Reborn in Hong Kong as a Tycoon

Chapter 832 1980 Annual Report ([-])

New Century Software was listed on Nasdaq at the end of October 80.

In 1979, New Century Software had revenue of $2.05 million, profit of $1.12 million, and net income of $6100 million.

The net profit of 6100 million US dollars is just to make the financial report look good. In fact, part of the funds needed for research and development in 79 were allocated in 80, so that there is such a high net profit.

In the same way, the New Century Software Company, which just went public at the end of October 80, put some R&D investment in 80 into 81 for a good financial report, so that the financial report for 80 will be much better.

For the sake of a good-looking annual report, it is better to delay year after year without any accidents. Once the revenue and profit of a year are not satisfactory, then the annual report of that year will inevitably be greatly negatively affected, which will explode.

There is a problem with doing this, and both Lin Baicheng and the senior management of New Century Software know it, but last year they did it because the company had just raised funds, and this year it was because the company just went public, and for the benefit of shareholders and the company, they had to do it.

In the 1980 annual report, both revenue and profit increased.Among them, the revenue was 3.82 million US dollars, an increase of about 86.34%; the profit was 1.83 million US dollars, an increase of 63.4%, but the profit margin decreased; the net profit was 1.05 million US dollars, an increase of 72.13%, but the net profit margin also decreased.

It can be seen from the annual report that the company's revenue and profit have increased, and the growth rate is not low. It is in an incremental market, but the profit margin has decreased, which is unavoidable.

In any case, New Century Software is still very profitable.

At the same time, there is still a large amount of funds lying in the company's account.Not to mention making money for the company itself, when it went public at the end of October, it even raised 2.4 million US dollars. This is not a small amount, enough for the company to earn for two years.

Isabella and other executives of New Century Software held a board meeting to prepare for the establishment of a new headquarters for the company. Shareholders including Lin Baicheng had no objection to this.

The headquarters is the facade of an enterprise, and it is still very important.

In addition to establishing the headquarters, the rest of the company's funds are invested in research and development.The upgrade of office software, the research and development of database, etc. all need money and recruit people.

Then came Starlight.

In 1979, the company's revenue exceeded 5 million US dollars, and its operating profit was 4000 million US dollars. However, because the company's channels were still expanding aggressively this year, it even borrowed a total of 5000 million US dollars from the bank. Balanced.

But in order to make the annual report look good, the 79 report shows that the company's net profit in 79 was 2000 million US dollars.

The 80-year financial report made this year is also two.One is the real annual report for Lin Baicheng, the boss, and the other is a fake annual report that is displayed to the outside world.

Real annual report: The company’s revenue was US$7.2 million and its operating profit was US$9580 million. Because of the lack of channel expansion expenses, this year’s net profit was much higher at US$5770 million.

However, since the 79 annual report had an extra net profit of 2000 million U.S. dollars, in order to smooth out the 2000 million U.S. dollars, the false annual report released to the public was naturally not like this.

In the annual report released to the public, the revenue and profit are the same, but the difference is that the net profit is 1000 million US dollars less, only 4770 million US dollars.

In this way, there is still 1000 million US dollars that have not been wiped out, and this 1000 million US dollars will be wiped out in the net profit in 81.

As long as Starlight Company made money in 81 and made more money than it did in 80, the $1000 million will be wiped out.Divided into two years and smoothed out in this way, the annual report as a whole will look very good. Once the company has financing or goes public, it will be of great benefit to the company.

In Lin Baicheng's heart, he is not going to let Xingguang Company go public, but no one can guarantee the future.Therefore, there is no harm in making the annual report look better, which is why he agrees with the management of Starlight Company to do so.

After Starlight Company, it was Morningstar Films.

In 79, without counting the profit of "Home Alone", the company's revenue was 7500 million U.S. dollars and its profit was 1200 million U.S. dollars.

In 80, the annual report of Morningstar Films also failed to calculate the profit brought by "Home Alone 2" to the company, because the film was released on Christmas, and it was only halfway through the film's release on the last day of 80. It's only about a month, and the theater will not transfer the money to the production company before then, and the box office share will not be settled until at least one month after the film's premiere.

This is different from Xiangjiang and the Chinese mainland market decades later.

In Xiangjiang or mainland China, the movies released usually only have a one-month screening time, and only a few movies may get the extension key and can be screened for two months.

But on the US side, most of the hot movies can be released for more than three months.It's just that, one month later, the movies are usually released in remote areas, and a few scattered movie theaters are showing movies, reaping a small amount of box office.

Taking the first part of "Home Alone" as an example, this film was actually released from North America half a year after its release, but three months after its release, the box office share ratio that the producer got was extremely pitiful, which had a negative impact on the overall business. Profits are not affected much.That is to say, playing for a long time can increase the influence of the film, help the development and sales of peripherals, and the box office of the sequel.

In 1980, Morningstar nearly doubled its revenue of $1.46 million.

The revenue did not double, mainly because the first part of "Home Alone" was invested by Lin Baicheng alone, and Morningstar Pictures only charged 10% of the distribution fee, so the revenue accounted for was only more than 4000 million US dollars. Net profit is even less.

Revenue nearly doubled, but net income was disappointing at $1560 million.

When the distribution commission of "Home Alone" in 79 was included in the financial report in 80, the net profit did not increase much, mainly because the company cast "Home Alone 80" and "Home Alone 2" in 3, totaling 4000 million Of the investment in US dollars, Morningstar Films and Lin Baicheng personally contributed half of the funds, and the profits of both parties were shared equally.

2000 million U.S. dollars was invested in the two follow-up films of "Home Alone", plus the publicity and distribution costs paid on behalf of the film after its release, the second film was released and the profit cannot be counted in 80 years, so the profit in 80 years is naturally not high .

However, the biggest achievement of Morningstar Pictures in the 80s should be the rapid development of its subsidiary Blockbuster.

Blockbuster was established in Los Angeles in July 79 with an initial investment of only US$7 million.

In April 80, Lin Baicheng paid for the financing for Blockbuster himself. At that time, Blockbuster was valued at 4 million U.S. dollars after financing.

In July of the same year, Blockbuster raised funds again. At that time, it gave up 7% of its shares at a valuation of 6200 million US dollars, and Blockbuster received 20 million US dollars in development funds.

After this financing, Morningstar Pictures only held 55.5% of Blockbuster, Lin Baicheng personally held 19.5% in the name of an offshore company, Buffett led the investment holding 10%, Citigroup and Goldman Sachs each held 5% shares.

The remaining 5% of the shares are used as an option award for the management, and part of it has been awarded so far. Only a few people headed by manager Errol Kilman have received option awards.

In the final analysis, Blockbuster has developed very fast, but it took only one year from the establishment of the company to the two financings. It is impossible to give stock option rewards for some achievements, so that the company will develop to a higher level in the future. , There is no option for recruiting talents to reward.

Throughout 1980, Blockbuster’s revenue was US$4800 million and its operating profit was US$740 million, but its net profit was negative. The company was in the red, which was related to Blockbuster’s aggressive expansion.

Blockbuster sells and rents video tapes and needs to build its own stores. The company has not really developed, so there are not many franchisees, and most of the current stores are self-operated.

For self-operated stores, in every city that has expanded, there must be a store that is purchased by itself and has a larger storefront. Not a lot.After all, even if it is a rented store, the lease contract must be a long-term contract.

The purchase and leasing of stores, the recruitment of employees, the promotion of corporate brands, etc., these expenses are very large, so the company can't make much money at all.

But even so, Blockbuster is still a good company, so most of the stores it operates are profitable, and its business model has been certified by the market, as long as there are no problems with the management and no strong competition For the opponent, when it expands to a certain scale, its expenditure is no longer greater than its profit, and that is the beginning of its profit.

And this time, according to Blockbuster's internal assessment and Citigroup, Goldman Sachs, etc., will not exceed two years.

For Blockbuster, Lin Baicheng does not pay much attention to it, but he will not ignore it, but regards it as a supplement to Morningstar Pictures.Morningstar Pictures must be the major shareholder of Blockbuster, but he doesn't have to keep his personal shares forever. After Blockbuster goes public, he can completely sell his shares at any time.

After reading the annual reports of Morningstar Films and Blockbuster, seeing that the time was about the same, Lin Baicheng went home from get off work.

In the afternoon, Lin Baicheng came to the company to continue reading the annual report, trying to finish it today.

Before Marvel Comics was acquired by Lin Baicheng, its annual profit was about 600 million U.S. dollars, and its profit in 79 was nearly [-] million U.S. dollars.

In 80, because the channel of Marvel Comics was basically established in 79, 80 years was a year of harvest for the company. The net profit exceeded 1450 million US dollars, reaching [-] million US dollars. The profit growth brought about by the expansion of the channel The rate is still relatively high.

However, although Marvel Comics earned more than 80 million US dollars in 1000s, the company was in debt of 4000 million US dollars a year ago, so all the profits earned were used to repay the interest and debt principal, and there are still about 3000 million US dollars left. The debt was not paid off.

In the next two years, if the company's revenue and profits can be stabilized, all profits will still be used to repay debts until the debt ratio remains low.

Golden Fleece Company, in March 80, the company's total assets exceeded 3 billion US dollars.

In 80, the net profit of the Golden Fleece Company was US$1.08 million. By the end of the year, its total assets had reached US$12.6 billion.

The net profit of the Golden Fleece Company is not high. After deducting the commission of the team executives and others, it is only about 10% of the net profit.

Without Lin Baicheng's guidance, the profitability of Golden Fleece Company is actually quite normal.After all, not all of the company's investment managers are big names in the industry. If they were really that powerful, they would not work for Lin Baicheng, but went out to start their own businesses.

Of course, the revenue and profit of the Golden Fleece Company did not include the futures investment led by Lin Baicheng. Lin Baicheng had already paid the commission that should be given to the company's management. This type of operation has nothing to do with the company itself.

Lin Baicheng does not have high requirements for the investment managers of the Golden Fleece Company. Without his intervention, it is enough to maintain a stable growth rate of 10% every year, at least outperforming the inflation rate.

of the remaining companies.

Sun Electronics Communication Company [, this company has nothing to say, the acquired technology is still being digested, and the team is currently developing mobile phone technology, researching and developing how to make mobile phones commercially available, and the revenue is zero.

Galaxy Semiconductor and Venus TV are subsidiaries of Galaxy Semiconductor and Venus Electric. The annual report has been compiled to the head office. Lin Baicheng has already read the annual report.

Pioneer Technology Venture Capital Company, Lin Baicheng has nothing to do with this company on the surface, and its scale is not large, and the funds are mainly used to invest in some companies that Lin Baicheng is optimistic about.

Microsoft, a small company that fell into the hands of Lin Baicheng, basically has nothing to do with him now. The company is engaged in the research and development of computer software tools, and Lin Baicheng is satisfied with its self-sufficiency.

Shiwei Software Company, a joint venture between Microsoft Corporation and New Century Software Corporation, develops computer operating systems, but Bill Gates' Blue Software Company has successfully eaten a large part of the market relying on IBM, and Apple's computers have With its own operating system, the company was basically no match for Blue Software until other PC companies developed.

In the Statue of Liberty Broadcasting Company, Lin Baicheng is only a shareholder of the company. Although he is still the majority shareholder, he will give up his power sooner or later, and the company has always been controlled by Barry Diller.The company has just acquired a TV station not long ago, and has just completed the integration. It is still uncertain how it will develop, and it may be clear in 81.

In Zhonghe Game Company, Lin Baicheng is also just a shareholder, and he has given up control. In his eyes, this company is just like Apple, and he is just an investor.

As long as he needs to, he may sell the shares in his hand at any time.

"Now there are only two annual reports left."

Lin Baicheng muttered to himself, the two annual reports he was talking about were naturally the huge investment led by Haruko Mori and Lin Shufang.

Lin Baicheng each gave the two women billions of dollars in investment, and those investments have started since the 80s.Some companies are acquisitions, while others are just shares.

But no matter what it is, even if only part of the funds are used, the two women must give Lin Baicheng a detailed annual report so that he can know what is going on so far.

However, this annual report has not yet been completed because it involves many companies and for the sake of confidentiality.And after finishing, it will not be handed over to Lin Baicheng through the secretariat, but the two of them will hand it over to Lin Baicheng himself.

(End of this chapter)