Chapter 232 Headquarters and Financing
“When did you come?”
“A month ago, the boss was an American artist and an art broker.”
“You Do you know him?”
“No. But when his studio first opened, many artists came and invited us, but we were too busy and declined,” Teng Huaming said.
Xu Liang nodded, didn't ask any more questions, and asked Teng Huaming to sit down on the sofa in the reception area next to him.
“I have read the second quarter report of New Dream, and it is very good.”
Now New Dream has a total of four businesses.
First, art training for high school students includes all college entrance examination art subjects including art, Chinese painting, performance, vocal music, performance, dance, etc.
Second, art training for young children and teenagers, in addition to the above subjects, also includes speech, hip-hop and other content.
Third, subject-based education is ‘ideal education’.
Fourth, vocational training, which is the ‘animation training’ and ‘game design training’ jointly founded with Hongmeng.
College entrance examination art training is New Dream’s earliest business with the strongest foundation. It has established its own ‘art training centers’ in 37 cities across the country, and the number of students trained has exceeded 15,000.
In the second quarter, net revenue of 36.7 million Huaxia coins was generated.
Kindergarten art education and subject education have developed almost simultaneously. Now there are 53 training centers in the four first-tier cities of Beijing, Shanghai, Pengcheng and Yangcheng.
As of the second quarter, due to its strong foundation, the number of primary school art education has exceeded 8,000, creating a net revenue of 19.06 million Chinese dollars.
Ideal education has more people, because extracurricular tutoring in subject education is almost a necessity.
Chinese parents are really too willing to spend money on their children’s education.
Although Ideal Education was established the latest, the number of students exceeds that of primary school art education. It currently exceeds 13,000, and its growth rate is much higher than that of college entrance examination art training.
This is also understandable. The total number of art students taking the college entrance examination was only over one million at its peak.
But how many junior high school students are there in the country?
More than sixty million.
Even if you exclude those who live in rural areas and are unable to attend cram schools, the amount is still over 10 million.
Plus some high school students.
The market is too broad.
Now ideal education is not even a drop in the bucket.
No wonder New Oriental was able to reach a market value of nearly US$30 billion in the US stock market.
Compared with the previous three businesses.
The revenue from the fourth vocational training is much less.
The total training scale is 120 people. Although the monthly training fee is as high as 1,500 yuan, the total for three months is only 540,000 Huaxia coins.
Adding up the four items, New Dream's net revenue from its main business in the second quarter of 2001 was 74.3 million Chinese dollars.
After deducting operating expenses, salary and welfare expenses, loan interest expenses and other miscellaneous items, the net profit surplus was 31.949 million Chinese yuan, with a net profit margin of 43%.
The reason why it is so high is that New Dream is one of the ‘Top Ten Innovative Enterprises’ in Beijing and only pays half of the corporate income tax in three years.
After deducting development funds, New Dream and Ideal Education currently have 59.25 million Chinese dollars in cash on their account.
According to the current development trend of New Dream, it will definitely be no problem to repay the due debt of 50 million Huaxia coins before the end of the year.
"Going from 0 to 1 is the hardest. Without the foundation you laid before, the new dream would not be able to develop so fast." Teng Huaming said modestly.
"Old Teng, you are always so humble."
"As I get older, what stands out is that I am modest and prudent." Teng Huaming's rare humor bought him a thumbs up.
After the two looked at each other, they couldn't help laughing.
Teng Huaming is steady, like the ballast stone of a large ship, allowing it to remain stable when traveling through strong winds and waves.
Xu Liang is the most important helmsman on this ship, always guiding its future course.
The two of them cooperated with each other to make the new dream grow steadily.
“What are the plans next?” Xu Liang asked.
Although he controls the future of New Dream, Teng Huaming always finds some gaps that need to be filled in during his actual work.
"Mr. Xu, I want to contact Qixing Huadian Group and buy the entire Area A of Factory 798."
Xu Liang knew that he would not make a mistake, so he made a gesture to continue talking.
“Since the opening of the Bruce Art Studio in District 798C, twelve artists have moved their studios here in the past month or so.
Yes It is foreseen that the low rent of 798 will attract more art practitioners and even art institutions.
Once the scale of the 798 factory is established, the rent of our office will also increase. Costs and teaching costs will also increase
In addition to the above external factors, with the rapid development of our new dream, the existing office has been damaged and a new office area is needed.
Moreover, New Dream College Entrance Examination Art Training, Infant and Child Training, Ideal Education Subject Training and Vocational Training have different teacher quality and teaching content, making them not suitable for working together for a long time. In addition, as the number of our students grows, the existing teaching space is also beginning to be stretched.
Although it is possible to continue leasing, instead of using this tactic to add fuel to the fire, it is better to buy the entire Area A of Factory 798 directly.
I have consulted with Qixing Huadian Group. Area 798A covers an area of 127,000 square meters and a construction area of 88,000 square meters. However, industrial plants are generally taller and can be internally renovated like ours.
If all are partitioned, the construction area can reach 160,000 square meters.
Plenty of space, we can plan it calmly.
In addition to office space, teaching space, dormitories, and restaurants, I plan to use top-notch equipment to build a music hall with an area of more than 2,000 square meters and an exhibition hall with an area of 20,000 square meters.
The music hall is mainly used for students in our vocal class, performance class, and instrumental class to perform dramas and music concerts on stage, which can not only increase their performance experience, but also charge external fees.
Of course, due to their level, we can charge lower tickets. But if the influence is spread, it will also become a support point for our revenue.
Moreover, rich performance experience will also become an attraction for us to recruit students.
Private teachers cannot provide this. "
Xu Liang kept nodding, and it was obvious that Teng Huaming had put a lot of thought into this aspect.
"...The exhibition hall mainly implements your ideas. Now the first batch of students from the eight major art academies we have trained have been confirmed, with a total of 317 people.
In the past year, they have left us a total of more than 90,000 large and small exercises. Excluding some of low quality, there are still more than 60,000.
It’s enough for us to fill the exhibition hall and sell it to the outside world. "
After saying so much, Teng Huaming took a breath and looked at Xu Liang, wanting to hear his opinion.
The latter thought for a moment.
"Buying land is very expensive. It's easy, as long as you have money, if you don't have enough, you can get a loan. But there is one thing. The factory area of Qixing Huadian Group is industrial land. If we buy it and develop it, we have to change the nature of the land. This is the difficulty. ”
“It’s hard for others, but not hard for you. "Teng Huaming smiled.
"How do I have such great ability?"
"You do. Just because you are the boss of Hongmeng, just because Hongmeng is valued at US$3.36 billion, and just because Hongmeng is now the number one technology company in China, or One of the few successful multinational technology companies in China, whether in Beijing or above, needs Hongmeng as a business card for external display.
So, if you come forward, you can not only change the nature of the land in District 798A, but also change it. Change commercial land into educational land. "
Xu Liang laughed and scolded: "You think it is beautiful, the Beijing Land Bureau is not opened by my family. "
The acquisition of educational land and commercial land. The cost of land is several times higher.
Many domestic universities with real estate development qualifications cooperate with real estate developers to acquire land at low prices in the name of educational real estate, then build communities and sell them at high prices to make profits.
Although Xu Liang is also qualified to copy this method.
But the money earned through gray transactions is too risky, and it can easily become a weakness for others in the future.
It’s not like he doesn’t have serious ways to make money, so why take such a big risk?
"Contact Qixing Huadian Group first and see how much they sell it for?" Xu Liang explained.
Teng Huaming nodded.
"By the way, Mr. Xu. CAFA has sent your admission notice. I will ask Xiao Wang to send it to you later."
Xu Liang understood. , "I thought they would send it home."
Teng Huaming smiled, "Mr. Xu, do you still have time to go to college now?"
He could tell that Xu Liang There is less and less focus on new dreams. The reason is also very simple. Hongmeng is already a behemoth that truly spans more than 20 countries in Europe and Asia and is still developing rapidly.
If you want to truly control the development direction of this big guy, you must invest more energy.
"I have to go. If nothing else, I have a high degree so I won't be looked down upon except when talking about things." Xu Liang said with a smile.
“With your current achievements, no one will look down on you.”
“Who knows, and I quite like painting. Maybe I will wait for a hundred years in the future. Paintings can be as valuable as Van Gogh, so I can leave my name in history, haha."
Painting is a hobby that he has persisted in for his whole life, and he is quite good at it. Talent, so the level is no worse than those graduates from top art academies.
Teng Huaming agreed and smiled, "Mr. Xu, recently many investment institutions have asked us if we have any intention to raise funds?"
"IDG and Yingke?"
"And Kleiner Perkins Caufield & Byers Ying, Ba Ling Capital," Teng Hua Ming said.
Xu Liang nodded, "What are your plans?"
"I want to raise funds. Now the domestic education industry is attracting more and more attention. If we can't take the absolute lead at the beginning Advantages will affect the future listing of the company
You know that number one always gets the most attention at any given time. And not many people care about second place. "
Xu Liang nodded.
After pondering for a while.
"Then let's raise funds. But there is no need for New Dream. With Ideal Education as the main financing, there is no need for an angel round. It will directly take out 15% of the shares in the A round and raise funds from IDG and Yingke.
After all, I had promised someone earlier, and I couldn’t go back on my promise midway. ”
(End of this chapter)