Rebirth 2010: I taught Mr. Lei how to make a mobile phone

Chapter 903 2017 was a pivotal year (Water)
III. Challenges and Reflections

While acknowledging our achievements, we are also keenly aware of the challenges we currently face:
Organizational Structure: As the group continues to expand, departmental silos have become apparent, necessitating continuous efforts to promote internal collaboration and data sharing to improve organizational efficiency.

Internal self-inspection: Benefiting from the Group's comprehensive inspection system, the number of personnel suspected of serious disciplinary violations within the Group decreased by 37% year-on-year last year.
Social responsibility and public opinion: As an industry leader, we face higher social expectations and regulatory requirements in areas such as preventing minors from becoming addicted to games, protecting data privacy, and platform governance.

Innovation pressure: In addition to core business, we need to incubate the next disruptive innovative product that can rival WeChat or Honor of Kings.

International competition: During overseas expansion, the challenges posed by geopolitical and cultural differences are increasing.

The Sixth Major Crimes Unit is dedicated to investigating serious violations of discipline, including internal corruption, dereliction of duty, and commercial bribery.

The Beyond Shield Oversight Agency is a joint oversight body composed of elites from across departments, focusing on technical audits and behavioral early warnings, and cooperating with the Major Crimes Unit 6 operations.

In addition, third-party financial auditing firms and unscheduled inspection teams ensure the group's healthy development through internal and external circulation.

IV. Strategic Outlook and Key Tasks for 2018
Deepen internal integration: Promote deeper collaboration among social, content, payment, and cloud computing businesses to create a "digital ecosystem community".

Strengthen the B2B strategy: Invest full resources in developing Beyond Cloud and enterprise services, making them core businesses of equal importance to the consumer internet.

Accelerated globalization: Concentrate superior resources to promote the localization and breakthrough of businesses such as gaming, cloud computing, and payment in overseas markets.

Responsible Growth: Integrating social responsibility into product design, setting industry benchmarks in areas such as data security, content governance, and protection of minors.

Planning for the future: Increase long-term investment in cutting-edge technologies such as AI and robotics, from mobile internet to preparing for the next decade.

Final Thoughts

2017 was a year in which the ecological value of the other shore fully blossomed.

Looking ahead to 2018, opportunities and challenges coexist.

Under the leadership of the Chairman, the management team of Beyond will continue to maintain strategic focus, strengthen execution, prioritize users, and leverage technology to propel Beyond Technology Group to new heights.

This is a summary of the company's achievements over the past year. After reviewing the report, Chen Mo replied to Lu Qi's email and copied all senior executives:
"I have reviewed in detail the '2017 Annual Work Report of Beyond Technology Group' submitted by Dr. Lu Qi."

On behalf of myself and the board of directors, I hereby express my high recognition and full affirmation of the contents of this report.

Over the past year, in a complex and ever-changing global market environment, the management team led all colleagues to achieve remarkable and outstanding results.

This report not only comprehensively and objectively reflects the achievements, but more importantly, it clearly outlines the Group's firm steps in transforming its strategy from "business-driven" to "technology-driven".

This is exactly the future I hope to see.
It should be made clear that past achievements belong to the past.

Although we have already reached the summit of the internet, there are not only formidable competitors in the distance, but also countless peaks waiting to be climbed.

We must be keenly aware that challenges from the macro environment, organizational inertia, and the pressure to innovate still exist.

Based on this, I would like to express the following expectations for my work in 2018 and beyond:
1. Continue to uphold long-termism: I encourage management to continue investing in cutting-edge technologies (AI, cloud, engines, autonomous driving) with even greater力度 (intensity/effort). Do not be afraid of short-term financial pressure; what I value is the technological layout and strategic security five or ten years from now.

2. Deepen data integration and security: The data of various platforms in the group are not yet fully integrated. By leveraging the powerful features of Beyond Cloud, we can integrate tools, data and other resources.

While ensuring user privacy and data security, we aim to enable data to flow, integrate, and interact safely and efficiently within our ecosystem, creating greater value.

3. Accelerating Globalization Again: In the past few years, we have only "gone overseas." Although we have achieved some success, what we need to do next is "global operation." We need to integrate our overseas technology, products, and cultural influence into the global market more deeply and locally.

Moreover, compliance is crucial; it's the key to survival before competition can begin.

'

The above is verbal praise; additional material incentives will be provided at the end of the year.

The company's compensation distribution follows the "80/20 rule": 80% of resources are allocated to ordinary employees, who make up 80% of the workforce, while 20% is allocated to the middle and senior management team. This distribution mechanism is based on the group's existing pyramid-shaped personnel structure and was established through scientific calculations using models by the finance and technology departments.

The overall structure remains pyramidal, but it is slightly tilted towards frontline employees.

The management's compensation level is not reduced as a result. Due to the small number of management personnel and the significant revenue scale of the group, the annual total income (including bonuses) of senior executives at Biyan is usually between tens of millions and hundreds of millions of yuan.

The average annual salary (including year-end bonus) for ordinary employees is approximately 80 yuan.

It should be noted that this figure represents the company's total human resource costs, which include basic salary, bonuses, benefits, employer contributions to social insurance and housing fund, and equity incentive costs, and is not the actual amount received by employees.

Chen Mo once surveyed data from the same period: Tencent employees' average annual salary was about 77 yuan, while Alibaba's was about 54 yuan.

The difference lies in the fact that the statistics from the other side only cover ordinary employees, while industry data often includes executives and top technical experts, whose high salaries will raise the average, so the median salary of ordinary employees is usually lower than that level.

Subsequently, Chen Mo extracted key data from the report and wrote a letter to all employees, summarizing the group's achievements over the past year and expressing gratitude for the contributions of all colleagues at the end of the letter.

After dealing with this matter, Chen Mo looked at the next email, which was a newly drafted unprecedented Employee Stock Ownership Plan (ESOP) from the group's CFO, Wu Dan.

Because Chen Mo plans to cancel the group's 10 billion yuan interest-free housing loan benefit program.

Currently, the national online gaming market, much like the mobile game market, has entered its peak period, and unsurprisingly, an unexpected event is likely to occur within the next three years.

While canceling the 10 billion yuan housing loan project is a risk-avoidance measure, it can easily be misunderstood as cutting benefits and breaking faith with employees.

Chen Mo didn't want all the money he had spent leading the entire team at the other side to pay off the housing debts, since it could truly be a bottomless pit.

Because he had actually seen cases where people chose to stop paying their bills for various reasons.
But this can't be said openly, lest he look like a charlatan.

Therefore, he intends to package this "loan cancellation" as a "benefit upgrade," launching a new incentive program in a more attractive, future-oriented, and strategically visionary way.

The proposed incentive plan is a virtual equity incentive, which is essentially a cash incentive agreement and does not involve the actual grant of equity.

Employees receive "virtual shares" that are linked to the growth of the company's equity value.

This method is simple to operate, does not change the actual equity structure, and does not affect shareholders' voting rights. It is a common practice to replace direct shareholding.

Chen Mo reviewed the key points of the plan, including the establishment of the shareholding platform, the rules for granting and redeeming shares, and the exit mechanism. The content was clear and concise.

2017 was a watershed year for China's internet industry, and also for Beyond Group.

If previously employees stayed because they agreed with Beyond's philosophy, were satisfied with the benefits and high year-end bonuses, then starting in 2018, Beyond will use this plan to achieve a deep binding of all employees on both a spiritual and economic level.

(End of this chapter)