Fat Donglai allocates 20 million yuan to each store manager, with an average of 200,000 yuan per regular employee; Yu Donglai responds again

On March 14, Founder Yu Donglai provided further clarification on the distribution of Pangdonglai’s assets, stating that the profit distribution of 4 billion yuan is actually based on the long-standing distribution system that has been in place for over 20 years. Due to the construction of Dream City, assets were converted into equity without distribution, with clear ownership details. “Funds continue to be used within the company and are managed by the company’s decision-making committee to avoid future financial distribution issues. My share is about 5%.” Based on the current ratio, Pangdonglai’s 4 billion yuan in assets profit would entitle Yu Donglai to approximately 200 million yuan.

At the same time, Yu Donglai stated that there are often individuals online deliberately distorting facts, creating social conflicts, and spreading rumors such as zero-cost purchase schemes. “We hope that in the future, our online environment will be filled more with positive stories. Pangdonglai would like to clarify the situation once again!”

Pangdonglai’s “Distribution of 4 Billion Yuan Assets”

12 store managers each receive 20 million yuan, average employee receives 200,000 yuan

On March 8, Yu Donglai, founder of Pangdonglai, shared his experience on social media and announced the asset distribution plan, which clearly allocates approximately 50% to the management team and 50% to employees.

According to disclosures, Pangdonglai has been distributing profits to all employees based on their positions since 2000, aiming to motivate everyone’s enthusiasm, creativity, and to inspire learning and pursuit of a scientific and beautiful life.

The detailed asset distribution shows that the group has a total of 10,194 employees, with total assets of about 3.793 billion yuan.

Specifically, the management team consists of 718 people, accounting for 7.0% of the total staff; they are allocated assets worth 1.514 billion yuan, or 39.9% of total assets. This includes store managers, assistants, department heads, and other levels. Among them, 12 store managers share 240 million yuan, meaning each store manager can receive about 20 million yuan.

The technical team has 563 members, accounting for 5.5% of the total staff; they are allocated assets totaling 468 million yuan, or 12.3% of total assets. The top two technical personnel each can receive up to 10 million yuan.

Frontline employees total 8,913, accounting for 87.4% of the staff; they are allocated the remaining approximately 1.811 billion yuan, or 47.7% of total assets. Among them, 280 team leaders have an average allocation of 300,000 yuan, and 8,633 regular employees have an average of 200,000 yuan.

Pangdonglai stated that the core of this distribution model is to earn employees’ respect and trust, guide them to pursue a better life, and promote the company to create higher-quality products and services, ultimately fostering social harmony and driving more people toward shared prosperity.

In the future, these assets will be used as company equity, with annual profits continuing to be split 50% for team bonuses and 50% for shareholder returns.

On March 11, regarding the 4 billion yuan profit distribution plan, Yu Donglai responded in a long post on social media: “This is the real situation, stop guessing!”

Yu Donglai said that for the past 26 years, Pangdonglai has pursued an operational model based on systems and shareholding. Early shareholders were given shares free of charge or held in trust. Distributions are based on fairness principles and standardized according to job value.

“The goal is to stimulate employees’ potential, help them realize that all their income is earned through their own abilities, not given or gifted by others.” Yu Donglai revealed that once employees mature within this culture, the company will transition to a true shareholding operation. He also hopes more companies will value employees’ worth, income, and quality of life, cultivating healthy management teams and sustainable development.

Yu Donglai emphasized that this approach is not only for employee happiness but also for the happiness of entrepreneurs and investors, because only when entrepreneurs, investors, and employees share happiness can the company develop healthily.

He clearly stated that caring for employees can be done in many ways, and for ordinary businesses or operators, increasing management team wages and bonuses is the most scientific and effective method.

Finally, Yu Donglai stressed that overall, Pangdonglai aims to follow international corporate operation models while exploring a more scientific and advanced management approach; to strengthen respect, recognition, and care from investors and the company toward employees and managers; and to balance wealth disparities.

The day before, Yu Donglai also responded to online comments, saying that understanding distribution is key to a healthier, longer-lasting, and happier enterprise.

Editor | He Xiaotao, Yi Qijiang

Proofreader | Huang Sheng

Economic Daily News compiled from Elephant News, MEGAPP, and Jiemian News