Chapter 241 It’s the end of the year again
As the end of 2003 was approaching, Lin Ruoyan took a look at the company's revenue report and was overjoyed.
The box office of "Cell Phone" was 80 million, 30 million more than described in the original book. There were other subsequent incomes. The initial investment was only 8 million, but the box office alone increased tenfold, which was a huge profit. It was a good start for the film and television company, and it reaped a net profit of 50 million.
In addition to traditional websites, online purchase agreements (OAs), and other businesses, tech companies are seeing a surge in sales of web games overseas. By year-end, their combined annual revenue had surpassed 100 million yuan. This was after excluding revenue from engineering cost software, procurement platforms, and other sources.
The International Education Group has distributed a total of 100 million yuan in dividends, and the chess academy and physical examination center have a combined net profit of more than 20 million yuan.
The Go academy, in particular, has adopted a franchise model similar to a physical examination center. Besides its headquarters in X City District, it has also opened branches in several other districts, making it easier for children to learn Go offline. Leveraging online Go software and the fame of the National Children's Go Tournament, Lin Mengxi was among the first students enrolled in the academy. This publicity fueled the success of the academy, which flourished throughout Beijing and raked in a huge amount of tuition fees.
The furniture factory they invested in has even opened a branch, specializing in a variety of modern furniture for long-term rental apartments and hotels. They've also added home accessories, all of which are showcased in Lin's hotels. Hotel guests experience the products, immediately see the price, and place their orders. The factory then ships directly to guests, delivering and installing them on-site.
This year, with the launch of Taobao, the express delivery business has also flourished. Large items like furniture and other household items, delivered to customers for installation and commissioning, are highly appealing to consumers.
Lin Ruoyan got a share of the furniture factory's annual profit of 30 million.
This year, Hua Mengmeng's hotel division has focused on building an alliance, acquiring over 70 hotels nationwide, categorized by level and type, with both new and franchised properties. Despite this significant expansion, the majority of the investment has been offset by revenue from existing hotels. In other words, while the hotel business hasn't generated tens or even hundreds of millions of yuan in cash, true control of the alliance's 70-plus hotels rests with Lin's Real Estate.
With so many hotels, converted into fixed assets, any one of them could be sold for tens of millions or even hundreds of millions after a few years of maturity. Lin Ruoyan was very optimistic about this. She would just run the hotel business for now, and when she needed more money in a few years, she could sell a few more.
Let’s focus on the core real estate business of Lin’s Real Estate.
The Yicheng Urban Complex has already received a payment of 1 billion yuan. We originally expected that there would be goods worth 500 million yuan to be sold. There is no need to rush now. We can take it slow. The housing prices are still rising steadily. By the time we liquidate the goods next year or the year after, we will definitely receive a total payment of 1.6 billion yuan.
The above-mentioned monies that have been received have made up 1.2 billion yuan, which is equivalent to Lin Ruoyan spending 1.2 billion yuan a year and earning 1.2 billion yuan, making it even.
The key was that she had 300 to 400 million yuan sitting on her books after selling her luxury home earlier this year. Even without the 1.2 billion yuan this year, it would still be enough to keep her going for several more years. Now that she had an extra year's worth of money to keep her going, she was naturally in a good mood.
This doesn't even include other projects of the real estate company.
Lin's Real Estate Company's new project in XX New Town, Hebei Province, is also selling like hotcakes. They've released a total of 600 units in four batches, with prices gradually increasing. Thanks to the enthusiastic bidding of the wives of Wencheng, sales are booming. Even before the end of the year, and before the units are even completed, they've already sold out. The 600 million yuan in repayments will arrive by the Spring Festival of 2004 at the latest.
Seeing how profitable residential development was, Wang Min secured the next plot of land for Lin Ruoyan, and he wanted to participate in the development. Of course, Lin Ruoyan wouldn't refuse; they were willing to share in the profits. However, the ceiling for prices in Hebei Province wouldn't be too high. Her courtyard villas had potential for future appreciation, while other types of residential properties wouldn't see as rapid price increases. She was happy to join a local tycoon like Wang Min and share the risk.
Lin Ruoyan will not look at other small projects such as hotels that cannot be paid back for the time being, and will focus on the situation of the luxury castle in Shanghai.
By November, the Castle Mansion model home was fully constructed, and customers who had paid a deposit could visit. The reception was even more grand than at the Beijing Mansion. The entire project was open to a select group of customers. After viewing the model home, customers would offer their own ideas for the interior design. These ideas would be faithfully recorded and incorporated into the Castle Mansion they purchased.
The people who receive customers are not just sales staff, but also designers in charge of various disciplines and representatives of property management. In this way, the customer's opinions can be fully understood and implemented.
Of course, most distinguished customers don't come to view the model apartment themselves, but usually send a representative or a professional team. It is more convenient for professionals to communicate with each other.
This builds up to Christmas, which in the West essentially marks the end of the year. Just like Spring Festival in China, it's time to take a holiday and settle accounts, so the rich get even richer. Customers who already signed agreements to buy homes are paying in full.
Those who have paid in full can start customized decoration services according to their preferences, so that they can move into the castle they have chosen in the coming year.
Lin Ruoyan saw that the Shanghai Castle Luxury Homes project had already generated 300 million yuan in cash, and that six more households were expected to pay in full by the beginning of 2004. In other words, selling just eight units at the Shanghai Castle Luxury Homes project alone would yield 1.2 billion yuan in cash, enough to keep her going for another year.
Taking into account the 600 million yuan for the xx new city in Hebei Province, she saw in advance at the end of 2003 that she would definitely receive such a large amount of repayments in early 2004. How could she not be in a good mood?
In addition, the medical device company's beauty devices have also achieved good overseas payment collection.
Starting from Country Y, Li Yiqi has gradually expanded into the European market, taking a high-end approach from the beginning, maintaining a price point that is twice as expensive as domestic prices. The more expensive it is, the more sought after it is.
While the product wasn't particularly high-tech, it was marketed alongside traditional Chinese medicine formulas, a unique product in Europe, and well-protected by patents. That year's profit, converted to domestic currency, reached 40 million yuan. This was net profit, after deducting all production and marketing costs and taxes. Furthermore, the product was developed in the second half of the year, sold for only a few months, and orders were already booked through the year after.
The myopia treatment device hasn't been widely marketed in China, but Mr. Zheng has his second son distribute it, and it's now widely available in Southeast Asia. He uses the "leasing" model developed by the marketing department.
Once introduced, this model significantly reduced the risk for sellers, making promotion exceptionally smooth. Mr. Zheng also purchased his products as complete packages, paying not only for the equipment but also for the entire marketing strategy. Converted into domestic currency, this generated a profit of 50 million yuan for the company. However, this was just the beginning; the level of internal competition in Southeast Asia was far less pronounced than in Northeast Asia.
If the domestic market can be expanded, the market capacity of myopia treatment devices will be much larger than that in Southeast Asia.
Mr. Zheng had spent his entire life in Southeast Asia and was unfamiliar with Northeast Asia. If Lin Ruoyan wanted to expand her medical device business, she would have to find a partner or develop her own market.
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