Replay 07: Opening the Temple of Learning

Chapter 326: Giant Ship Construction
Lu Shan has been quite busy recently, not because there have been any new breakthroughs in technology, but because the existing organizational structure is no longer sufficient to cope with the growing business.

Currently, Lushan owns two wholly-owned subsidiaries, BanSi Company and Zemeng Company, while Jiyue and Shenchuan are joint ventures.

As long as there are three subsidiaries, a municipal or provincial group company can be established.

A national-level group company needs five holding subsidiaries.

In addition, a national group company can be established if the total registered capital exceeds 100 million yuan.

If Lu Shan wants to set up a national group company, it is actually completely mature. Zemeng is also divided into two sectors: technology and energy. It only needs to clarify the company.

To this end, Lu Shan convened a meeting with the heads of these companies to listen to their specific operating conditions.

"Last year, BanSi's profit was 21 billion yuan." Zhang Kaifeng thought for a moment, then added, "The profit comes from two sources: memory and storage sticks, and the motherboard. Since the motherboard was not successfully developed until the second half of the year, its contribution to profits last year was only 20%. But after entering the new fiscal year, the motherboard's contribution to profits has reached 60%..."

"Yeah!" Lu Shan nodded. Bansi supplies computer companies on a large scale.

What I just talked about was only the profit from the company's operations, and the equity dividends given by Shenchuan have not been taken into account. However, that part is actually more than the entire company's operations.

If production is expanded in the future and more computer companies can be supplied, then Shenchuan’s dividends may be lower than the company’s operating profit.

When they heard the profit of 21 billion yuan, the general managers of other companies all showed envious expressions.

Lu Shan smiled and said, "You don't need to make that expression. Bansi Company has high profits, but the costs are also high. Every year, it costs a lot of money to update the equipment and iterate the technology. In addition, the production process is long, and the salary expenses of high, medium and low-level technicians and front-line workers are very high."

Others thought so too. Now that there are more and more companion silicon people, it is not certain who will be more prosperous after the division.

Zheng Kaige was named at this time, and he spoke: "Jiyue's total profit last year was 2.2 million yuan, of which advertising revenue was 1.6 million yuan and online consulting business revenue was 0.6 million yuan."

Lu Shan nodded in affirmation.

Jiyue Company has grown to a staff of only about 30 people now, and its main business is the installation and maintenance of the Jiyue website.

The main feature of this thing is that it is free. Even if it is installed on many domestic mobile phones in the future, it will still be free.

Therefore, the initial source of income is advertising fees, and even in the future, advertising fees will be a very important source of income.

Now Jiyue Company has begun to develop consulting business, the main content of which is to guide other companies on how to establish websites and how to operate them, charge consulting fees, and also provide certain technical support, such as helping some companies build online platforms.

In the future, Jiyue’s development direction will be traffic and information, and gradually become a comprehensive platform.

It is a collection of apps like Tik Tok, Bilibili, Google and Taobao.

If we support bloggers now, they may become anchors and UP hosts in the future, providing excellent information and facilitating people’s entertainment and learning.

Ji Yue will also be Lu Shan’s mouthpiece and an important means of competing for the high ground of public opinion. Even if this platform does not make money, Lu Shan will definitely support it.

Tao Bo spoke up at this time: "Zemeng Technology's profit last year was 3.8 million yuan, the profit of the security business was 2.7 million yuan, and the profit of network services was 1.1 million yuan."

Zemeng Technology has made great progress in its security business, and various national departments have placed orders one after another. The 2.7 million yuan is only the current profit, and there are many more projects waiting to be arranged in the future.

In other words, these current orders alone are enough to make Zemeng Technology make a profit of more than 10 billion yuan!

The security services provided by Zemeng Technology are unparalleled and are wanted by companies of all sizes, but Lu Shan still arranges them based on importance.

Zemeng Technology currently has more than 50 employees, and this number of people is really not enough.

Because Zemeng's future development direction is network technology, security is only one aspect.

In the future, Zemeng Technology will build super servers, provide server rental services to many companies, and solve some computer data problems.

The development model is similar to Oracle.

Now, Zemeng Technology can sell complete program architecture, and companies in need can take it and modify it to form their own internal system.

The breakthrough in topological semimetal semiconductors has made Lu Shan's idea of ​​building a super server come true.

But all of these require a large number of talents to work together to build, and also require a large number of people to maintain.

Don’t forget that Zemeng Technology also has the Coco Assistant, so artificial intelligence cannot be left behind.

That’s why it is said that Zemeng Technology is short of people.

Finally, Zhang Leimin, a subordinate of Zemeng who was in charge of energy and graphene batteries, spoke.

He felt a little embarrassed. After all, Zemeng Energy had just opened, and he could only talk about revenue, not profit.

Lu Shan paid for all those high-tech equipments, but what effect can those batteries worth more than 20,000 yuan have?

"The current income is 160 million, um..." Zhang Leiming didn't know what to say next. Lu Shan smiled gently and let Zhang Leiming finish his statement.

The batteries are sold to Shenchuan in a pack of five for 400 yuan, and I earn 200 yuan per pack. When the cost drops in the future, I can earn even more.

It is just this small scale at the moment, but there is a lot to look forward to in the future. This is definitely a trillion-level industry, so Zhang Leiming doesn't need to be so nervous.

Graphene's applications range from civilian to military, and it is impossible not to make money.

Zhang Leimin felt really embarrassed. The company was not profitable, but his salary was still very high, and he was even given a year-end bonus at the end of the year. There was nothing to say about such a boss.

Lu Shan began to think that the natural science research laboratory he had established in cooperation with Jiangzhou University, as well as the new materials research institute assigned to him by his superiors, were not suitable to be incorporated into the group company.

Although the Natural Science Laboratory belongs to Lu Shan, it is nominally under the management system of Jiangzhou University. It is really wrong to incorporate it under the name of a certain group company.

Just maintain the status quo and maintain a cooperative attitude.

The people trained will give priority to serving Lushan’s enterprises, and that’s all that matters.

Not to mention the Jiangzhou New Materials Research Institute, which is a national institution. If Lu Shan merges it into his own group, he will be scolded and become a hot topic on the Internet the next day.

The New Materials Research Institute itself is the bridge between Lushan and the country. Lushan can use the resources to train its own people and technology.

After careful consideration, Lu Shan decided to establish the Singularity Group. The purpose was naturally to pay tribute to the Singularity Laboratory, which was the key to his life.

The group consists of one headquarter, three wholly-owned companies and two joint ventures.

The three wholly-owned companies are BanSi Company, Zemeng Technology Company and the newly established Enthalpy Entropy Energy.

The so-called Enthalpy-Entropy Energy is actually just the renamed Zemeng Energy Company, and it is still managed by Zhang Leiming and Liang Wenping, one inside and one outside.

The joint venture is Jiyue Company and Shenchuan Company, and there is no change for the time being.

The headquarters is divided into several departments, just like the group companies outside. There are temporarily human resources department, finance department, legal department, and marketing department. Everyone's functions can be guessed from the names.

It is worth mentioning that the marketing department also shoulders the responsibility of market research and publicity, taking into account public relations functions and dealing with the threat of negative public opinion.

The work of the HR department is also very important. The recruitment method cannot be rigid, and the recruitment of talents cannot be set to a single model. Lu Shan will do the final review. The work of the legal and financial departments is relatively simple, just follow the rules.

Arrangements have also been made for important positions.

Qiao Weiwei serves as the group's vice president, responsible for the headquarters' operations.

The general manager of Zemeng is Tao Bo, and Luo Xuan is still the deputy general manager.

In the future, I will focus on network technology, AI, super servers, security services and other contents.

The current products are Zemeng Firewall and coco smart assistant.

The CEO of Enthalpy Entropy Energy is Zhang Leimin, and the vice president is Liang Wenping. Their main business is graphene battery technology, focusing on technological breakthroughs in energy.

The general manager of BanSi Company is Zhang Lingxi, and the deputy general managers are Zhang Kaifeng and Liu Wenjie.

BanSi Corporation specializes in the semiconductor industry and new materials.

The general manager of Jiyue is Zheng Kaige, an old subordinate of Lu Shan, so Lu Shan can rest assured in managing this company.

Ji Yue is a mouthpiece and a weapon of public opinion, so it must be presided over by someone who can be trusted.

Ma Lijuan is the vice president, mainly responsible for market development.

According to Lu Shan's estimation, Ji Yue will be very busy next.

Domestic mobile phones have begun to explode, and the pre-installed volume of Jiyue has exploded, followed by the business of connecting to mobile phones.

Just imagine that everyone in the world needs a mobile phone, and you will understand how busy Ji Yue will be in the future.

As the divine ship is an "outsider", Lu Shan will not interfere too much with it. Wu Jun is in charge of the overall situation and can handle it on his own.

In addition to being the president of Singularity Group, Lu Shan also serves as the dean of the Institute of Natural Sciences and Jiangzhou New Materials Research Institute.

The group company temporarily set up an office building near the graphene factory. The building is not tall, just five floors. Lu Shan has no time to climb the stairs, so the president's office is on the second floor.

The first floor is the marketing department, the third floor is the human resources department, the fourth floor is the finance department, and the fifth floor is the legal department.

There is still a lot of space inside the floor. We will talk about it later when new departments are established or new people come in.

If it is really not enough, we will build another building. It is only a matter of time.

There are two promotion lines in the group company: management is C level, from level 1 to level 10, and technical is T level, from level 1 to level 20.

The higher the level, the bigger the number.

Here in Lushan, under the same circumstances, the salary of technical workers is always higher than that of management workers.

If this person is responsible for both management and technology, he or she can receive two salaries.

For example, a research group leader is obviously a small leader in the research team, so he can receive an additional management subsidy, but cannot receive the full management position salary.

If a leader participates in an experimental project and provides support for the project, he or she can also receive a research subsidy.

However, when there are dividends for performance, the dividend ratio will not be very high. This is not based on the size of the position, but on the specific contribution.

Lu Shan did this because he believed that the more you work, the more you will get. Only by doing solid work can you have a high income. You cannot just rely on your qualifications or position to get paid more than others.

Qualifications and positions are not useless. The basic salary will definitely be higher, but it is not enough to make people jealous. The bonus is the big deal.

The specific salary does not refer to Jiangzhou’s salary packages, because those are for reference of ordinary workers.

The starting salary for the T1 level is as high as 1.5 yuan per month, with full five insurances and one fund. The starting salary for the management C1.3 level is yuan per month.

If this person is a T1 technician and also manages people, which is equivalent to doing the work of a C1, he will receive basic benefits according to T1, and then a part of management subsidy, also called management position subsidy.

And so on for the rest.

Each level increase is 10%, and the basic salary, bonus and benefits will increase according to this ratio.

So from this point of view, technical people have more career prospects, but some management positions have higher salaries, so the gap will be slightly narrowed. If you are jealous of others who are technical, then don't do management.

Finally, Lu Shan came up with the equity incentive plan.

Lu Shan took out his 10% stake in Jiyue Company and 5% stake in Shenchuan and put them into the group company's option pool.

It is used to reward senior management and all employees of the group company. The higher the level, the higher the reward.

Even if a person's level has not changed much, if his working years increase or he has made significant contributions at work, he can get more options as a plus point.

When you leave the company, the options must be returned to the company, and the company will purchase them based on the market value at the time of resignation.

This type of option cannot be bought or sold at will, and if it is to be bought or sold, it must be approved by the board of directors.

With Lu Shan around, it absolutely cannot be passed. He is not a saint. If he sells a little today and a little tomorrow, if someone makes a malicious takeover, it will be easy for a major shareholder to emerge.

These options all belong to Lu Shan. Even though Ji Yue and Shen Chuan are a joint venture, as the largest shareholder, there is no problem for him to do this.

In addition, Jiyue Company itself is Lushan’s window for financing. In the future, if investors want to participate in Lushan’s business sector, they can only do so through Jiyue.

So this is also sending a signal to let the outside world understand.

According to Lu Shan’s plan, Jiyue Company will be listed, and relevant funds will continue to flow in in the future.

Throwing out these options is like scattering bait when fishing. It looks like a lot, but it's actually nothing.

It does not affect the equity distribution of the entire group company, nor does it affect the equity of the core technology company. Lu Shan controls everything.

So we can see Lu Shan’s thinking. For companies involved in the manufacturing industry, they will never go public easily and will never give up equity easily.

Jiyue is an Internet company and has a certain degree of openness, so it receives this treatment.

Manufacturing is the foundation of Lushan and the foundation of the country.

Assuming that equity is released and external funds come in, we may not have the final say on the scientific research route at that time.

The world is complicated, and capital is often bloodthirsty. Look at the world's big technology companies. Many of them no longer pursue technological innovation, but instead think about how to plunder the wealth of ordinary people.

For example, Taobao later used big data to accurately push products to customers. What's even more outrageous is that users with different purchasing power see different prices for the same product, which is pure price gouging.

(End of this chapter)