The financial statements of Zhengji Printing Factory for the first half of the year show that in the first six months of 1982, the printing factory’s main operating income reached 15 million yuan. Due to the tax benefits of three reductions and two exemptions in industrial zones, the net profit was 4 million yuan higher.
yuan renminbi.
The factory moved to mainland China last year. Therefore, the financial data in 1981 are not comparable.
Zheng Ziwei clearly remembers that in 1980, when the factory was still in Hong Kong, the annual revenue was almost 15 million, which was only in Hong Kong dollars, and the net profit was only a pitiful 1.3 million, less than half of this half year.
Moreover, there is also a non-operating income on this report, which is highlighted. That is the income from derivatives related to "Shaolin Temple", including sales income from posters and printed matter, and income from licensing cultural shirts.
According to sales data compiled by Xinhua Bookstore, the total sales of movie posters and printed matter nationwide in the first half of the year reached 2.6 million yuan.
After deducting the cost of the posters stipulated in the contract that were provided free of charge to the crew for publicity and distribution, the net profit from this part was RMB 230,000.
The domestic revenue from cultural shirt licensing is RMB 495,000, of which 900,000 short-sleeved versions were produced, with revenue of RMB 270,000, and long-sleeved versions were produced at 450,000 pieces, with revenue of RMB 225,000.
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The revenue from the Hong Kong region, after deducting costs, is HK$1.35 million.
Overseas screenings have just begun, and the company's revenue in the first half of the year was US$64,000.
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At the end of the report, there is also the financial manager’s analysis and forecast for the second half of the year:
“With the new workers who have completed training and the new production lines put into production, the factory’s main business income will continue to increase in the second half of the year...
Sales forecast for posters and printed matter: an overall upward trend, domestic sales will decline, sales in Hong Kong will basically stop, and overseas sales will increase significantly...
Forecast of revenue from cultural shirt licensing: Same as above.
…”
Zhengji Printing Factory is the joint effort of two generations of Zheng Ziwei and his son. After reading this report, Zheng Ziwei couldn't help but feel emotional and burst into tears.
Because he knows that the factory development problems that have troubled him for many years have basically been solved. He made the right move by moving the factory to the mainland.
Zheng Ziwei couldn't help but think of Cao Yong, who earnestly persuaded him to move the factory, and Sun Dahai, who was smart, mature, eccentric, and good at cooking.
Zheng Ziwei knew that it was Sun Dahai's idea that Cao Yong persuaded him to move the factory to the mainland.
Moreover, the income related to "Shaolin Temple" brought him a huge unexpected surprise. In fact, this was just an idea casually mentioned by the child, which was told to him through Cao Yong.
The sales of authorized cultural shirts in overseas markets are not going well because there are no suitable people in the own factory to organize sales, and domestic garment factories are even less capable of selling overseas.
However, things are going well now. Dahai has set up a Huanyu Trading Company. In the past few days, we have negotiated foreign trade export contracts with the three authorized garment factories.
Based on that guy's work style, it can be expected that overseas sales of cultural shirts will be very popular in the future.
I heard from friends who are involved in the movie industry that once the sales of movie-related derivatives are completed, they will be higher than the box office of the movie. Unfortunately, there are no talents in this field in the factory, so we can only watch the opportunity passing by.
In the first half of the year alone, this movie gave me millions of Hong Kong dollars in income. According to my friends, the second half of this year and the whole of next year is when I will really reap the profits from derivatives. If this is the case, relying on this movie
Movies, maybe I can earn tens of millions of Hong Kong dollars?
Zheng Ziwei was shocked and didn't dare to think about it anymore.
This means that Sun Dahai is not around, otherwise he would definitely laugh at him for being too short-sighted.
In Hollywood, if the derivative revenue of a movie produced by the major production companies is lower than the movie box office, it must be that the commercial development of the movie is not done well.
Although the biggest audience market for the movie "Shaolin Temple" is mainland China, which is still relatively poor. But as long as we are serious, it is not a problem to earn tens of millions of dollars in derivative sales worldwide.
It turns out that Sun Dahai is lazy and there is no one available. Now that he has acquired Huanyu Trading Company, he thinks of this business.
No, before he returned to the mainland in August, he talked to Wu Dawei. It has only been a few days now, and the three authorized clothing factories have already signed overseas sales contracts with Huanyu Trading Company.
Wu Dawei first found Zheng Ziwei in Xiangjiang and asked for the overseas general agent's authorization. Then he ran back to the mainland and signed it with the clothing factory.
The garment factory was overjoyed when they heard that this trading company in Xiangjiang was willing to use foreign exchange to purchase authorized cultural shirts for export. The factory director and secretary personally came to receive him with great enthusiasm.
After Wu Dawei presented the business license of Huanyu Trading Company and the overseas general agent authorization document issued by Zhengji Printing Factory, the factory conveniently gave their quotation.
The price they offered was so low that even Wu Dawei was shocked. Take long-sleeves sold in China for five yuan as an example. The price offered by the clothing factory was US$2.6 per piece, which was also the FOB port price.
The factory director was embarrassed to say that because the factory had to bear the licensing fee of US$0.99 per piece, that's why it offered such a high price.
Wu Dawei was a little confused. He knew Sun Dahai's thoughts and was not willing to earn domestic money. But if he didn't use the benefits brought to his doorstep, it would make people suspicious.
At this time, local leaders also heard that a Hong Kong-funded company wanted to purchase the garment factory's products for export, so they came to participate in negotiations.
Wu Dawei's plan is to first order 300,000 pieces from three garment factories, 200,000 short-sleeved pieces, and 100,000 long-sleeved pieces, so that each company's goods can fit into ten 20-foot containers.
Goods from Jintian are shipped to Japan, Suzhou, and Guangdong Province, and goods are shipped to Southeast Asia and Europe. Anyway, they follow the movie copies. The company's salesperson has already contacted local agents in advance, and they can sell on consignment or through distribution.
The movie "Shaolin Temple" has not yet been released in the Americas. Feel free to show it first. After the sales performance in Southeast Asia and Europe is achieved, it will be easier to negotiate with agents in the Americas.
Soon, Wu Dawei and the factory negotiated the main contents of the contract. The unit price of the long-sleeved version is 2.6 US dollars, a total of 100,000 pieces; the unit price of the short-sleeved version is 1.7 US dollars, a total of 200,000 pieces. The first batch of export goods from each garment factory,
Both are half a million dollars.
If Wu Dawei had only negotiated and signed a contract with the garment factory, this business would not have been possible.
The garment factory does not have the right to export. Huanyu Trading Company is a Xiangjiang company, and it does not have the right to export to the mainland. So they have to find a foreign trade company with export rights as their agent. This is the characteristic of the domestic foreign trade industry in the 1980s and 1990s.
Fortunately, this was just a procedural matter, and Wu Dawei had already made preparations before. With one phone call, he called Director Ye from the Textile Department of Huaxin Trading Company in the capital, and the three parties jointly signed a letter of intent for the foreign trade contract.