Chapter 84 Where Does The Money Go (1/5)
After the New Year, Wang Ye seized the opportunity and decided to enter the cosmetics industry.
In April, investors were summoned and raising 10 billion yuan of funds to enter. A series of acquisitions, mergers and acquisitions, restructuring, and financing expansion also triggered a major earthquake in the entire cosmetics industry several times. It is the end of July, and four months have passed.
After this period of barbaric growth and crazy expansion, it has basically stabilized. Wang Ye now feels that it should slow down and sort out the company. Only with tension and relaxation can it develop healthily.
After he was idle, Wang Ye himself was curious about how much he has now. This question is quite complicated because the market value of some companies he has been changing, and the amplitude is quite large.
Sitting in the office, I thought about it carefully.
During the Chinese New Year, Wang Ye briefly topped the list of domestic rich people, but that was because Huashang International's stock price was speculated by Fang Haohua and others. As the stock price fell, Wang Ye's wealth quickly shrank.
I haven't paid attention to the stock market for a long time. First, because Meigo.com is too busy, and second, the rise and fall of the stock market have little impact on him.
Now that he was idle, Wang Ye also checked the stock price of Huashang International. He was surprised to find that the stock price had fallen sharply again!
In 2011, the stock market rose for a period of time from January to March, and the market rose from around 2,600 to 3,000 points. At that time, the most dazzling stock in the stock market was Huashang International!
It is even possible that it was under the leadership of Huashang International that directly led the market sentiment and pulled the market index up. However, since Huashang International's stock price began to fall, the entire market index has been falling. The stock market officially entered a slow bear market. From April to now, it has fallen all the way, and the market has fallen from 3,000 points to 2,500 points.
Huashang International's stock price fell from more than 300 at its highest point to around 90, and stabilized at that price for a short period of time. However, as the market continued to decline, it could not last long, and it fell to the current 45!
The market value of more than 200 million shares in Wang Ye's hands has also changed from more than 60 billion at the highest to 9 billion at the moment! In the meantime, only five months have passed...
In fact, in the past five months, the operating conditions of Huashang International Company have been rising steadily and have not changed much. But this is the domestic stock market, where the stock price is separated from the fundamentals of listed companies, and stocks are used for speculation, not for investment.
"Tsk tsk, if it weren't for Weiye Jiahua and Meigou.com, I'd become a poor man now." Wang Ye sighed at the falling stock price.
He knew that it was mid-year, and the stock market would still fall this year! Ignore it for the time being because it has little impact on him and I don’t care about it now. Let’s wait until the time is right before taking action.
...
There is nothing to say about Weiye Jiahua Group. The headquarters is just an empty shell. Because Meigou.com was stripped away, Huazhishi and Hezhong Company also became Wangye's private company. In addition to the Mingguang Technology Park property, only the subsidiary of Magic City Jiahua is left.
Moreover, most of the funds in the group's account were invested on Meigou.com in the early stage, and now there are less than 500 million yuan in the account. If the group's valuation is calculated, cash, real estate, and Magic City Jiahua shares will only cost 5 billion yuan.
This is because after the acquisition of Magic City Jiahua, sales rose sharply. In this year's bear market, the stock price has not fallen. Otherwise, the valuation would be even lower.
Wang Ye holds 70% of the shares in Weiye Group, and this part of the assets are about 3.5 billion.
...
The shares of Meigo.com are now the largest asset in Wang Ye’s hands! After the last capital increase, Wang Ye owned 425 million shares, 100 yuan per share. This is 42.5 billion! Of course, the 25 million shares will be quickly converted into his investment in the Royal Danish Fund.
This part of the assets also has the best future prospects and the greatest room for growth. Of course, now it is just a valuation, it is virtual, and does not mean real wealth.
If Meigou.com develops smoothly and is successfully listed, then this part of the assets can be successfully cashed out and become an important part of Wangye's wealth.
However, if Meigou.com does not develop smoothly, it is not uncommon for Internet companies to die suddenly. Then the assets worth 42.5 billion yuan may be gone!
Therefore, when the mainland Forbes Rich List counts Wang Ye’s wealth in September this year, this part of the assets should not be included. It is estimated that Wang Ye will still find it difficult to top the Rich List this year.
...
As for Weiye Entertainment, not only did not make much money, Wang Ye also invested a huge amount of 100 million yuan to "squander" it! This company now has 75% of its shares, so based on the market value of 1.2 billion, 75% is 900 million. Oh, after investing 1 billion, it has now become 900 million, and it has also lost 100 million...
This is the only one among all the companies invested by Wangye. Not only did he not make money, but he also caused losses. However, he was willing and did not care about this small investment.
...
What is truly worthy of Wang Ye’s attention is the company Flower Story!
Because this is his private company, he owns 100% equity, and it is the cash cow he created, which will provide him with continuous funds!
He did not intend to go public, nor would he accept any investment from anyone. At that time, several shareholders of Meigou.com did not like this small company, and in order not to be diluted, he transferred it to Wang Ye.
Looking back now, a few people actually regretted it, but there is no regret medicine in the world, and this company was created by Wang Ye alone.
Flower Story, a single-product mask was launched in early May, and it became a hit! In May, it sold 1.28 billion yuan in one month! Although sales declined in June and July, the sales reached 2.1 billion yuan in three months!
At that time, the new product was just launched, and in order to support Meigou.com, Wang Ye specially signed a temporary supply agreement that is more favorable to Meigou.com. It was supplied to Meigou.com at a 50% discount on the retail price. Of course, this cheapness has not allowed Meigou.com to take over, especially now it has launched a new hot product, the small green bottle series.
In the newly signed official supply agreement between Huazhishi and Meigou.com, the shipment discount has been raised to 30% off. That is to say, no matter how much Meigou.com sells or how big the discount promotion is, Huazhishi only collects the payment based on the supply quantity, multiplied by 70% of the retail price.
This supply discount is higher than Estee Lauder and L'Oreal! However, the other shareholders of Meigou.com have nothing to say. Because the current product of Flower Story is the most core and hottest product of Meigou.com!
Moreover, the products of Flower Story are not discounted! Even if you only get 30% of the sales, it is a huge profit. With Xu Jing's efforts, Meigou.com also obtained the exclusive agency rights of Flower Story for three years.
In the past few months, the total sales of Huazhishi masks was 2.1 billion, because it was settled in accordance with the temporary supply agreement, Huazhishishi company received 1.05 billion yuan in payment.
In addition to packaging costs, as well as purchasing film cloth, essence, packaging, and gross profit is 60%. Net profit is even basically equal to gross profit, because Flower Story does not need to bear marketing costs, and its sales are all placed on Meigou.com.
Apart from the packaging workshop and the R&D personnel of Mu Shiting, the company has no other departments...
In July, the "Little Green Bottle" series of cosmetics was launched, and it was sold again. After only two purchase restrictions, the Little Green Bottle sold 3 million bottles, which is 924 million yuan in sales! In addition, other products in the series sold about 1.5 billion yuan in a month! 750 million yuan was received from Meigou.com.
The profit of the small green bottle series is higher than that of the mask, because the price is high, the gross profit is as high as 65%, and the net profit is about 65%...
This is also a fund that Wang Ye can use at present. Of course, although Huazhishita Company is his private company, this money cannot be used casually. If you really want to use it to repay personal loans or something, you still need to go through some procedures. Wang Ye has already prepared these things.
Now there should be a huge sum of 1.12 billion yuan in the account of Huazhishi! However, if you check the account, you will find that there is no money in the company's account, only a few million in cash...
Where did this huge sum go?
The real inside story is only Wang Ye, LISA, and Pitt.
Wang Ye registered a Cayman Islands offshore company very early on, with the company name: MAKE UP FOR EVER LIMITED, the abbreviation is "MUFE LTD".
All profits of Flower Story Company were intercepted in this MUFE LTD!
Just like the agreement signed by Huazhishi Company and Meigou.com, it is actually not the two companies that directly sign the contract, and MUFE LTD also participated.
MUFE LTD directly signed a supply contract with Meigou.com. For example, if a product worth 100 yuan, the supply price is 70 yuan. Then MUFE LTD turns to the head and Huazhishi and signs a purchase contract. The same product worth 100 yuan, the purchase price is 10 yuan, which is the cost price!
In other words, the products developed and produced by Huazhishi Company are completely supplied to MUFE LTD at a cost price, and then sold by MUFE LTD at a high price to obtain all profits.
This is reasonable tax avoidance...
Anyone with a lot of heart can check it out. Many large companies have registered offshore companies in Cayman Islands.
Why do you have to do this? This is what we need to talk about the advantages of registering a company in the Cayman Islands.
1. Confidentiality - When registering the Cayman Islands, the most important advantage is that the information of directors and shareholders is not open to the public and is highly confidential. After registration, the directors and shareholders must keep a copy in the registration office. This document will never be published, so you can rest assured.
2. No taxes - except for paying a license fee to the government in January every year, there is no need to pay other taxes. Regardless of the registration date, the license fee must be paid in January every year. If the period exceeds the period, a fine will often accumulate according to the period. The so-called license fee is to conduct an annual review of the company.
Chapter completed!