Summary of Key Points
After its listing on the STAR Market, Yushu Technology's market value soared to 444.9 billion yuan, with its founder and venture capital firms (such as Shunwei Capital and Meituan-related entities) reaping substantial profits. However, what attracts more attention is the story of ordinary employees becoming wealthy through equity incentives: the company granted options to its staff at a price of 1 yuan per share in early stages (when it was unable to pay salaries in 2017). These options have now turned into millions for key employees, and even regular technical personnel have earned tens of millions. Nevertheless, this wealth is not immediately realizable; it is subject to lock-up periods and performance evaluations, and there are also risks associated with stock price fluctuations.
The "Frenzy" of Wealth Creation through Listing: Billionaires and Retail Investors
On the day of its listing, Yushu's stock price rose by 629%, and its market value briefly exceeded 400 billion yuan. The most prominent participants in this wealth creation were three groups:
- Founder Wang Xingxing: His net worth soared to 133.5 billion yuan, making him the new richest person born in the 1990s.
- Investment Institutions: Lei Jun's Shunwei Capital realized a profit of 15.2 billion yuan, while Meituan-related entities (the largest external shareholders) made over 33.3 billion yuan; even quantitative investment firms like Huanfang earned 1.1 billion yuan.
- Retail Investors: Winning just one lot could result in a profit of 470,000 yuan, which is equivalent to several years' salary for an ordinary worker.
However, these figures are not directly relevant to most workers. The real story of wealth creation for the average person is hidden within the employee stock ownership platform, "Shanghai Yuyi," mentioned in the company's prospectus.
The Ceiling for Ordinary Workers: 1 Yuan per Share Option Turns into 1.5 Billion Yuan
Shanghai Yuyi is Yushu's equity incentive platform, holding 10.94% of the company's shares, including the options granted to employees at 1 yuan per share when the company was short of funds in 2017. Some of the current owners of these options include:
- Yang Zhiyu (Mechanical Department Head, born in 1991): Joined the company in 2016 and now indirectly owns 1.78 million shares, worth approximately 1.58 billion yuan based on the opening day's stock price.
- Chen Li (Sales and Service Department Head, born in 1990): Owns 946,000 shares, valued at 840 million yuan.
- Zhang Yangguang (Algorithm Department Head, born in 1993): Led the development of the robot that performed the Yangko dance during the Spring Festival Gala; owns 546,000 shares, worth 480 million yuan.
These individuals, all born in the 1990s and key members of the company's early team, initially invested a small amount to become shareholders and have now seen their investments grow by more than 1,000 times.
The "Container" for Equity Incentives: A Three-Level Structure to Include All Employees
Why was Shanghai Yuyi established? Because a limited partnership can only have up to 50 partners, Yushu created a three-tier stock ownership structure to accommodate more employees:
- Top Layer: Shanghai Yuyi (directly holds Yushu's shares).
- Middle Layer: Hangzhou Yixin and Hangzhou Yiyi (two secondary platforms for ordinary employees).
- Bottom Layer: Frontline employees (indirectly hold shares through the middle layers).
Ordinary employees (such as several R&D supervisors) can obtain 0.01%-0.05% of the company's shares through the middle layers. Based on the market value on the first day of listing, their potential net worth ranges from 35 million to 170 million yuan—this represents the real opportunity for most workers to become wealthy.
Wealth Is Not Free: Lock-up Periods and Risks
These equity incentives are not immediately convertible; there are several constraints:
- Lock-up Periods: Shares held by Shanghai Yuyi are locked for 36 months, and the funds invested by employees in strategic placements (272 million yuan) are also locked for 12-36 months.
- Performance Evaluation: Subsequent grants of shares are tied to annual performance; failure to meet targets results in the loss of those shares.
- Termination of Incentives: According to the prospectus, nine employees have left the company, and their incentive shares were revoked.
- Stock Price Fluctuations: During the lock-up period, the stock price could fall below the issue price, turning potential profits into losses.
Therefore, these employees' wealth is still subject to waiting and risk. Whether they can actually receive their rewards and how much they will earn depend on the company's future performance and their own perseverance.
Opportunities for Ordinary People in the Era of Hard Technology
Yushu's story is not an isolated case. With the increasing competition between China and the United States in technology and the rise of hard technologies, more companies are using equity incentives to retain their employees. For ordinary people:
- Choose the Right Field: Hard technologies (robots, AI, chips, etc.) represent future growth areas.
- Join a Promising Company: Join early-stage startups that offer equity incentives.
- Be Patient: Early stages of a startup can be challenging (like Yushu's situation in 2017), but persistence can lead to significant rewards.
The story of those young people who stayed in 2017 and earned 150 times their initial investment through 1 yuan per share options illustrates that wealth creation is not solely about being part of the elite or luck. For ordinary people, choosing the right field, joining a promising company, and enduring the challenges can lead to significant opportunities in this era of hard technology.
This news highlights that becoming wealthy does not necessarily rely on being part of the elite or on luck; with the right choices and dedication, everyone can seize the benefits of the times.