Reborn in Hong Kong as a Tycoon

Chapter 828 1980 Annual Report ([-])

There are many subsidiaries under the Asia Star Media Group, and it took Lin Baicheng a lot of time to read them.

"Take some rest."

Looking at the time, he found that more than an hour had passed, so Lin Baicheng decided to take a rest first.

He called the secretary in and asked him to make a pot of tea. Lin Baicheng drank tea and took a break.

After the break, Lin Baicheng continued to read the annual report.

Xingyue Electronic Game Company.

The company's products are only the Xingyue console and the game cartridges associated with the console.

The Xingyue mainframe went on sale on May 79, 5. It is divided into luxury models and ordinary models. Among them, the luxury models only sold a few thousand units, while the ordinary models sold 12 million units.In terms of price, the Xingyue Electronic Game Company can make money on the luxury models, while the ordinary models are sold at a loss, but the sales of the luxury models are too small. Compared with the huge loss of the ordinary models, that little profit is basically useless.

Xingyue Electronic Game Company really made money from the game cartridges. In 79, it sold a total of 1200 million copies, with a total revenue of 4.57 million US dollars, of which the profit could be more than half, which shows how profitable the game cartridges are.

Last year, in terms of mainframes, the luxury model sold a total of more than 1 units, and the profit was still not much. The ordinary model sold 180 million units, which was also sold at a loss.

In 79, Xingyue Electronic Game Company said to the outside world that the company was cutting prices at a loss to promote the sale of consoles. The price of consoles was $229 after a discount of $199.

In 80, the general price of Xingyue mainframe was 229 US dollars. Except for the holiday discount of 199 US dollars, it was usually sold at 229 US dollars.

Although it seems that the price has increased, it does not affect the sales of Xingyue hosts, because many customers buy them at a price of US$199 during the festival.At the same time, the price of Atari's mainframe is much higher than that of the Xingyue mainframe. The price of 260 US dollars is 229 US dollars more expensive than the highest price of the Xingyue mainframe at 31 US dollars. Customers will naturally not think that the Xingyue mainframe is too expensive.

80年星月电子游戏公司卖出的180万台普通款主机中，以199美元价格卖出的一共有65万台，超过三分之一，剩下的115万台则是以229美元卖出。

In terms of cost, due to the increase in production quantity, the increase in raw material procurement, and the advancement of technology, the cost of ordinary mainframes has been reduced. The average cost of each mainframe in 80 years is only 244.7 US dollars.

In other words, if you sell it for $199, you will lose $45.7 per unit; if you sell it for $229, you will lose $15.7 per unit.

而在80年，星月电子以199美元卖出65万台，等于说亏损了2970.5万美元；以229美元卖出115万台，亏损1805.5万美元。

Adding it all up, Xingyue Electronics lost a total of 4776 million US dollars on the mainframe.

In 1979, Xingyue Electronics sold 105 million ordinary hosts, with a loss of US$5100 million on the host. However, in 1980, Xingyue Electronics sold 180 million ordinary hosts, with a loss of only US$4776 million.

The more you sell, the smaller your losses.

The fundamental reason is that sales have increased, raw material procurement is cheaper, and technological progress has saved costs, which narrowed losses.

According to the development of this situation, in a few years, Xingyue Electronics may be able to achieve a balance of payments in the mainframe.

In fact, Xingyue Electronics can completely increase the selling price of the mainframe, and set the selling price above the cost price, so that the sale of the mainframe will not lose money.However, if this is done, it will inevitably affect the sales of the mainframe, and the sales of the mainframe are related to the size of the market, and it is related to the sales of cassettes, and cassettes are the bulk of profits.

Therefore, in the regulations formulated by Lin Baicheng, it is better to let the Xingyue console sell at a loss and expand the market, so that each game cassette can have more sales, so that the company can make more money.

Last year, the sales of Xingyue consoles increased by more than 70% compared with the previous year, and the sales of cassettes naturally increased even more.

In 79, Xingyue Electronics sold a total of 1200 million cassettes, and in 80, Xingyue Electronics sold a total of 5300 million cassettes, which directly more than quadrupled.

Of course, among the 5300 million copies of cassettes, only 3800 million copies of games produced by Xingyue Electronic Game Company were sold, and the remaining 1500 million copies were games produced by other game companies. It was sold through the channels of Xingyue Electronics.

Among the cassettes sold, Xingyue Electronics self-operated 300 million copies of the cassettes as gifts from the sales consoles to customers, so there was no revenue profit; 100 million copies of the cassettes from other game companies that were infused on its behalf were gifted by the sales consoles. revenue profit.

Unlike the Xingyue host, the price of the cassette has neither increased nor decreased, and it is still $40 a piece.

That is to say, among the 3800 million cassettes sold on the self-operated side, the 300 million donated cassettes were deducted, and the remaining 3500 million cassettes brought Xingyue Electronics a revenue of 14 billion US dollars.

The 1500 million cassettes that were infused on behalf of Xingyue Electronics Co., Ltd. deducted the 100 million copies that were given away, and the cost price of each cassette was 25 US dollars. These 1400 million cassettes brought Xingyue Electronics a revenue of 3.5 million US dollars. .

As for the cost of making cassettes by Xingyue Electronic Game Company, the average cost price of each cassette in 1980 was US$19.42, which was slightly lower than that in 79.The reason why the cost is not reduced much is that Xingyue Electronics has improved the imaging effect, making the picture clearer after the cassette is inserted into the host.

To put it simply, for the sake of the market, don't kill the chicken to get the eggs.

In terms of cassette profits, the cost of the 3800 million self-operated cassettes is US$7.3796 million, and the 3500 million copies sold will also be paid to the channel side Starlight Company, Zhiyin Comics, and Jupiter Toys for a commission of US$4 per copy, which is US$1.4 million. , leaving $14 million on revenue of $5.2204 billion.

This is not over yet, and the promotion fee, transportation fee, etc. have not been calculated, but these can be calculated together with the operating cost of the host.

For the infused cassettes, with a sales volume of 1400 million copies, Xingyue earns US$5.58 per copy. The transportation fee, channel fee and other expenses are all paid by the game producer and have nothing to do with Xingyue Electronics, so the US$7812 million here is pure profit earned.

Calculated, the cassette has brought Xingyue Electronics a profit of about 6 million US dollars.

In addition to the loss of the mainframe, Xingyue Video Game Company has other expenses that need to be paid, such as the share of senior talents, employee salaries, factory water and electricity, product research and development, game production, etc., as well as taxes.

After deducting all aspects, in 1980, the net profit of Xingyue Electronic Game Company was only US$3.3 million, which was more than four times the net profit of US$79 million in 7500.

It can be said that Xingyue Electronic Game Company is very profitable, and as the sales of Xingyue consoles increase, the cost becomes lower and lower, and more and more games are produced, and the sales of cassettes will also increase. The annual revenue and profit of Xingyue Electronic Game Company will only increase.

Lin Baicheng couldn't be more satisfied with Xingyue Video Game Company's revenue and profits.Regarding the company's annual report, he will not publish it, and only a few senior executives of the company and the group know about it.

The less people know about it, the less likely it is to be coveted. Lin Baicheng still wants to rely on Xingyue Electronic Game Company to earn a few more years of money.

Of course, if Wall Street is eyeing this piece of fat, Lin Baicheng will not stand firm, and will definitely choose to let Wall Street's capital become shareholders, and then get the company listed on NASDAQ.

The products of Xingyue Electronics Company are very dependent on the markets of the United States, Japan, and Western countries. Once American capital is targeted, if Lin Baicheng does not want to give up his benefits, he has plenty of ways to deal with it. Even if he has connections in the United States, it may not be useful. You are not willing to share the benefits.

Moreover, it is not a bad thing that Xingyue Electronic Game Company can be listed. After the company is listed, it will be easier for Lin Baicheng to realize the shares in his hands, and use the returned funds to develop other more important companies, such as the semiconductor industry.

Lin Baicheng continued to read the annual reports of other companies, and the next one was Galaxy Financial Group.

Galaxy Financial Group currently has only three subsidiaries, Galaxy Bank, Galaxy Insurance, and Yum Securities.

Under the financial troika of banking, insurance, and securities, there are also related subsidiaries, but the annual reports of these subsidiaries have been reported to the corresponding parent company.

Among the troika, the insurance company was the smallest in that year.

Throughout 1980, the total insurance premiums of Galaxy Insurance Company was 3.5 million Hong Kong dollars, and the profit was about 5200 million Hong Kong dollars, but the net profit was only 2300 million Hong Kong dollars.

Lin Baicheng is very dissatisfied with the scale of Galaxy Insurance Company, because most of the insurance premiums are employees of companies under Lin Baicheng's name. To put it bluntly, there isn't much market business, so how can Lin Baicheng be satisfied.

Yum Securities, the company's net profit in 1979 was 4.5 million Hong Kong dollars, and by the end of the year, the company's principal was 7 million Hong Kong dollars.

In other words, Yum Securities invested with a principal of 1980 million Hong Kong dollars in 7.

The higher the principal, the more profit can be created.Of course, if the management is poor and the investment is unfavorable, the more the principal, the more the loss will be.

In 1980, although there was no personal guidance from Lin Baicheng, with the help of the secretariat and various news from companies under Lin Baicheng's name, Yum Securities still created huge profits. The company's net profit reached 3.1 million Hong Kong dollars.

True, the net profit in 1980 was lower than it was in 1979.

But the reason why the net profit in 1979 was high was that under the guidance of Lin Baicheng, Yum Securities made a lot of money in several stock price fluctuations of Hutchison Whampoa, at least 79 million Hong Kong dollars in profit.In other words, after deducting the part guided by Lin Baicheng, the real performance of the management of Yum Securities in [-] was only a little more than [-] million Hong Kong dollars.

In this way, the 80 million Hong Kong dollars in 3.1 was an increase compared to 79, and the increase was not too low.

Lin Baicheng also knows the situation here, so he is still satisfied with Yum Securities' 80-year performance.

Counting the profits in 80, in 81, Yum Securities could use more than 10 billion Hong Kong dollars in capital, and the company's size became even larger.

Moreover, Lin Baicheng believes that the net profit of Yum Securities in 81 and 82 will be higher than last year, because the stock market crash is coming, Lin Baicheng will definitely let Yum Securities deploy in advance.If this kind of thing is not mentioned in advance, he is worried that Yum Securities will suffer a huge loss. After all, not everyone has the ability to judge the arrival of a stock market crash.

If you don’t remind me, the money that could have been earned will not be earned, but a huge loss will occur instead. It may be the difference of ten digits of Hong Kong dollars every time.

Galaxy Bank.

By the end of 79, the depositor funds of Galaxy Bank had exceeded tens of billions of Hong Kong dollars, and the net profit of Galaxy Bank in that year was 1.8 million Hong Kong dollars, but the profit of 4000 million Hong Kong dollars was the commission of profits brought by Galaxy Bank’s recommendation of depositors to buy gold. If this business is not included, the net profit of Galaxy Bank in 79 was actually less than 1.5 million Hong Kong dollars.

By the end of the 80s, the depositor funds of Galaxy Bank had exceeded 600 billion Hong Kong dollars.

At present, the depositor funds of Galaxy Bank are still divided into three parts, one is the citizens of Xiangjiang and other enterprises, the other is the enterprises under the name of Lin Baicheng, and the third is Lin Baicheng's own funds.

Among the more than 600 billion Hong Kong dollars of depositor funds, Lin Baicheng himself has nearly 150 billion Hong Kong dollars, and the enterprises under Lin Baicheng's name have contributed about 330 billion Hong Kong dollars, and the remaining 120 billion Hong Kong dollars are the Hong Kong citizens and other companies. funds.

Among the depositor funds of Xiangjiang residents and other companies, many companies have business contacts with companies under the name of Lin Baicheng, and the turnover of companies under Lin Baicheng's name is through Galaxy Bank, so these companies have to open accounts with Galaxy Bank and store part of their funds at the same time.

Among the citizens of Xiangjiang, the reason why many citizens save money in Galaxy Bank is because they are employees of enterprises under Lin Baicheng's name. The company pays wages through Galaxy Bank instead of directly giving cash. They can't open an account if they want to.

It is up to the employees to decide whether to store money in a bank or not, but for many people, it doesn’t matter which bank they store in. After all, bank interest rates are similar, and the bank with the richest man in Hong Kong seems safer at least.

In other words, the reason why Galaxy Bank can achieve its current scale is mainly due to Lin Baicheng himself.Without him, Galaxy Bank, which has only been established for about two years, would already be very good if depositors' funds can break through ten figures.

Because of the expansion of scale and business expansion, Galaxy Bank should have made money in 80, and it should have made a lot of money, but the fact is that Galaxy Bank had a huge loss of more than ten figures in 80, and the loss was as high as More than 13 billion Hong Kong dollars.

The reason why Galaxy Bank lost so much money is because Galaxy Bank continued to expand overseas in the 80s, established branches, recruited employees, etc., and its expenses exceeded the sky. The [-] million Hong Kong dollars in profits brought by the banking business were not enough for expenses at all. of.

However, Galaxy Bank's market expansion is limited, and it is impossible to continue like this forever. Therefore, it can be predicted that Galaxy Bank may turn losses into profits from next year or two.

That's right, this year Galaxy Bank will still lose money without any accidents, and the loss will not be small. The main task of Galaxy Bank this year is to expand and build a network of overseas branches.

Lin Baicheng was not surprised by the huge loss of Galaxy Bank in 1980. He had expected this, and the loss range was within his acceptable range.

(End of this chapter)