A fund was established, with a focus on TMT, Industry 4.0, especially the optoelectronic information industry.
In addition, the company has successively established Xinjiang Dongpeng Heli Equity Investment Fund and Deqing Puhua Equity Investment Industry M&A Fund. The investment field is TCL Group's upstream and downstream industries, technology, media, communications, artificial intelligence and other fields.
In addition to the investment fields of the above-mentioned industrial funds, TCL Group focuses on semiconductor panels, and its panel business is Huaxing Optoelectronics, a subsidiary of the company, which is also the company with the largest financing needs. According to incomplete statistics, the company's investment in Huaxing Optoelectronics will exceed 100 billion yuan.
The Changjiang Business Daily reporter noted that at present, Huaxing Optoelectronics has become the best quality asset of TCL Group.
Last year's semi-annual report showed that Huaxing Optoelectronics achieved operating income of 13.987 billion yuan, accounting for 25.75% of the company's operating income, net profit of 2.421 billion yuan, 2.34 times the company's current net profit of 1.034 billion yuan.
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