Not long ago, tiger securities released its Q1 financial report in 2020, and achieved another milestone breakthrough - the first time in six years since the company was founded, the companys revenue reached 23.19 million US dollars this quarter, a year-on-year increase of 136.7%, and the net profit attributable to the parent company was 3.03 million US dollars, officially saying goodbye to the era of burning money.
Wu Tianhua believes that in addition to the active trading in the U.S. stock market in the first quarter, the reason for the companys turnaround lies in the significant improvement of product business synergy, and the mutual promotion of ESOP services, investment banking and brokerage businesses.
What attracts the industrys attention is that tiger securities has another new business growth point, ESOP (employee stock ownership plans) service.
ESOP business is just a newly hatched business in tiger securities in 2018. It has served more than 60 new economic companies in less than two years since it was launched. Its service objects include Xiaomi group, Ruhan holding, who to learn from, Jiannan Yunzhi, bitland, Aikang medical and other well-known enterprises.
(Wu Tianhua, founder and CEO of tiger securities)
New business lines forced out
Wu Tianhuas story with ESOP comes from 2009.
That year, he graduated from Tsinghua University with a masters degree in computer science and formally joined Netease, one of the largest listed companies in the United States at that time. During his work in Youdao of Netease, he got the employee options distributed by Netease, and began to gradually understand the concept of employee options and ESOP.
At that time, they used Computershare, an old Australian ESOP service provider, in NetEaseuff08 ASX:CPU uff09The market value of this company is now 10 billion US dollars, and it has been established for more than 40 years. At that time, many well-known Internet companies such as Baidu and Netease were using their products and services.
But in Wu Tianhuas view, the products of this traditional service provider are not easy to use. At that time, I thought it was very difficult to use, because I had to enter a long domain name, and then I couldnt remember my user name and password, and it was very difficult to check it, he said in an interview with Chuangye bang. After entering, the operating system is also more complex, often worrying about their mistakes.
For many enterprises, excel will be used for simple option management at the beginning, but with the gradual development of the company, professional ESOP service providers will be considered. At this time, if you choose a traditional ESOP service provider, you may have problems with efficiency and personalized services. For example, the old ESOP service providers usually use the way of email communication. They cant communicate during non working hours, and its difficult to carry out one-to-one customized service for personalized needs. More template services are provided.
After being tortured by the traditional ESOP services, Wu Tianhua, who has a strong curiosity, began to think about how to build a new Internet ESOP system in her brain.
In his opinion, the traditional ESOP service providers are relatively mature, but at the same time, they are too modeled to meet the personalized needs of new economy companies. Although the emerging domestic ESOP service providers start to operate in the Internet thinking mode, they are difficult to meet the in-depth needs of listed companies due to the lack of qualification of securities companies.
Until tiger securities was established three years later, Wu Tianhua thought that the time to do ESOP service was ripe. Because the existing retail brokerage business has won the trust of users, the tob business mainly including ESOP business and investment banking business can form a good synergy with it.
But its not easy to start a business in a heavy vertical sector.
According to Wu Tianhua, tiger ESOP initially considered the form of cooperation with large foreign companies, but there was an accident in the process of cooperation. According to Li Hongbin, head of ESOP service at Tiger securities, Wu Tianhua personally visited equatexesop, the largest European ESOP service provider, in Switzerland at that time. We have reached the point where the cooperation agreement is about to be signed, and we find that the feedback from the other party is suddenly interrupted.
Unexpectedly, equatex, whom Wu Tianhua was talking about, was suddenly sold to Computershare. It was 2018. However, they have to start independent research and development, but this helplessness seems inevitable.
Up to now, tiger ESOP system has served more than 60 new economic companies, including Xiaomi, Ruhan holding, who to learn from, Jianan Yunzhi, bitcontinental, Aikang medical, and helped customers build incentive plans for employees of different nationalities in office in 30 countries and regions around the world.
All in every order
The first customer tiger securities won in the absence of successful cases is park new education.
At that time, they were hesitant because we were unknown in this market. We talked about it for more than a month. At that time, they thought it would not use us. Li Hongbin told venture state.
Then the situation changed. Three weeks before Park Shin education lifted its ban on employee stocks, the ESOP service they had been using suddenly had problems. In a hurry, we must start a new ESOP service provider. Considering the advantages of tiger securities and the strong Internet gene, we decided to switch to the ESOP service of tiger securities.
At that time, we were very moved. The whole team devoted to the project. It was the Spring Festival of 2019. We were following the project from the first day to the fifth day of the new year.
Park new education makes the ESOP service of tiger securities achieve a breakthrough from 0 to 1.
For a long time, the traditional ESOP management service provider has high cost, low service efficiency, aging system, and it is difficult to develop customized functions to meet the core needs of the current new economic enterprises and employees. Tiger securities tiger ESOP management system innovates against the pain points of traditional service providers and gains a large number of customers.
Look again at the first share of Jianan Yunzhi in the blockchain, which has been docking with tiger securities securities service for a long time. Li shaoke, Secretary of the companys board of directors, told chuangyeong bang that four ESOP suppliers had been considered at that time, including two domestic and two overseas suppliers. Finally, for the consideration of data security, smooth communication and timely team response, the ESOP service of tiger securities was selected.
Their team service is flexible, very young and dynamic. In addition, they have rich experience in the US stock market. Our securities business also cooperates with them, so we decided to cooperate with them in ESOP service after comprehensive consideration.
In addition to the strong technical team, humanized security settings and operation facilities, and relatively simple operation, compliance is more important for Ruhan holding, the first stock of netred.
Wang Jinbo, CFO of Ruhan holding, has a rich international vision. After a comprehensive comparison with many foreign ESOP service providers, he finally chose tiger securities.
As Wang Jinbo said, the compliance of the listing of China capital stock in the United States is crucial. In his view of working in the United States for many years, some multinational companies may not provide flexible services for local enterprises, while many local service providers in China lack the background of relevant securities companies, and can only provide software, rarely provide professional services.
In Wu Tianhuas view, the securities business is a big advantage for them to do ESOP services, because ESOP is not a purely commercial, legal or tax issue. Tiger securities can provide users with comprehensive solutions to help enterprises realize equity incentive plan step by step from scratch.
As one of the investors of tiger securities, Xiaomi group also chose ESOP service of tiger securities. After comparing several suppliers such as Computershare, Xiaomi group comprehensively evaluated the account structure, customized development service capability, system security and other aspects, and finally chose tiger securities ESOP service.
According to Li Hongbin, HR and technical team of Xiaomi group and tigeresop service team have set up a project team to communicate the project progress at any time and assist in the development of customized functions from the perspective of implementation and management. At present, more than 200 function points have been developed for Xiaomi group.
A user of tiger securities ESOP, who asked not to be named, told chuangyeong bang that they started to use the ESOP system of tiger securities before going public and were deeply impressed with tigers personalized service.
Because we have some needs, tiger securities standardized system cant meet. After we put forward the needs, Li Hongbin, the team leader, and colleagues from the industry research institute came to the door and asked carefully. They gave a solution within about a week, and soon launched the relevant functions.
He also said that tiger securities itself, as a listed company, is very experienced in listing. In addition to helping them manage the existing ESOP plan, he also gave tips and suggestions on their trust building before listing and legal affairs at the listing place.
Liu Tong, who studied with ESOP, also praised tiger Securities for its service efficiency. He pointed out that he had decided to use the ESOP service of tiger securities before going public, but later he was busy with business and started project docking near the lifting of the ban. Tigers ESOP team has helped us do all the preparatory work in a short time, which is very efficient.
With allins attitude, extreme efficiency, personalized service and many years of experience of securities companies, tiger ESOP of tiger securities has gained a large number of high-quality customers in just two years, and has established an excellent reputation in the industry.
(tiger ESOP service features)
Speed up going to sea and grab the giants cake
On May 28, tiger securities released its first quarter earnings report in 2020, and made profits for the first time after listing.
According to the financial report, in the first quarter, the companys commission income was US $14.27 million, an increase of 124.6% year on year; interest related income was US $6.41 million, an increase of about 128.9% year on year; other income dominated by institutional business reached US $2.51 million, an increase of nearly three times year on year. The companys revenue in this quarter reached US $23.19 million, a year-on-year increase of 136.7%.
Behind the high growth is the good coordination of tiger securities ESOP service, investment banking and brokerage business.
In Wu Tianhuas view, the advantage of tiger securities ESOP service lies in that it is cheaper and better to use than traditional service providers, and it has stronger service operation ability than emerging service providers.
A very important starting point for us to do this service is to extend ourselves to others. First, we pay the tuition fee as a mouse, and then we do all the dirty work, hoping to help other start-ups avoid detours.
Compared with other service providers, tiger ESOP management system of tiger securities connects with the company on one side and employees on the other.
On the companys side, tiger ESOP management system can be connected with EHR system to connect pre IPO data management and post IPO exercise and sell transactions. The manager can realize data visualization, improve management efficiency and save cost through system granting, ownership, exercise audit and tax management.
On the employees side, employees can view their incentive data anytime and anywhere through the website and tiger trade app. Relying on the advantages of tiger securities brokerage business in the US and Hong Kong stock market, employees exercise of rights can also realize financing exercise and ultra-low Commission transaction, so as to maximize the incentive effect.
In Wu Tianhuas view, in the new technology era, China will surely have its own world-class securities companies and world-class investment banks, so tiger securities went out to sea earlier and occupied these places first.
At the heart of our local competition at sea is our confidence in tigers product technology, user experience, organizational capability and methodology.
Tiger securities is speeding up its international business. At present, the company has set up offices in the United States, Singapore, Hong Kong, China and other places. The ESOP service of tiger securities is not limited to China. At present, it supports employees in many countries and regions such as the United States, Singapore, Hong Kong, China to open accounts. The independent R & D system can meet the different tax requirements of 30 countries and regions.
Wu Tianhua revealed that in the next five years, he hoped to seize the leading window period of China Mobile Internet in the world, build a more distinctive investment service platform, and provide localized services for more users around the world.
In the industry, we are relatively early in internationalization. Today, the number of licenses in the world should be leading in the whole industry. Wu Tianhua said that from the perspective of user experience, no matter Singapore users, Southeast Asian users or American users, good product services can span languages and regions.
Wu Tianhua is also growing up, from technology boss, product manager to CEO. From joining Netease to founding tiger securities, Wu Tianhua said he never changed himself.
I think people should give full play to their advantages, and what I am good at is logical architecture. I am a very typical CEO who studies computer science and engineering. I believe in mathematical model, the value of rationality, the value of methodology and the value of deep thinking.
Li Hongbin told Chuangye bang that Wu Tianhuas rational logic made tiger securities seldom step on the pit and basically operate in a relatively stable way. In Wu Tianhuas view, entrepreneurship is the process of traveling thousands of miles after reading thousands of books. I have to feel light on the paper. If I want to learn to swim, I have to drink a few salivas to really learn. Source: editor in charge of mass news: Chen Tiqiang_ NB6485
Li Hongbin told Chuangye bang that Wu Tianhuas rational logic made tiger securities seldom step on the pit and basically operate in a relatively stable way.