On the afternoon of the next day, Zhao Chen's special car drove directly from Jiangbei Airport to Jiangbeizui.
He didn't go home, he went straight to Henglong Group Headquarters.
Su Wantang is already waiting in the office. The tea is ready, the curtains are half open, and the winter sun Two Rivers Confluence outside the window is shining slantingly in.
"Board of Directors materials are ready."
She placed a neatly bound stack of papers in front of him,
"Bubble Mary's Q3 Report summary, comparison of two plans for IP licensing, and valuation calculations are all included."
Zhao Chen took off his coat and handed it to Su Wantang, sat down behind the desk, opened the file and browsed through it quickly.
Chen Xi's PPT is as clean and neat as ever, with data, logic, and risk reminders all clearly stated.
At two o'clock in the afternoon, Henglong Group Board of Directors will be held on time.
Meeting Room is packed with people.
Zhao Chen is sitting in the chief seat of Long Table. On the left is the second Major Shareholder Shen Jue, and on the right is the secretary to the board of directors Liu Mingyu.
Chief Operating Officer Song Zhongping, Independent Director Xu Yong, Sun Zhengping, and Wu Hongyuan were seated in order, Zhang Qingxue was present as Legal Director, and Chen Xi was sitting close to Projection Screen with his laptop.
Su Wantang, Chen Wei and Chen Qiming are sitting in the back row and do not participate in the voting, but they will listen to every word.
Zhao Chen knocked on the table, and Meeting Room became quiet.
He signaled to Liu Mingyu that it was time to start.
"Everyone, there is only one topic on Board of Directors today - how to deal with the Global Copyright contract between Mololoy and Labobo."
Liu Mingyu's eyes swept over everyone's faces one by one,
"Before that, let General Manager Chen make a report on the situation of this trip to Beijing."
Chen Xi stood up and walked to the Projection Screen cloth. Remote Control pressed it and the first page of PPT lit up.
"Bubble Mary The core data for the first three quarters of 2018 are excellent.
Revenue was 477 million yuan, more than double the year-on-year increase.
Net profit was 72.2 million yuan, which was still a loss in the same period last year.
Operating cash flow was 84 million, a year-on-year increase of more than 30 times."
There was a slight commotion in Meeting Room.
Song Zhongping leaned forward, Independent Director Xu Yong took off his glasses and wiped them, then put them on again and his eyes were fixed on the Projection Screen cloth.
Chen Xi Continue to scroll down.
Number of stores, single store floor efficiency, member repurchase rate, Gross Margin, new IP reserves, Labobo launch plan in the first quarter of next year.
She explained every data clearly and concisely, without any unnecessary embellishments, but the numbers themselves were powerful enough.
"Comprehensive judgment," Chen Xi closes Remote Control,
"Bubble Mary has completed the complete closed loop from IP incubation to channel monetization.
Next year's revenue target is likely to exceed one billion.
The two IPs of Mololoy and Labobo have been fully utilized in Bubble Mart's operation system."
She sat back in her seat, and Meeting Room was silent for a few seconds.
Shen Jue The first opening.
"Manager Chen's data is very solid, so I won't repeat it."
Her voice is not high, but it is very heavy.
"What I want to say is another thing. When Zhao Zong decided to buy Mololoy Overseas Copyright from Wang Xin last year, the price was 30 million Hong Kong Dollar. To be honest, I had a question mark in my heart at the time.
An original IP from a small Hong Kong studio that has not been tested by the market. Is 30 million Hong Kong Dollar too expensive?"
She paused.
"Looking back today, it's not too expensive, it's too cheap.
Zhao Zong, everyone at Board of Directors should be grateful for your foresight in this matter."
Song Zhongping nodded, and Xu Yong also nodded.
Independent Director Sun Zhengping did not speak, but lightly tapped his fingers on the table twice to express his approval.
Zhao Chen raised his hand slightly, indicating that there was no need to dwell on this topic.
"Let's not talk about the past, let's talk about what to do next."
Zhang Qingxue opened the legal documents and briefly explained the core terms of the two IP contracts to Board of Directors.
Mololoy's Overseas Copyright, Henglong and Wang Xin are signed for twenty-year exclusivity. The transfer requires sixty days' notice and the right of first refusal.
Labobo's global authorization has the same term but a wider scope of rights.
The two contracts together constitute a complete global IP asset package.
"The problem now is,"
Zhao Chen waited for Zhang Qingxue to finish speaking, then spoke.
"Henglong should develop this asset package by himself, or leave it to Bubble Mary."
As soon as he finished speaking, Song Zhongping raised his hand.
"Zhao Zong, I advocate developing it myself."
Song Zhongping's voice is pragmatic and direct that is unique to the operation line.
"I saw Mololoy's sample, which Manager Chen brought back from Beijing. The design is very mature and the image ductility is good.
Although Henglong's main business is investment and real estate, since IP Copyright is already in your hands, why not give it a try?
The worst that can happen is to set up a separate IP operations business unit and recruit professional people to do professional things. I won't be willing to give away the meat in my mouth to others."
Independent Director Xu Yong pushed up his glasses and took the conversation.
"I understand Mr. Song's mood. But I will give you a different perspective from my own point of view."
Xu Yong is the vice-principal of Southwestern University of Finance and Economics. He speaks with the unique academic discipline and prudence.
"IP operations is not a 'give it a try' business.
It requires Designer resources, Supply Chain management, channel laying, fan community operations, and Copyright protection - every link is a professional barrier.
Henglong's gene is investment, not consumer goods operation.
If you use an unmatched organization to do something with extremely high professional barriers, the probability of failure is far greater than the probability of success."
He glanced at Song Zhongping and softened his tone.
"President Song just said to recruit professional people to do professional things.
But the question is, where are the most professional people in the China Designer Toys industry?
In Bubble Mary, in the team of Wang An.
Even if Henglong offers a higher salary, can he poach the core group of people under Wang An? He can't.
Because what the top talents in this industry want is not a salary, but a platform that allows them to do whatever they want. And Henglong cannot provide this platform."
Song Zhongping's lips moved but did not speak.
Independent Director Sun Zhengping spoke.
He has worked in regulatory authorities for many years and speaks with a prudent and pragmatic style.
"I would like to add that if Henglong develops its own IP, its relationship with Bubble Mary will change from a partner to a direct competitor.
Henglong holds 26.3% of the shares of Bubble Mary and is the second Major Shareholder.
What would you think if you ended up doing Designer Toys, Wang An? What would other shareholders think? This is not a business issue, but a trust issue.
Once trust is broken, all Henglong's investments in Bubble Mary will be affected.
Taking the risk of losing 26 points of equity for the operating rights of two IPs is not a cost-effective deal."
Meeting Room was silent for a few seconds.
Wu Hongyuan is the youngest of the three Independent Director. He has a background in economics and speaks more directly than Xu Yong and Sun Zhengping.
"I agree with the judgment of Principal Xu and Teacher Sun. The core capability of Henglong is capital allocation, not industrial operation.
Mololoy and Labobo are at most a valuable asset in the hands of Henglong.
In the hands of Bubble Mary, it may become two super IPs.
The same seeds, planted in different soils, will grow very different things."
He took a look at the revenue curve of Bubble Mary on the Projection Screen cloth.
"And from a financial perspective, Henglong develops IP by itself, which requires a large initial investment, a long return cycle, and high uncertainty.
Authorize Bubble Mary, Henglong without spending a penny, and wait for sharing of income and equity appreciation.
Which method is more in the interests of Henglong shareholders, I think the answer is very clear."
Song Zhongping was silent for a long time, and finally nodded slowly.
"Principal Xu, Teacher Sun, Teacher Wu, you are right. I take back my previous opinion."
Zhao Chen glanced at him, with a hint of approval in his eyes.
Among Henglong and Board of Directors, there are not many people who can admit to their faces that they have not considered things well.
Song Zhongping counts as one.
"Then it's settled." Zhao Chen's voice was calm and determined,
"The IP is given to Bubble Mary. Henglong does not develop it by itself."
The atmosphere in Meeting Room is a little more relaxed.
But Zhao Chen didn't stop.