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Chapter 503 Strengths and Weaknesses

"Mr. Lucas, our cooperation is not impossible...!"

Liu Lang tried to catch him, so he tried to escape.

"Oh, what suggestions do you have, little Jimmy?"

Lucas, who was somewhat silent, perked up upon hearing this.

"To be honest, I am still very optimistic about your Industrial Light and Magic technology, but I am skeptical about your financial problems. Our Shengtang Company is a company with very high profit margins. If I give you the financial statements,

Look, I'm afraid it will scare you.

Because all of our Transformers comics and model toys are made in China, the cost is horribly lower than in the United States. For example, the design of this Transformers is all made by me, and I don’t want any wages.

Yes, can you compare?

Therefore, our Shengtang company only has five painting workers in the comic production area. They only need to draw the graphics I designed on paper. The five workers’ monthly salary adds up to about 2,000 yuan, which is equivalent to five

One hundred dollars, remember, this is the salary of all workers

, is not just one person’s salary, but our comics sell more than 12,000 copies in the United States every month. The price of one copy is about 15 US dollars, and the total sales is 180,000 US dollars, excluding various expenses.

Besides, the net profit is 140,000 to 50,000 US dollars. What is the rate of return?

In addition, for toy models, we have a factory in China with more than 200 workers. The monthly salary is 100 yuan, which is equivalent to 25 US dollars. Even if there are 300 workers, the labor cost for a month

That's seven thousand five hundred US dollars. The total cost of materials and other equipment is about twenty thousand US dollars. The total cost is about

It’s around 30,000 U.S. dollars. What about our income? Now we can sell about 20,000 toy models a month, and the price of each piece is 30 U.S. dollars. The total income is 600,000 U.S. dollars, leaving aside taxes and transportation costs.

After excluding the cost of US$30,000, the net profit is basically around US$400,000. Tell me, can you compare with such a financial situation?

And Mr. Lucas, you have to know that our Shengtang company has just started. Most Americans don't know the existence of Transformers at all. If they see our design, I believe that all the income will increase several times.

At that time, we will be the next Marvel and the next DC, and I am even confident that I can beat them in comics, have you considered all of this?"

Liu Lang clearly laid out the financial situation of his company. This kind of rate of return made Lucas feel "desperate", especially the production cost of the other party's comics. This is simply unreasonable. When he originally filmed Star Wars, he had a total of

More than a hundred designers were employed, and the design cost exceeded one million U.S. dollars. All Transformers designs were done by the chairman himself, and the price was not even a penny. How can this be compared?

As for the Transformers models, Lucas has two of them standing in his office. The price of the two toys is sixty dollars, which is not very expensive in the United States. He originally thought that the other party was at a disadvantage because toys of the same size generally cost more.

It was sold for forty or fifty US dollars. Now I heard the other party say that the workers' salary is only twenty-five US dollars per month and almost fell to the ground. In the United States, the minimum wage of industrial workers is one thousand two hundred and three hundred US dollars. What is the difference between the two sides?

Times?

From this point of view, the profit of a toy model priced at 30 US dollars is simply higher than that of drugs. If Shengtang Company wants to go public at this time, it will immediately gain the favor of investors after publishing these financial statements and going public.

There is no problem at all, and even Liu Lang will become a multi-millionaire instantly after listing.

Shengtang is a high-quality company, but Industrial Light and Magic, to put it nicely, can only be regarded as a company with potential, but if you look at the financial statements, it is almost the same as a company that is going bankrupt. In terms of expenses,

Xiang Gao is astonishing, but his income is very little. Just looking at the financial statements, the two parties are at different levels. If we put it in the capital market, Shengtang is a red chip stock that everyone is chasing, while Industrial Light and Magic is not.

An absolute junk stock.

A series of "blows" made Lucas depressed, but his understanding of Liu Lang increased again: this kid not only has an amazing imagination, but is also a master of negotiation. He seems to be understatement but is aggressive in every aspect, but the key point is that the other party is reasonable.

, I don’t even have the ability to refute.

Yes, Lucas devoted the greatest enthusiasm to Industrial Light and Magic, which he founded, and regarded it as his lifelong career. However, there is always a gap between reality and ideals. No matter how big your ideals are, it will be in vain if you can't make money.

Damn it, you can’t support technical staff without money. If all the technical staff leave, then the end of Industrial Light & Magic will come. With the funds in Lucas’ hands, under the normal expenses of Industrial Light & Magic

It can still last for about a year. If Industrial Light and Magic fails to improve after one year, then he will be completely out of luck.

"Little Jimmy, what you said makes some sense, but you also said that special effects are the future of movies. We at Industrial Light & Magic are already ahead of all movie companies. This is indisputable, and you agree with me very much.

We have a common understanding of this point of view. You are extremely smart and you will never let go of this great opportunity for us to cooperate!"

Lucas is also a "social person", and the relationship between people is also clear. Although his Industrial Light and Magic is now in an embarrassing position, don't you Liu Lang agree with it? Then put aside these negative factors, let's

Talk about ideals.

"Of course we can cooperate! This is my personal lawyer Jackson. You just have to negotiate everything with him. My idea is very simple, that is, let's merge and become a company!"

After a lot of preparation, Liu Lang finally revealed his purpose.

"It's not impossible to become a company, but...!"

There are many ways of cooperation. A simple cooperation is that you provide the money, I provide the technology, and we make a movie together. This is limited to one or a few movies. The cooperation method is not too deep. The deepest cooperation method is between two companies or

Multiple companies form a joint company and allocate equity according to the amount of money each contributes. Of course, they can also invest in technology, just like Liu Lang's investment in Nike.

A big problem with such a company is who has the final say. Of course, generally speaking, whoever has the money has the final say. So who has the money between Sentang and Industrial Light & Magic?

This is very complicated and requires a professional accounting firm to evaluate it, but it seems that Shengtang Company still has advantages.

Because Liu Lang owns all Transformers patent rights, even now, millions of dollars in profits are created every year through the Transformers image, while Lucas only owns Industrial Light and Magic, and the Star Wars brand belongs to Fox.

Is Industrial Light & Magic profitable? Only debt!


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