Beijing luxury house after listing? Millet staff: wages have not risen for a few years

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 Beijing luxury house after listing? Millet staff: wages have not risen for a few years


Picture source: visual China This is probably the most enjoyable reading so far. It is much more exciting than the general research report. It is very exciting for the disclosure and analysis of all kinds of business and, of course, it also deepens the understanding of the millet business itself. Today we first uncover Millets profit make-up and see the true state of millet. The financial data that has been whitewashed is not so reliable. I will understand and restore the management status of millet as much as possible according to my financial and financial basis. The black box of R & D expenditure and the loss of share payment About the makeup of millet profits, I first talked about the experience of my buddies. My friend went to Xiaomi very early, using the accurate measurement of wealth angle. After the listing of millet, the stock option can buy a set of imperial Sanhuan luxury house. This morning, I congratulate him on his Disregard of the second ring house. I have to change my job. I cant wait for it. The salary is too bad. How about going to XXs driverless company? Millet is very good, change a fart. How much money do you have for a month, fifty thousand? Dream. Thirty thousand one month? Dream Who are you fooling? You are also in the middle class, plus bonus five hundred thousand? Ha ha, do not leave no hope, now get more than 10000, MMD, wages have not risen for several years. In the first two years, he knew about his salary after a meal. Last year, I saw a friend, and he was also the boss of the slots. The company does not raise wages and cuts the cost of salary now. Your options can be cashed right away. The situation of my friend actually shows a lot of business information. From the accounting point of view, it reflects a major problem of profit adjustment: for a long time (two or three years) not to pay R & D personnel and to reduce R & D costs for the performance of the listed companies. In the form of share payment, the actual salary will be paid to achieve the goal of whitewashing profits. Through the prospectus, find two data, compare the reaction pay change. Source: prospectus Between 2015~2016 years: As a result, the average salary of the actual employees is declining. In 2016~2017, the same thing happened again: R & D expenditure increased by 49.8%, while the number of personnel expanded by 52.5%. This is the financial level of data. In the management level, the relative is the core staff of the huge pool of options, that is, my friend that situation, after the listing, will get a lot of economic compensation, like to mention the three ring mansion. From the substantive point of view of the economic business, it is the salary expense of the employees in the current period, which is postponed to the market. Of course, this strategy is deliberate or unmindful. But this way, in essence, distorts business performance and the companys actual situation. From the perspective of shareholders, the final salary is borne by the shareholders, but when reading, it is easy to make a wrong judgement and misinterpret the companys profits. As Buffett has discussed, if option is not a form of reward, what is it? If reward is not a cost, what is it? If the cost is not included in the calculation of income, what will it do? At present, the practice of millet is in line with accounting standards and related regulations, and there is no legal flaw. The problem is the misjudgement of the real profit situation of millet. Im worried that my analysis is problematic. Lets cross validation. 1. See how many people receive option incentives The R & D personnel are up to 5515 employees, eliminating part of the new entry, which means that most of the researchers have options, plus other parts of the core staff, and say that the higher quality employees (the high income group) are paid a large amount of pay, as pay income. Even though the incentive is even, it is the first time that I have met such a company. Abnormality is a demon. Millet as a high-tech enterprise, human capital and cost is an important factor in determining the competitiveness of enterprises, so this black box can not make people see the real profit. We can also look at the companys own statement: Millet companies themselves disclose the salary paid according to the financial accounting price, which has reached 621 million yuan, 814 million yuan and 808 million yuan in the past three years, and in fact it is far more than these. If you have experienced corporate incentives, you must be aware that these options are far more than that price. Lets take a look at the specific feature of the option. This is the information that motivate the cost (that is, you buy the companys share price) and motivate the duration of the lock, and the fair value of these shares is far more than that. As a result, 5500 of the employees who get stock incentives actually buy high value stocks at a fractional price. You can think of it as giving the company stock to these core high quality talents, but there is a long term and a golden handcuff. Obviously, the development of payment and non research part of the core staff salaries is a black box. For investors, it is natural to analyze how much profit is real. In particular, how to adjust the salary cost of large scale share payment is a major problem. The companys own annual salary of about 800 million of the annual salary is paid by itself. To tell you the truth, how can profits be reliable in such a rare wage payment system? Investors must consider this issue if they give them much discount. In addition, this involves another issue. We do not know the actual input of R & D. For this kind of high-tech enterprises, the judgment of R & D is a key factor. It is directly related to the investors judgment of how much the millet is investing in the field of innovation. (Apples R & D cost is about 5% of the revenue). Another point of view is to analyze this problem: (too lazy to type). From per capita R & D consumption and wages, it is also distorted. So I think, in the last three years, the R & D expenditure on the prospectus accounts for 2.3%, 3.1%, 2.7%, and seriously undervalued Millets investment in R & D. And the resulting problem of profit estimation, to be honest, can not be accurately estimated by my ability level. This may be the hardest thing in the investment. The distortion of profits caused by share payment is a problem from my friends chat (middle level R & D personnel). From the specific details of the annotation research and development expenditure, we analyze the contradictory points, and finally confirm the great impact of this strategy through the situation of share payment. Of course, from the news, you will see what millet 5500 employees financial freedom, the peers of millet abandoned you and so on, a number of media rendering, read some information. The whole idea is from the actual individual situation, financial data and the mass media to spread the three dimensions, and the reliability and rigour of the above analysis are verified repeatedly. Therefore, the whole analysis should not be a big problem. Profit related R & D expenditure and competitiveness analysis are the fundamental investors who invest in Millet stocks and have to check the adjustment problem. The impact of non recurring projects on core profits The second is the change of fair value of investment based on fair value. First come to the conclusion: The first square marked profit is not sustainable, and millet made a lot of arrangements and release before listing, so the profit was distorted. The second elliptical part shows loss on the surface, but in fact it is not a loss. Convertible redeemable preferred stock is a kind of guarantee clause sought by institutional investors when investing in the underlying enterprises (usually 8% years). Today, a multimedia title says that a huge loss of about 40000000000 yuan is all nonsense. The first section of the first square, a less appropriate example, has been listed in the United States in the last two months, bringing about a rise in fair value, changing the accounting measure of the investment through a certain capital operation (less than 50% of the shares), and thus bringing paper profits. (this is the difficulty of the accounting standards, very bad explanation, we only need to know this question) in the A shares common is the listed company, said the enterprise sold a set of Beijing school room, a successful turn to profit, probably such a similar operation. The main reason for such considerations is that the benefits generated are not sustainable and stable, so they must be readjusted. Therefore, in recent three years, the core business profit of millet has been added and reduced by itself, and the profit and loss of the fair value has been deducted from the operating profit. Second elliptical parts, very well understood, for example, you bought me the rights of the two public No. 10%, Qiu yuan Jun two (that is, the public number valuation 1000). Because you worry that I drag on more, lazy and do not write articles, fans are too few. So in order to limit me, I talk to me on the condition, in the form of preferred stock, and one year later, my fans are greatly reduced, OK, that is, even if the loan, pay 8% of interest, I pay you 116 two years later. But one possibility is that after a year, the number of fans of my public account has skyrocketed, worth 10000 yuan, and in second years, the number of fans has remained unchanged, valuations remain unchanged. At that time, your preferred stock will certainly be willing to convert into common stock, but at the time of financial accounting, due to the division of debt, the interest paid is changed. (specifically the terms of the preferred stock) 100 + 100% * 10% * 8% + 100 000 * 10% * 8 = 188 yuan. In the case of profit, the first one is that the financial cost is 8 yuan per year, the second is 8 in the first year, and second in 80. But this is only a way of recording accounting books, and it has not actually been paid. Because fool knows, this time must turn the preferred stock into common stock and get a 10000? 10% share. Instead of taking interest, the loss is false and actually has no effect. And with the increase in valuation, losses will be bigger and bigger. (the situation depends on the arrangement of the agreement at that time) Summary: the second adjustment requires only the profit made in the square, the long-term, sustainable and stable profit earned by the accounting of real business. Motivated to cut costs and raise profits. The following rate changes are common and have some motivation. In recent three years, the scale of revenue has been 66 billion 800 million yuan, 68 billion 400 million yuan and 114 billion 600 million yuan respectively. However, the proportion of administration began to decrease, which means that in order to be listed, Xiaomi has adjusted this. Conversely, the increase in sales costs is to rush the scale of revenue. Specifically, the two fee reduction may be a deliberate restraint on financial reimbursement. In short, the reimbursement process is more troublesome, the audit is more rigorous, and it is not easy to release related fees. Normal conditions, generally maintaining a smooth development, or moderate decline or rise, but in the middle, especially the 16 years of this twists and turns, basically tell you, this is carefully adjusted. The reduction in R & D can explain this problem very well. Similarly, last year, the brothers in Xiaomi also confirmed the establishment of the rules and regulations, and financial audit was more troublesome. Conclusion: the adjustment of expenditure will increase profits on the one hand and increase revenue on the other hand. Of course, this is a very common means, and there is no objection to it. A summary of the full text The above three problems, especially the black box of R & D and share payment, must be well analyzed. Friends who use the PE valuation method need to open their eyes to see profits. For long-term price investors, we also need to analyze and see how much input of R & D costs can effectively analyze the actual competitiveness of enterprises. In addition, as an egg making method, I also analyze the cash flow situation corresponding to the profit, so as to better verify the profit situation: Of course, the profit is not equal to the net cash flow and is very inaccurate. Especially when enterprises expand in large scale, many profits will be put into stock because of the expansion of related things such as inventory. The analysis of profit quality based on cash flow is just an angle of profit. Buffetts partner, Charlie Munger, said, we dont like enterprises that earn money every year and give me a lot of equipment, especially the engineering industry, to expand to the end, to find that the money is made into a pile of machine equipment. We like to be able to free cash flow. Also, in the case of cash flow, the information disclosed by millet (only my personal idea) is not as good as the financial standards of the mainlands enterprises. Of course, millet is not landing A shares, do not need to comply with the guidelines of A shares. As for the millet CDR how to disclose, look at the policy. Two, we can also see profits through income tax. The consideration dimension of tax law is also a very good angle to verify the actual situation of profits. The income tax was paid 2 billion 100 million yuan in 2017. However, because the area of millet management is extensive, the tax laws in different regions are different, so it is also estimated roughly. The specific tax rate is introduced as follows: How much, you judge by yourself. Solemnly affirmed: I am optimistic about the long-term millet, short-term uncertainty. The analysis of the profit of millet, including the discussion of profit gloss, is only personal understanding. In accounting standards such as IRFS and GAAP, this is a discretionary power. Therefore, the above analysis can not be a justification for judging millet companys accounting policy. In a word, the millet profit related accounting policy is legal compliance, but based on my personal understanding of the enterprise, it will pay more attention to the core profit judgment of the enterprise management, and this profit judgment can be used as a personal reference. (the first titanium media in this article) [titanium media Author: Akira Junji, WeChat public address: QYJEQYJE