There is nothing wrong in the long river of life, just like the epidemic of half a year will not overwhelm China’s development. If you don’t believe in the company’s huge future, in fact, even if you pay the full salary now, you should quickly choose your competitors who are optimistic about us.
Thanks to our core executives for taking the lead for five months without receiving a salary bonus. Thanks also to many colleagues who offered to pay tens of thousands and hundreds of thousands to pay their subordinates. I am very touched, 90% of my colleagues have chosen to fight together to the end!
6. “Guarantee money will always be enough for two years”
The company’s average monthly expenses are 68 million, and the monthly income of our headquarters is basically 70 to 80 million. Under such a situation, we can actually make a profit in cash.
At the beginning of this year, our funds were 326 million, which should be very sufficient. Because the average cash outflow in the second half of last year was 10 million. The last two months also had a cash surplus.
As a veteran of entrepreneurship, I know that survival is the most important thing. Therefore, I always adhere to a principle, everyone and me can rest assured for a long time, but will not be happy in the short term. It is true that we are often forced to work overtime, work day and night, 996 and even 007, but the long-term reason is because we have been asking for money for two years. This is why, at the beginning of last year, when we still had a lot of money, we started to do some personnel optimization and cost reduction, and also removed 20 million market expenses and so on.
The money on the account is “always enough to live for two years.” In order to live another two years, we must reduce the cost again. What is called “Always enough to live for two years”?
If we had only 180 million cash in July this year, it would only be able to lose 7.5 million per month. Because I want to keep alive with 180 million cash in these 24 months, I have to reduce the cost to at most 7.5 million higher than the income.
If at the end of this year, we only have 120 million cash, that is, an average loss of less than 5 million per month can be maintained for 2 years. In other words, if the income is 40 million, I can only spend 45 million. If I earn 80 million, I can only spend 85 million.
This is what I define as “forever two years.”
This is our first purpose. If you violate this purpose, you are against our entire company, against the interests of our employees, and we have more than 2,000 campuses and more than 10,000 employees. So IMust guarantee that the headquarters will never go wrong!
The closure of Wuhan is for the people of the country. If it is not closed, it will be unfair and unsafe to the majority of 1.3 billion people. By the same token, why do we have a 3.5% salary, because if it is a 40% or 50% salary, the viability of the entire company will be slightly weak, and we have no way to usher in the increase in compensatory consumption after the epidemic is over.
Seven, “Why don’t you donate and sponsor?”
A lot of colleagues and friends know that all of my more than 300 long-distance, overseas dozen-hour airplanes, I have all been in economy class, until recently my waist really did not work. Although the company has luxury cars, 80% of my Didi taxis are express. When our company’s employees and middle and senior executives made strategic meetings, we also spent 4,000 yuan in the hotel at night. But in the province, we must save, because we have to survive.
Some colleagues also complained, why do n’t employees pay their wages, and donate to Wuhan?
First, we want to express our gratitude to the people of Wuhan and Hubei who have sacrificed themselves. Secondly, even if you don’t donate, it’s just a little more for each employee.
Among our 10 million cash and material donations, the headquarters donated 3 million and 2 million equipment. 3 million is donated to the Hubei Youth Foundation, and 2 million is for the very poor students in small counties to buy computers to study. No matter how difficult we are to help these patients and those in need.
We have also mobilized the principals of the country to donate 5 million, and nearly 2 million donations have been completed so far. Our donations, orders for the purchase of computers and other equipment will make everything transparent.
We also donated 500 million AI online learning accounts. Of course, we also heard questions saying that after the pay cut, is there money to donate to the learning account? Our accounts are based on 1,000 yuan for each free self-study account, and we plan to donate a total of 500,000 accounts, which is 500 million. As of now, the number of individuals who have received free accounts plus the accounts of public schools has reached 200,000 to 300,000, and we estimate that it may be more than 500,000 accounts.
You may also see that we have sponsored an AI scientist award worldwide for $ 1 million.
Everyone will ask, why can’t this 6 million yuan be paid?
This is probably the hardestThe explanation is that because the US $ 1 million was signed in May 2019 a year ago, the support cooperation agreement was signed, and more than 100 domestic and global media have reported it. The international reputation of our company is actually higher than the domestic reputation. We cannot break the contract internationally, and we must be a global AI education company in the future. The global reputation is vital to the future development of the company. We tend to pave the way for things in three, five or even ten years. We are able to attract a large number of American scientists from companies ten times and one hundred times larger than us to join our company because they recognize our strategy, execution, responsibility, and transparency and integrity! We cannot lose our values!
eight, “the market will surge after the epidemic”
I think there will be a three-fold, five-fold to ten-fold increase in schools in our country before the end of the year. China’s education market totals 3 trillion yuan, and the tutoring and tutoring market for elementary and middle school students is 600 billion yuan. The top ten education companies combined are less than 10%. This industry has not yet completed concentration. Generally speaking, the top ten brands will occupy 80% of the market share.
This epidemic will bring about a major reshuffle in the industry. The vast majority of offline education institutions’ cash flow is far worse than ours, and according to the latest report, only 27% of companies have transferred about 50% of themselves. % Of students, 86% of institutions have a huge funding gap, and most have no access to financing. Among these 1 million offline training institutions, a large number of institutions cannot survive.
In the next five months, the epidemic will pick up and we will have an outbreak. 60% of offline schools will be closed in the cold winter, but the needs of parents will be compensated due to the problem of learning efficiency during this time. At that time, we were alive with sufficient funds to meet the huge growth brought about by the gap in market supply.
In the next three or five months, I hope that everyone can go forward with firm conviction. Everyone today chooses between black and white. We definitely don’t force it. We have a special understanding of all choices. I believe the company’s future has the opportunity to be a 100 billion-level company. One of our investors, SIG Hainer, also said that we are the headlines of the education industry today. Today’s headlines have become global, and I believe we must have the opportunity to be a global company in the future! Only colleagues who believe in our dream can really follow the company.
IX. “National policy offers are actually relatively small”
We are particularly suffering now because many national policies compare with our relationship.small.
First, loans. We have no fixed assets and no profit. We cannot get this loan.
Second, last year’s unemployment insurance was returned, with only a few hundred thousand refunded.
Third, the social security payment is delayed for three or four months, which is June. It’s probably a few million, but it’s all going to be returned by June and still have to pay.
Fourth, pay the rent. The rent for business users, that is, our national schools, is a very large expenditure. The monthly rent at the headquarters is one or two million, which is free for two months, but it accounts for very little monthly expenditure, less than 3%. So it can’t solve any problems.
Fifth, taxes. Because there is almost no income, in fact, there are not many taxes and fees.
10. “My judgment and thinking”
Under the epidemic, many entrepreneurs’ practices and judgments are wrong.
First, looking at his own cash flow, he ignored that the battle might last 6 months instead of 2 months.
Second, spend cash on inefficient income in recent months, and ignore the epidemic situation. After the economic rebound and the collapse of peers, when market supply is absent, you need more money in front of huge opportunities.
Third, in the lowest valley, not only did not spend money, but to spend money in places with high cost performance. At this time, the brand reputation and visibility gave us more attention and students, more effective than hard and wide much better.
Fourth, you must not lose the opportunity to test who are truly loyal employees at this time, who see your future as more important than cash, or you may not be left behind by you What you want to let go is the smartest.
Disasters are always there. The key is that every external disaster is not to weaken us, but to make our bodies stronger! As of yesterday, the company’s number of students in February has increased by 429% over the same period last year, and the number of study hours has increased by 897% over the same period last year. The hard work and struggle of each of us in the past 20 days and nights has allowed 2,000 schools across the country to be safely transferred online, and more public schools and education departments have chosen us. Each of us believes that we will be a billion company in the future. My colleagues, just go with us!