Chapter 597: 2 billion, 80% equity? He's too greedy! The total investment must be no less than 20 billion!
Because of Jin Junhua, Chen Yansen is very familiar with the development history of Royalstar Sanyo Electric.
As the name suggests, this is a Sino-foreign joint venture home appliance company, and its initial shareholders are Royalstar and Sanyo.
Essentially, it is a licensing company.
As early as six years ago, Royalstar transferred all of its 33.6% equity and trademark ownership of Royalstar Sanyo Electric to Luzhou State-owned Assets, and subsequently cancelled the company.
Simply put, Royalstar Sanyo Electric obtained the right to use the trademark from Luzhou State-owned Assets, which can be used in the production of products such as washing machines, water heaters and induction cookers.
Royalstar Small Appliances, controlled by Jin Junhua, is also an authorized enterprise.
Luzhou State-owned Assets sold the right to use Royalstar’s products to different companies according to product categories.
This forms a private label model of "authorization at all levels downward and payment at all levels upward."
When a brand starts selling labels, it is basically rotten to the core. It is no different from a prostitute, who can be used by anyone for money.
Coupled with the relentless pressure from competitors such as Haier, Midea, and Rongsheng, Royalstar Sanyo Electric's market share has been continuously squeezed, and Sanyo's defeat is understandable.
After all, in the eyes of users, the quality of Royalstar's small household appliances directly represents the quality of Royalstar's core products such as refrigerators and washing machines.
Chen Yansen quickly went over the details in his mind and then said, "I don't want brand authorization. I just want Royalstar's R&D center and production base in the High-tech Zone. By the way, what's Tao Jingwen's offer?"
"The total assets are quoted at 6 billion yuan, and Luzhou Central is willing to mediate and offer a 51% equity ratio."
Gao Weilin replied quickly.
"3 billion? Just to buy a second-rate appliance factory, without even owning the brand?"
Chen Yansen sneered.
In his opinion, Luzhou State-owned Assets’ calculations were too shrewd.
Just by giving away some worthless shares, they want Senlian Capital to work for free and make money for them. They are totally insincere!
If he were to move to another city and invest 3 billion yuan, would he still be unable to set up a production line for refrigerators, washing machines, and other large appliances?
"Boss, what are your psychological expectations?" Gao Weilin asked quickly.
"2 billion, 80% equity, no more than 2.2 billion."
Chen Yansen thought for a moment and said.
"Okay, boss, I understand." Gao Weilin immediately understood.
He knew that if the boss was willing to quote a price, it meant that he was interested in Royalstar Sanyo, and the only difference was the price.
In fact, as early as after the Orange E1 electric fan and Orange AC smart air conditioner achieved impressive sales, Chen Yansen had the idea of expanding the boundaries of his business and planned to continue to focus on the fields of large and small home appliances.
After a thorough investigation, the Strategic Investment Department listed Royalstar Sanyo at the top of the acquisition list.
Firstly, it has an annual production capacity of 4 million washing machines, 1.2 million refrigerators, 5 million microwave ovens and 10 million variable frequency motors;
Secondly, it has a large R&D center and masters the core technology of variable frequency motors;
Finally, it has a production plant of more than 300,000 square meters in Luzhou High-tech Zone and more than 4,000 employees.
Although the brand power is declining year by year, Royalstar Sanyo's manufacturing capabilities and channel network are very mature, thus avoiding the high cost investment and long research and development cycle of "starting from scratch".
Chen Yansen is not short of money, he is short of time.
The other side.
Tao Jingwen soon received a reply from Gao Weilin.
Don’t want brand authorization?
Tao Jingwen was slightly stunned.
But he changed his mind and immediately understood Chen Yansen's idea.
Royalstar, Sanyo and Deliveroo do have a certain degree of fame, but they also have a lot of negative news.
For Chen Yansen, it is better to use the "Orange" brand instead of spending money to buy a label and raising a child for others.
Just like last year, after Senlian Capital acquired Xinke Air Conditioning, it decisively abandoned the old brand and replaced it with the "orange" logo.
In just one year, the air-conditioning factory that was on the verge of bankruptcy was revived, and its sales soared to the middle level of the industry.
He immediately picked up the phone and dialed the mobile number of the person in charge of Luzhou State-owned Assets: "Mr. Zhang, there's a reply from Senlian Capital. They clearly stated that they don't need brand authorization, they only want the R&D center, production base, and corresponding equity."
"Secretary Tao, what is Senlian Capital's offer?"
Zhang Weihao asked.
"2 billion, 80% equity." Tao Jingwen replied.
Zhang Weihao was silent for a long time after listening to this before he spoke: "2 billion for 80% of the equity, that's too low a price. We've done an asset appraisal for Royalstar Sanyo, and the 300,000 square meters of production plant and dozens of production lines alone are worth almost 2.5 billion."
Tao Jingwen sighed softly and patiently persuaded him, "Senlian Capital doesn't want brand licensing. Mr. Zhang can just sell the trademark rights for the refrigerator and washing machine categories to someone else.
Furthermore, the more Sunlink Capital wants, the higher its future investment in home appliances will be. Take Shinco Air Conditioning, for example. Previously, it only sold 600,000 units a year, but now it has sold 1.5 million units in just two months, a nearly 20-fold increase in revenue.
What this means is that the shareholding ratio is not important, value is the key.
"But Whirlpool of the Lighthouse Country is willing to pay 2.5 billion, and only wants a 51% controlling stake. Chen Yansen is too greedy."
Zhang Weihao cursed indignantly.
"Mr. Zhang, you should weigh the pros and cons yourself. Anyway, Mr. Meng is more inclined to transfer Royalstar Sanyo to Senlian Capital."
Tao Jingwen reminded in a calm tone.
Tao Jingwen's words were like a bucket of cold water poured on the angry Zhang Weihao's head.
He had to consider Mr. Meng's attitude.
"Whirlpool is an international brand. They have pledged to invest an additional 1 billion yuan in upgrading and renovating their production lines and in research and development. This has extremely high strategic value for the overall development of Luzhou's home appliance industry."
Zhang Weihao frowned, his voice filled with resentment.
"Mr. Zhang, you need to have a broad perspective."
Tao Jingwen said something meaningful.
"Secretary Tao, I believe in Chen Yansen's business operations capabilities, but I'm afraid Sanyo won't agree."
Zhang Weihao said with an embarrassed look on his face.
"Don't agree? Then wait and let the meat rot in the pot."
Tao Jingwen squinted her eyes and said with a smile.
He is aware of the latest developments of Sunlink Capital and is planning to advance its layout in the home appliance industry by acquiring or expanding the business lines of Orange Air Conditioning Headquarters.
Based on his understanding of Chen Yansen, if Royalstar Sanyo was sold to Senlian Capital, it would not only properly solve the workers' resettlement problem, but also allow Luzhou to add a new Internet home appliance company.
If we miss this opportunity, wouldn’t it be equivalent to pushing Senlian Capital out?
Tao Jingwen spoke with Zhang Weihao for more than ten minutes. After hanging up the phone, she immediately went to find her boss to synchronize relevant information and make a work report.
…
…
After breakfast, Chen Yansen took a car to Changtai Plaza.
Among the first batch of Orange Supermarkets that opened, this store is the largest, covering an area of 12,000 square meters. In comparison, the one owned by ASE is only 4,000 square meters.
The other six community supermarkets mostly have business areas ranging from 200 to 600 square meters.
In terms of product positioning, Orange Supermarket is only at the mid-to-low-end level, and has currently finalized purchasing intentions with local agricultural, fruit, and aquatic product associations.
It is worth mentioning that these supplier resources did not come out of thin air, but are the results of long-term accumulation by Kuapao and Pinbei through agricultural assistance channels.
For example, 300 grams of green vegetables cost 1.9 yuan, 1500 grams of cucumbers cost 6.9 yuan, 300 grams of sea bass cost 9.9 yuan, and 500 grams of beef leg cost 24.9 yuan. If other supermarkets of the same size sell these products at these prices, they would be lucky if they don’t make a profit, let alone a loss.
And Orange Supermarket can still make money!
The reason is very simple. The supply chains of Orange Supermarket, Kuaipao Canteen and Kuaipao Grocery are shared.
The combination of the three has brought about a huge volume and high consumption, making the overall procurement scale no less than that of well-known chain supermarkets such as CR Vanguard, RT-Mart and Walmart.
The greater the volume, the greater the bargaining power!
Not long after, the car drove into the underground parking lot of Changtai Plaza.
Chen Yansen stepped out of the car and walked straight towards the Orange Supermarket.
Meng Yun, Guo Shenyi and security personnel followed closely behind.
at the same time.
Byron and Hou Yi had already been waiting at the supermarket entrance.
Byron is a Chinese national. He resigned from the position of vice president of Walmart's Greater China region, not for the position of head of just eight Orange supermarkets.
Chen Yansen promised him that once the business model was successful, 1,000 stores would be opened across the country within three years and 3,000 stores worldwide within five years, with a total investment of no less than 20 billion.
If an ordinary person said this, Byron would not believe it at all.
But he didn't know why, after only meeting Chen Yansen once in Xucheng and chatting for half an hour, he agreed with the business philosophy of Orange Supermarket.
Afterwards, he recalled the interview process and could only attribute this inexplicable feeling to the personal charm of the world's richest man and business genius.
Of course, the annual salary of 3 million, generous option bonuses, as well as supplementary commercial insurance, pension plans, vehicle allowances, children's education subsidies, etc., are the most critical factors that impressed him with Chen Yansen.
Hou Yi was wearing a royal blue suit, with his hands folded together, looking towards the elevator entrance from time to time.
With a 'ding' sound, the elevator door slowly opened.
Hou Yi nudged his direct superior with his arm, and the two of them quickly stepped forward and took the initiative to greet him.
"Boss!"
"boss!"
Chen Yansen nodded, stopped, and his eyes fell on the orange sign not far away.
Orange Supermarket!
It is simple and easy to remember, and you can tell it is an affordable supermarket as soon as you hear it.
High-end supermarkets must be developed, but not now.
As can be seen from the soaring transaction volume of Pinbei, the middle and low-income groups still occupy the mainstream, and the sinking market can provide more jobs.
"Have Orange Supermarket's stores opened?" Chen Yansen asked Byron as he walked.
"Boss, both the takeaway and group-buying channels are now open. So far, we've sold 1.27 million worth of group-buying merchandise, mainly fruits, fresh produce, and daily necessities."
Byron replied.
"1.27 million? Remember to stagger the verification periods, otherwise when we open tomorrow, the 20 automated checkout counters will be overwhelmed."
Chen Yansen warned.
"Don't worry, boss. The operations department and Kuaipao colleagues have checked it and calculated the verification rate based on the efficiency of the automatic checkout counters."
Byron explained.
Orange Supermarket has self-service checkout counters as well as manual checkout counters.
As they spoke, several people walked into the supermarket.
As soon as you enter the door, you will see neatly arranged goods on the shelves with clear price tags and QR codes next to them. You can scan the codes to check prices and product information.
Shop assistants in orange uniforms were busy restocking goods, while cleaning staff were sweeping the floor and wiping shelves and countertops.
"Boss, this is the sales area. The fresh produce area is 2,600 square meters, including a 300-square-meter cooking and dining area. The main products are fruits and vegetables, seafood, meat, prepared food, bread, and frozen foods."
Byron has a high level of Chinese proficiency and was responsible for introducing the event.
"The food and dry goods area is 3,000 square meters, covering grains, oils, condiments, snacks, beverages, instant drinks, canned food and other commodities."
"The non-food area on the left covers 3,600 square meters. The core categories are home furnishings, kitchen supplies, cleaning supplies, stationery, toys, small appliances, cosmetics and personal care products."
Byron said methodically.
Chen Yansen walked around and greeted the employees of Orange Supermarket one by one.
"There are 213 people in the sales area and 94 people in the back office, storage area and office area."
Byron continued.
Chen Yansen looked at the cooking table and dining area, his eyes sweeping over the surrounding tables and chairs and the cleanliness, and then he gave an order: "The frequency of cleaning in the dining area must keep up. Inspections must be conducted at least once every ten minutes. Tableware recycling and tabletop wiping cannot be done after customers have left for a long time. Customers must have a clean environment as soon as they sit down.
User satisfaction in the cooking area must be included in the assessment. If you are not careful once, you will be warned; twice, your performance will be deducted; three times, you will be fired.
In addition, there are rewards for every punishment, and extra bonuses will be given for good performance.”
Byron immediately responded, "Okay, boss. I'll have the kitchen manager formulate a reward and punishment system, and then arrange for someone to inspect the dining area to ensure it meets your requirements."
When Chen Yansen reached the entrance to the warehouse area, he looked through the glass door and saw the staff sorting goods by category. He asked, "How efficient is the sorting in the warehouse area? How long does it take for goods to arrive in the store and be put on the shelves for sale?"
"Boss, we use the 'area-based sorting' model. When goods arrive at the store, they are first divided into three categories: fresh produce, food, and non-food. They are then assigned to shelves in different areas. Under normal circumstances, sorting and shelving can be completed within two hours.
If a large batch of goods arrives, we will assign additional staff to ensure that the goods that arrive that day are put on the shelves on the same day."
Hou Yi is in charge of this area. After hearing the boss's question, he immediately responded.
At the same time, Xu Botao, who was busy picking goods, heard the noise outside the door. He glanced and suddenly saw a very familiar face.
Chen Yansen!
Brother Sen!
"Dawei! It's Brother Sen!" Xu Botao shouted.
Yang Dawei turned his head and saw that it was indeed Chen Yansen.
The two men looked excited and waved their hands boldly.
Chen Yansen smiled slightly and nodded to the two of them through the glass.
An hour later, he left Changtai Plaza and rushed to Xingchuang Technology Park on Guanglan Road.
…
…
"Sister Liang, you're here! I have good news for you. The company has allowed us to set aside a children's rest area in the dining area. You can just leave Yuting in the cafeteria from now on."
Li Annan said with a smile when he saw Liang Yue.
Liang Yue held her daughter's hand and froze in place. Her heart warmed as she silently said, "It must be because Boss Chen saw the news!"
(End of this chapter)
Continue read on readnovelmtl.com
