"Yes, the original establishment of THE  TOP  SHOP was for this day. Moreover, with the increase of THE  TOP  SHOP stores, it also needs the support of a production base. It is a matter of benefiting both sides."

After listening to Wang Ye's explanation, Li Qinghuan still didn't understand and thought to himself THE   TOP   SHOP needs a production base, you can build it yourself, or buy a few factories, why should you be acquired by Huashang?

In Li Qinghuan's eyes, THE  TOP   SHOP is obviously more development potential than Huashang International.

However, she did not question Wang Ye's words anymore, because she believed that since Wang Ye made such a decision, he must have his own considerations.

Moreover, Wang Ye’s consideration must be more comprehensive and long-term than himself, and he just needs to do it.

Back at his office, Li Qinghuan began to organize the data.

Thinking of those colleagues in the past, I showed a knowing smile on my face. Since I followed Wang Ye to create a new company and Weiye’s homework, I went to Meigou.com, to cosmetics companies, and then to THE  TOP  SHOP.

Li Qinghuan was busy all the time, and he made great contributions to the development and growth of the king's career.

However, she has been very busy this year and hasn't been together for a long time with her former old colleagues. I wonder how everyone is doing.

At the earliest, Wang Ye had only four employees, Li Qinghuan, Liu Jian, Chen Qifan and Chen Huahua.

Everyone has a good relationship. When they were on a business trip the first two days, they were together for more than two months, and they were also considered Wang Ye’s old subordinate.

Now Li Qinghuan is the highest-ranking one, serving as the general manager of THE  TOP  SHOP. Although THE  TOP   SHOP                                                                                                                                                                                                                                       

But the valuation of this company is not low. Just its unique designer-led model, and it is currently the only designer collection store brand in the mainland, and it has been welcomed by major shopping malls and consumers.

The intangible value is very high.

Since its opening in October 2011, the two stores in Xiangjiang have been in business for more than two months, but the total sales have reached 210 million!

The monthly sales of a single store are at 40 million!

It sounds a bit outrageous, but if you analyze it carefully, you will understand that this is indeed reasonable and you should have such a high sales!

The choice of the two stores is the most golden business district in Xiangjiang, and it is the core location of the golden business district. There are top luxury brands such as LV, Hermes, and Chanel, and the stores are all large stores of more than 1,000 square meters.

In a store, there are more than 30 clerks, and they are divided into three shifts.

Moreover, THE TOP  SHOP's clothes are not cheap, with an average price of around 2,000 yuan per piece.

With the traffic of people in Central Land Plaza and Harbour City in Xiangjiang, and with the current popularity of THE  TOP  SHOP, is it difficult to sell five or six hundred pieces of clothes every day?

To be honest, it is not difficult at all! If it were not for the sales model, it would never replenish the stock after it was out of stock. It is estimated that the sales will be higher.

Of course, the current hot sales may depend on this model of never replenishing the stock after the sale is cut, and it is not accurate to say.

THE TOP  SHOP is now beginning to enter the mainland market in large numbers. By the time the Chinese New Year is expected to open 38 stores one after another.

Although I don’t know what the sales will be in the mainland, just judging from the current activeness of mainland consumers on THE  TOP  SHOP official website and official Weibo, sales are almost the same.

Of course, because of its relatively niche style and high price, this kind of store is destined to be impossible to open a large-scale store. According to Wang Ye's estimate, if you can open a hundred stores nationwide, it will be the highest.

But that's great, because single-store sales are too terrifying. In mainland stores, if you want to see Xiangjiang, you can exceed 40 million every month, of course it is impossible to achieve it.

If the monthly sales of each store can be 10 million, 100 stores will be 1 billion per month! It will be 12 billion per year! This is higher than the sales of 8,000 stores in Huashang International.

This is the advantage of the brand positioning at a high end, with a high unit price.

Huashang International only costs three or four hundred yuan per piece, and THE  TOP   SHOP                                                �

Because of this, Li Qinghuan always feels that THE  TOP   SHOP has much more potential than Huashang International.

However, how to calculate the valuation of this company? Li Qinghuan is quite worried. She didn't know much about this, and now she is rushing to put it on the shelves.

After wandering around the office for two times, Li Qinghuan remembered someone. She didn’t understand, so she could ask others for advice!

The one she was looking for was LISA. In fact, Li Xin was also very proficient in this, but now Li Xin is on business trips all day and cannot see anyone in daily life.

Li Qinghuan pulled LISA to her office, told her the matter, and then humbly asked how to value THE   TOP   SHOP.

After hearing Li Qinghuan's words, LISA smiled and understood what Wang Ye meant. He just asked Li Qinghuan to come up with a preliminary valuation, which did not need to be very accurate, because when the actual acquisition was made, there would be a professional third-party valuation company to calculate the valuation.

Of course, we also need to refer to the meaning of the boss Wang Ye, otherwise if your valuation is low, he will not be willing to sell it.

This kind of merger and acquisition means first asking a third-party financial company to value it, and then the two parties use the valuation to negotiate. The specific price depends on the negotiation result.

So specifically speaking of THE  TOP  SHOP, the valuation cannot be calculated based on the current sales of the two stores.

LISA is calculated based on the average monthly sales of 10 million after 38 stores in the mainland opened. Li Qinghuan feels that this sales volume is quite certain.

Then, it will be 380 million in a month, plus the 80 million in the two stores in Xiangjiang, and the total sales in a month will be 460 million. In a year, it will be 5.52 billion in annual sales!

As for profit, THE  TOP    SHOP has the gimmick of a designer brand collection store and the price is still so high, of course the profit margin is very large.

The key is that it has so many stores it has in the mainland, and it is cheap to rent it!

Not only is it cheap, but large shops do not need to rent, because shopping malls are asking for it to settle in, and some even subsidize the decoration costs!

In store operation, the biggest cost is store rent. Now this fee is gone, so how much profit margin is not large?

Overall, THE TOP  SHOP’s gross profit is as high as about 65%.

Then the commission to the designer is deducted, and the salary commission of the store shopping guide is deducted, plus the company's staff expenses, the net profit can also be maintained at 50%!

In other words, the final net profit of 5.52 billion yuan will reach about 2.76 billion yuan next year.

What is Huashang International’s net profit this year? It seems that it is only more than 2 billion yuan.

Whether in terms of annual sales or profits, the two companies are basically the same, so should the valuation of the company be the same?

If calculated from the price-to-earnings ratio, this is true, but there is another overlooked issue, that is, net assets...

THE  TOP  SHOP is that someone has a brand, but there are no fixed assets. As for Huashang International, it seems to lag behind THE  TOP  SHOP, but it has the largest clothing production base in China, which is also a big asset.

Huashang International's stock price is now swaying around 30 yuan, and the company's total value is 20 billion.

Judging from sales and profit margins, THE  TOP   SHOP seems to be able to reach a valuation of 20 billion…

Of course, THE TOP  SHOP's 38 stores have not opened yet. All sales and profits are estimated. They cannot be done really, so they can only be used as a reference.

When a real merger and acquisition, it must not be calculated at a valuation of 20 billion, otherwise the securities management institutions will not be able to pass that level!

Li Qinghuan thought about it for a long time, consulted LISA's opinions, and wrote down the valuation of THE  TOP  SHOP, 10 billion!

Although this number is amazing, Li Qinghuan still feels that it is too late. If she is given another year, she can really build dozens of stores in the mainland.

By then, the valuation of 20 billion was really reduced, no talk!

...

Taking the prepared statistics and company valuation, Li Qinghuan came to Wangye's office again.

"Mr. Wang, my data has been done well. In addition, I also asked LISA for questions about the company's valuation. Now there is a preliminary valuation."

As he said that, Li Qinghuan handed the report in his hand to Wang Ye.

Wang Ye took the data report, opened it and took a closer look.

Well, the two stores in Xiangjiang performed quite well, and they can maintain sales of more than 40 million yuan every month, which is quite impressive.

Then Wang Ye saw the company valuation given by Li Qinghuan, 10 billion!

He smiled in surprise and asked Li Qinghuan: "How did you get the number 10 billion? Are you sure you are not wrong?"

"How could it be wrong? I've still discounted it." Li Qinghuan said dissatisfiedly.

Then, she told Wang Ye about the number calculated from the beginning to the end, and finally said aggrievedly: "If it is the end of next year, the valuation of THE  TOP   SHOP   will reach at least 20 billion! Now it's 10 billion, it's still a loss."

Wang Ye also understood Li Qinghuan's idea. After all, she managed this company and naturally had a deep relationship.

However, it is a bit unreasonable to make Huashang International acquire a valuation of 10 billion, because it is too high!

However, Wang Ye didn't say much, but said lightly: "Okay, then Huashang International's board of directors will attend on time."

...

January 22nd, today is the day of the board of directors of Huashang International.

Early in the morning, Cai Zi'ang got up, washed up and had breakfast, and then dressed up carefully.

Zenia's pure cashmere navy blue suit, a snow-white shirt and leather shoes were polished brightly. He even put on a bright red silk tie. This made him look more festive and looked a few years younger.

After carefully combing his hair, Cai Zi'ang looked at the mirror and then, and finally smiled with satisfaction, picked up his briefcase, went out to get in the car and headed straight to the company.

When I arrived at the company, as usual, it was the earliest one. Oh, except for the cleaning aunt.

"Aunt Hu, clean the conference room carefully later, and open the windows for ventilation." Cai Zi'ang stood at the office door and ordered.
Chapter completed!