After rebirth, I became a great master

Chapter 180 Gathering together is a fire
If it were a month ago, Zhou Haoran would not have been so generous.

It's different now.

The bookselling business has achieved some success.

He is rich!

The first is the great success of the inventory clearance of the "Children's Encyclopedia".

The bookstore’s money has been returned.

They are all in the account of Zhongbo Bookstore.

Amazing.

A total of 18.2 sets of "Children's Encyclopedia" were sold, and the wholesale price for bookstores started low and later increased.

The average price is 62.4 yuan per set.

Total revenue of 1135 million yuan!

After deducting the 360 million yuan paid to the project's initial party and a small amount of 5 yuan in operating expenses, there is still 770 million yuan left!

According to the new regulations in 93, publications will no longer be subject to business tax, but only a 13% value-added tax.

The value-added tax is approximately (1135-360)*13%, which is approximately 100 million yuan.

After tax deduction, there is still 670 million yuan left.

Zhongbo Bookstore is located in the new district and its corporate income tax is 15%.

However, corporate income tax is different from value-added tax and there is a lot of room for maneuver.

Corporate income tax is related to net profit.

The more profit you make, the more tax you pay.

If Zhongbo Bookstore's profit is 670 million yuan, then the income tax is 100 million yuan.

However, it is not yet time to pay taxes.

If Zhongbo Bookstore continued to spend money in the second half of the year and spent all the 670 million as cost expenses, its net profit would become 0 and it would not have to pay income tax.

If 1000 million was spent in the second half of the year and Zhongbo Bookstore suffered a loss of 330 million, it would mean that the income tax paid this year would be -50 yuan.

When profits are made in the next few years, the 50 yuan will be deducted first when paying income tax, and the remaining amount will be the actual payment.

In other words, Zhongbo Bookstore now has 670 million yuan in available funds in its account.

If you want to pay less income tax, you have to spend more!
If you can spend all the 670 million yuan, you can avoid the 15% corporate income tax.

How should this money be spent?
Zhou Haoran has a lot of experience in running a business.

He had planned it long ago.

However, he couldn't express his opinion easily.

Zhongbo Bookstore is now a tripartite partnership between Zhou Haoran, Li Changxing and Jiang Xiong.

This relationship is not secure.

Friday, January 8th.

Zhongbo Bookstore holds a meeting.

All three parties were present.

Zhou Haoran and Li Changxing were both smiling, celebrating the great success of this first collaboration.

Jiang Xiong was not so happy.

Occasionally there is a smile, but it is forced.

Li Changxing said proudly, "Lao Jiang, what's wrong with you? Are you still paying attention to the TV commercials? Didn't I tell you that those two ads were suspected of copyright infringement and have been removed?"

Zhou Haoran smiled and said, "Fortunately, the stock of the Children's Encyclopedia has been almost cleared out. There are still more than 1 sets left. We can rely on the continued popularity of the advertisement to slowly ship out the products."

"Yes, it's okay even if I can't sell it." Li Changxing was rich now, so he didn't care. "If I can't sell it, I'll donate it to those Hope Primary Schools!"

"It's a pity." Jiang Xiong couldn't tell the truth, "The ad was running fine, why was it taken down?"

Li Changxing said, "The TV station has its own rules."

"Well, it's all over."

Zhou Haoran didn't give Jiang Xiong a chance to fight for it.

He knows the inside story.

The blue-covered version of the "Children's Encyclopedia" must have been secretly reprinted by Jiang Xiong with the cooperation of others, hoping to make extra money by taking advantage of the popularity of television advertising.

But unexpectedly, an accident happened!
The TV commercials were pulled.

That's terrible.

Not to mention his new blue-covered edition of "Children's Encyclopedia", the original white-covered edition of "Children's Encyclopedia" may not even be sold.

All of them are in my hands!
Jiang Xiong is really regretting it now.

I think I should have listened to Mr. Zhou and not reprinted the Children's Encyclopedia. The market was too weak and the risks too great. But his greed at the time led to a huge mistake.

Although only 2 sets were printed in this second printing, the tight time and heavy task made him invest a full 70 yuan.

Now it seems that, let alone making money, we can’t even recover the costs.

So Jiang Xiong can only place his hopes on Mr. Zhou.

Zhongbo Bookstore has a lot of money in its account, with 670 million yuan in available funds.

If he could distribute dividends, his debt gap would be filled.

"We've made so much money, so let's distribute it as dividends! 200 million first!"

Jiang Xiong pretended to be carefree and had a plan.

The 200 million was divided equally among three parties.

His personal debts were settled.

How could Zhou Haoran agree?
We must teach him a lesson, let him learn from his mistakes, and make him obedient in the future and not act on his own behind my back.

"Dividends?" Zhou Haoran shook his head. "That's not a good idea."

Li Changxing said, "Exactly. What kind of a bad idea is this dividend? The dividend tax is 20%. If we split 200 million, the tax alone would be 40. Boss Jiang, do you think you're really passionate about contributing to the country?"

Zhou Haoran stated, "The main reason we're having this meeting is because our book profits are too high, and we need to find a way to save taxes. If we distribute dividends, won't that increase the tax burden? That's unacceptable."

Li Changxing said repeatedly: "Yes, yes, no dividends!"

Zhou Haoran laughed and said, "Dividends are for spending money, right? If you're going to spend money, just put it on the Zhongbo Bookstore account and spend it. Why should you share it? Boss Jiang, you're thinking wrong!"

"Is that so? It really is, haha."

Jiang Xiong forced a smile.

Li Changxing shouted, "This success is entirely thanks to Mr. Zhou. I see Mr. Zhou doesn't have a car yet. Now that the bookstore is profitable, the first thing we should do is provide Mr. Zhou with a car!"

Although Jiang Xiong was in danger, he agreed to the proposal. "Well, I think it's okay. I think the Tiger Head Run we talked about last time is pretty good!"

"Yes, a Mercedes-Benz, what's that?... the Mercedes-Benz S600? The new one, so luxurious!" Li Changxing drives an Audi. He certainly couldn't afford to give Mr. Zhou a car any less impressive than his own. "That car costs 160 million yuan, and it's depreciated over four years, so the annual cost can be spread over 40 yuan."

Buying cars, yachts and airplanes are effective ways to save taxes.

Zhou Haoran couldn't take the benefits for nothing, so he waved his hand and said, "Let's talk about buying the car later. What I want to talk about now is the long-term cooperation between the three of us." Li Changxing smiled and said, "Of course, it must be a long-term cooperation! Lao Jiang, have you completed the tasks assigned to you by Mr. Zhou? Have you contacted the top scorer in the college entrance examination?"

Jiang Xiong nodded and said, "I've already contacted them. The bookmarks have been customized and can be printed at any time."

Zhou Haoran interrupted them and said seriously, "Next, we'll be working on supplementary teaching materials. That's the specific business. What I want to say is that the model for our three-party cooperation needs to be finalized."

Seeing that he had something to say, Li Changxing said very straightforwardly: "Mr. Zhou, if you have any plans, just tell us. We will both listen to you!"

Zhou Haoran said in a deep voice, "Zhongbo Bookstore is a partnership between the three of us, and the shares are equally divided among us. This arrangement is temporary, to help you deal with the backlog of the Children's Encyclopedia."

"Ah."

Li Changxing and Jiang Xiong looked at each other.

Everyone can see Mr. Zhou's caution.

Zhou Haoran said, "You two started the Children's Encyclopedia project from scratch, and then I took over the management. So after we made any money, we split it equally among the three of us. Now it's different. I'm the one managing the teaching supplementary books from scratch."

Jiang Xiong immediately understood, "That's true. I think the share ratio needs to be adjusted."

Li Changxing said, "Ah!" "Yes, I agree."

These days, a company's equity structure is a very mysterious area.

Not to mention small bosses like this, even many big bosses don’t understand it.

However, Zhou Haoran didn't want to play tricks.

Just a simple little trick.

Resolve some potential crises for future long-term cooperation.

For example, Jiang Xiong used his personal cultural company to reprint the "Children's Encyclopedia" behind the scenes. If this kind of thing happens frequently, it will have a great impact on the tripartite cooperation.

"No, I didn't say we should increase the shares. We are all partners, there is no hierarchy. An equal split among the three parties is best!"

Zhou Haoran laughed heartily.

But he didn't tell the truth.

Equal division of shares is a taboo.

However, in this day and age, I can't explain anything too complicated to them. Sharing everything equally can resolve a lot of psychological unfairness. We'll talk about future arrangements later.

Anyway, Zhou Haoran was getting something for nothing, so he said with a smile, "For the three-party collaboration on the Children's Encyclopedia, I'm in charge of the project, Lao Li is in charge of publishing, and Lao Jiang is in charge of the distribution. Is there anything wrong with what I said?"

"Nothing wrong!"

Li Changxing felt a little dizzy, but he trusted Mr. Zhou very much.

Jiang Xiong understood business operations better than him and nodded, "That's true."

Zhou Haoran said, "So the supplementary teaching books that follow, including the children's books, sociology books, economics books, and literature books that I plan to develop in the future... I will still be in charge of all of these. Is that okay?"

"Yes." Li Changxing patted his chest, "I'll be in charge of printing."

Jiang Xiong said: "I am responsible for the channels."

Zhou Haoran revealed the answer and frowned, "That's not quite right. Changxing Publishing House is responsible for printing, so it belongs to you, Old Li. Haihua Culture is in charge of the distribution, so it belongs to you, Old Jiang. Zhongbo Bookstore is in charge of the operation, so from a fair point of view, shouldn't it also belong to me personally?"

"Ok?"

Li Changxing was slightly stunned.

Jiang Xiong also reacted.

Seeing the serious atmosphere, Zhou Haoran smiled and said, "As brothers, we should settle accounts openly and put all our disputes on the table. This will be beneficial to our long-term cooperation."

Li Changxing said "hmm".

I feel like my brain isn't enough.

Jiang Xiong also realized it.

In the previous "Children's Encyclopedia" project, the three-party cooperation was fair.

However, the ongoing cooperation on teaching aids is not very fair.

Li Changxing's share belongs to him personally; Jiang Xiong's share belongs to him personally; Mr. Zhou's share should also belong to him personally, but now it is divided equally among the three parties.

Zhou Haoran said, "Zhongbo Bookstore is a company owned by the three of us. Normally, I could set up my own company like you did, and then manage the business under the name of this company, charging a certain service fee and copyright fee, and then put the business project under Zhongbo Bookstore."

Li Changxing slapped his thigh, finally understanding. "Right! I've always felt something was wrong. Mr. Zhou is absolutely right! You're really at a disadvantage with this current cooperation model!"

Jiang Xiong nodded slightly.

"What's the point of losing out..." Zhou Haoran seemed unconcerned. "However, I didn't do that because I believe that since it's a three-party collaboration, we must be sincere. I didn't set up a separate company to manage the teaching supplementary books project. Instead, I put the project directly under Zhongbo Bookstore, just to take the lead."

"take the lead?"

"If the three of us each had our own company and collaborated under the company name, it would be too complicated. However, if we merged our three parties on a project like the Children's Encyclopedia, it would be like joining forces and working together."

"You mean..."

Li Changxing opened his eyes wide; he understood what Mr. Zhou meant.

Zhou Haoran said in a deep voice, "If the three of us fight on our own, we will definitely all be fussing over our own interests. This will not only increase communication and operating costs, but we may also do things that seriously undermine unity and cooperation due to personal selfishness."

Jiang Xiong's heart skipped a beat.

It felt like these words were a knife stabbing into my chest.

The tragedy of his secret reprinting was caused by this factor!

Mr. Zhou was right about everything!
"Scattered, they're a sky full of stars; gathered, they're a ball of fire." Zhou Haoran's eyes burned, his tone heavy. "Market competition is so fierce these days, countless companies go bankrupt every day. You all have experience with this; you've all nearly gone bankrupt before."

Li Changxing took a deep breath and said, "Mr. Zhou means that we should merge."

Zhou Haoran said firmly, "Fighting alone, with dispersed strength, it's easy for the market to break through one by one. Only by merging the three parties can we truly pool our resources and demonstrate strong competitiveness in the market! Old Jiang, what do you think?"

Jiang Xiong is feeling guilty now, "Yeah, I think so too."

Zhou Haoran said calmly, "If Zhongbo Bookstore wants to continue, it must abandon distractions and establish a true tripartite partnership, rather than everyone clinging to their own territory. I've already set an example by placing the teaching supplementary book project within Zhongbo Bookstore. I propose that we truly transform Zhongbo Bookstore into a large group company!"

The word "group company" is so big that it makes people feel a little breathless.

Li Changxing understood what he meant and said in a daze, "Merge Changxing Publishing House and Haihua Culture into Zhongbo Bookstore, and truly turn it into a large group company!"

Zhou Haoran smiled, "That's what I mean, what do you think?"

"This……"

Li Changxing was a little embarrassed.

Feeling at a disadvantage.

This is again the limitation of the times.

Nowadays, people have a superficial understanding of the market and attach great importance to fixed assets, so the actual land, factories and equipment of publishing houses seem to be very valuable.

But in fact, Jiang Xiong’s channel relationships and personal connections, these intangible assets are far more valuable than Li Changxing’s fixed assets!
If there is no Li Changxing in the book publishing business, you can find other printing houses.

If there were no Jiang Xiong...

Zhou Haoran would decisively give up this line of work, and after completing the "Children's Encyclopedia" project, he would go his separate ways.

It depends on whether Li Changxing can agree.

(End of this chapter)