Reborn in Hong Kong as a Tycoon

Chapter 602 Corporate Annual Report for [-] ([-])

Taking advantage of the time on the weekend, Lin Baicheng read the annual report of his company in the United States.

It is now the middle and late January of 1980, half a month or so is enough time for the company to prepare last year's annual report.What's more, the annual report is usually not started after one year, but in the last month, and supplemented after the last month has passed, so that the annual report can be made quickly.

Now in the United States, companies under the name of Lin Baicheng include New Century Software, Starlight, Morningstar Pictures, Golden Fleece, Marvel Comics, Pioneer Technology Venture Capital, Sun Electronics Communications, and Microsoft.

In addition to these companies, there are also some subsidiaries.For example, Galaxy Semiconductor, a subsidiary of Galaxy Semiconductor, and Venus TV, a subsidiary of Venus Electric, have their annual reports compiled with the parent company, so there is no need to submit a separate annual report to Lin Baicheng.

When reading the annual report, Lin Baicheng didn't shy away from Haruko Mori, and asked Haruko Mori to watch it beside him. The two of them looked at each company's annual report.

For New Century Software Company, in 1978 the year before last, the company's revenue was US$6150 million and its profit was US$3930 million. At that time, Lin Baicheng still held 100% of the company's shares.

However, in 1979 last year, Lin Baicheng let New Century Software Company open financing, gave up 6.6% of the shares with a market value of 20 million U.S. dollars after financing, and transferred 5% of the shares to the management as an option reward. In the end, he himself left 75% shares.

In 1979, the revenue and profit of New Century Software Company exceeded 2.05 million U.S. dollars, of which the revenue was as high as 1.12 million U.S. dollars and the profit was as high as 50 million U.S. dollars.This year's high revenue and high profit is due to the expansion of overseas markets, which further increases the company's revenue and profit.It's just that because the cost of overseas markets is higher, the profit margin has been reduced, leaving only about [-]%, which is no more than [-]% of last year's profit margin.

What's more, US$1.12 million is not New Century Software's net profit in 1979, and the company's investment last year was not small.Expansion of overseas channels requires costs, and the purchase of an office building cost US$2000 million. The increase in the number of employees also increased expenditures, and the development of database business and computer operating systems also required a considerable amount of investment.

It can be said that New Century Software's revenue and profit last year were not low, but the company also spent a lot in various aspects, and the net profit finally reflected in the annual report was 6100 million US dollars.

The reason why the New Century Software Company had a net profit of US$6100 million last year was because Isabella and other management delayed some expenditures on software research and development, and related fund transfers were delayed until 1980, so that in 1979 The expenses can be a little less, and a higher net profit statement can be made.

Today's net profit of 6100 million US dollars is 1.5 times that of last year, which is equivalent to a 50% increase in net profit compared to last year. Such data is much better than a net profit increase of only 20% or 30%.

Before doing so, Isabella specifically asked Lin Baicheng for instructions and explained the reason, and Lin Baicheng agreed after a little consideration.

The reason why Isabella and other management do this is very simple, to produce good-looking data to prepare for the company's future listing.The data is good, not only can the listing go smoothly, but also have a higher price-earnings ratio after listing, and be more sought after by shareholders.

For Lin Baicheng, the New Century Software Company will definitely go public in the future, otherwise he would not let the company raise funds last year. Therefore, the beautiful data made by Isabella and others will not do him any harm, but will benefit him a lot. He has no reason to refuse.

Haruko Mori said: "If New Century Software can achieve a revenue growth of more than 100% and a net profit growth of more than 50% this year, then the company can consider going public next year."

Lin Baicheng listened but shook his head: "Next year's listing is too soon, I am very optimistic about the company's database business and the operating system business of the subsidiary that cooperates with Microsoft, and these two businesses will definitely not be able to bring much to the company next year." high valuation."

Haruko Mori reminded: "Mr. Cheng, I think even if you don't want New Century Software to go public next year, Goldman Sachs and other institutions will push for it. They definitely want the company to go public as soon as possible."

"That's true."

Lin Baicheng couldn't help frowning slightly. Wall Street capital is profit-seeking, and they definitely hope that the companies they invest in will go public as soon as possible to collect money, so that they can recover costs faster and make profits.

Seeing this, Haruko Mori said: "You don't have to worry, Cheng-jun, this matter is not difficult to solve. Just because you are optimistic about the database business and the subsidiary jointly established by New Century Software and Microsoft, does not mean that other organizations are also optimistic. Cheng-jun, when the time comes These two businesses can be completely separated from New Century Software, anyway, New Century Software’s current revenue and profit are supported by the office software business.”

"The database business and its subsidiary Shiwei Software have not created any profits for the company at all, and the company has to continue to invest in them. If you decide to divest them from New Century Software, Mr. Cheng, Wall Street's capital may be eager to do so. New Century Software can have a higher valuation when it goes public."

What Haruko Mori said is not unreasonable. Wall Street capital has always disliked investments with uncertain prospects. The better the superficial data of all companies, the better, so that Wall Street can blow up the company's valuation, make a big deal of it, and then profit from it. In the end, it is the stockholders who pay the bill.

"What you said is not unreasonable. Remember this matter and separate other businesses to make New Century Software more pure."

Lin Baicheng nodded lightly. Like the database and operating system, it is not good for him to do it himself, but it was fine at the beginning. He can wait for the companies of these two businesses to develop and let New Century Software spend money to acquire them. He may still make a lot of money, and don't have to worry about cheapening those institutions on Wall Street.

Of course, if Goldman Sachs and other institutions have enough vision and are unwilling to divest Lin Baicheng of other businesses from New Century Software, then Lin Baicheng will not insist, and he will not fall out with Goldman Sachs and other institutions because of this. It just didn't achieve the goal.

The office software business of New Century Software Company has limitations. Only when personal computers are popularized can the office software business continue to expand.Fortunately, the New Century Software Company can still open up overseas markets, and domestic personal computers are also becoming more and more popular, so the ceiling has not been touched yet, and there is money to be made.

Otherwise, once the revenue and profit of New Century Software Company began to decrease this year in 80, then New Century Software Company would be listed with a higher valuation, and whether it could be successfully listed would be a question mark, and no one would buy it. A stock of a company whose profits have been declining year by year.

For Starlight, the revenue and profit of the previous year were US$1.35 million and just over US$1000 million, respectively.The reason why the difference between revenue and profit is so large is because Starlight Company is a distributor and its products are not its own, so the profit is only a little over 10%. After deducting some expenses, the remaining net profit is less than 10% of the revenue. up.

Last year, Starlight's physical stores continued to expand, from more than 600 in the previous year to more than 1000 today. The sales coverage is wider, and the revenue and profit are naturally higher.

Starlight Company's revenue last year exceeded 5 million US dollars. The reason why it was so high was because the sales of Xingyue consoles and cassettes sold by Xinghe Game Company on Starlight Company were also included in the calculation.

However, although the revenue is high, the profit of Starlight Company is not very good, only a little over 6000 million U.S. dollars. After deducting employees' salaries and expenses such as water and electricity, the profit is only 4000 million U.S. dollars.This is because the storefronts of the physical stores are all owned by the company, and there is no rent, otherwise the profit will be lower.

The 4000 million US dollars is just operating profit. Starlight invested a lot last year. The expansion of about 2000 physical stores costs money. The company even borrowed another 5000 million US dollars from the bank for this, and now owes the bank as much as [-] million US dollars. loan.

In order to make the report data look good, Lin Baicheng agreed to Eric Davis' request. The annual report shows that Starlight's net profit last year was 2000 million US dollars, with a net profit growth rate of 100%.

But the real situation is that Starlight's operating profit of US$4000 million last year just filled the hole in expansion, and this company did not make a penny for the boss Lin Baicheng last year.

Fortunately, the expansion of Starlight Company has been completed, and its channels have spread all over the United States. The company's commission can already be on par with other large companies in the industry. It can become a stable channel in the hands of Lin Baicheng, and it can also bring Lin Baicheng a lot of profits every year.

Although Xingyue consoles and cassettes are left-handed and right-handed, if Lin Baicheng does not have his own channels, then this part of the profits must be earned by other channel companies, and they will demand higher profit commissions, so consignment products The profit cut can also be regarded as the profit made by Starlight Company for Lin Baicheng.

Morningstar Films, the company that Lin Baicheng invested 5000 million US dollars in the year before last, only brought about 500 million US dollars in profit to Lin Baicheng, and the company's revenue was only more than 600 million US dollars.

In the last year of 79, the revenue and profit of Morning Star Pictures naturally increased. Without counting the movie "Home Alone", the revenue was as high as 7500 million US dollars, but the profit was only 1200 million US dollars.

The reason why the profit is not high is related to the nature of the film industry. It usually takes a few months for the theater chain to get part of the box office share, and it takes half a year or even a year for the overseas box office share. The same is true for some. There is no way to get all the profits in the first place, and in many cases, only part of them can be obtained first.

This has nothing to do with the size of the company, but the whole industry. It is nothing more than the fact that large companies can get relevant profits a little earlier.

Therefore, the real profit of Morning Star Pictures last year was not more than 1200 million US dollars, but there was no way to recover all of them, and only these could be recovered on the books.

The profit brought by "Home Alone" to Morningstar Pictures has not been counted here. Although Lin Baicheng invested in this film, Morningstar Pictures, as the distributor, has 10% of the omni-channel profit share, which is not a small amount.

The reason why it was not counted in the 1979 annual report is because "Home Alone" was released before Christmas, and it has only been released for a month. Morning Star Films has not yet been contacted, and Morning Star Films is unable to calculate the relevant profits, so how to calculate this account in last year's annual report.

Fortunately, Morningstar Pictures' profit last year was not bad, so the annual report data is not ugly, and it even has a 100% net profit growth rate.

Last year, Morningstar Pictures invested a lot of money in channel expansion, so the real net profit was actually no money, and the investment was higher than the profit.

Fortunately, Morningstar Films has almost completed its channel expansion in North America. This year, it will mainly expand its overseas channels. First of all, it must be in the English-speaking region, and then it will be in the markets of German, French and other regional countries.

For now, Morningstar Films focuses on distribution, supplemented by production, and keeps accumulating capital until it has the capital to invest in higher-cost films.

Golden Fleece Company is an offshore company, but the company is headquartered in New York, so it can be regarded as a company on the American side, at least that's how it was arranged when the annual report was compiled.

However, this year is a little different. After Christmas, the price of gold started to rise sharply. Lin Baicheng has a large number of orders for the company to operate, so everyone in the company is busy until now, and there is no time to do the annual report for 79. Therefore, The annual report of the Golden Fleece Company has not yet been produced.

Lin Baicheng knew the current situation of the Golden Fleece Company best, so of course he would not blame the senior management of the Golden Fleece Company.

Marvel Comics was just acquired by Lin Baicheng in January last year. He acquired the company at a price of 3000 million US dollars, assumed 4000 million US dollars in debt, and invested another 2000 million US dollars for self-built channels.

Although it was just acquired last year, Marvel Comics had a profit of 600 million US dollars the year before last, which Lin Baicheng knew.

Last year, the profit of Marvel Comics was nearly [-] million US dollars. The reason for such a big change is that the self-built channel has brought great changes to Marvel Comics, and the profit has increased considerably.

Last year, the channel of Marvel Comics was just established, and the results were not obvious. By this year, the effect brought by the channel will definitely be better. It can be expected that the profit of Marvel Comics will be higher this year.

However, Marvel Comics cannot bring Lin Baicheng any profits in a short period of time, because the company has debts as high as 4000 million U.S. dollars, and the company has slowly repaid the loan since last year, otherwise the annual loan interest will greatly reduce Marvel Comics' income. net profit.

For Marvel Comics, Lin Baicheng did not expect the company to bring him much profit in the short term. What is important is the superhero copyrights in the company's hands. As long as the copyrights are in hand, sooner or later he will be able to make a lot of money in the future .

When the special effects technology matures, Marvel Comics’ superhero movies will start to show off. As soon as superhero movies become popular, Marvel Comics can easily bring Lin Baicheng ten figures by relying on the box office share and peripheral authorization. profits.

(End of this chapter)