Yu Donglai responds again about the company's 4 billion asset profit distribution to employees: The real situation is based on job value and planning standards

On March 11, regarding the profit distribution plan for assets totaling 4 billion yuan, Yu Donglai, founder of Pangdonglai, responded again with a lengthy post on social media: “This is the real situation. Stop guessing!”

Yu Donglai stated that for the past 26 years, Pangdonglai has pursued an operational model based on systems and shareholding. Early shareholders were granted shares free of charge and held in trust. Distributions are based on fairness principles, following a standard of job value.

“The goal is to motivate employees, help them realize that all their income is earned through their own abilities, not given or donated by others.” Yu Donglai revealed that once employees mature within this culture, the company will transition to a true shareholding operation model. This also inspires more companies to value employee contributions, income, and quality of life, fostering 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. For ordinary businesses or operators, increasing wages and bonuses for management team members is the most scientific and effective method.

Yu Donglai concluded by saying that overall, Pangdonglai aims to explore a more scientific and advanced business operation model based on international corporate practices; to strengthen respect, recognition, and care from investors and the company towards employees and managers; and to balance wealth disparity.

The day before, Yu Donglai also responded to comments in his personal social media comment section, saying that understanding distribution is key to a healthier, longer-lasting, and happier enterprise.

On March 8, Yu Donglai announced the profit distribution standard for Pangdonglai’s 4 billion yuan assets: about 50% to the management team and about 50% to employees. Going forward, these assets will serve as company equity, with 50% of annual profits distributed as bonuses to the team and 50% to shareholders.

The disclosed asset distribution details show that Pangdonglai Group has a total of 10,194 employees, with total assets of approximately 3,792.9 million yuan (about 3.79 billion yuan).

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

The technical team has 563 members, making up 5.5% of the total; they are allocated assets worth 468 million yuan, or 12.3% of total assets. The two highest-level technical personnel can each receive about 10 million yuan.

Frontline employees total 8,913, accounting for 87.4% of the group; 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 each, and 8,633 regular employees have an average of 200,000 yuan each.

According to previous reports, in June 2025, Yu Donglai announced employee benefits: by 2025, the average after-tax monthly income for over 8,000 Pangdonglai employees will be around 9,000 yuan; net profit is estimated at about 1.5 billion yuan, with an average distribution of about 100,000 yuan per employee, and management and technical staff averaging about 700,000 yuan each.

Based on earlier strategic plans released by Yu Donglai, Pangdonglai will complete its planned growth targets and cease expanding its scale; it will remain committed to its educational nature, hence “never going public.” No matter when in the future, the top management must step down before age 60 to maintain a young and dynamic team.