this man is not calm

Chapter 401 Capital Market
Computers more than 20 years ago were as big as a room. The domestic translation of it as "electronic computer" is quite accurate. It is a high-tech equipment, a machine used for production.

Today's electronic computers are gradually beginning to show signs of becoming household appliances, essential for daily life and entertainment, and entering thousands of households.

The change from electronic computers to computers is the change in the general public's perception of it.

Twenty years later, most of the common functions of consumer electronics that people are familiar with can be realized with the technology of 1997. The only difference is the price. To achieve the level of a low-end smartphone that will cost around 1,000 yuan in the future, you may not be able to get one even at a cost of 100,000 yuan now.

Remote conferencing equipment is very popular among major companies today. It costs at least hundreds of thousands to install a set. In another five years, when instant messaging technology matures and Internet speeds meet standards, no one will use it even if it is sold at a bargain price.

The electronic equipment market is so cruel and ever-changing that no one can grasp it accurately.

For example, among the major voice communication companies that are still enjoying the last glory of their paging business, it would be good if only 10% of them can survive in two years.

This communication device developed by Jin Shang, a first-generation product called the Mercury Tablet, never had the chance to meet the general public and disappeared without a trace before it made any splash.

From project initiation to finished product production, a total of nearly 20 million yuan was spent, and the manufacture of 3,000 devices cost another 130 million yuan. In other words, with a total investment of nearly 150 million yuan, only the result of a "beneficial attempt" was achieved, and nothing else.

This was the first time that he had encountered such a big setback since he started his business. The magnitude of the loss was a bit surprising to Jin Shang.

From the very beginning, Jin Shang didn’t think this thing would succeed, and he approved it with the idea of ​​letting the development team “practice”.

In new product development, it is normal that nine out of ten projects fail, especially for new consumer electronic products that have never been seen before. Don’t be fooled by their coolness in front of others, because who knows how many cannon fodders are behind them. You can’t just see people eating meat without seeing them getting beaten!
When hearing how much money Jin Shang had lost on this tablet project, not only was Mei Xinghong surprised, but even Jin Shi, who was listening quietly at the side, was shocked.

"You...you've lost all the money I've earned in my first half of my life. Starting a business is really scary!"

"It doesn't matter. I knew I couldn't make any money. It's just so miserable. It's a little beyond my expectations."

Responding calmly, Jin Shang said nonchalantly,

"As far as product design is concerned, at least it achieved the functions I needed, but it was not very easy to use and had no economic value. It was indeed a commercial failure, but for R&D, it was actually okay..."

Scientific research is a high-investment, high-risk, and high-return undertaking. A hole of 150 million yuan is still within the company's tolerance.

"That's right. You've donated more than this amount of money in the past two years. You've donated to build thirteen primary schools, four middle schools in western Sichuan, eleven kindergartens and childcare institutions, seven primary schools, two junior high schools, and a comprehensive private high school in Gyeonggi. All in all, it's more than three hundred million."

This is the actual money spent, the materials donated, the services provided, the momentum and initiatives created for charity. When converted, it will not be less than this number.

"If we could find enough teachers, we might have donated more. We don't know how to spend the money we earn."

There is no rush for a private jet or something like that, but I have customized a yacht, which has not been delivered yet. After New Year's Day, I will go out and play with Mei Wenhui and relax for a while. I am somewhat interested in this.

Apart from this, Jin Shang’s personal spending is actually not much. He will only go on vacation to Southeast Asia with his cousin at the end of next month.

I don’t even have a strong desire to go out and spend money. If you make so much money, you have to go somewhere!
No matter how much money is spent on building schools, at least we can see something tangible and it can help many children, and that is enough.

As for the personal impact, tax exemption and so on, Jin Shang actually didn't think too much about this aspect.

"You make money so easily that you spend it lavishly."

Jin Toki sighed unhappily.

"In short, you can spend the money you earn however you want, as long as you feel comfortable with it."

While they were talking, the housekeeper Lao Bian brought over a plate of sliced ​​watermelon. Jin Shang asked curiously:

"Watermelons are available at this time. Are they sweet?"

Jin Toki replied:

"This was sent by Yunying. Most of the farms and ranches that have just been built in the north are virgin land. It is probably not cost-effective to grow staple food. Only seasonal vegetables and fruits with high added value can make some money. The ranch operates faster, and feed and silage can be shipped in, or even directly imported from overseas forage grass, but farmland is more difficult to manage..."

“So now we’re growing some watermelons?”

"I heard that there are eggplants, tomatoes, green peppers and other crops, and the harvest is pretty good. Next year, I plan to try cherries and strawberries. Watermelons are on the market early this year, and they are all grown in Dapeng greenhouses. The cost is not low. I will sell some of them to test the market reaction. The best ones will be kept for myself or as gifts."

“That’s probably a lot!”

Jin Shang handed a few pieces to his girlfriend Li Xuan with a slight smile, and then tasted it himself. The taste was indeed okay, but it was not particularly hot at this time of year, so the sales of watermelons for cooling off would probably not be very good.

"The sales are lukewarm. Although it is a bit expensive, Beijing is a big city and the demand is still not small. It should not be a big loss."

"Have you ever thought of selling it to the South?"

"Forget it. It's not worth the freight rate. Shipping by sea is not worth it. Land transportation is expensive and the loss is huge. Once it arrives there, the cold chain has to be activated. All in all, the cost is unbearable. The price is even higher. How can we compete with local melon farmers? Even if it tastes better, there's no way to sell it. It's not a well-known brand product."

It is not easy for a dragon from another country to suppress a local snake.

“Farming is hard!”

Sea transportation can lower costs, but for the amount of goods at Mama Ranch, it is not even worth chartering a cargo ship. A few containers are enough, and with such a small amount, there is no bargaining power.

Not only fruits and vegetables, but also staple food are cheap. A family of five can probably grow enough rice to feed themselves for at least five years. But if they sell the rice, it will not be enough to cover the family's annual expenses, including parents' medical care and retirement, children's schooling and tutoring, daily necessities, and even gifts for weddings or funerals. It can be a real cost.

Small-scale peasant economy has no power to fight back under the large-scale farm production model supported by modern industry. "By the way, your second uncle and second aunt have gone back. The climate this year is a bit abnormal. After the drought in spring and summer, there have been heavy rains during this period. I think the flood prevention task is a bit tight. We have to go back to prepare and prevent disasters and accidents."

"heard!"

This matter was reported in the newspapers. The La Niña phenomenon hit in the past two years, and this year the El Niño phenomenon is very serious. The ocean and atmosphere in the Pacific equatorial zone lost balance after interacting with each other, and the monsoon current moved from America to Asia, causing continuous high temperatures and rainfall in the western Pacific.

In short, the climate is abnormal. Jin Shang doesn't quite understand how to explain it. Most of the manifestations are continuous drought in some areas and severe floods in other areas.

In the past, floods mostly occurred in the south. However, in recent years, the global temperature has shown a clear warming trend, and the north has been hit by heavy rains from time to time.

The year before last, there was a severe drought near Julunpo. Fortunately, my second aunt's house was in a good location and close to a water source, so the loss was minimal.

With the continuous commissioning of water conservancy projects in the past two years, the country's ability to resist such extreme weather has become stronger.

There is just one problem. My second uncle invested in and built some ranches in the north, but I haven't seen any returns for a while. This year I guess I can only grow some grass and feed cattle and sheep to make a profit.

There won’t be a loss, but it will take three to five years to get the money back.

"It feels like there has been a lot of extreme weather in recent years. Since we've encountered it, would you like to donate some supplies?"

"Let's talk about it later and see what the situation is. If necessary, I'll notify you. Just pay some money and let others do the shopping."

"Row!"

In the past, although Mr. Jin had a considerable fortune, he had relatively little cash, so he seemed a bit stingy. In the past two years, he has become much more well-off and speaks with more confidence. He no longer looks painful when he takes out a million in cash.
-
After a short rest in the afternoon, when grandmother Xian Guizhen came back from her walk and little Jinfeng woke up from his nap, the whole family went to the community cinema, booked a hall, and watched a popular movie.

This was the first animated film for theatrical release after Jin Shang acquired the animation production and special effects group of Shanghai Animation Film Studio. The box office was actually pretty good, with 23 million after deducting subsidies, but the production cost exceeded 50 million.

Nowadays, the cost of animated films is much higher than that of live-action films. If it weren't for the era of drastic reduction in the cost of 3D special effects, making animated films in theaters would definitely be a loss-making business. If there were no peripheral subsidies, then you would really lose all your money.

The subject of the movie is a series of comics created by Mei Xinghong in the early days. It was also very popular at the time. It is a sentimental work and focuses on family fun.

Whether it can become one of the IP pillars of Jinxi Paradise in the future depends on its subsequent performance. At present, its performance is average, the DVD and toys are selling well, the image licensing is slightly worse, the reputation among parents is acceptable, and the feedback from children is within the range worth looking forward to.

If there is still room for growth in the next sequel, we can increase investment in IP development.

The development of a film and television park cannot rely solely on fictional history and mythological stories. It must also be supported by cartoon characters that are popular among the people. In this regard, Jin Shang did not provide too much guidance, allowing the company's employees to exercise their subjective initiative and occasionally come back to listen to the opinions of his mother Mei Xinghong, an industry insider.

As for other plans, there is a movie "The Legend of White Snake" in the summer season, which is about to take advantage of the popularity. The TV series is currently on the air, with great attention and rave reviews. It is the right time to release the movie to make money and consolidate the popularity. There is also a fictional historical relay "The Substitute Prince", which is a derivative story of the TV series "The Strange Cases of the Song Dynasty".

In the second half of the year, there will be a movie "Changbanpo" starring Dai Yiqun, and the Lunar New Year season will end with the classic sequel "Drunken Master 2". Next year's Spring Festival season will see the first film of the classic historical figure IP "Judge Bao". Of course, in this world, it is a story about a fictional character. If the response is good, it will be prepared for the TV series "Judge Bao", "Young Justice Bao" and so on.

Anyway, most film and television dramas require a huge investment, as long as the costumes and props are not bad. It is good enough if they can barely break even. After that, they mostly have to rely on DVDs, videotapes and peripheral sales to make a profit. What they actually earn is the money from the appreciation of IP.

It's not that Jin Shang wants to do charity and support such a large film and television production team, but the cinema chain of the Nan brothers has gradually grown. In the past two years, many giant-screen cinemas and 3DIMAX theaters have been launched. If there are no blockbusters and special effects movies to support and attract movie fans to go to the cinema, the loss will not be a few million or tens of millions.

More than ten billion yuan has been invested, including principal and interest, and there seems to be no end in sight. When my second uncle Mei Yingnian's Xinghai Plaza starts to snowball and spread all over the country, the Changdi Cinema Line that follows will have to spend even more money.

In the words of Nan Dabiao, “there is no turning back.”

After believing Jin Shang's judgment and betting his entire life on it by selling everything he had, Nan Dabiao moved forward courageously. Naturally, Jin Shang wanted to lend a hand, since he was also a small boss with strategic investment.

Back to the quality of the movie and the viewing experience, overall, it is still very good. Little Jinfeng did not cry throughout the whole process. It was his first time watching a movie, and he was completely attracted by the picture in front of him. The lovable cartoon characters are really popular with children.

“This community cinema at the door is really good!”

Xian Guizhen, who was visiting the restaurant not for the first time, exclaimed in admiration,

"It lowers the threshold for watching movies, and the experience is acceptable, especially for family-friendly movies like this, which are actually quite suitable for families with children."

It’s about a ten-minute walk away. It’s quite spacious inside, with high-end VIP seats, and the experience is pretty good.

The greatest role of this type of community cinema is to turn watching movies into a mass consumption similar to shopping and eating at street stalls. As long as they do not lose money, it is worth continuing to operate.

After walking out of the cinema, Xiao Jinfeng felt a little reluctant. He seemed not to want to leave and wanted to continue watching. Unfortunately, it was almost dinner time.
-
On July 1, Jinxi Video, a new listed company on the Beijing Stock Exchange and a popular stock, released its first semi-annual report after listing. Its revenue and cash flow both increased by more than 60%. The main factor affecting the changes was the growth in sales of audio-visual products. However, the increase in net profit was only 9%. The reason for this low level was that the purchase of network broadcasting rights, the deployment of terminal outlets, the expansion of broadband servers, and mergers and acquisitions expenses were not small.

Judging from the financial statements, Jinxi Video has become the second largest domestic company in terms of number of stores, the third largest in gross profit, and the most profitable listed company in terms of market value. Although its profit margin does not seem high due to company decisions and development considerations, its prospects are really broad. Although its price-to-earnings ratio is very high, its price-to-book ratio is extremely low.

There are a lot of fixed assets and the goodwill ratio is low, which means that the lower limit of Jinxi Video is very high and the risk is not very great. Even if it does not make money, with so many stores and inventory of books and audio-visual products, the mature hair channel will be very valuable.

The day after the results were announced, Jinxi Video’s stock price soared, and its market value exceeded 36 billion, making it the 21st largest listed company in China by market value.

At the same time, Minxing Bank officially released its prospectus. It was originally planned to announce it in May and list it in mid-August. However, the popularity of Jinxi Video was too high, and it raised more than 6 billion yuan, which was indeed a large-scale IPO at this time.

In order to eliminate the impact, Chairman Mei Yingnian postponed the issuance of the prospectus for two months. Under normal circumstances, it would take one month to go to the meeting, one month to get the approval document, one month for the roadshow, price inquiry, issuance, and listing. It is estimated that it will take until October to be listed.

In fact, Minxing Bank is well prepared. As long as it passes the review, it will be listed soon. It can be listed as early as late August, which is very fast.

(End of this chapter)