0p0 Chapter 155 Shen Wancheng's Confidence in Dongfang Yasong
Chapter 155 Shen Wancheng's Confidence in Dongfang Yasong
When Lan Qin saw that Shen Wancheng had repeatedly refused Wen Nan, she knew that Shen Wancheng really had no intention of having anyone else invest.
Lan Qin chimed in to support Shen Wancheng.
"It's Wan Cheng's down-to-earth and pragmatic character that made this old man willing to get up and lend her a hand. Nowadays, most young people are too ambitious and unrealistic. They talk about starting a business, but they always ask for hundreds of millions from their families first. What kind of business is that? Even a pig can be supported by money."
"It is very rare for Wan Cheng to be able to resist temptation."
Seeing that Lan Qin had already said that, Wen Nan had no choice but to give up.
"That's fine."
Wen Nan paused for a moment, then said, "But I'm giving you a heads-up first. Once the VIP requirements are set up, I need to be the first to know."
Shen Wancheng readily agreed, "Okay."
"If you want to attract investment or shareholding in the future, please tell me first."
Shen Wancheng nodded, "Okay."
In fact, after Shen Wancheng spent US$170 million to buy diamonds in South Africa, she only had about HK$4000 million in circulating funds left. (The exchange rate was calculated incorrectly earlier, so the amount has been changed.)
To be honest, it's not that many. After all, Shen Wancheng had already decided to keep the two most important watches, the couple's watches, from her first batch of watches, so it wasn't profitable.
The first batch of luxury watches is planned to produce only 20 pieces. After deducting the 18 pieces that Shen Wancheng keeps for herself, the average price of these watches will be two to three million Hong Kong dollars, which means the total selling price will be around fifty million.
Shen Wancheng spent HK$170 million to buy rough diamonds, which is more than HK$800 million. Adding production costs, sales costs, etc., the total cost of the eighteen watches would be HK$1000 million, which is an 80% profit.
It sounds like a huge profit, but Shen Wancheng knows that the raw material costs of other luxury brands are definitely not as high as hers. For example, if she gave the two boxes of rough diamonds she bought to other high-end luxury brands, they would definitely be made into the highest quality watches and sold for more than a million dollars.
Therefore, Shen Wancheng felt that she was still quite conscientious.
Although it sounds like there's an 80% profit margin and you can quickly recoup your investment, that's not actually the case.
Who can guarantee that once it's produced, it will be sold?
The high price of luxury handbags means that if a single item doesn't sell, millions of Hong Kong dollars will be frozen.
Therefore, Shen Wancheng cannot include these profits in the company's working capital calculation.
In other words, Shen Wancheng's only available cash is the 4000 million yuan left over from buying rough diamonds.
And she has many other places where she needs to spend money.
For example, the 20 yuan that Shen Wancheng had given Lan Qin earlier for haute couture gowns had long since been replaced with expensive fabrics. But haute couture gowns aren't just expensive because of the fabrics; these gowns may also be adorned with gemstones and diamonds, all of which cost money.
In addition, Shen Wancheng wants to create Oriental Elegance as a comprehensive high-end luxury brand.
It will not only sell watches and clothing, but also bags, suitcases, and jewelry.
Like watches, these two items represent only small-scale investments of tens of millions.
All of Shen Wancheng's plans require money.
However, she still rejected Wen Nan's investment.
why?
Firstly, once Shen Wancheng and Gu Jinxing get married, Wen Nan will become Shen Wancheng's mother-in-law. Since ancient times, the relationship between mother-in-law and daughter-in-law has been a sensitive issue. If financial interests are added to this, and if the company has any financial problems, or if Shen Wancheng and Wen Nan's relationship with her mother-in-law is not good, it will cause big problems in the future.
Shen Wancheng didn't want to cause trouble for herself. Even brothers should keep clear accounts, and mothers-in-law and daughters-in-law should avoid financial dealings even more.
Secondly, Shen Wancheng is confident in her abilities. She firmly believes that Oriental Elegance will become a world-renowned top luxury brand and one of the top companies in terms of market value in Hong Kong.
The original shares of Dongfang Yasong will become incredibly valuable in the future, and Shen Wancheng is unwilling to let others share in that pie.
Even if Gu Jinxing wanted to invest, Shen Wancheng wouldn't agree, let alone Wen Nan.
Of course, Shen Wancheng also knew that Wen Nan's desire to invest in Oriental Yasong was not because Oriental Yasong was still a new company, but because she had the intention of taking advantage of it after it grew and expanded.
Instead, Wen Nan realized that Shen Wancheng would definitely need to invest in high-end custom-made products, and that small workshops had no future. That's why she suggested investing in Dongfang Yasong to help Shen Wancheng grow stronger and bigger.
Wen Nan's intentions were good.
Shen Wancheng was very grateful, so once Dongfang Yasong finalized the VIP customer threshold rules, she would directly include Wen Nan in the VIP list.
While VIP members may only receive notifications of new product launches, they can purchase these benefits for any product under the brand.
But Shen Wancheng believes that in less than a year, the VIP membership at Oriental Elegance will be something that Hong Kong's wealthy wives will be eager to compete for.