Chapter 107 Industrial Chain and VAM Agreements
PS: Heaven is back, thank you all for your patience and support. Heaven almost came home at 10 o'clock yesterday, after dealing with the things at hand, even overnight out of today's chapter, Heaven itself calculated, counting the second update that should be today, a total of three chapters owed to everyone, fortunately, it is the Mid-Autumn Festival and the National Day holiday soon, Heaven chapter chapter back, please rest assured! Today's second watch looks at the situation written by Heaven in the evening, and if it's too late, I'll make up for it tomorrow. Finally, I would like to thank the readers who rewarded the Heavenly Zongheng coins and monthly passes during the business trip: "Xiang Minger Jiang", "Limas", "Xianshui B", "Dancing Wind", "Awakening 00", "SJP1234", "Reader AK98S", thank you, thank you in o(n_n)o haha~
In a private room at a private club in Hangzhou, Chen Nian, the CEO of Vancl Eslite, and Lei Jun, the company's shareholder, are sitting together, sipping tea while waiting for the mysterious businessman who called yesterday.
"Lao Chen, do you say 800 million shirts are possible? No matter how I look at that person, it's like a liar! Lei Jun didn't sleep well yesterday, and he pondered all night before asking.
"To be honest, I also think there is a great possibility that he is a liar, but after all, it is 800 million pieces, even if there is only a one percent possibility, it is worth meeting him today!" Chen Nian didn't sleep well last night, and said with a wry smile.
"I understand that once this huge order is true, the scale and cost crisis that Vancl Eslite has been facing will be solved!" Lei Jun nodded and said.
"Knock knock~~" The door of the private room was opened, and a young man in his twenties walked in.
"Hello, may I ask who you are..."Seeing someone enter the house, Chen Nian asked first.
"My name is Wang Fan, and we talked on the phone yesterday." Wang Fan, who was dressed in straight business clothes, smiled and introduced himself.
"It turned out to be Mr. Wang, so young and promising!" Lei Jun stood up and greeted.
"Hello, you're welcome, as long as you don't think I'm too tender, and my hair hasn't grown yet, hehe!" Seeing another person greeting him, Wang Fan also calmly teased himself.
"How can you, come, please take a seat!" Chen Nian also stood up and waved his hand.
After five minutes, after the guests and hosts were seated and exchanged some polite and unnutritious words, the conversation in the private room began to get into the subject.
"Mr. Wang, what do you mean by 800 million shirts yesterday..."
"800 million shirts, a more complete statement should be three years, I want to purchase 800 million shirts, 800 million pants, 800 million polo shirts and others, so there will be about 800 million purchases every year, but there will be a little more variety." Wang Fan saw the protagonist speak and explained in detail.
"800 million shirts, 800 million pairs of pants, 800 million polo shirts in 3 years?" I didn't expect this surprise to last for 3 years of procurement, and Chen Nian was a little stunned.
"Yes, that's right!" Wang Fan replied, "Of course, I will have some additional conditions for such a huge order, and they are also the premise for us to cooperate." ”
"Strings attached? Please speak! Hearing that the other party talked about the conditions, Chen Nian couldn't help but get nervous, whether the other party is a liar or a high roller depends on this, if it is like before the agreement, it must be a liar, if it is other specific contracts, maybe it is really a huge order.
"I want to use this purchase order to invest in Vancl Eslite!" Wang Fan said his conditions word by word.
"Stake? How to buy shares, how many shares? Lei Jun, who was sitting next to him, couldn't help but ask when he heard the sensitive word share.
"36% stake in Vancl!" Wang Fan continued.
"So much?" Chen Nian was overjoyed when he heard that he was not asking for a benefit fee, and then he heard that it was a shareholding, and he felt that there was a great possibility of success in this transaction, but when he heard about the 36% shares, he couldn't help frowning, and continued: "You mean, don't invest money, just buy shares with orders!" ”
"Yes, I can bring in a large number of orders on a continuous basis, and I hope that each shareholder of Vancl can give me some shares, how about it?" Wang Fan said.
"I want to get a third of the shares without spending a penny, Your Excellency's idea of empty gloves and white wolves is good enough!" Lei Jun interjected.
"Hehe, empty gloves white wolf? I can bring 800 million orders a year, and now the ex-factory price of ordinary shirts is around 20 yuan, and you only earn one yuan per piece, and that year is also a profit of 800 million yuan, is this called empty gloves white wolf? Wang Fan heard Lei Jun's words, was not angry, and said.
"Since you want to take a stake in Vancl, then you should have also investigated the equity structure of Vancl, after three financings, venture capital funds such as Ceyuan, Softbank SAIF, Qiming Venture Capital, IDGVC and Lianchuang Ce have a large number of shares, and you want to occupy 36% of the shares, which is very difficult!" Chen Nian thought for a while and said.
"It is true that as Mr. Chen said, venture capital occupies a large amount of equity in Vancl, but! Venture capital they pursue the rate of return, the ultimate goal is to invest in the company listed cash out, now Vancl's IPO road is not smooth, they can't go this way, only rely on the company's own profits, to be honest, Vancl is still losing money most of the time, no income at all. Wang Fan did his homework before coming, and analyzed without hurrying, "I can now bring a large number of orders, create hundreds of millions of net profits every year, or even billions of net profits, whether it is the annual share of shareholder returns, or the financial data of the IPO for three consecutive years in the future, as well as the stock pricing after the listing roadshow can bring obvious effects and improvements, if the vision of venture capital is really so narrow, I think it is necessary for me to consider changing a partner, what I want to do is a long-term industrial business, And not short-sighted! ”
"But you are all talking now, without any pay, how can we believe you, after all, today is only our first meeting!" Lei Jun spoke.
"The necessary caution is a must, my idea is to sign a VAM agreement, this year is already May, then by the end of the year I bring more than 470 million orders for all kinds of clothes, after the end of the year is realized, in mid-December to carry out a share change, you together with the venture capital to give me 36% of the shares, how about it?" Wang Fan suggested.
"470 million pieces, 36%, well, what about the unit price? It's hard to measure exactly if you only count the number of pieces, and if the vast majority of orders are socks, it's a loss! Chen Nian said.
"The quantity is not less than 470 million, and the total order amount is not less than 10 billion yuan, how about it?" Wang Fan didn't care about it and replied.
Chen Nian and Lei Jun looked at each other, and after seeing the latter nodding, Chen Nian replied: "Okay, let's sign a memorandum first, and then we will be responsible for convincing the venture capital, but I have one condition!" ”
"On what terms?" Wang Fan asked.
"In the future, the management and control of Vancl, if there is no accident, you will become the largest shareholder of the company after you obtain 36%, then..."
"I have no intention of control, you should still be at the helm in the future, but in a year or two, the company will make a large profit, I will make two requests!" Wang Fan said.
"What requirements?" Lei Jun interjected.
"Salary increase, in the case of retaining the satisfaction of shareholders and a reasonable rate of return, and gradually increase the salary level of the company's ordinary employees, I hope to let all employees share the company's achievements, which I think Mr. Chen should not be a big problem, because I found that after you founded Excellence Network and sold it in 2000, there are still 80% of the old employees who founded Vancl with you, from this point of view, Vancl should be a more humane company, which is also one of the important reasons why I chose Vancl!"
"Thanks for the compliment, but what about the second request?" Chen Nian asked.
"Vancl is an asset-light network company, which has no factory, no equipment, and no stores, but only has a marketing department, a design department, a call center and a warehouse, and outsources production to other manufacturers, such as Lutai Textile and so on. But I like to master the entire industrial chain like the way of enterprise survival, and Lutai Textile is a foreign absolute holding enterprise, for this I will continue to look for the textile industry upstream and downstream enterprises to acquire, huge orders is one of the important weights to attract it, my business plan is to Vanke as the center, up and down to expand the upstream and downstream, so as to form their own textile industry chain. Wang Fan said his plans for the future for a while.
"It's a big layout, but Mr. Wang, what you mean is that Vanke participates in the upstream and downstream, so as to form an interest-related enterprise, buy raw materials from your own enterprises, make them in your own garment factory, and then sell them in Vanke." Chen Nian analyzed.
"Yes!"
"Why do you want to do this, it's going to be much more difficult to manage like this!" Lei Jun asked.
"I don't want to be stuck by others one day in the future, and as for management, in the future, we will implement integrated management software with mutual interfaces in these affiliated enterprises," Wang Fan explained.
"Stuck in the neck?" When Chen Nian heard Wang Fan's words, he couldn't help frowning.
"What if one day in the future I need 8 billion pieces of clothing, and the raw materials take the opportunity to start the price?" Wang Fan was like a demon, and he said temptingly.
"8 billion pieces? Are you kidding me? Lei Jun said in shock.
"Can you bring in an order of 8 billion pieces?" Chen Nian was really shocked at this time, he knew very well what this meant, if such a purchase volume was true, it was not impossible to become a Yanhuang textile trust.
"How to get the order is my trade secret, but then you understand, why I want to control the entire industrial chain, Mr. Chen, you can also put forward your own opinions, only need to meet a few points, the first is the company's excellent product quality, the second is good corporate goodwill, the third attaches importance to the interests of employees, rather than just taking care of their own money, I hope I also require me to do the formation of the industrial chain is humane, fully consider the interests of workers, willing to share the benefits of the enterprise with employees of the consortium."
"Ahem! Mr. Wang, to say something that maybe you don't like to hear, this kind of thinking is a bit whimsical and wishful thinking. Lei Jun said.
"Whether it's wishful thinking needs to be really tried to know, but one thing, the order is brought by me, if you want to make a fortune and don't want to follow my rules, then please leave my playground and make someone else's money, I don't stop it, but if you want to make a profit from my order, those must come according to my requirements!" Wang Fan said loudly.
"So how to solve the problem of order deposit?" He is so old that he doesn't pay attention to those things in the future, and he is most concerned about the 800 million orders now.
"After signing the memorandum of understanding and you convincing the venture capital, our lawyers on both sides will enter into an agreement, and then sign the agreement within a few days, and the first 5% deposit, about $100 million, will be credited to Vancl's account within two days." Wang Fan was not verbose and said bluntly.
"Okay!" Chen Nian saw that the other party was so cheerful, and he was not polite, so he agreed directly.
A few minutes later, Wang Fan left, and after Chen Nian and Lei Jun got up to see each other, they returned to the private room of the hall again.
"What do you think?" After entering the house and closing the door, Lei Jun asked.
"The authenticity is higher than 6 percent!" Chen Nian said, "There is no ambush for arbitrage in any way, especially the early entry of 100 million US dollars." ”
"Well, I agree, Lao Chen, maybe this is indeed our chance!" Lei Jun said in a serious tone in a low voice.
"Well, the next thing we need to do is convince the VCs, but...," Chen replied.
"What's wrong?"
"It's nothing, it's just that I suddenly thought of what Kang Zeen meant."
"Kang Zeen? Have you dealt with it before? How have I heard of it? Lei Jun didn't have any impression of himself, and asked.
"Kang Zeen, if pronounced in German, it means the chaebol of the Japanese Bandits, the consortium of the Stars and Stripes, that is, the business predator trust that controls the entire industrial chain!" Chen Nian said word by word in an aggravated tone.
ps: The next chapter will start to enter the small **, so stay tuned ^_^