Chapter 295 Valuation

Eighth is the pan-entertainment business outside of games.

Hongmeng Music has the most users, currently with 83 million registered users worldwide; novels are second, with more than 32 million users; comics are last, with more than 13 million users, generating revenue of 135 million Chinese yuan and a net profit of 38 million Chinese yuan.

Finally, Hongmeng Payment, Internet Cafe Management Software and other businesses generate revenue.

Overall, the company's net profit can reach 20.7%, if valued at 35 times.

As of now, the company's valuation is 4.2 billion US dollars. "

As soon as these words came out, everyone present showed excitement on their faces.

They all hold a large number of shares in the company, and the increase in the company's valuation means that their wealth has increased.

"Hua La..."

Loud applause rang out.

After Xu Liang waved his hand, everyone calmed down.

"It can be seen that everyone is very happy, and I am happy too. The valuation has risen, and everyone has made money. However, as the company's senior management, we must not only see the good side of the company, but also see the hidden worries under the appearance of the company's rapid development.

Perhaps someone will ask, what are the worries?

First, external threats.

In the game business, we face competition from Nintendo, Microsoft, EA, Ubisoft and Vidiwan Games, especially Nintendo, the world's largest game company, whose revenue this year is 27.8 billion Chinese yuan, almost 8 times ours.

The revenues of Microsoft, EA and Ubisoft are also far higher than ours. The only one we surpass is Vidiwan Games, whose net revenue this year is 410 million US dollars.

Therefore, our game business still has a long way to go.

I don't ask you to surpass Nintendo, but we must at least surpass Ubisoft next year.

Then there is Internet search. Although Bing is currently the world's largest Internet search company, there is a Google that is catching up rapidly behind us.

They firmly occupy the entire English market, especially the US market.

This year they generated 86 million US dollars in revenue and achieved a net profit of 7 million US dollars. Although not as good as us, as long as they occupy the entire English market, they will occupy half of the global search market. It can be foreseen that they will be our biggest enemy in the future and also our biggest enemy in the European market.

In the portal business, we are not as good as Yahoo and AOL.

The music business is subject to copyright and piracy, and it is difficult for us to generate rich revenue.

Let alone other businesses, we can't even enter the top ten in the world. "

After a pause, giving everyone time to digest, Xu Liang continued.

"In order to further optimize our business model and management structure, I announce that the following adjustments will be made.

First, the 'Hongmeng Game Hall', which was originally under Hongmeng Games, will be renamed 'Sina Game Hall' and will be under the jurisdiction of Sina Corporation.

Hongmeng Games cannot be both a referee and an athlete.

Second, readjust Pangu's business.

Pangu Browser, a business under the original company, belongs to Bing.

The email business is under Sina Corporation.

Hongmeng payment and website management software are directly under the jurisdiction of the head office.

Some of the original company's personnel will enter other subsidiaries, and the rest will be led by the company's president Zhou Kun to establish Hongmeng West Asia Subsidiary, which will be fully responsible for the operation of the company's business in the Arabic-speaking region. The subsidiary's headquarters will be located in Dubai. "

Everyone was shocked. They didn't expect Pangu to change so much. Almost all the business and personnel were vacant.

Soon they subconsciously looked at Zhou Kun. The latter looked calm and there was no joy or anger on his face.

Everyone understood that the company had obviously communicated with him in advance.

"As for the future development of Pangu, Mr. Xie and I are currently adjusting it. When there is a clue, we will inform everyone at the conference."

Hearing this, everyone became curious.

But if Xu Liang didn't say it, they had no choice.

"Third, dissolve Hongmeng Xiangjiang Subsidiary. The Greater China business that originally belonged to Hongmeng Xiangjiang Subsidiary will be transferred to Hongmeng Central and South Subsidiary, and will be led by President Li Haizhen.

The business of the original Philippine market will be transferred to Hongmeng Nanyang Subsidiary, and will be led by President Wang Tao. ”

The jurisdiction of the Hong Kong subsidiary is too small. Although there are many people, except for the 30 million people in Greater China, the economy of the Philippines is too poor. With the continuous expansion of Hongmeng, there is no need to retain an independent subsidiary.

The cut can also save administrative expenses.

"Fourth, the establishment of Hongmeng Germany subsidiary will focus on the German market, and Qu Guangyun, the former president of Hongmeng Hong Kong subsidiary, will serve as the president of the company. ... Old Qu, the German population in Europe exceeds 100 million, and they are all economically developed regions.

So, your task is very heavy. ”

Qu Guangyun nodded, "Please rest assured, Mr. Xu, I will adapt to local conditions and adjust company policies according to user habits, and will never copy the old ways of Hong Kong."

"It's good that you understand this." After a pause, "And all the leaders of your subsidiaries, you must always keep in mind that you should adapt to local conditions, put users first, and respect local user habits.

If I find that any of you has caused significant losses to the company because of disrespecting local users and not abiding by local behavioral habits, I will unceremoniously remove him to the bottom. ”

"Understood. ”

Everyone agreed immediately.

“Fifth, Hongmeng Games will be operated independently, and the management will remain unchanged.”

Hongmeng Games is getting bigger and bigger, and there are more and more things to do, so it is not suitable to stay in the company any longer.

"Finally, the Hongmeng Management Committee is established. The main leaders of each subsidiary, as well as myself, Mr. Xie, Mr. Finance, Mr. Shen, the Chief Technology Officer, and the Chief Human Resources Officer will serve as members of the Management Committee.

The Management Committee will meet on the seventh of every month to summarize and listen to the reports of the company and each subsidiary, and to solve major problems encountered by each company.

The meeting will be chaired by me. If I am not present, Mr. Xie will chair the meeting.

Keep meeting minutes on file.

In the future, the Hongmeng Management Committee will become the main management organization of Hongmeng. "

Only one person can plan the shortcomings and two people can plan the long-term. Only by working together can the company develop and grow.

As the company grows, it is no longer possible for one or several people to manage it. What is needed now is the wisdom of the group.

After this adjustment, the entire Hongmeng company is divided into five direct subsidiaries: Hongmeng Games, Yihaodian, Bing, Hongmeng and Sina, and seven overseas subsidiaries in South Korea, Japan, Zhongnan, Nanyang, West Asia, Europe and Germany.

Businesses still directly under the headquarters include: Hongmeng Literature, Hongmeng Comics, Hongmeng Payment and Hongmeng Internet Cafe Management Software.

The main business is pan-entertainment, Internet search and portal websites, and the non-main business is e-commerce, online payment, software, etc.

"Okay, the report from the head office is over, now it's the turn of each subsidiary to report."

Xu Liang's eyes turned around and landed on Qian Santai sitting behind him.

"Old Qian, let's start with your No. 1 store."

Qian Santai was a little surprised. He thought Xu Liang would order the Hongmeng Japanese subsidiary with the largest revenue first.

But now that he's been called on, he doesn't have stage fright.

Although Yihaodian's revenue is not as good as that of subsidiaries such as Dongying and Bing, it is not much different.

“It has been nearly a year and a half since the establishment of No. 1 Store. In this year and a half, under the guidance of the head office and Mr. Xu, No. 1 Store has made great progress.

As of the end of 2001, Yihaodian had a total of 23 offline stores, covering nine major cities: Beijing, Magic City, Yangcheng, Pengcheng, Tianmen, Hangcheng, Daocheng, Jinling and Wuchang, with an average store area of ​​more than 2,000 square meters. All are located in mainstream business districts.

In the entire fiscal year 2001, offline stores generated revenue of 219 million Chinese dollars and net profit of 71.29 million Chinese dollars.

Compared with offline stores, online No. 1 stores have developed more rapidly.

As of now, Yihaodian has a total of 3.1 million registered users, covering a total of 11 categories and more than 30,000 online products, including audio and video products, clothing, shoes and hats, bags, and daily necessities.

Especially after cooperating with Hongmeng Pay to solve the problems of difficulty in payment, claim settlement and return, Yihaodian has made great progress.

In the entire fiscal year 2001, online revenue was 115 million Chinese dollars and net profit was 21.2 million Chinese dollars.

In fiscal year 2002, we plan to continue to expand the types and quantities of online products, increase the number of offline stores, and strive to exceed 30 VIP stores before the end of the year.

In terms of performance, we strive to exceed 600 million Chinese dollars and net profit exceed 150 million Chinese dollars after the end of fiscal year 2002.

besides.

Mr. Xu, I hope that the operating restrictions of No. 1 Store can be relaxed and we can become a real e-commerce company. "

Seeing the longing in Qian Santai's eyes, Xu Liang sighed.

He had long expected this day to come.

People have ambitions. In the past two years of development, Yihaodian has made achievements in e-commerce and cultivated mature talents. After perfecting the technology, it will definitely want to continue to grow.

This is determined by human nature.

"Which mode do you want to choose?" Xu Liang asked.

Qian Santai was shocked. The big boss didn't explicitly refuse, which meant there was hope.

He said quickly.

“B2C.

Our No. 1 store model is B2C, so this business-to-individual model is most suitable for us, and there are also very mature business models at home and abroad. "

Xu Liang nodded slightly.

"I can promise you, but the company's main business is pan-entertainment and Internet search, so I can't give you much help at the moment."

Qian Santai felt happy and said quickly.

"Without the support of the headquarters, the online and offline profits of our No. 1 store are now enough to support our early expansion. In addition, I hope to cooperate with the boss's Hanhua Capital's 'Xuanwu Fund'. They will invest in the construction of a logistics base. Our No. 1 store Lease and pay rent on time.”

"You are very good at seizing opportunities. ... However, you have to negotiate this matter yourself. How to cooperate specifically, and whether you can cooperate? It depends on your ability."

"yes."

Qian Santai nodded quickly.

They are all companies owned by the boss, so it is much easier to negotiate than outside banks or funds.

"Old Wu, next is your game department."

Wu Xifan nodded and took out the information he had prepared long ago.

“Currently, there are three game studios under Hongmeng Games, namely Dijiang, Jumang and Zhurong.

It operates five games, "Legend 2", "Millennium", "Red Moon", "Bubble Hall" and "Bubble Show".