Reborn Xiangjiang as a Tycoon

Chapter 287 The latest developments of the three companies

Currently in the United States, Lin Baicheng has three companies, namely New Century Software Company, Starlight Company, and Morningstar Pictures. In addition, there is also a joint venture company Zhonghe Game Company with Phil Smith and Goldman Sachs.

Excluding assets other than the company, there are also shares in Apple and Microsoft, of which Lin Baicheng is the major shareholder and director. Finally, there is gold futures investment.

It has been almost three months since Lin Baicheng left Los Angeles last time. What Isabella and Bill reported were the changes in Lin Baicheng's assets in the United States in the past three months.

It was mainly Isabella who was reporting, with Bill supplementing from time to time.

The first is New Century Software Company. When Lin Baicheng left Los Angeles, the company's office software won official orders for 30,000 units through Republican connections, and it began to cooperate with Apple to apply office software to Apple computers.

In the past three months, the office software has once again sold 50,000 units in other official states. The price is still ostensibly $199 per set, but in fact it is $149 per set.

In addition to the official market, New Century Software Company's salespeople also visited markets such as hospitals, banks, schools, etc., and sold a total of 150,000 units. Moreover, this market still has deep potential that can be tapped. However, the sales volume in these places is limited.

The price varies depending on the one-time purchase quantity. Some cost US$195 per set, some cost US$190 per set, and the lowest is only US$180 per set.

After all, $199 a set is just the retail price. If people buy a large amount at one time, they must give discounts, so the prices vary.

Then there is the amount sold through Apple Computer channels. Although it is not very large now, there are still thousands of units. With the rise of the personal computer market, it can be predicted that more and more users will buy office software.

In just a few months, the turnover of New Century Software Company has reached more than 40 million US dollars. Although the profit has to deduct the costs of software research and development, salesperson commissions, employee wages, follow-up upgrades and maintenance, etc., but even so,

The average profit can also reach about 70% of the turnover.

Moreover, as more office software is sold, the cost of software development and subsequent upgrades and maintenance will become lower and lower after being evenly amortized, which is equivalent to a disguised reduction in costs and an increase in profit ratio.

After a few months, New Century Software Company has reached its current situation, and Lin Baicheng is very satisfied. As long as it does well in the next few years, when the company goes public, it will at least be a company with a market value of more than 1 billion US dollars.

Then it was Starlight Company.

Starlight Company is engaged in distribution channels, and its main business is to open stores in cities, counties and towns with developed economies and high population density. When Lin Baicheng left Los Angeles last time, the scale of Starlight Company had expanded to more than 200 stores, and about 1,000 stores.

staff.

In this company, Lin Baicheng invested a total of 50 million US dollars in cash. In addition, he also invested the profits made by the company itself into channel expansion.

Therefore, without any shortage of money, in three months, Starlight Company has now reached nearly 400 stores and nearly 2,000 employees. If the store managers and employees of the stores had not received certain training, otherwise

The expansion rate will only be faster.

In terms of revenue, Starlight Company's monthly revenue now reaches 30 million U.S. dollars, but its profit is only 3 million U.S. dollars. After deducting employee wages, water, electricity, etc., the boss Lin Baicheng can get 150 million U.S. dollars.

Ten thousand dollars is not bad.

However, at this time, with the continuous investment of profits and the expansion of scale, if there are nearly 20 million US dollars in profits in one year, Lin Baicheng's 50 million US dollars investment can be earned back in just over two years.

It takes more than two years to pay back the capital, and then make a net profit. This return on investment is not too long. However, the premise is that everything goes well, the operation is proper, and there are no setbacks. If something happens, the time to pay back the capital will only be shortened.

elongated.

There is another thing that Lin Baicheng is concerned about at Starlight Company, and that is the sales of Rubik's cubes.

The Rubik's Cube began to be sold in March. At that time, Starlight Company had only 40 stores. In addition, the Rubik's Cube had just been put on sale, so the sales volume of the Rubik's Cube in March was only about 10,000 units, and the revenue was about 200,000 US dollars.

Later, with the promotion of Rubik's Cube and the expansion of Starlight Company's channels, by the end of October, the sales volume of Rubik's Cube has reached about 460,000. By the end of this month, the sales volume of 500,000 units planned by Lin Baicheng at the beginning should be completed.

However, the total sales volume of these 460,000 units is not $20 each. The price of the Rubik's Cube began to decrease as early as June, and now each Rubik's Cube sells for US$18.

When Christmas comes, the price of the Rubik's Cube will be reduced again, this time to 15 US dollars each. However, at this time, the price of the Rubik's Cube will be temporarily fixed and will not change in the short term. It will be adjusted based on actual conditions.

The situation will determine when to lower the price.

The turnover of the Rubik's Cube is more than 8 million U.S. dollars. Although the cost of each Rubik's Cube is only 1.2 U.S. dollars, the publicity fee, freight and other expenses are large. The current profit is only about 3 million U.S. dollars. However, as the sales of the Rubik's Cube increase,

The more money there is, the bulk of the initial publicity expenses will no longer be spent, and the proportion of profits to revenue will inevitably increase significantly.

Morningstar Pictures, this company, Lin Baicheng also invested US$50 million. Initially, Shirley Lansing was responsible for acquiring three small companies and spent US$22 million. After three months, Shirley Lansing had of course completed the internal inspection of the company.

integration.

In addition, with the remaining US$28 million, Shirley Lansing used the funds to expand distribution channels and invest in three low-budget films.

Hollywood is different from Hong Kong. Although Hollywood also has short-filming movies, the number is small, and most movies are not short in shooting time. Generally speaking, the greater the investment, the longer the shooting time.

After the film is shot, it usually cannot be released immediately. It has to be promoted and waited for theaters to schedule the film. After all, a film takes only half a year from filming to release, which is considered fast.

Therefore, although Morningstar Pictures has invested in three low-budget movies, none of them has been completed, let alone been released in theaters.

However, this does not mean that Morningstar Pictures has done nothing during this period. In addition to expanding distribution channels, the company also distributes low-cost films produced by other production companies, and also distributes overseas films.

If you only do distribution, usually the distribution company will not lose money, or the possibility of losing money is very small, because even if the film loses money at the box office, after the distribution company gets the share from the theater, it will first withhold its own distribution expenses.

The remaining fee is then returned to the production company.

Of course, if the retained box office share is not enough for the distribution expenses, then there is no way. The distribution company can only admit that it is unlucky and lose money. As for asking the production company for such a good thing, just think about it, it is impossible to succeed.

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(End of chapter)