Chapter 84: Where Does the Money Go (1/5)
Years later, Wang Ye saw the opportunity and decided to enter the cosmetics industry.
In April, it began to convene investors, raised tens of billions of funds, and a series of acquisitions, mergers and acquisitions, and financing expansions also triggered several major earthquakes in the entire cosmetics industry. It's the end of July, and four months have passed.
After this period of brutal growth and crazy expansion, it has basically stabilized. Wang Ye now feels that it is time to slow down, sort out the company, and have tension and relaxation, so as to develop more healthily.
After settling down, Wang Ye himself was curious about how much he was worth now. This question is quite complicated, because the market value of some of the companies in his hands has been changing, and the magnitude is quite large.
Sitting in the office, I thought about it.
During the Chinese New Year, Wang Ye briefly topped the list of the richest people in China, but that was because the stock price of Huashang International was speculated by Fang Haohua. As the stock price fell, Wang Ye's net worth also shrank quickly.
I haven't paid attention to the stock market for a long time, firstly, because Meigo.com is too busy, and secondly, the ups and downs of the stock market have little impact on him.
Now that he is free, Wang Ye also checked the stock price of Huashang International. He was surprised to find that the stock price had plummeted again!
In 2011, the stock market rose for a period of time from January to March, and the market rose from about 2,600 to 3,000 points.
It is even possible that it is the leadership of Huashang International stocks that directly drove the market sentiment and pulled the broader market index up. However, since Huashang International's share price began to fall, the entire broader market index has been on the decline. The stock market has officially entered the slow bear, and from April to the present, it has fallen all the way, and the broader market has fallen from 3,000 points to 2,500 points.
The share price of Huashang International, from more than 300 at the highest point, fell to about 90, and stabilized at that price for a short time. But as the market continued to decline, it didn't last long, falling to the current 45!
And the market value of the more than 200 million shares in Wang Ye's hands has also changed from more than 60 billion at the peak to 9 billion now......!
In fact, in the past five months, the business situation of Huashang International Company has been stable and rising, and there has not been much change. But this is the domestic stock market, the stock price is detached from the fundamentals of listed companies, and stocks are used for speculation, not for investment.
"Tut, if it weren't for Weiye Jiahua and Meigou.com, I would have become poor again. Wang Ye looked at the falling stock price and sighed.
He knows that this is only the middle of the year, and the stock market will have to fall this year! Ignore it for the time being, because it will not have much impact on him, and he can't take care of it now, so let's make a move when the time is right.
……
Weiye Jiahua Group has nothing to say here, the headquarters is an empty shell, because the United States shopping network has been stripped out, Flower Story and Hezhong Company have also become Wang Ye's private companies, and in addition to the property of Mingguang Science and Technology Park, there is only the subsidiary of Modu Jiahua left.
Moreover, most of the funds on the group's accounts were invested in the United States in the early stage, and now there are less than 500 million funds in the accounts. If you calculate the valuation of the group, cash plus real estate plus Modu Jiahua shares will be 5 billion.
This is still because after the acquisition of Modu Jiahua, sales rose sharply, and in this year's bear market, the stock price has not fallen. Otherwise, valuations will be even lower.
And Wang Ye, in Weiye Group, holds 70% of the shares, and this part of the assets is about 3.5 billion.
……
After the last capital increase, Wang Ye owned 425 million shares at 100 yuan per share. That's 42.5 billion! Of course, 25 million of them will soon be converted into his investment in the Royal Danish Fund.
This part of the asset is also the best future prospect and the largest upside. Of course, now it is only an estimate, it is virtual, and it is not equal to real wealth.
If Meigo.com develops smoothly and is successfully listed, then this part of the assets can be successfully realized and become an important part of Wang Ye's net worth.
However, in case the development of Meigou.com does not go well, it is not uncommon for Internet companies to die suddenly. Then this asset valued at 42.5 billion is likely to come to naught!
Therefore, when the mainland Forbes rich list counted Wang Ye's net worth in September this year, this part of the assets should not be counted. It is estimated that it will be difficult for Wang Ye to reach the top of the rich list this year.
……
As for Weiye Entertainment, not only did he not make any money, but Wang Ye had just invested a huge amount of 1 billion yuan for Meng Zimei to "squander"! He now holds 75 percent of the shares of this company, and according to the market value of 1.2 billion, 75 percent is 900 million. Oh, I invested 1 billion, and now it's 900 million, and I lost 100 million......
This is the only one of all the companies invested by Wang Ye that not only did not make money, but also incurred losses, but he was happy and didn't care about this small investment.
……
What really deserves Wang Ye's attention is the company Flower Story!
Because it's his private company, it's 100% owned, and it's the cash cow he's built that will keep him funded!
He does not plan to go public and will not accept anyone's investment. At the beginning, several shareholders of Meigo.com did not look down on this small company, so in order not to dilute the shares of Meigo.com, they transferred it to Wang Ye.
Looking back now, several people actually regret it in their hearts, but there is no regret medicine in the world, and this company can be regarded as Wang Ye doing it alone.
Flower Story, in early May, launched a single product mask, and it was an instant hit! In May, it sold 1.28 billion yuan! Although sales declined in June and July, the cumulative sales reached 2.1 billion in three months!
At the beginning, the new product had just been launched, and in order to support Meigou.com, Wang Ye specially signed a temporary supply agreement that was more beneficial to Meigo.com. Supplied to Meigou at a 5% discount of the retail price, of course, this cheapness has not been taken advantage of by Meigou.com, especially now that a new explosive model has been launched, the small green bottle series.
In the formal supply agreement signed between Flower Story and Meigou.com, the shipping discount has been raised to 7% off. That is to say, no matter how much Meigou sells, or how big a discount promotion is. Flower Story only collects payment according to the quantity supplied, multiplied by 7% of the retail price.
This supply discount is higher than that of Estee Lauder and L'Oreal! However, several other shareholders of Meigo.com have nothing to say. Because now the products of Flower Story are the core and best-selling products of Meigou.com!
Moreover, the products of Flower Story are not discounted! Even if you only take 30% of the sales, it is a big profit. Under Xu Jing's hard work, Meigou also got the exclusive agency right of Flower Story for three years.
In the past few months, the total sales of Flower Story mask was 2.1 billion, because it was settled according to the temporary supply agreement, and Flower Story Company got 1.05 billion payment.
In addition to the cost of packaging, as well as the purchase of membrane cloth, essence, and packaging, the gross profit is still 60%. The net profit is even basically equal to the gross profit, because Flower Story does not need to bear the marketing cost, and its sales are all placed on the United States.
In addition to the packaging workshop and Mu Shiting's R&D personnel, the company has no other departments......
In July, the "Little Green Bottle" series of cosmetics was launched, and the sales went crazy again, and the Little Green Bottle only made two purchase restrictions, and sold 3 million bottles, which is 924 million sales! Together with other products in the series, about 1.5 billion were sold in a month! Received 750 million yuan from the payment settled by the United States shopping network.
The profit of the small green bottle series is higher than that of the mask, because of the high pricing, 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, even though Flower Story is his private company, the money can't be used casually. If you really want to use it to repay a personal loan or something, you still need to go through some procedures. And for these things, Wang Ye has long been prepared.
Now, there should be a huge amount of 1.12 billion yuan in the account of Flower Story! However, if you check the accounts, you will find that the company has no money in its account, only a few million in cash......
Where did this huge sum go?
The real inside story is only known to Wang Ye, as well as LISA and Pete, who handle them!
WANG YE REGISTERED A CAYMAN ISLANDS OFFSHORE COMPANY VERY EARLY, THE COMPANY NAME: MAKE UP FOR EVER LIMITED, THE ABBREVIATION IS "MUFE LTD".
All the profits of the Flower Story company are intercepted in this MUFE LTD!
Just like the agreement signed between Flower Story and Meigou.com, it is not actually a direct contract between the two companies, and MUFE LTD is also involved.
MUFE LTD directly signs a supply contract with Meigou.com, for example, for a product of 100 yuan, the supply price is 70 yuan. Then MUFE LTD turns and Flower Story and then signs a purchase contract, the same 100 yuan product, the purchase price is 10 yuan, this is the cost price!
In other words, the products that have been painstakingly developed and produced by Flower Monogatari are supplied to MUFE LTD at cost price, and then sold by MUFE LTD at a high price to obtain all the profits.
This is reasonable tax avoidance......
If you are interested, you can check that many large companies have registered Cayman Islands offshore companies.
Why do you do this, this is to talk about the advantages of registering a company in the Cayman Islands.
1. Confidentiality - the main advantage of registering in the Cayman Islands is that the information of directors and shareholders is not open to the public, and the confidentiality is extremely high.
2. No tax - in addition to the payment of a license fee to the government in January every year, there is no need to pay other taxes and fees, regardless of the date of registration, the license fee must be paid in January every year, if it is overdue, it will often result in the accumulation of fines according to the period, the so-called license fee is an annual review of the company.
3. Simple management – the company does not need to provide annual returns and tax filings to the Cayman government's registry.